Home » Hong Kong and Bahrain Establish Investment Promotion and Protection Agreement

Hong Kong and Bahrain Establish Investment Promotion and Protection Agreement

by Dubaiforum

Hong Kong and Bahrain have officially signed an Investment Promotion and Protection Agreement (IPPA) in Manama, Bahrain, with the aim of strengthening mutual investment protection and boosting investor confidence. The agreement was signed by the Secretary for Commerce and Economic Development of Hong Kong, Mr Algernon Yau, and the Minister of Finance and National Economy of Bahrain, Shaikh Salman bin Khalifa Al Khalifa.

Mr Yau described the IPPA as a significant milestone in enhancing investment ties between Hong Kong and Bahrain, emphasizing the importance of both regions as gateways to lucrative investment opportunities. He highlighted Hong Kong’s commitment to expanding economic relations with Middle East economies, as demonstrated by a high-level visit led by the Chief Executive to the region last year.

The IPPA will provide investors from both parties with protections such as fair and non-discriminatory treatment of investments, compensation in case of expropriation, and the right to transfer investments and returns freely abroad. The agreement also includes provisions for settling investment disputes according to internationally recognized rules.

This agreement marks the 24th investment agreement signed by Hong Kong with a foreign economy and follows a similar IPPA signed with Türkiye last year. Hong Kong has also established IPPA with other countries in the Middle East region, as well as with nations along the Belt and Road initiative.

In order to further strengthen economic and trade networks, Hong Kong is currently in negotiations for an IPPA with Saudi Arabia and considering the establishment of an Economic and Trade Office in Riyadh. Additionally, the geographical scope of the Dedicated Fund on Branding, Upgrading, and Domestic Sales has been expanded to include Bahrain as the 39th eligible economy, to provide support for Hong Kong enterprises operating in the country.

The signing of the Hong Kong-Bahrain IPPA signifies a significant step towards promoting bilateral investment and economic growth between the two regions. The agreement is set to enter into force once relevant internal procedures are completed on both sides.

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