09 November 2021
The Government of Jersey and the Government of the United Arab Emirates (UAE) have signed a Bilateral Investment Treaty (BIT), the first of its kind for the Island, in Dubai.
Bilateral Investment Treaties (BITs) are international agreements that help facilitate increased flows of investments from investors of one jurisdiction into the territory of the other jurisdiction. BITs do this by providing investors with greater protection and certainty of treatment regarding their investments, helping to enhance international investments and promoting sustainable economic development.
The negotiations on the Jersey-UAE BIT have been underway since 2018. The Jersey-UAE BIT is designed to promote responsible investment including considerations of public health, the environment, and labour protections. The new Agreement has been designed specifically to meet Jersey’s requirements and is in line with Jersey’s economic substance regime.
The agreement was signed by the Minister of State for Financial Affairs, His Excellency Mohammed Bin Hadi Al Husseini, on behalf of the Government of the UAE, and by the Minister for External Relations and Financial Services, Senator Ian Gorst, on behalf of the Government of Jersey.
Following the signing Senator Gorst said: “This BIT is the first of its kind for the Island and represents an important milestone in the development of the Island’s international relations. It is vital that Jersey can broaden its own treaty network post-Brexit, including through agreements like BITs, which support the growth in investment between both jurisdictions.
“It presents a positive opportunity for the Island to illustrate its presence and significance on the international stage, as well as highlighting our commitment to being an innovative and outward-looking international finance centre.
“This agreement with the UAE will protect Jersey companies’ investment in the UAE, and vice versa, and is a modern agreement that reflects international best practice in investment treaty design.”
His Excellency Mohamed Bin Hadi Al Hussaini reaffirmed the UAE's keenness to bolster its relations with various countries of the world by signing such agreements, which contribute to echoing the country's global financial and investment presence.
His Excellency said: “Signing the agreement on mutual promotion and protection of investments between the UAE and Jersey reaffirms both countries’ leaderships’ ambition to strengthen economic and investment cooperation in various economic and financial fields. It also reiterates their commitment to provide the appropriate environment to attract foreign investments in accordance with a legal and legislative system that is in line with best international practices.”
Although commonly referred to as a Bilateral Investment Treaty, the full name is ‘Bilateral Agreement for the Promotion and Protection of Investments between the Government of Jersey and the Government of the United Arab Emirates.’