trends, challenges and prospects of foreign investment in the middle east and north africa

Working Group on Investment Policies and Promotion:Mitigating Risks and Seeking New Opportunities

19-20 March 2013

Introduction

Marie-Estelle ReySenior Policy Analyst, MENA-OECD Investment Programme

2

Figure 1: Total BITs concluded by MENA countries

Source:MENA-OECD Investment Programme / UNCTAD / Kluwer Law International, 2013.

Algeria

Bahrain

Djibouti

EgyptIra

q

Jordan

Kuwait

Lebanon

Libya

Mauritania

Morocco

Oman

Palestinian Authorit

yQatar

Saudi Arabia

Tunisia UAE

Yemen0

20

40

60

80

100

120

51

31

7

103

6

5259

51

32

19

62

33

2

49

24

55

38 37

2420

1

72

1

39 37 38

16

6

43

24

1

17 19

3328

23

Total signed BITs

Total BITs in force

3

Figure 2: Total intra-MENA BITs

Source:MENA-OECD Investment Programme / UNCTAD / Kluwer Law International, 2013.

Algeria

Bahrain

Djibouti

EgyptIra

q

Jordan

Kuwait

Lebanon

Libya

Mauritania

Morocco

Oman

Palestinian Authorit

yQatar

Saudi Arabia

Tunisia UAE

Yemen0

2

4

6

8

10

12

14

16

12

7

1

15

2

1110

11

56

13

7

1

9

2

13

8

11

5 5

0

14

1

8

4

10

2 2

11

6

12

1

67

5

Intra-MENA signed BITsIntra-MENA BITs in force

4

Main features

• Active BIT signatories since 1990’s• Few FTAs with investment chapters

Morocco-USA FTA signed in 2006Oman-USA FTA signed in 2009

• Traditional approach• Dispute Settlement: national courts and

international arbitration

5

Regional investment agreements

• Arab League: 1980 Investment Agreement 2000 Agreement on the Encouragement and Protection of Investments and

Transfer of capitals and Agreement on the Settlement of Investment Disputes (Council of Arab Economic Unity)

2013 Amendment to the Arab Investment Agreement

• AMU: 1993 Convention on Encouragement and Protection of Investment

• OIC: 1986 Agreement on Promotion, Protection and Guarantee

• COMESA: 2007 Common Investment Area