Officials From UAE and Philippines during the signing ceremony.
UAE’s Ministry of Finance (MoF) has signed an agreement with the Republic of the Philippines in order to promote and protect mutual investments.
The agreement comes as part of the ministry’s keenness to enhance its commercial and investment relations with various countries of the world.
Protection and Promotion of Investments Agreements aim to protect investments from all non-commercial risks like nationalization, expropriation, and sequestration unless it is for the purpose of public interest and in accordance with the law.
Mohamed bin Hadi Al Hussaini Minister of State for Financial Affairs UAE
“The agreement is important in bolstering economic and commercial cooperation and creating an investment climate, to attract capital-intensive foreign investments and provide incentives. At the Ministry of Finance, we are keen to strengthen international relations and sign agreements that enhance the investment climate and elevate the business incubator environment. These agreements serve as a key international policy tool to encourage foreign direct investment and provide legal protection for both parties’ investments following international law, thereby stimulating business initiatives to achieve sustainable economic development.”
According to the statement, “These agreements provide investors a just compensation for their investments, provided that the compensation value is in accordance with the market value of the investment prior to its nationalization or expropriation – with the exception of natural resources from the provisions of the agreement.”
The agreement also provides compensation for the investor, if his/her investments are destroyed as a result of wars, conflicts, civil disobedience, or demonstrations.
Furthermore, the agreement intends to set the dispute settlement procedures between the investor and the State, including the amicable solution and local courts or international arbitration ‘International Centre for Settlement of Investment Disputes’ (ICSID), as per the statement.
The UAE, represented by the Ministry of Finance, has signed 107 bilateral agreements to protect and encourage investment with different countries around the world.
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