TEHRAN (FNA)- The Iranian government recently approved a new law pertaining to Iran and Kuwait that is designed to promote mutual investment.
The Law of Agreement on Reciprocal Promotion and Protection of Investment between the Islamic Republic of Iran and the Republic of Kuwait was first passed on 27 August 2007. It was subsequently published on 20 April 2008 in the Official Gazette and came into force as of 6 May 2008 according to the law-dedicated website www.nourlaw.com, a press tv report said.
The new legislation states in its introduction that the governments of Iran and Kuwait signed the agreement to create prime conditions for expansion of mutual economic investment for investors from each country.
The law goes on to note that both governments acknowledge reciprocal promotion and protection of such investments would expedite commercial activities and increase the productivity of the contracting parties.
In Article 1 of the Agreement the terms of investment include moveable and immoveable properties, ownership rights such as leases, mortgages, liens, company shares and debentures, financial claims and intellectual propertyâ€¦
Article 3 stipulates that the investments of the nationals of either country in the territory of the other country shall enjoy fair and just treatment and full security. Articles 4 and 5 lay down the manner of compensating the damages suffered by the investors.
Article 6 entitles the investors to repatriate the profits and the principal investment. Other aspects and matters pertaining to reciprocal investments are tackled as well in this 16-article Agreement.