On December 16, 2013, Kuwait and Iraq concluded a bilateral agreement for the promotion and protection of Investments (The “BIT”). Kuwait ratified the BIT with Law 135 of the Year 2014. Iraq ratified it in Gazette No. 4346 dated 29/12/2014. The two countries exchanged instruments of ratification of February 4, 2015, which is the date the BIT entered into force. If their investments are impaired or lost as a result of actions and omissions of or attributable to Iraq, Kuwaiti investors may avail themselves of the substantive protections and procedural remedies afforded by the Kuwait-Iraq BIT.
The Kuwait-Iraq BIT protects Kuwaiti citizens and legal entities, as well as any legal entity which is owned or administered by a Kuwaiti citizen or legal entity which has its administrative headquarters in Kuwait (Article 1(2)).
The broad definition of the term “investment” contained in the Kuwait-Iraq BIT protects most types of investments made by Kuwaiti companies in Iraq. The Kuwait-Iraq BIT defines “investments” to include “all kinds of assets” invested, before or after the entry into force of the BIT, by an Kuwaiti investor in Iraq, including “movable and immovable property”, “shares, bonds and interests in companies”, “claims to money or other rights having economic value”, “intellectual property rights, and concessions (Article 1(1)).
The Kuwait-Iraq BIT grants traditional substantive investment treaty protections to Kuwaiti investors. Under the Kuwait-Iraq BIT, Kuwaiti Investors are entitled to fair and equitable treatment and the “full and complete protection and security” in conformity with Iraqi legislation (provided that it is not inconsistent with the BIT, Article 3(2), compensation for losses due to war or other armed conflict, state of national emergency, revolution, insurrection, riot or similar events (article 6), free transfer of capital (Article 8), and payment of prompt and effective compensation in case of direct or indirect expropriation (Article 7). In addition, Kuwaiti investors may invoke the substantive protections granted by Iraq to investors of other States by invoking the most-favored-nation clause ion Article 5 of the Kuwait-Iraq BIT. At this time, however, in addition to the bit with Kuwait, Iraq has only entered into a bilateral investment agreement with Japan.
The Kuwait-Iraq BIT provides Kuwaiti Investors with access to an international forum to remedy treaty violations (Article 10). After a period of 180 days during which the parties should seek to settle the dispute amicably, Kuwaiti investors are entitled to commence either ICSID or UNCITRAL arbitration to enforce their rights under the Kuwait-Iraq BIT.
It is also notable that Iraq signed the ICSID Convention on November 17, 2015, which entered into force for Iraq on December 17, 2015.
Meysan announces the launch of its London office
We are proud to announce the launch of our new office in London. Meysan London will focus on heavyweight commercial and investor-state disputes, with a mission to apply the firm’s international litigation and arbitration know-how to the most complex cross-border cases. It will also serve the interests of corporates, investors, funds, state-owned entities and high-net-worth individuals, all looking to achieve positive results with a trusted partner.
MEYSAN WINS IFLR MIDDLE EAST AWARDS
International Financial Law Review (IFLR) bestowed dual honors on law firm Meysan Partners at its annual IFLR Middle East Awards for 2022, presented in Dubai on October 12.,,..... Read More
MEYSAN PARTNERS ADVISES ON AGILITY’S ACQUISITION OF MENZIES AVIATION
We are pleased to announce that Meysan Partners represented Agility, the sole shareholder of National Aviation Services (“NAS”), on the acquisition of UK-based John Menzies PLC,,..... Read More
MEYSAN PARTNERS ADVISES AL BAYAN MEDICAL COMPANY ON THE ACQUISITION OF A MAJORITY STAKE IN SKY DENTAL
Meysan Partners advised Al Bayan Medical Company K.S.C.C. (“Bayan Dental”) (Closed) in connection with its acquisition of a majority stake in Sky,..... Read More
ABDULLA AL NAJJAR ADVOCATES AND LEGAL CONSULTANTS JOINS MEYSAN PARTNERS
We are excited to announce that Abdulla Al Najjar Advocates and Legal Consultants, a Dubai-based highly regarded and reputable law firm,..... Read More
For press or media related enquiries, please contact:
Meysan Partners regularly produces e-updates on legal developments which might impact your organisation. For more information or to subscribe, please email firstname.lastname@example.org.
Enter your details and set your subscription references: