Definition
A bilateral investment treaty (BIT) is an agreement between two countries that establishes reciprocal protections for investors from each country operating in the other. Typical protections include fair and equitable treatment, protection against expropriation without compensation, free transfer of funds, and access to international arbitration (usually ICSID or UNCITRAL) for dispute resolution. BITs provide a layer of legal certainty that encourages cross-border investment by reducing political and regulatory risk.
Context in Oman
Oman has signed bilateral investment treaties with over 30 countries, including major investment partners such as the United Kingdom, Germany, France, China, India, South Korea, and Turkey. These treaties complement Oman domestic investment law (the Foreign Capital Investment Law of 2019) by providing international legal protections enforceable through investor-state dispute settlement (ISDS) mechanisms. The Oman-US Free Trade Agreement, in force since 2009, includes a comprehensive investment chapter with BIT-equivalent protections. Oman has also signed the GCC Unified Economic Agreement, which provides investment protections for GCC nationals. The government continues to negotiate new BITs and update existing ones to reflect modern investment law standards and align with Vision 2040 investment attraction goals.
Key Data Points
| Metric | Value |
|---|---|
| Number of BITs signed | 30+ |
| Key treaty partners | UK, Germany, China, India, Korea |
| Oman-US FTA investment chapter | In force since 2009 |
| Dispute resolution | ICSID, UNCITRAL |
| GCC investment protections | Unified Economic Agreement |
Vision 2040 Connection
BITs are a strategic tool for Vision 2040 investment attraction objectives. By providing robust legal protections, Oman signals to international investors that their capital is secure. The strategy supports expanding the BIT network to cover additional partner countries and ensuring treaty provisions are modernised to cover emerging sectors like digital economy and green energy.
Further Reading
- [[What is FDI]]
- [[Oman Dispute Resolution]]
- [[Oman Double Tax Agreements]]