21 June 2019
UAE: Hong Kong Signs Accord with UAE to Protect Investments
Hong Kong and the United Arab Emirates (UAE) have signed a new agreement to protect and promote investment.
The Hong Kong - United Arab Emirates Investment Promotion and Protection Agreement (IPPA), signed in Dubai on 16 June, commits both parties to provide fair and equitable treatment of investors in areas such as compensation in the event of expropriation of investments, and the right to free transfers abroad of investments and returns. IPPA also provides for the settlement of investment disputes under internationally accepted rules.
The agreement was signed by Younis Al Khoori, Undersecretary of the UAE Ministry of Finance and Dr Bernard Chan, Undersecretary for Commerce and Economic Development Bureau, Hong Kong, in the presence of officials from both sides. Prior to the signing, Dr Chan and the trade mission delegates attended a briefing jointly organised by the Hong Kong Trade Development Council and the Dubai Investment Development Agency, where they were briefed on the investment opportunities arising from the latest infrastructure projects in the UAE.
Furthermore, Dr Chan said that the Hong Kong Government is actively preparing to set up a new Economic and Trade Office (ETO) in Dubai to further strengthen the relations with the UAE. It will be Hong Kong’s 14th ETO, and the first such office in the Middle East region.
Undersecretary Al Khoori said: “The signing of the Investment Promotion and Protection Agreement between the UAE and Hong Kong creates a conducive investment environment that provides guaranteed growth, expansion and protection of investments. Additionally, this agreement will strengthen the investment partnership between the two places, and will encourage government, semi-government and private sectors to forge mutually beneficial relationships.”
The UAE has close ties with Hong Kong and is party to several international agreements with Hong Kong, including an agreement on the avoidance of double taxation signed in December 2014.