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Embargoed until 14.30 hrs, Thursday October 8

The climate for doing business with Kuwait was boosted today with the signing by the UK of a trade treaty with the Gulf state.

Trade Minister Lord Davies and Kuwaiti Finance Minister Mustafa Jassem al-Shamali signed an Investment Promotion and Protection Agreement (IPPA) in London.

An IPPA is a treaty designed to guarantee fair treatment for the investments of individuals and companies in an overseas market - and to allow for a level playing field by ensuring they are treated in the same way as local companies and other foreign investors.

Lord Davies said:

“It’s vital for jobs and growth that UK companies look for new markets oversees and that we continue to welcome inward investment here in the UK.

“I’m delighted to sign this Agreement today. It will provide reassurance to companies that their foreign investments are protected by internationally recognised standards, whilst acting as an incentive for companies to seek to do new business overseas.”

Lord Davies added that international investment brought many benefits for both the home and overseas state including capital to grow businesses, high quality jobs, and sharing of best business practice.

Mustafa Jassem al-Shamali said: “Overseas investment has real benefits both for the UK and Kuwait and is important for global growth.

“I’m very pleased to sign this treaty which strengthens the economic links between our two countries and will encourage companies to look for new investment opportunities.”

Notes to Editors

1. IPPAs are treaties between the UK and another country - sometimes known as Bilateral Investment Treaties or BITs - that set high standards of protection for UK investors in foreign countries and vice versa.

2. The UK already has similar agreements in place with over 100 trading partners. They can and often do encourage UK investment overseas and foreign direct investment into the UK, by signalling a commitment by both Governments to open and transparent investment markets.

3. Key provisions in IPPA agreements ensure that:

· Foreign businesses are not subjected to unfair or arbitrary treatment by the host Government.

· Foreign businesses are not treated differently or unfairly compared with domestic competitors and other foreign investors.

· Businesses are compensated if assets are taken into state ownership.

· Businesses investing in another country do not face restrictions on what they can do with returns on investments.

· A system of arbitration exists to settle disputes.

Department for Business, Innovation & Skills

The Department for Business, Innovation and Skills (BIS) is building a dynamic and competitive UK economy by: creating the conditions for business success; promoting innovation, enterprise and science; and giving everyone the skills and opportunities to succeed. To achieve this it will foster world-class universities and promote an open global economy. BIS - Investing in our future.

Contacts:

BIS Press Office
NDS.BIS@coi.gsi.gov.uk

Ben Lloyd
Phone: 020 7215 5974
Ben.Lloyd@bis.gsi.gov.uk