AGREEMENT BETWEEN THE GOVERNMENT OF THE KINDGOM OF SAUDI ARABIA AND THE GOVERNMENT OF THE REPUBLIC OF INDIА CONCERNING THE ENCOURAGEMENT

AGREEMENT
BETWEEN
THEGOVERNMENTOFTHEKINDGOMOFSAUDIARABIA
AND
THEGOVERNMENTOFTHEREPUBLICOFINDIA
CONCERNINGTHEENCOURAGEMENTAND
RECIPROCALPROTECTIONOFINVESTMENTS
TheGovernmentoftheKingdomofSaudiArabiaandGovernmentof
theRepublicofIndia(hereinafterreferredtoasthe“ContractingParties”);
DesiringtointensifyeconomiccooperationbetweenbothStatesand
intendingtocreatefavourableconditionsforinvestmentsbyinvestorsof
eitherStateintheterritoryoftheotherState;
Recognizingthatthereciprocalpromotionandprotectionofsuch
investmentsareapttoencouragebusinessinitiativeandtoincreasethe
prosperityofbothStates;
Haveagreedasfollows:
ARTICLE1
ForthepurposesofthisAgreement;
1theterm“investment”meanseverykindofasset,ownedbyan
investorofaContractingPartyintheterritoryoftheotherContractingParty
accordingtoitslegislationandinparticular,butnotexclusivelyincludes:
a)movableandimmovablepropertyaswellasanyotherrightsinrem,
suchasmortgages,liensandpledges,usufructsandsimilarrights;
ie
shares,stocksanddebenturesofcompaniesandotherrightorinterest
incompaniesaswellassecuritiesissuedbyaContractingPartyorany
ofitsinvestors,inaccordancewiththerelevantlawsandregulations
ofthehostContractingPartyforsuchsecurities;
claimstomoneysuchasloansortoanyperformancehavingan
economicvalue,associatedwithaninvestment;
intellectualpropertyrights,includingbutnotlimitedtocopyrights,
patents,industrialdesigns,know-how,trademarks,tradenamesand
goodwillinaccordancewiththerelevantlawsoftherespective
ContractingParty,
¢)businessconcessionconferredbylaworundercontractoranylicense
orpermitissuedaccordingtolaw;
anyalterationoftheforminwhichassetsareinvestedorreinvestedshallnot
affecttheirclassificationasinvestment,providedthatsuchalterationisnot
inconflictwiththelegislationoftheContractingPartyintheterritoryof
whichtheinvestmentismade.
2.Theterm“returns”meansthemonetaryamountsyieldedbyan
investmentinparticularprofits,dividends,royalties,capitalgainsorany
similarfeeorpayment.
3.Theterm“investor”means:
a)inrespectoftheKingdomofSaudiArabia:
I.naturalpersonspossessingthenationalityoftheKingdomofSaudi
ArabiainaccordancewiththelawoftheKingdomofSaudiArabia;
II.anyentityhavinglegalpersonalityandconstitutedinaccordancewiththe
lawsoftheKingdomofSaudiArabiaandhavingitsheadofficeinits
territorysuchascorporations,enterprises,cooperatives,companies,
partnerships,offices,establishments,funds,organizations,business
associationsandothersimilarentitiesirrespectiveofwhetherornotthey
areoflimitedliability;
.theGovernmentoftheKingdomofSaudiArabiaanditsfinancial
institutionsandauthoritiessuchastheSaudiArabianMonetaryAgency,
publicfundsandothersimilargovernmentalinstitutionsexistinginSaudi
Arabia.
InrespectoftheRepublicofIndia:
nationalsderivingtheirstatusasIndiannationalsfromthelawinforce
inIndia;
companies,corporations,firmsandassociationsincorporatedor
constitutedorestablishedunderthelawinforceinanypartofIndia.
Theterm“territory”means:
a)InrespectoftheKingdomofSaudiArabia:inadditiontothe
zonescontainedwithinthelandboundaries,themarineand
submarinezonesandtheairspaceoverwhichtheKingdomof
SaudiArabiaexercisessovereigntyandsovereignor
jurisdictionalrightsunderInternationalLaw;
InrespectoftheRepublicofIndia:theterritoryofthe
RepublicofIndiaincludingitsterritorialwatersandtheair
spaceaboveitandothermaritimezonesincludingthe
ExclusiveEconomicZoneandcontinentalshelfoverwhichthe
RepublicofIndiahassovereignty,sovereignrightsorexclusive
jurisdictioninaccordancewithitslawsinforce,International
Lawandthe1982UnitedNationsConventionontheLawof
theSea.

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