Section E. General Provisions
Article 27. Joint Committee on Investment
1. The Parties hereby establish a Joint Committee on Investments (hereinafter: "the Committee"), composed of representatives of each Party and headed by senior officials of each Party.
2. Unless otherwise agreed by the Parties the committee shall meet on the request of either Party at any time as requested.
3. The functions of the Committee shall include:
(a) a general review of this Agreement with a view to furthering its objectives;
(b) to discuss and review the implementation and operation of this Agreement;
(c) to review the non-conforming measures maintained, amended or modified for the purpose of contributing to the reduction or elimination of such non-conforming measures;
(d) to exchange information on and to discuss investment-related matters within the scope of this Agreement which relate to improvement of investment environment;
(e) to consider any issues raised by either Party concerning investment agreements;
(f) review the possibility of further facilitation of investment between the Parties;
(g) evaluation of the results obtained from the application of this Agreement and consideration of any other issues or matters related to the implementation of this Agreement including solving problems, obstacles and dispute resolution before its submission to arbitration; and
(h) To exchange information on both Parties' legislation as well as internal regulations and procedures, regarding the possibility of obtaining entry visas to their respective countries for investors and discussion of any issues which may arise related to such.
4. The Committee may, as necessary, make appropriate recommendations by consensus to the Parties for the more effective functioning or the attainment of the objectives of this Agreement.
5. The Committee may, upon mutual consent of the Parties, invite representatives of relevant entities other than the Governments of the Parties with the necessary expertise relevant to the issues to be discussed, and hold joint meetings with the private sectors.
6. The Committee may establish sub-committees and delegate specific tasks to such sub-committees.
7. The Committee shall discuss any issues regarding the implementation and interpretation of this Agreement.
Article 28. Amendement
Subject to Article 27 (Joint Committee on investment) upon the request of either Party, the Parties shall discuss and consult in good faith, and may agree upon any amendments to this Agreement in writing. Any such amendments shall enter into force in accordance with the procedure necessary for the entry into force of this Agreement and shall constitute an integral part of this Agreement.
Article 29. Final Provisions
1. The Parties shall notify each other, in writing through diplomatic channels, of the completion of their respective internal procedures necessary for the entry into force of this Agreement. This Agreement shall enter into force on the date of the latter notification. This Agreement shall remain in force for a period of ten years after its entry into force and shall continue to be in force unless terminated as provided for in paragraph 2.
2. A Party may terminate this Agreement at the end of the initial ten year period, or at any time thereafter by giving a one year's advance written notice of termination to the other Party, through diplomatic channels. Such termination shall become effective twelve months after the date of receipt of such notice of termination by the other Party.
3. In respect of investments made prior to the date of termination of this Agreement, the provisions of this Agreement shall continue to be effective for a period of ten years from the date of termination of this Agreement.
4. The Annexes and Footnotes to this Agreement shall constitute an integral part of this Agreement.
Conclusion
Signed at Tel Aviv, this day 2 Heshvan, 5781, 3 Rabi Al-Awwal, 1442, which corresponds to 20 October 2020, in the Arabic, Hebrew and English languages, all texts being equally authentic. In case of divergence of interpretation, the English text shall prevail.
For the Government of the United Arab Emirates:
For the Government of the State of Israel:
Attachments
Annexes
Annex A. Expropriation
The Parties confirm their shared understanding that:
1. An action or a series of actions by a Party cannot constitute an expropriation unless it interferes with a tangible or intangible property right or property interest in an investment.
2. Expropriation may be direct or indirect:
(a) direct expropriation occurs when an investment is nationalized or otherwise directly expropriated through formal transfer of title or outright seizure; and
(b) indirect expropriation occurs if a measure or series of measures of a Party has an effect equivalent to direct expropriation, in that it substantially deprives the investor of the fundamental attributes of property in its investment, including the right to use, enjoy and dispose of its investment, without formal transfer of title or outright seizure.
3. The determination of whether a measure or series of measures of a Party, in a specific fact situation, constitutes an indirect expropriation requires a case-by-case, fact-based inquiry that takes into consideration, among other factors:
(a) the economic impact of the measure or series of measures, although the sole fact that a measure or series of measures of a Party has an adverse effect on the economic value of an investment does not establish that an indirect expropriation has occurred;
(b) the duration of the measure or series of measures of a Party;
(c) the extent to which the measure or series of measures interferes with distinct, reasonable investment-backed expectations; and
(d) the character of the measure or series of measures, notably their object, context and intent.
4. For greater certainty, except in the rare circumstance when the impact of a measure or series of measures is so severe in light of its purpose that it appears manifestly excessive, non-discriminatory measures of a Party that are designed and applied to protect legitimate public welfare objectives, such as health, safety and the environment, do not constitute indirect expropriations.
Annex B. Temporary Safeguard Measures
1. A Party may adopt or maintain restrictive measures with regard to cross-border capital transactions as well as payments or transfers for transactions related to investments:
(a) in the event of serious balance-of-payments and the external financial difficulties or threat thereof; or
(b) in exceptional cases where movements of capital cause or threaten to cause serious difficulties for macroeconomic management, in particular monetary and exchange rate policies.
2. Restrictive measures referred to in paragraph 1 shall:
(a) be applied in such a manner that the other Party is treated no less favourably than any non-Party;
(b) not exceed those necessary to deal with the circumstances set out in paragraph 1;
(c) be temporary and be phased out progressively as the situation specified in paragraph 1 improves;
(d) avoid unnecessary damages to the commercial, economic and financial interests of the other Party; and
(e) not be confiscatory.
3. The Party which has adopted any measure under paragraph 1 shall notify the other Party, as soon as possible, as to the measures taken, and the expected timetable for their removal.
4. The measures under paragraphs 1, 2 and 3 should be consistent with the Articles of Agreement of the International Monetary Fund.
Annex C. Taxation and Expropriation
The determination of whether a taxation measure, in a specific fact situation, constitutes an expropriation requires a case-by-case, fact-based inquiry that considers all relevant factors relating to the investment, including the factors listed in Annex A and the following considerations:
1. The imposition of taxes does not generally constitute an expropriation. The mere introduction of a new taxation measure or the imposition of a taxation measure in more than one jurisdiction in respect of an investment generally does not in and of itself constitute an expropriation;
2. A taxation measure that is consistent with internationally recognized tax policies, principles, and practices should not constitute an expropriation. In particular, a taxation measure aimed at preventing the avoidance or evasion of taxation measures generally does not constitute an expropriation;
3. A taxation measure that is applied on a non-discriminatory basis, as opposed to a taxation measure that is targeted at investors of a particular nationality or at specific taxpayers irrespective of their nationalities, is less likely to constitute an expropriation; and
4. A taxation measure generally does not constitute an expropriation if it was already in force when the investment was made and information about the measure was publicly available.