A deal to provide investors from Hong Kong and Bahrain with fair, equitable and non-discriminatory treatment of their investments, compensation for expropriation of investments, and free transfers abroad of investments and returns will enter into force on Mar 21.
The Investment Promotion and Protection Agreement (IPPA), signed between the two places in March last year, also provides for settlement of investment disputes under internationally accepted rules, including arbitration, the government said on Friday.
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The agreement comes into operation following the completion of the two sides' internal procedures.
“By enabling investors of Hong Kong and Bahrain to enjoy corresponding protection of their investments in the host economies, the IPPA will enhance confidence of investors, expand investment flows and further strengthen the economic and trade ties between the two places,” said Secretary for Commerce and Economic Development Algernon Yau Ying-wah.
The Hong Kong Special Administrative Region government has been actively seeking to expand the city’s global economic and trade networks with a view to assisting enterprises and investors in opening up markets, he said.
“We are exploring the signing of IPPAs with Saudi Arabia, Bangladesh, Egypt and Peru, as well as exploring IPPAs or free trade agreements with emerging markets including potential partners in the Middle East and other regions along the Belt and Road,” Yau added.
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The agreement with Bahrain is the second of its kind signed by the current-term SAR government, following the one signed with Türkiye. It is also the 24th investment agreement that Hong Kong has signed with a foreign economy.
The other foreign economies that have signed IPPAs with Hong Kong are the Association of Southeast Asian Nations, Australia, Austria, the Belgo-Luxembourg Economic Union, Canada, Chile, Denmark, Finland, France, Germany, Italy, Japan, Korea, Kuwait, Mexico, the Netherlands, New Zealand, Sweden, Switzerland, Thailand, the United Arab Emirates and the United Kingdom.
