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

KwgdomOfSaudiArabiaJwvJa)CN79)A
AGREEMENTBETWEEN
THEKINGDOMOFSAUDIARABIAANDJAPAN
FORTHEPROMOTIONANDPROTECTIONOFINVESTMENT
TheKingdomofSaudiArabiaandJapan,
Desiringtofurtherpromoteinvestmentinorderto
strengthentheeconomicrelationshipbetweenthetwo
countries;
Intendingtofurthercreatefavorableconditionsfor
greaterinvestmentbyinvestorsofonecountryintheother
country;
Recognizingthegrowingimportanceoftheprogressive
liberalizationofinvestmentforstimulatinginitiativeof
investorsandforpromotingprosperityinbothcountries;and
Recognizingthattheseobjectivescanbeachievedwithout
relaxinghealth,safetyandenvironmentalmeasuresofgeneral
application;
Haveagreedasfollows:
Article1
ForthepurposesofthisAgreement,
(1)Theterm“legislation”means:
(a)inrelationtoJapan,thelawsandregulationsof
Japan;and
(b)inrelationtotheKingdomofSaudiArabia,the
laws,regulationsandroyaldecreesoftheKingdom
ofSaudiArabia.
(2)Theterm“investments”meanseverykindofasset
ownedorcontrolledbyaninvestorincluding:
(a)anenterprise;
(b)shares,stocksorotherformsofequity
participationinanenterprise,includingrights
derivedtherefrom;
(c)bonds,debentures,loansandotherformsofdebt,
includingrightsderivedtherefromaswellas
securitiesissuedbythegovernmentofaContracting
Party;
(d)rightsundercontracts,includingturnkey,
construction,management,productionorrevenue-
sharingcontracts;
(e)claimstomoneyandtoanyperformanceunder
1
x
contracthavingafinancialvalue;
(f)intellectualpropertyrights,includingcopyrights
andrelatedrights,patentrightsandrights
relatingtoutilitymodels,trademarks,industrial
designs,layout-designsofintegratedcircuits,new
varietiesofplants,tradenames,indicationsof
sourceorgeographicalindicationsandundisclosed
information;
(g)rightsconferredpursuanttolegislationor
contractssuchasconcessions,licenses,
authorizationsandpermits;and
(h)anyothertangibleandintangible,movableand
immovableproperty,andanyrelatedpropertyrights,
suchasleases,mortgages,liensandpledges.
(3)Theterm“investorofaContractingParty”means:
(a)anaturalpersonhavingthenationalityofthat
ContractingPartyinaccordancewithitsapplicable
legislation;or
(b)anenterpriseofthatContractingParty,
thathasmadeinvestmentsintheotherContractingParty.A
branchofanenterpriseofanon-ContractingParty,whichis
locatedintheotherContractingParty,shallnotbedeemedas
aninvestorofthatContractingParty.
(4)Anenterpriseis:
(a)“owned”byaninvestorifmorethanfiftypercentof
theequityinterestinitisownedbytheinvestor;
and
(b)“controlled”byaninvestoriftheinvestorhasthe
powertonameamajorityofitsdirectorsor
otherwisetolegallydirectitsactions.
(5)Theterm“anenterpriseofaContractingParty”
meansanylegalpersonoranyotherentitydulyconstitutedor
organizedundertheapplicablelegislationofthatContracting
party,whetherornotforprofit,andwhetherprivateor
governmentownedorcontrolled,includinganycorporation,
trust,partnership,soleproprietorship,jointventure,
association,organization,companyorbranch.
(6)Theterm“investmentactivities”meansthe
operation,management,maintenance,use,enjoyment,andsale
orotherdisposalofinvestments.
(7)Theterm“theWTOAgreement”meanstheMarrakesh
AgreementEstablishingtheWorldTradeOrganization,doneat
Marrakesh,April15,1994.
(8)Theterm“ContractingParty”meansJapanorthe
KingdomofSaudiArabia,asthecontextrequires.
Investmentsincludereturn.Theterm“return”meansthe
amountsyieldedbyinvestments,inparticular,profit,capital
gains,dividends,royaltiesandfees.
Achangeintheforminwhichassetsareinvestedor
reinvesteddonotaffecttheircharacterasinvestments,
providedthatthechangeisnotinconsistentwiththe
legislationoftheContractingPartywheretheassetsare
investedorreinvested.
ThisAgreementshallalsoapplytotheareasofthe
exclusiveeconomiczoneandthecontinentalshelfinsofaras
internationallawpermitstheContractingPartyconcernedto
exercisesovereignrightsorjurisdictionintheseareas.
Article2
1.EachContractingPartyshallpromoteasfaraspossible
investmentbyinvestorsoftheotherContractingPartyand,
subjecttoitsrightstoexercisepowersinaccordancewith
itsapplicablelegislationincludingthosewithregardto
foreignownershipandcontrol,admitsuchinvestment.
2.Onceadmittedinaccordancewithitsapplicable
legislation,eachContractingPartyshallaccordtoinvestors
oftheotherContractingPartyandtotheirinvestments
treatmentnolessfavorablethanthetreatmentitaccordsin
likecircumstancestoitsowninvestorsandtheirinvestments
withrespecttoinvestmentactivities.
Article3
1.EachContractingPartyshallaccordtoinvestorsofthe
otherContractingPartyandtotheirinvestmentstreatmentno
lessfavorablethanthetreatmentitaccordsinlike
circumstancestoinvestorsofanon-ContractingPartyandto
theirinvestmentswithrespecttoinvestmentactivities.
2.Notwithstandingparagraph1,eachContractingPartymay
notaccordtoinvestorsoftheotherContractingPartyandto
theirinvestmentspreferentialtreatmentgrantedunderthe
membershipoftheformerContractingPartyinacustomsunion,
aneconomicunion,acommonmarketorafreetradeareawitha
non-ContractingParty.
Article4
EachContractingPartyshallaccordtoinvestmentsof
investorsoftheotherContractingPartytreatmentin
accordancewithinternationallaw,includingfairand
equitabletreatmentandfullprotectionandsecurity.

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