HK, BAHRAIN SIGN INVESTMENT PACT

The Hong Kong Special Administrative Region and Bahrain today entered into an investment promotion and protection agreement (IPPA) in Manama, Bahrain, with a view to enhancing investors’ confidence, expanding investment flows and strengthening economic and trade ties.

Secretary for Commerce & Economic Development Algernon Yau, on his visit to Manama, signed the agreement with Bahrain Minister of Finance & National Economy Shaikh Salman bin Khalifa Al Khalifa.

Under the IPPA, Hong Kong and Bahrain 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. It also provides for settlement of investment disputes under internationally accepted rules.

The pact will come into force after the fulfilment of relevant internal procedures on both sides.

Mr Yau said the IPPA is a milestone of strengthening investment links between Hong Kong and Bahrain.

“An IPPA enables investors of the two parties to enjoy corresponding protection of their investments in the host economies, and thus enhance investors’ confidence in making investments abroad.

“The signing of the IPPA also signifies the Hong Kong SAR Government’s commitment to the continual expansion of economic ties with Middle East economies, as heralded by the high-level visit led by the Chief Executive to the region in February last year.”

Following the signing of the Hong Kong-Bahrain IPPA, the geographical scope of Hong Kong’s Dedicated Fund on Branding, Upgrading & Domestic Sales is also extended to cover Bahrain with immediate effect to further support the city’s enterprises in developing their businesses there.

Separately, to enhance Hong Kong’s economic and trade network, especially in the Middle East, the Hong Kong SAR Government is now conducting negotiations of an IPPA with Saudi Arabia and is considering establishing an economic and trade office in its capital, Riyadh.

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