Signature of Saudi Arabia-Japan BIT, by José Ángel Rueda

On 30 April 2013 Saudi Arabia and Japan signed an Agreement for the Promotion and Protection of Investment (BIT) within the framework of the official visit paid by Mr. Shinzo Abe, Japanese Prime Minister, to Saudi Arabia.

The Ministry of Foreign Affairs of Japan has issued the following press release[1]:

1. On Tuesday, April 30, H.E. Mr. Jiro Kodera, Ambassador of Japan to the Kingdom of Saudi Arabia, and H.E. Mr. Abdullatif A. Al-Othman, Governor, Saudi Arabian General Investment Authority signed the Agreement between Japan and the Kingdom of Saudi Arabia for the Promotion and Protection of Investment (hereinafter referred to as “the Agreement”) in Jeddah. The signing was witnessed by H.E. Mr. Shinzo Abe, Prime Minister of Japan and H.R.H. Salman Bin Abdulaziz Al-Saud, Crown Prince, First Deputy Prime Minister and Minister of Defense of the Kingdom of Saudi Arabia.

2. The Agreement stipulates treatments of an investor of a Contracting Party who invests in the other Contracting Party, such as national treatment, most-favored-nation treatment, free transfers, conditions for expropriation and compensation, and the procedures of dispute settlements.

3. Saudi Arabia, which has the world’s largest oil production and export amount, is the largest supplier of crude oil to Japan. The Agreement is expected to contribute to creation of a favorable environment for investors by improving legal stability, and thereby further promoting the Japan-Saudi Arabia economic relationship.

4. The Agreement will enter into force on the thirtieth day after the date of exchange of diplomatic notes between the Governments of the Contracting Parties informing each other that their respective legal procedures necessary for the entry into force of this Agreement have been completed (in case of Japan, the approval of the National Diet will be required).