India-UAE BIT 2024 to Strengthen Investor Confidence: Finance Ministry

The India-UAE Bilateral Investment Treaty (BIT) 2024 aims to enhance investor confidence by ensuring fair treatment and non-discrimination. It also provides an independent arbitration forum for dispute resolution. However, the treaty carefully balances investor protection with the right of both nations to regulate, preserving adequate policy space for governments, according to a statement by the Ministry of Finance.

The Ministry further emphasized that the signing and enforcement of this BIT reflect the shared commitment of India and the UAE to strengthening economic ties. It is expected to create a more stable and resilient investment environment. As a result, bilateral investments will likely increase, benefiting businesses and boosting both economies.

Signed on February 13, 2024, in Abu Dhabi, the treaty officially came into force on August 31, 2024. This new BIT ensures continuity in investment protection for investors from both nations, replacing the earlier Bilateral Investment Promotion and Protection Agreement (BIPPA), which expired in September 2024.

The UAE plays a significant role in India’s foreign investment landscape, being the seventh-largest contributor to Foreign Direct Investment (FDI) in India, with a 3% share. Between April 2000 and June 2024, the UAE invested approximately $19 billion in India. Similarly, India has made substantial investments in the UAE, accounting for 5% of its total Overseas Direct Investments (ODI) with $15.26 billion invested from April 2000 to August 2024.

The India-UAE BIT 2024 is expected to foster a stronger economic partnership, offering a secure and favorable environment for future investments between the two countries. Both nations anticipate that the treaty will fuel further growth in bilateral economic cooperation, driving prosperity for businesses and investors.