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Bilateral Investment Treaties Protect UAE Investors Engaged in Foreign Direct Investment

May 2012

Many investors who engage in foreign direct investment (FDI)-defined as investment by an investor residing in one State with the objective of obtaining a lasting interest in an enterprise located in a different State may be unaware that their investments are not only governed by local law, but may also be protected by international law. Expropriation without fair compensation, discrimination, unfair or inequitable treatment, and arbitrary and unreasonable conduct by State officials may all be forbidden by treaty.

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