India reduces local remedies exhaustion period to 3 years for UAE investors
India has cut down by two years the local remedies exhaustion period for UAE investors from five years under the Bilateral Investment Treaty (BIT), which came into effect between the two countries in August.
The treaty, which is aimed at providing comfort to investors of both countries, also includes portfolio investments in a deviation from such treaties in the past.
Local remedies exhaustion means that investors must first try to resolve their disputes using the legal system of the host country before they can take the matter to international arbitration.
The treaty signed between India and the UAE in February has been enforced from August 31 this year, a finance ministry statement said.
"Investor-State Dispute Settlement (ISDS) through arbitration with mandatory exhaustion of local remedies for three years," the finance ministry said in a statement.
The Model BIT requires investors to attempt resolving disputes through India's legal system for at least five years before seeking