Israel, UAE agree to boost investment in each other’s economies, The Express Tribune
Israel and the United Arab Emirates (UAE) have reached a bilateral agreement that will give incentives and protection to investors investing in each other’s countries, both finance ministries said on Sunday.
The agreement is one of the first between the United Arab Emirates and Israel after agreeing to normalize relations in August.
It is also the first such agreement in which Israel has entered into an agreement with the Arab country, and with 36 other mainly Western countries, Israel will have such a 37th treaty. It was last signed with Japan in 2017.
Younis Haji Al Khurai, Under Secretary of the UAE’s Ministry of Finance, said in a statement that the UAE has signed 99 investment protection treaties and that it will strengthen Israel’s economic ties, boost competition and increase investment attractiveness between the two countries .
Under the deal, which still needs to be signed by both finance ministers, investors will be protected from arbitrary changes in regulation and political conditions and will be able to transfer money from the country if needed – the Israeli ministry said That investors feel comfortable.
The UAE’s Ministry of Finance said the agreement would protect investment from non-commercial risks such as “nationalization, confiscation, judicial seizures, freeze assets, establishing licensed investments and transferring profits and revenues in convertible currencies.”
Israeli Finance Ministry chief economist Sheera Greenberg said the agreement would benefit the private sector to boost competition in Israel’s economy.
Last week, the UAE and Israel reached a preliminary agreement on a separate agreement, which would avoid double taxation.