India breaks the mould, signs liberal treaty with UAE

A revamped India-UAE Bilateral Investment Treaty (BIT), which came into force recently, makes conditions for enhanced investment flows from the West Asian kingdom, analysts said. It breaks the template of text of the model treaty by offering protection to portfolio investments, and lets investors seek international arbitration after 3 years instead of 5.

The treaty was signed on February 13 this year, replacing the earlier Bilateral Investment Promotion and Protection Agreement (BIPPA) between India and UAE signed in December 2013 and expired on September 12, 2024.

“This (treaty) will give a boost to the greater degree of Investments that India seeks to receive from the UAE. We discussed several emerging sectors like Data Centres and Artificial Intelligence,” commerce and Industry Minister Piyush Goyal said after the 12th meeting of India UAE High-level Task Force in Investments here on Monday.

Co-investing in Renewable Energy and Transmission Infrastructure for Solar and Wind Power in India, as well as significant ramp-up of UAE Investments, both in strategic sectors and core infrastructure opportunities, are also envisaged under the new BIT. (Financial Express)

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