The Investment Promotion & Protection Agreement (IPPA) signed between Hong Kong and Bahrain will enter into force on March 21.
Secretary for Commerce & Economic Development Algernon Yau said the agreement enables investors of Hong Kong and Bahrain to enjoy corresponding protection of their investments in the host economies, thereby enhancing the confidence of investors, expanding investment flows and further strengthening the economic and trade ties between the two places.
Under the agreement, the two governments undertake to provide investors of the other side with fair, equitable and non-discriminatory treatment of their investments, compensation in the event of expropriation of investments, and the right to free transfers abroad of investments and returns.
The agreement also provides for settlement of investment disputes under internationally accepted rules, including arbitration.
Mr Yau also pointed out that the Government has been actively seeking to expand Hong Kong’s global economic and trade networks with a view to assisting enterprises and investors in opening up markets.
“We are exploring the signing of IPPAs with Saudi Arabia, Bangladesh, Egypt and Peru, as well as exploring IPPAs or free trade agreements with emerging markets including potential partners in the Middle East and other regions along the Belt & Road.”
The IPPA with Bahrain is the second of its kind signed by the current-term Government. It is also the 24th investment agreement that Hong Kong has signed with a foreign economy.
