NEW DELHI - In a move that would promote and protect bilateral investments, the Indian Union Cabinet approved on January 12, 2006, the proposal for signing the Bilateral Investment Promotion and Protection Agreement (BIPPA) with the Kingdom of Saudi Arabia (KSA).
According to a press release by the Press Information Bureau of India, the agreement aims to promote and protect investments in both countries. As per the agreement, “Investment” is defined as every kind of asset, including Intellectual Property Rights (IPRs) that complies with the laws and regulations of the country in which the investment is made.
The text provides for extending National Treatment and Most Favored Nation (MFN) treatment to foreign investments and investors.
In respect of disputes between an investor and the host government, as well as between the two governments, a dispute resolution mechanism including an international arbitration procedure is prescribed.
India has signed BIPPA with 57 countries and agreements have also been finalized with four other countries.