It aims to encourage foreign investment in the country and enhance economic cooperation

The UAE and Hungary sign an investment protection agreement

Al-Khoury (left) and Nafaa during the signing of the agreement.

From the source

Yesterday, the UAE, represented by the Ministry of Finance, signed an agreement to protect and encourage investments with the government of Hungary.

In a statement, the ministry stated that the agreement aims to strengthen economic cooperation, provide an optimal investment environment for investors, as well as secure a comprehensive balance between rights and obligations between investors and the host country, stimulating business initiatives for sustainable economic development.

The UAE side was represented in signing the agreement, Undersecretary of the Ministry of Finance, Younis Haji Al-Khoury, while the agreement was signed by the Hungarian Ambassador to the UAE, Osama Nafaa, on behalf of the Hungarian side.

The agreement provides for the protection of the investments of both sides from non-commercial risks such as nationalization, confiscation, judicial seizure and freezing, and it also facilitates allowing the establishment of mutual investments, and granting licenses for these investments.

The agreement affirms the right to transfer profits and other returns on investments in a free convertible currency, and allows the investor to be compensated fairly and immediately for his investment in the event of its appropriation for the public interest, in accordance with the law and without discrimination, provided that the value of the compensation is in accordance with the market value of the investment before it was seized.

Al-Khoury stressed the UAE's keenness to protect Emirati investments abroad, and to provide the appropriate atmosphere to attract foreign investments, in accordance with a legal and legislative system that rises to the best international practices.

He said that the agreements to protect and encourage investments provide the legal framework and grant national treatment and treatment to the most favored nation, with regard to the management, maintenance and expansion of investments, with an emphasis on non-interference in all issues related to investments.

It is noteworthy that the UAE, represented by the Ministry of Finance, has signed 101 bilateral agreements to protect and encourage investment with various countries.

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