Bahrain and UAE ratify Investment Protection Agreement

Bahrain has ratified the Investment Protection Agreement (IPA) with the UAE. The agreement establishes a legal framework to protect investors, promote cross-border business, and provide structured dispute resolution mechanisms.

The IPA includes several key provisions to ensure fair treatment and security for investments. Both countries commit to encouraging investments within their domestic legal frameworks while guaranteeing protection against discrimination. Investors from Bahrain and the UAE will receive treatment no less favorable than that given to third-country investors and, in most cases, equal to domestic investors. The agreement also addresses digital trade, requiring collaboration on cybersecurity, intellectual property, and technology standards.

Expropriation of investments is restricted to cases of public welfare, with mandatory fair compensation. In the event of losses due to conflicts or similar circumstances, investors are entitled to compensation equivalent to that provided to local or foreign investors. The deal ensures the free transfer of investment-related funds in convertible currencies and establishes multiple dispute resolution options, including negotiations, local courts, and international arbitration through bodies like ICSID.