UAE – Hungary deal to pave way for economic development
The UAE, represented by the Ministry of Finance (MoF), has signed an agreement to promote and protect mutual investments with Hungary. The agreement, which was signed at the ministry’s headquarters in Abu Dhabi, aims to enhance economic cooperation, provide an optimal investment environment, and secure a comprehensive balance between rights and obligations between investors and the host country, thus stimulating business initiatives for sustainable economic development.
The agreement was signed by Younis Haji Al Khoori, Under-Secretary of Ministry of Finance; and Osama Naffa, Hungarian Ambassador to the UAE, in the presence of senior officials from MoF. The agreement protects both nations’ investments from all non-commercial risks including nationalization, confiscation, judicial seizures, and freezing; and it creates a conducive environment for mutual investments and licensing.
It also covers the transfer of profits and revenues in convertible currency and provides investors with just and immediate compensation for their investments in case of their appropriation for the public interest – following the approved law and provided that the compensation value is per the market value of the investment before its seizure.
Al Khoori reaffirmed the UAE’s keenness to protect the UAE investments abroad and provide the optimal economic environment to attract foreign investments following a legal and legislative system that is in line with international best practices.
He added, “Agreements on protection and promotion of investments provide the legal framework and grant national and most-favored-nation (MFN) treatment in the management, maintenance and expansion of investments, with emphasis on non-interference in all investment-related subjects.”
“Hungary is one of the UAE’s leading economic partners in the Central and Eastern European Countries (CEECs). This agreement underscores both nations’ efforts to bolster bilateral relations, enhance cooperation in the economic and financial sectors, and encourage the growth of mutual investments.”
The UAE, represented by the Ministry of Finance, has signed 101 bilateral agreements to protect and encourage investment with different countries around the world. These agreements support the country’s efforts to establish international partnerships to achieve common goals in line with the sustainable development goals, which represent a roadmap for establishing cooperation at an international level.