Signing of the Japan-Bahrain Investment Agreement
On June 23 (same day local time), Mr. HONDA Taro, Parliamentary Vice-Minister for Foreign Affairs of Japan, and H.E. Mr. Yusuf Abdulla HUMOOD, Undersecretary for Financial Affairs of the Ministry of Finance and National Economy, the Kingdom of Bahrain, signed in Manama, the Kingdom of Bahrain, the “Agreement between Japan and the Kingdom of Bahrain for the Reciprocal Promotion and Protection of Investment” (the Japan-Bahrain Investment Agreement).
- This Agreement aims to further protect and promote investment between the Contracting Parties. It stipulates the treatments accorded to investment activities and investments when an investor (an enterprise etc.) of a Contracting Party invests in the other Contracting Party, such as national treatment and most-favored-nation treatment at post-establishment phases of investments, fair and equitable treatment, conditions for expropriation and compensation, freedom of transfers, and procedures for dispute settlements.
- The investment environment in Bahrain is relatively favorable, and Japanese companies are already active in sectors such as manufacturing, finance and trade. Moreover, further investment in Bahrain by Japanese companies is expected, including large-scale projects, and the importance of providing assistance to these companies is going on. Through this Agreement, further improvement of the investment environment in Bahrain is expected, which will contribute to building closer economic relations between Japan and Bahrain.
- The Contracting Parties will inform each other, through the exchange of diplomatic notes, of the completion of their respective legal procedures necessary for the entry into force of this Agreement (in case of Japan, the approval of the National Diet will be required). This Agreement will enter into force on the thirtieth day after the date of the exchange of diplomatic notes.