Abu Dhabi, UAE (ENA)–Ethiopia and UAE have concluded the reciprocal promotion and investment protection agreement, in which its negotiation took over five months.
Investment officials from both countries signed the agreement which encourages investments and provides protection for investors yesterday in Abu Dhabi, during a high-level Ethiopian delegation visit to the country.
The concluded agreement will encourage UAE investors to engage in various sectors in Ethiopia without fear, Said Fitsum Arega, Director General of Ethiopian Investment Commission (EIC).
Even though protection of investments is already guaranteed through the investment law, Ethiopia signs bilateral agreements with countries to encourage investors, as they consider such agreements basic to make investments, Fitsum said.
As UAE investors are interested in investing in the hospitality industry, agriculture and agri-food areas; the conclusion of this agreement will accelerate the engagement of investors in these areas, he added.
The agreement will also help to promote investment based on the principles of sustainable development and mutual benefit as well as intensify the economic cooperation between the two countries.
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Prior to the signing of the agreement, Prime Minister Hailemariam Desalegn and Shiek Mohamed Bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi had discussions on ways of enhancing bilateral ties between the two countries and broaden cooperation areas.
The two sides discussed on the need to boost cooperation in investment, trade and tourism so as to further strengthen the bilateral relation based on mutual benefit.
It is expected that the agreement will encourage and attract more UAE companies to engage in Ethiopia, as it will provide significant incentives and privileges for foreign investment.
As an instrument to encourage investors, Ethiopia has been signing similar agreements with a number of countries.
Concluding such agreements with countries is part of Ethiopia’s efforts to attract more foreign direct investment, hoping to improve its export and creation of more employment as well as sharing of knowledge and technology.
The double digit economic growth the country has witnessed over the past decade and over, driven by huge public investment on projects makes the country one of the top emerging economies.
This successive economic growth coupled with the conducive investment atmosphere and potential; enables the east African nation catch the attention of many companies, which led to the increased FDI inflow.
It is this fact that led countries to insist on reaching binding agreements with Ethiopia that gives protection to their investors.
This desire of the countries’ has led to the signing of bilateral agreements. Ethiopia has investment protection agreements with 28 countries, Fitsum said.