Effect of Bilateral and Multilateral Investment Treaties on Foreign Direct Investments in and from the United Arab Emirates

Abstract

This thesis is aimed to understand and analyze the effects and/or impact of Bilateral and Multilateral Investment Treaties (BITs/MITs) on the Foreign Direct Investment (FDI) into and from the United Arab Emirates (UAE). The main focus is to ascertain whether Bilateral or Multilateral Investment Treaties, are crucial to maintain FDI, as most nations' global interests have grown to account for a significant portion of FDI flows and outflows. Among many nations, the UAE has adopted policies aimed at diversifying its economy in order to foster a favorable market environment. By making sure that treaties have substantive and procedural elements that assist sustainable development, the thesis aims to examine whether and how the MITs and BITs that the United Arab Emirates has signed may advance sustainable development. This study examines the treaties' impact on government policies, corporate trust, and environmental sustainability because the foreign direct investments are significant to the United Arab Emirates. United Arab Emirates has emerged as a rapidly expanding economy and a premier destination for foreign direct investment by integrating essential sustainable principles, including foreign investor responsibilities to uphold rights for individuals, employment laws, health and safety regulations, social responsibility for companies, along with safeguarding the environment, among others. The researcher aims to ascertain the moderating role and/or impact of BITs/MITs on inbound and outbound foreign investments in the United Arab Emirates. Furthermore, the thesis draws from both interview questions and surveys to understand investor views, examine the role of treaties and identify problems in the law. Evidence shows that while BITs and MITs bring much-needed legal benefits and promote favourable conditions for investment, the UAE’s agreements are often missing comprehensive sustainability rules that support its development over the long run. In addition, the research finds that regulatory risks, limited policy space and shortages in institutional abilities are major problems. Advice is given for improving treaty clauses, increasing options for dispute settlement and bringing in sustainability criteria. The study proposes a way for the UAE to update its governance for investments, supporting its Vision 2031 and the SDGs, so it can drive change in the region. The research significantly contributes to the domains of international law on investments, sustainable development, as well as fiscal policy in the Middle East.

Keywords: Bilateral Investment Treaties BITs, Multilateral Investment Treaties MITs, United Arab Emirates, foreign direct investment, sustainable development, United Nations Conference on Trade and Development (UNCTAD), international investment agreements