Bilateral Investment Treaty between India and UAE Comes into Effect

New Delhi, October 7: The Bilateral Investment Treaty (BIT) between India and the United Arab Emirates (UAE) has officially come into effect from August 31, 2024, providing continuous investment protection to investors from both nations.

The Ministry of Finance released a statement on Monday announcing the implementation of the BIT between India and the UAE. The treaty, which was signed in Abu Dhabi on February 13, 2024, became effective on August 31, 2024. The ministry highlighted that this agreement ensures ongoing investment protection for investors from both countries.

The earlier Bilateral Investment Protection and Promotion Agreement (BIPPA), signed between India and the UAE in December 2013, concluded on September 12, 2024. The Ministry of Finance expressed optimism that the new BIT would enhance trust and ease among investors, paving the way for increased bilateral investment, benefiting businesses and the economies of both nations.

Notably, the UAE ranks as the seventh-largest contributor to India's total Foreign Direct Investment (FDI), accounting for a 3% share, with cumulative investments amounting to approximately USD 19 billion from April 2000 to June 2024. Meanwhile, India has invested around 5% of its total FDI in the UAE, amounting to USD 15.26 billion, during the same period. Additionally, the Free Trade Agreement (FTA) between the two countries came into force on May 1, 2021.