Rapid Fire
Strengthening India-UAE Investment Relations
- 09 Oct 2024
- 2 min read
India has reduced the local remedies exhaustion period for United Arab Emirates (UAE) investors from five years to three years under the India-UAE Bilateral Investment Treaty (BIT).
- The BIT came into force on 31st August 2024, ensuring continuity of investment protection after the expiration of the earlier Bilateral Investment Promotion and Protection Agreement (BIPPA).
- The BIT assures minimum treatment standards (fairly and equitably) and independent arbitration for dispute resolution.
- The local remedies exhaustion period is the time frame an investor must attempt to resolve a dispute through the host country’s legal system before seeking international arbitration.
- In another development, the Abu Dhabi Investment Authority (ADIA) has opened an office in GIFT City to enhance its investment activities in India.
- UAE continues to be the largest Arab investor in India, with investments amounting to around USD 3 billion in FY 2023-24.
- The UAE was the sixth-largest Foreign Direct Investment (FDI) source for FY 2023-24 and the seventh-largest overall since 2000.
- Over 70% of all Gulf Cooperation Council (GCC) investments in India come from the UAE.
- Additionally, India and the UAE are advancing plans for a USD 2 billion food corridor to enhance UAE food security and support Indian farmers, with the Comprehensive Economic Partnership Agreement (CEPA) and BIT ensuring duty-free access and a stable investment climate for UAE businesses.
