The Agreement On The Promotion Of Investment, With The United Arab Emirates

Original Language Title: Dohoda o podpoře investic se Spojenými arabskými emiráty

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69/1996 Coll.


Ministry of Foreign Affairs

Ministry of Foreign Affairs says that the 23 July. November 1994 was

in the Abu Dhabi agreement signed between the Government of the United Kingdom and the Government of

The United Arab Emirates on the promotion and protection of investments.

Parliament gave its assent to the agreement the United States and the President of the

the Republic has ratified it.

The agreement on the basis of article 14, paragraph 1. 1 came into force on 25 September 2004.

December 1995.

The Czech version of the agreement shall be published at the same time. In the English text of the agreement,

for its interpretation of the applicable, can be consulted at the Ministry of

Foreign Affairs and the Ministry of finance.


between the Government of the United Kingdom and the Government of the United Arab Emirates about

investment promotion and protection

The Government of the United Kingdom and the Government of the United Arab Emirates (both countries

jointly referred to as "the Contracting States" and each separately

referred to as the "Contracting State"),

Desirous of creating favourable conditions for greater economic cooperation

between them, and in particular for investments of the investors of one Contracting State to the

the territory of the other Contracting State,

Recognizing that the encouragement and reciprocal protection of investments on

the basis of the international agreements will encourage entrepreneurial initiative and

increase prosperity in both Contracting States,

They agreed on the following:

Article 1

The definition of the

For the purposes of this agreement:

(1) the concept of "investment" refers to each assets invested

the Government or a person or body of a Contracting State to the

the territory of the other Contracting State in accordance with the laws, regulations and

institutional procedures of that State, and includes, in particular, but not limited to:

a) movable and immovable property, as well as other rights in rem, such as

mortgages, pledges, guarantees, rights of use and similar rights;

b) stocks, bonds and deposits of companies or other rights or interests in

such companies, loans relating to investments and bonds

issued by a Contracting State or any of its natural or legal

people and revenue withheld for the purpose of reinvestment;

c) liquid assets, deposits and cash claims or claims for

the supply of contract having economic and financial value that is associated with the

the investment;

d) copyrights, trademarks, patents, industrial designs and other

industrial property rights, know-how, trade secrets, business

names and goodwill;

(e)) the rights conferred by law, administrative decision, or agreement,

including licenses and permits issued in accordance with the law, to

the economic value and are necessary for the achievement of economic

activities, such as the rights to explore, search, extraction, quarrying and

use of natural resources.

Any change in the form in which they are invested, will not have values

impact on their reviews as an investment.

(2) the term "investor" means the Government of a Contracting State or any of its

a natural or legal person who invests on the territory of the other

Of a Contracting State:

and) the notion of "natural person" means, in respect of any Contract

the State of an individual possessing the nationality of a Contracting State in

accordance with its legal system.

b) "legal person" means, with respect to any Contracting State

any company established in accordance with the laws of this

Contracting State and recognised in accordance with the laws of the legal

person, such as: public and private companies, trading companies,

trade associations, public administrations, companies, foundations,

companies, institutions, organizations, agencies, development funds, businesses,

cooperatives and organisations or other similar companies, regardless,

whether they are limited or not.

(3) the term "returns" means the amounts yielded from investments and includes

in particular, but not exclusively, profits, interest, capital gains,

dividends, royalties, management fees, technical assistance or other

fees, regardless of the form in which the yield is paid.

(4) the term "territory" means the territory of the Czech Republic or territory of the United

Arab Emirates, as well as the coastal area including Islands,

inland waters, the territorial sea, the exclusive economic zone,

continental shelf, the seabed and subsoil adjacent to the outer

the boundary of the territorial waters of each of the above territory, over which

that State exercises sovereign rights in accordance with national

the legal order and international law.

(5) "associated activities" include the Organization, control, operation, maintenance

and the management of legal entities, branches, agencies, offices,

factories or other devices for carrying out business activities,

the conclusion, execution and performance of contracts, acquisition, use, and protection

available with the property of all kinds, including the rights of intellectual

property rights and industrial property rights, borrowing, financial

funds, the purchase and issuance of common shares and the purchase of foreign currency

for imports.

(6) the term "freely usable currency" means the currency in which it is generally

used by traders to make payments in international trade and that

It is being used on the main exchange markets such as the US dollar,

the pound sterling, Deutsche mark, Swiss franc, French franc.

Article 2

The promotion and protection of investments

(1) each Contracting State will encourage and create favourable conditions for the

investors of the other Contracting State, to invest in its territory, and when

exercising the powers given by its laws and official practices

will tolerate such investments and their associated activities.

(2) investments shall at all times enjoy full protection and security in the

extent appropriate to international law.

(3) each Contracting State shall at all times ensure the fair and

equal treatment to investments of investors of the other Contracting State.

Each State party shall ensure that the management, maintenance, use, exploitation,

the acquisition or disposal of investments or the rights associated with the investment

or, with their associated activities of investors of the other Contracting State

in its territory is not in any way affected or impaired by the wayward,

unjustified or discriminatory measures.


(i) each Contracting State undertakes, in accordance with the laws of the

the measures necessary for the provision of appropriate opportunities, incentives and other

forms of encouragement of investments by investors of the other Contracting


(ii) the Investors of each Contracting State shall be entitled to ask the

the competent authorities of the host State of suitable opportunities, initiatives and

other forms of encouragement and the host State will provide them with all the help,

consent, approval, license, and permission to such an extent and for such

conditions and circumstances, what will be the time determined by the laws of the

of the host State.

(5) in relation to fiscal policy, each State party shall endeavour to

the provision of fair and equal treatment of investments

investors of the other Contracting State.

(6) the Contracting States shall consult each other investment options in a variety of

sectors of the economy in the territory of the second of them with a view to specify where the

investments from one Contracting State on the territory of the other were in the interest of both

Of the States parties is the best.

(7) in order to achieve the objectives of this agreement, the Contracting States will promote

and to facilitate the creation and the establishment of appropriate enterprises with foreign

ventures between investors of the Contracting States for the establishment, development

and the implementation of investment projects in different economic sectors

in accordance with the laws of the host State.

(8) the Investors of each Contracting State will be allowed to employ

senior managers of their choice, regardless of their

nationality to the extent permitted by law of the host State.

A State party shall provide all available benefits, including the issuance of visas and

residence permit these executives and their families, in accordance

with the legal regulations and official practices of the other Contracting State.

(9) the Contracting States shall not, as a condition for the establishment, expansion, or

maintaining investment to lay down requirements that require or impose order

export of manufactured goods or which specify that goods or services must

be purchased at the site, or which impose any other similar


(10) each Contracting State undertakes to provide effective measures to

claims and enforcing rights with respect to the investment agreement,

investment privileges and assets. No Contracting State will not restrict

the right of investors of the other Contracting State to apply to the courts,

administrative courts and authorities and all other authorities with decision-making

the power.

(11) each Contracting State shall make public all legal regulations, the official

the practice and procedure relating to investments or affect them.

Article 3

National treatment and MFN clause

(1) On its territory, each State party will provide investment and

the returns of investors of the other Contracting State treatment no less favourable than that

than it is, which provides investment and the proceeds of their own

investors or investments of investors of any proceeds and of the third State.

(2) each Contracting State shall in its territory to provide investors the second

Of a Contracting State in respect of the management, maintenance, use, recovery,

acquisition or disposal of their investments or any

associated activities, treatment no less favourable than that accorded to

its own investors or to investors of any third State.

Article 4


The provisions of this agreement related to the provision of treatment no less

favourable than that granted to its own investors or to investors

any non-Member State, shall be construed in a way that obliges a

A Contracting State to provide investors of the other Contracting State benefits

the treatment, preferring or privilege resulting from:

(i) any existing or future Customs Union, economic Union or

free trade zone or zone of the common customs tariff or similar

international agreements or other forms of regional or subregional agreements

on cooperation, which is a member of any of the Contracting States or

can happen; or

(ii) any international, regional or subregional agreements or

similar arrangement relating wholly or mainly to taxation or

movement of capital.

Article 5

Compensation for damage or loss

(1) to investors of a Contracting State, whose investments in the territory of

other Contracting State will suffer loss as a result of war or other

armed conflict, revolution, State of emergency, insurrection, riot,

riots or similar events on the territory of the other Contracting State,

shall be provided to the other Contracting State with respect to remedy, the

compensation, compensation, compensation or other settlement, a treatment no less

favourable than what the Contracting Party shall provide the investors with its

own or investors of any third State. Such payment will be

freely transferable.

(2) Notwithstanding the provisions of paragraph 1 of this article will be to investors of one

Of a Contracting State, who, in one of the cases referred to in this paragraph

suffer damage or loss to the territory of the other Contracting State, consisting of:

and their investments, or seizure) of assets by the armed forces or

the official authorities,

(b)) the destruction of their investment or asset, its armed forces or

the official authorities, which was not due to combat action or invoked

the necessity of the situation,

given the immediate and adequate compensation for damage and losses incurred

during capturing or as a result of destruction of property. The resulting payments shall be

made in a freely usable currency and will freely, without delay,


Article 6

Nationalization or expropriation

(1) investments of investors of one or the other Contracting State shall not be

the subject of the seizure, confiscation or similar measures, and they will enjoy

full and full protection and security in the territory of the other Contracting State.

(2) no State party has not taken any measure leading to expropriation

or nationalization or the freezing of assets or any other measure having

the same effect or shall impose such a measure directly or investments

indirectly with equal expropriation, compulsory sale of the entire investment

or part thereof or to worsen or not withhold its management or control.

(3) the measures provided for in paragraphs 1 and 2 of this article may be

made only if the following conditions are met:

and) the measures are taken because of the Supreme and fundamental public


(b) measures are taken in) accordance with the Constitution and national laws and

the General principles of international law;

c) measures are not discriminatory;

(d)) the measures shall be made in accordance with the law by the competent authority or

by the competent court. The investor will have the right to seek protection against

expropriation or any such action before the competent court

A Contracting State which has adopted such measures;

(e)) the measures are accompanied by an immediate, adequate and effective substitute.

(4) such compensation will be calculated on the basis of the market value of investments

immediately before the decision on expropriation or nationalization

It was announced or than has happened publicly known, and will be determined in accordance

with recognized principles for determining such market value; There, where the

market value will not be possible without undue delay determine the

compensation determined on equitable principles taking into account, in addition to

another, invested capital, depreciation, capital had already been converted,

will create the replacement value, goodwill, and any other relevant circumstances. In the case that

payment of refunds will be lag, such compensation will be paid in

the amount that the investor shall ensure that such a position that it will not be less

favourable than the position in which it would, in the event that a replacement was

to be paid immediately after the date of the expropriation or nationalisation. In order to be

This objective is reached, compensation shall include interest or such rate,

as provided by law for the currency in which the investment is conducted, from the date of

nationalization or expropriation until the date of payment.

(5) if the Contracting State on whose territory would nationalize or expropriates

the investment of a legal person that is based or enabled based on

applicable law and in which the other Contracting State or one of its

investor owns shares, stocks, bonds or other debt,

ensure that it was provided immediate, adequate and effective compensation, and

It was allowed to convert it. Such compensation shall be determined and paid in

accordance with the provisions of paragraph 4 of this article.

Article 7

Transfers and transfers of capital and revenues

(1) the Contracting State shall guarantee to investors of the other Contracting State unlimited

transfers related to investments and revenues. Transfers will be

be made in freely convertible currency without restriction and without unnecessary

the delay. Such transfers shall include in particular, but not


and) capital and additional amounts to maintain or increase the investment;

(b)) the net profit, dividends, royalties, payments for technical assistance and

technical services, interest and other income arising out of any investment;

(c) the proceeds from the sale,) the total or partial liquidation of the investment;

(d) the means of repayment of loans);

(e)) the amounts intended to cover the expenditure related to the keeping of the investment;

f) net earnings of State citizens, who is allowed to work in

the investment made in the territory of the other Contracting State.

(2) for the purposes of this agreement, the courses will be the official currency exchange rates

valid for common stores on the day of the transfer.

(3) the Contracting States undertake to provide transfers permitted in paragraph 1

This article, the favourable treatment granted to transfers

originating from investments made by investors of a third State.

(4) the concept of "without undue delay" means that the conversions are

made in the time normally required for the preparation of the terms of the transfer.

The period runs from the date when the applications, accompanied by the necessary documents has been

submitted to the proper way to the relevant authorities, and should not exceed a

no circumstances for two months.

Article 8

Assignment of rights

(1) If a State party or its designated agency payment

any of its investor because of the compensation, or the guarantees which

have been provided in connection with an investment or part of the territory of the

of the host State, or are they another reason referred to any

the rights of the investor of such investments, the host State shall recognise:

and) the right of the other Contracting State or of its authorized agencies arising from the

assignment of rights, compensation, or other transfer of rights, whether it is

carried out on the basis of the Act, or arises from the rightful agreement; and

(b)), that the second Contracting State or its designated agency shall be entitled to

due to the assignment of rights to exercise the same right as their legal


(2) the second Contracting State will, however, recognise the right of the host State

knock any taxes and other charges payable by the investor is obliged to


(3) if the other Contracting State any amount above

in a way, he will be granted in relation to her treatment no less favourable

than that which is provided to the investors ' resources of the host State

or of a third State, which come from the investment or associated activities

similar to those in which the odškodňovaná party is involved.

Article 9

Settlement of investment disputes between a Contracting State and an investor of the second

Contracting State

(1) any dispute which may arise between an investor of one

Of a Contracting State and the other Contracting State in connection with an investment in the

the territory of the other Contracting State, shall be the subject of negotiations between the

the parties in dispute.

(2) If a dispute between an investor of one Contracting State and the second

A Contracting State will be settled as follows at the time of six months, is an investor

entitled to submit the dispute either:

and the International Centre for) settlement of investment disputes (ICSID)

taking into account the applicable provisions of the Convention on the settlement of investment disputes

between States and nationals of other States, opened for signature in Washington, D.

(C) 18. March 1965; or

(b)) the arbitrator or to the International Court of arbitration set up by ad hoc,

nominated in accordance with the conciliation rules of the United Nations Commission

Nations for international trade law (UNCITRAL). The parties to the dispute

may in writing agree modifications to these rules. The arbitration award will be

final and binding to both parties in a dispute.

Article 10

The settlement of disputes between Contracting States

(1) If a dispute arises concerning the interpretation or application of this agreement, the Government of

The States parties will attempt to resolve it through diplomatic channels.

(2) if the dispute is not resolved in this way, within six months from the date of their

inception, will be based on the written request of any Contracting State

submitted to an ad hoc arbitral tribunal established in accordance with the provisions of the

This article.

(3) the arbitral tribunal shall be appointed in the following manner: within three

months from receipt of the written request for arbitration, each Contracting State

shall appoint one arbitrator. These two arbitrators shall select the third citizen then

the State, which will be with the consent of both Contracting States to act as a

the President of the Court (hereinafter referred to as "the Chairman"). The Chairman will be appointed within the time limit

three months from the date of the provisions of the other two arbitrators.

(4) If, within the time limit laid down in paragraph 3 of this article, any of the

The States parties fails to appoint its arbitrator or arbitrators the two

agree on the Chairman may be asked the President of the International

the Court of Justice to make the appointment. If it happens, that is a citizen

one of the Contracting States or if for any other reason to do

This action, will be asked about the appointment of a Vice-President. If you also

Deputy Chairman of a citizen of a Contracting State or is unable to perform

This action, will be asked about the appointment of a senior member of the

The International Court of Justice who is not a citizen of any of the Contracting


(5) the arbitral tribunal adopts its decisions by majority vote. Such

the decision is binding. Each Contracting Party shall pay the costs of their

their own arbitrator and counsel in arbitration;

the costs of the Chairman and the remaining costs shall be borne equally by both the Contracting

States. If States parties decide otherwise, sets out the Court's own

rules of procedure rules.

Article 11

The agreement on investments

This agreement will be applied to the investments made in the territory of any

Of a Contracting State in accordance with its legal structure, investors of the second

Contracting State after 2. December 1971.

Article 12

Relations between the Governments of

The provisions of this Agreement shall be applied regardless of the existence of

diplomatic or consular relations between the Contracting States.

Article 13

The use of other provisions and specific commitments

(1) in the event that there is some question dealt with at the same time this agreement and

another international agreement, to which both parties are party,

or general principles of law recognised both Contracting together

States or the national laws of the host State, nothing in this agreement

shall not preclude any Contracting State or any of its investor

private investment in the territory of the other Contracting State, the provisions

which are more favourable for him.

(2) the investment child special contracts or commitments adopted

one Contracting State in relation to the investors of the other Contracting State

to be guided, regardless of the provisions of this agreement, the provisions of the

such contracts and to the commitment if they are more favourable than the provisions of this

the agreement.

Article 14

Entry into force, duration and termination

(1) each Contracting State shall notify the other through diplomatic channels, to the Contracting

State compliance with the legal requirements for the entry into force of this agreement. This

the agreement shall enter into force on the date of the second notification.

(2) this Agreement shall remain in force for a period of ten years and its validity

It will continue until one year before the expiry of the initial period or

any following period one contracting party notifies the

the other Contracting Party of its intention to terminate the agreement.

(3) For investments made before the expiry of this agreement,

the provisions of this agreement will remain effective for a period of ten years from the date of

their validity.

In witness whereof, the duly authorised thereto, have signed this agreement and

join her seal.

Done at Abu Dhabi on 23 December 2005. November 1994, which matches 20th Jamadi Al

Thani 1414 H, in duplicate in the Czech, Arabic and English

languages, all the texts being equally authentic. In case of dispute

the English version is decisive.

For the Government of the United States:

Vladimír Dlouhý in r.

Minister of industry and trade

For the Government of the United Arab Emirates:

Ahmed Humaid Al Tayer in r.

State Minister of finance and industry