Investment Climate Clause Samples
The Investment Climate clause defines the general economic, regulatory, and political environment in which an investment is made or maintained. It typically outlines the expectations regarding stability, transparency, and fairness in the host country, and may reference factors such as government policies, legal protections, or the absence of discriminatory practices. By setting out these conditions, the clause aims to provide reassurance to investors and mitigate risks associated with sudden or adverse changes in the investment environment.
Investment Climate. For the purpose of enhancing local, external, and intra-GCC investment levels, and provide an investment climate characterized by transparency and stability, Member States agree to take the following steps:
1. Unify all their investment-related laws and regula-tions.
2. Accord national treatment to all investments owned by GCC natural and legal citizens.
3. Integrate financial markets in Member States, and unify all related legislation and policies.
4. Adopt unified standards and specifications for all products, according to the Charter of the GCC Standardization and Metrology Organization.
Investment Climate. For the purpose of enhancing local, external, and intra-GCC investment levels, and provide an investment climate characterized by transparency and stability, Member States agree to take the following steps:
1. Unify all their investment-related laws and regulations.
2. Accord national treatment to all investments owned by GCC natural and legal citizens.
3. Integrate financial markets in Member States, and unify all related legislation and policies.
4. Adopt unified standards and specifications for all products, according to the Charter of the GCC Standardization and Metrology Organization. Member States shall coordinate their external policies related to international and regional development aid.
Investment Climate. According to EIU (2013), the real GDP growth will average 6.7% a year in 2014-18, with economic expansion decelerating gradually over the period. Continued strong growth and high infrastructural demands have created a favorable environment for private investment via PPPs. In addition, the central government has a highly pro- active attitude towards the adoption of private investment in infrastruc- ture development, as evident from the before-mentioned statement by Premier ▇▇▇▇▇▇▇ ▇▇ on the executive meeting of the State Council on July 31 2013. There are no restraints on foreign investment in infrastructure projects, or any rules of guidelines that suggest a preference for companies with local capital or foreign investors in gen- eral. However, closer relationships between state-owned or state-holding enterprises and the government may reflect a greater capability to undertake country-level political and legal risks. In fact, state-owned or state-holding enterprises now have the major market share of PPPs (Ke et al., 2009; ▇▇▇▇ et al., 2012). The lure of a sizable market and a reasonable operating environment has resulted in a significant level of PPP application in China. The attractive- ness of China’s investment proposition would continue to be critical. However, PPP projects in China come with no guarantee of sustainability because of weak regulatory frameworks and underdeveloped institutions for PPP (EIU, 2012). Weak government effec- tiveness remains a threat to fostering sustainable and efficient PPP infra- structure projects. Therefore, China only scored 51.6 out of 100 in the com- ponent of investment climate. China obtained 66.7 in the financial facilities. Responsibility for the imple- mentation of infrastructure projects resides primarily with subnational governments. They have insufficient capacity to levy taxes and thereby make extensive use of off-budget financing options for infrastructure. The major- ity of subnational government debt financing is estimated to be financed by bank loans, while the majority of these loans are provided by the state-owned banks. Subnational governments have also been increasing their use of bonds in recent years. Six local governments (Shandong, Jiangsu, Guangdong, Shanghai, Shenzhen and Zhejiang) now have direct access to bond market finance under pilot schemes (Chong and Poole, 2013). In most PPP projects, private part- ners have the sole responsibility for the financing component, although they may receive ...
Investment Climate. 1. The parties undertake to take the necessary measures to create a conducive investment environment. In this regard they agree to the following:
(i) eliminate bottlenecks to investment and streamline investment procedures
(ii) establish one-stop shops for the entry and setting up of investments so as to accelerate the establishment of business enterprises Article 72 Investment promotion
1. The ESA countries and the E.U shall, subject to their general policy on investment, including Foreign Direct Investment, encourage the deepening of cooperation on inter-regional investment. On the EU side this will be through grant of incentives, preferences and privileges, special policies and measures which will increase the level of investment from the E.U into the ESA.
2. The aim of the co-operation is to promote, within the bounds of their own competence, an attractive and stable investment climate, which favours and promotes mutually beneficial investment, both domestic and foreign, especially through improved conditions for investment protection, investment promotion, the transfer of capital and the exchange of information on (incentives), opportunities and other relevant information.
3. The ESA Countries and the EU, within the scope of their respective competencies, recognizing the importance of private investment in the promotion of their development cooperation and acknowledging the need to take steps to promote such investment, shall:
a) implement measures to encourage participation in their development efforts by private investors who comply with the objectives and priorities of ESA-EU development cooperation and with the appropriate laws and regulations of their respective States;
b) take measures and actions which help to create and maintain a predictable and secure investment climate as well as enter into negotiations on agreements which will improve such climate;
c) encourage the EU private sector to invest and to provide specific assistance to its counterparts in the ESA countries under mutual business cooperation and partnerships;
d) facilitate partnerships through joint ventures and encourage venture capital financing for greenfield investment and others, in line with ESA countries’ regulations ;
e) sponsor sectoral investment fora to promote partnerships and external investment;
f) support efforts of the ESA Countries to attract financing, with particular emphasis on private financing, for infrastructure investments and revenue generating infrastruct...
Investment Climate. The parties undertake to take the necessary measures to create a conducive investment environment. In this regard they agree to the following:
Investment Climate. Making the investment climate conducive for establishment and operation of industrial undertakings involves simplifying the processes, reducing the timelines and ensuring greater transparency associated with clearances / compliances required for: (i) establishment of new units or expansion, modernization, and diversification of existing units; (ii) operating a business in its normal course; and (iii) exiting a business when capital and labor can be redeployed to more productive uses. These fall under various categories including entrepreneur’s memorandum (EM) I and II; VAT and other tax related; labor related compliances; environmental clearances; power and water connections.
Investment Climate. Reducing firms’ anti-competitive behavior and improving consumer protection through: