Tue 08-02-2022 16:06 PM
DUBAI, 8th February, 2022 (WAM) -- The UAE, represented by the Ministry of Finance (MoF), signed an agreement to promote and protect mutual investments with the Republic of Mozambique.
The agreement, which was signed yesterday at MoF’s headquarters in Dubai, comes as part of the ministry’s ongoing efforts to strengthen and activate means of economic and investment cooperation with various countries of the world. The agreement protects both nations' investments from all non-commercial risks, covers transfer of profits and revenues, and facilitates resolving disputes.
Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, signed the agreement on behalf of the UAE, while Carlos Alberto Fortes Mesquita, Minister of Industry and Commerce, represented Mozambique in the signing, in the presence of Abdullah Ahmed Al Obaidly, Director of Relations and International Financial Organisations and senior officials from MoF.
Al Hussaini stressed on the importance of signing an agreement to promote and protect mutual investments with the Republic of Mozambique in contributing to strengthening bilateral relations and expanding means of joint cooperation across various economic and financial sectors; thereby encouraging investment growth and achieving mutual benefits to meet the interests of both countries.
He said, "Signing this agreement aims to achieve both countries’ leadership’s keenness to bolster strategic partnership to provide an optimal economic environment to attract foreign investments in accordance with a legal and legislative system that is in line with international best practices."
The agreement protects both nations' investments from all non-commercial risks including nationalisation, confiscation, judicial seizures, and freezing; and it creates a conducive environment for mutual investments and licensing. It also covers transfer of profits and revenues in convertible currency. That, in addition to granting national treatment in accordance with the laws enforce in the State, and the most favored nation treatment, with respect to management, maintenance and expansion of investments; as well as setting the dispute settlement procedures between the investor and the State, amicable solution or local courts or international arbitration.
Additionally, the agreement provides investors a just and immediate compensation for their investments in case of their appropriation for the public interest – in accordance with the approved law and provided that the compensation value is in accordance with the market value of the investment prior to its seizure.
The UAE, represented by the Ministry of Finance, has signed 105 bilateral agreements to protect and encourage investment with different countries around the world. These agreements provide a legal framework that protects Emirati investments from all illegal risks.