Times Of Swaziland: ESWATINI, UAE SIGN INVESTMENT PROTECTION AGREEMENT

ESWATINI, UAE SIGN INVESTMENT PROTECTION AGREEMENT
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Nhlanganiso Mkhonta on 13/02/2025 07:58:00


MBABANE - In a significant step towards strengthening economic ties, Eswatini
and the United Arab Emirates (UAE) have signed the agreement on promotion and
reciprocal protection of investments. This landmark deal is set to enhance
investment flows, stimulate economic development and provide legal protections
for investors from both nations. The agreement was signed yesterday, by
Eswatini’s Minister for Commerce, Industry and Trade Manqoba Khumalo,
alongside UAE’s Minister of State for Financial Affairs, Mohamed bin Hadi Al
Hussaini. This signing follows years of negotiations and comes after the
conclusion of the avoidance of double taxation agreement in August 2024, further
solidifying financial cooperation between the two countries.
Instrument
The avoidance of double taxation agreement is poised to foster greater economic
cooperation and stimulate cross-border investments between the two nations. The
document targets the elimination of double taxation on income and capital and is
not merely a legal instrument, but a catalyst for deepening bilateral relations.
By removing the burden of double taxation, the accord opens the door for
increased trade and investment flows, creating a more favourable environment for
businesses in both Eswatini and the UAE.  This move is expected to be
particularly beneficial for investors seeking opportunities in the emerging
markets of Eswatini, which is increasingly positioning itself as a gateway to
Southern Africa.
The agreement signed yesterday applies to investments made both before and after
its entry into force, ensuring that investors from either country are protected
under the host nation’s laws and regulations. However, it explicitly excludes
claims arising from disputes that occurred before the agreement was enacted.
Furthermore, both parties will encourage private sector collaboration to explore
and expand investment opportunities, boosting trade and economic development.
Each country is also required to uphold its investment-related obligations,
though taxation matters remain outside the scope of this agreement.
A key component of the agreement is the establishment of a joint committee on
investments, which will oversee its implementation. This committee will be
composed of representatives from both nations and will meet at least once a
year, alternating between Eswatini and the UAE. The committee may also invite
private sector representatives and other experts to provide insights into
enhancing investment cooperation.
This agreement is expected to attract more foreign direct investment (FDI) into
Eswatini, particularly in sectors such as infrastructure, energy, agriculture
and technology. By creating a stable and predictable investment climate, the
deal provides legal assurances that are crucial for investor confidence.
Minister Khumalo highlighted the importance of the agreement, stating, “This
partnership marks a new era in Eswatini’s economic landscape. It opens doors
for increased investment, job creation and technological exchange, which will
benefit both our nations.”
Investments
The agreement solidifies the UAE’s commitment to fostering economic
partnerships with African nations, underscoring the agreement’s role in
facilitating sustainable economic growth.
With the agreement now in place, stakeholders in both countries are optimistic
about its implementation. The first meeting of the Joint Committee on
Investments is expected to take place later this year, where discussions on
specific investment projects and opportunities will commence. As Eswatini
continues to position itself as a competitive investment destination, this
agreement with the UAE is a testament to the country’s commitment to economic
expansion and international partnerships.