In a recent investment agreement with the United Arab Emirates (UAE), India shortened the duration for foreign investors to seek international arbitration from five years to three years, departing from its precedent-setting Bilateral Investment Treaty (BIT).
Investors may turn to international arbitration under the Investor-State issue Settlement (ISDS) mechanism if the Indian legal system cannot settle an issue in this condensed amount of time.
The old agreement was replaced on August 31 by the investment pact signed in Abu Dhabi on February 13. In contrast to the model BIT, which protects foreign direct investment (FDI) but leaves out portfolio investments like stocks and bonds, India’s new agreement includes shares and bonds as protected investments.
Some of our Indian companies think there are issues with the UAE, and some UAE companies may have issues with India, according to the many topics we discussed today (Monday). After co-chairing the 12th meeting of the India-UAE high-level joint task force on investments with Sheikh Hamed bin Zayed Al Nahyan, managing director of the Abu Dhabi Investment Authority (ADIA), Goyal told reporters that BIT will help provide a framework by which both sides can resolve these issues.
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