Agreement between the Kingdom of Saudi Arabia and the Kingdom of Spain on the Promotion and Reciprocal Protection of Investments

KingdomOfSaudiArabiaJ-Jp)EAR)Ab
AGREEMENT
BETWEENTHEKINGDOMOFSAUDIARABIAANDTHEKINGDOMOFSPAIN
CONCERNINGTHEPROMOTIONANDRECIPROCALPROTECTIONOF
INVESTMENTS
TheKingdomofSaudiArabiaandtheKingdomofSpain,hereinafterreferredtoas
“theContractingParties”,
Desiringtointensifyeconomiccooperationbetweenbothcountries,intendingto
createfavourableconditionsforinvestmentsbyinvestorsofeithercountryintheterritory
oftheothercountry,recognisingthatthereciprocalpromotionandprotectionofsuch
investmentsareapttostimulateprivatebusinessinitiativeandtaincreasetheprosperityof
bothnations,haveagreedasfollows:
Article1
ForthepurposeofthisAgreement;
1.Theterm“investment”meanseverykindofassetownedorcontroliedbyan
investorofaContractingPartyintheterritoryoftheotherContractingPartyaccordingto
itslegislationandinparticular,butnotexclusivelyincludes:
a)movableandimmovablepropertyaswellasanyotherrightsinrem,suchas
mortgages,liensandpledges,usufructsandsimilarrights;
b)shares,stocksanddebenturesofcompaniesandotherkindsofrightsor
interestincompaniesaswellassecuritiesissuedbyaContractingPartyor
anyofitsinvestors
x
c)claimstomoneysuchasloansortoanyperformancehavinganeconomic
value,associatedwithaninvestment;
d)intellectualpropertyrights,technicalprocesses,know-howandgood-will;
8)anyrighttoundertakeeconomicandcommercialactivitiesconferredby
laworbyvirtueofacontract,includinglicenses,permitsorconcessions
issuedaccordingtolaw.
Anyalterationoftheforminwhichassetsareinvestedorreinvestedshallnot
affecttheirclassificationasinvestment.
2.Theterm“retums”meanstheamountsyieldedbyaninvestment,inparticular
althoughnotexclusively,includesprofit,dividends,royalties,capitalgainsoranysimilar
feesorpayments.
3.Theterm“investor”means:
a)inrespectoftheKingdomofSaudiArabia:
I.naturalpersonspossessingthenationalityoftheKingdomofSaudi
Arabiainaccordancewithitsfaw;
Il.anyentityhavingorhavingnolegalpersonalityandconstitutedin
accordancewiththelawsoftheKingdomofSaudiArabiaandhaving
itsheadofficeinitsterritorysuchascorporations,enterprises,
cooperatives,companies,partnerships,offices,establishments,
funds,organizations,businessassociationsandothersimilarentities
irrespectiveofwhetherornottheyareoflimitedliability;
ll.theGovernmentoftheKingdomofSaudiArabiaanditsfinancial
institutionsandauthoritiessuchastheSaudiArabianMonetary
Agency,publicfundsandothersimilargovernmentalinstitutions
existinginSaudiArabia.
b)inrespectoftheKingdomofSpain:
Il.naturalpersonswho,accordingtothelawoftheKingdomofSpain,
areconsideredtobeitsnationals;
ll.juridicalpersonsoranyotherlegalentityconstitutedorotherwise
dulyorganizedinaccordancewiththelawsoftheKingdomofSpain
andhavingitsseatintheterritoryoftheKingdomofSpainsuchas
corporations,partnershipsorbusinessassociations.
4.Theterm“territory”designatesthelandterritory,internalwatersofeachofthe
ContractingParties,aswellastheexclusiveeconomiczoneandthecontinentalshelf
thatextendoutsidethelimitsoftheterritorialseaofeachoftheContractingPartiesover
whichtheyhavejurisdictionand/orsovereignrights,pursuanttointernationallaw.
Article2
1.EachContractingPartyshallinitsterritorypromoteasfaraspossibleinvestments
byinvestorsoftheotherContractingParty.EachContractingPartyshalladmitsuch
investmentsinaccordancewithitslawsandregulations.
2.InvestmentmadebyinvestorsofoneContractingPartyintheterritoryoftheother
ContractingPartyshallatalltimesbeaccordedfairandequitabletreatmentandshall
enjoyfullprotectionandsecurity.

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