Continuing a trend of enhanced relations between the United Arab Emirates and Iraq, Iraq has ratified the 2021 Bilateral Investment Treaty with the United Arab Emirates. Applicable to qualifying investments made before or after its entry into force, the UAE-Iraq accord aims to boost foreign investment in both countries by creating a secure investment environment. To this end, the accord protects both countries’ investments from all non-commercial risks, including nationalization, confiscation, and judicial seizures and freezing. Notably, the UAE-Iraq accord allows investors of any nationality to obtain treaty protection by structuring investments in Iraq through UAE entities. Additionally, the accord provides for access to International Centre for Settlement of Investment Disputes (ICSID) arbitration. Previously something Iraqi government entities would not agree to, access to ICSID arbitration provides UAE investors a neutral forum for resolving disputes with Iraqi government entities.
Ratification of the UAE-Iraq accord significantly improves the investment protection landscape in Iraq and secures the UAE’s position as an emerging jurisdiction from which to do business in Iraq. The accord’s protections are expected to advance foreign investment into Iraqi infrastructure and defense projects via the UAE. With a valuable blend of experience in the practice of law and industry, coupled with a breadth of expertise in the legal and regulatory landscape of cross-border transactions in the Gulf region, Fluet attorneys are uniquely qualified to assist U.S. companies with projects and investments in the UAE and Iraq. Check back for updates as our team analyzes new developments that impact the global aerospace and defense industries.
*Please note: This insight does not constitute legal advice and is not comprehensive of all requirements or situations.
Author Adge Hudson is a member of Fluet’s International Trade Practice. Focusing primarily on the defense, security, and intelligence sectors, Adge helps businesses translate their domestic successes into overseas growth and advises on all facets of structuring, negotiation, and execution of complex and highly regulated cross-border transactions.