Overview of key differences between updated Investment Law, Foreign Investment Law

Key Differences Between Updated Investment Law, Foreign Investment Law

Subject

Updated Investment Law

Foreign Investment Law

Name & Scope

The Investment Law regulates the provisions of local and foreign investors.

The Foreign Investment Law regulates the provisions of foreign investors.

Investment Requirements

- Canceling the investment license.

- Liberalizing the practice of economic activities and limiting the exception to a list prepared by the Permanent Ministerial Committee for Examining Foreign Investments according to objective criteria.

- Requiring the foreign investor to obtain an investment license.

- The Cabinet has the authority to issue a list of types of activity excluded from foreign investment.

Treatment of Local & Foreign Investor

Ensuring equal treatment between the local and foreign investor.

None

Investment Incentives

Strengthening the governance of investment incentives and facilities granted to the investor.

None

Investor Rights

- Governance of investor protection by establishing a clear and transparent mechanism for handling complaints.

- Aligning the rights of the local and foreign investor with international investment principles and policies.

- Freedom of action in investment activity and freedom to transfer capital (without delay).

- Emphasis on the protection of intellectual property and confidential commercial information.

- Addressing the provisions of direct and indirect expropriation.

None

- Allocating specific rights to the foreign investor.

- Possibility of transferring funds.

None

- Addressing the provisions of direct expropriation.

Violations

- Determining serious violations and non-serious violations in the executive regulations.

- Taking into account the principle of gradualism and setting standards for imposing penalties (taking into account the frequency of the violation, the size of the facility and the severity of the penalty).

None

Dispute Settlement

- Local and foreign investors may resort to the competent court in the dispute with the government entity, unless the parties to the dispute agree otherwise.

- Investors may agree to settle their disputes through alternative means of dispute settlement, including arbitration, mediation and reconciliation.

- Settling disputes amicably between the foreign investor and the government