The United Arab Emirates and Israel have reached a preliminary agreement on avoiding double taxation to encourage investments between the two countries, state news agency WAM reported on Thursday.
UAE Under-Secretary of the Ministry of Finance Younis Haji al-Khoori said: “The UAE is the first Arab country to conclude an agreement to protect and encourage investment with Israel.”
He added: “The first round of negotiations on an agreement to protect and encourage investment confirms the two countries' efforts to build investment partnerships in various fields."
HE Younis Haji Al Khouri, Undersecretary of MoF, noted that the #UAE has made significant strides in signing agreements to protect & encourage investments. HE pointed that UAE is also the first Arab country to conclude an agreement to protect & encourage #investment with Israel pic.twitter.com/tp1hKvtnYJ— Ministry of Finance (@MOFUAE) October 15, 2020
The agreement is meant to protect investments from “non-commercial risks such as nationalization, confiscation, judicial seizures, freezing assets, establishing licensed investments, and transferring profits and revenues in convertible currencies,” according to WAM.
It also provides “national and MFN treatment, no interference on all investment related topics, fair and immediate compensation for the investor in case of seizures according to the law, without any form of discrimination and according to the market value of the investment.”
The UAE normalized ties with Israel after a US-brokered deal which was announced at the White House on August 13 and signed in Washington on September 15.
The UAE agreed to normalize relations with Israel, while Israel agreed to continue with plans to suspend its annexation of the West Bank. The UAE also abolished on August 29 a previous law that mandated an economic boycott of Israel.