On September 26, 2011 in Ottawa, Canada, Canada and Kuwait signed a Foreign Investment Promotion and Protection Agreement (FIPA). The parties held their inaugural round of FIPA negotiations from September 10-12, 2007 in Ottawa, Canada. Two additional rounds of negotiations were held in March 2008 and October 2008 in Kuwait City and Ottawa respectively. The parties concluded this agreement in April 2009. Parties will now proceed with their respective domestic ratification processes. For Canada, the FIPA will be tabled in the House of Commons for a period of 21 sitting days for Members of Parliament to review and debate. The agreement will come into force once the Governor General has given royal assent to the agreement and the Kuwaiti ratification process has been completed. The text of the agreement will be released publicly once it has been tabled in Parliament.
A bilateral FIPA will provide greater predictability and certainty for Canadian investors considering investment opportunities in Kuwait. By taking part in these negotiations, Canada has secured a comprehensive, high-quality agreement which will protect investors through the establishment of a framework of legally binding rights and obligations.
Although the current level Canadian investment in Kuwait is modest, given the country’s rapidly expanding economy and increasing openness to FDI, the country offers significant investment opportunities for Canadian investors in a variety of sectors including manufacturing, architecture and engineering, infrastructure, and health care, among others.
If you have questions or comments, please contact Foreign Affairs and International Trade Canada at:
Investment Trade Policy Division (TNI)
Foreign Affairs and International Trade Canada
Lester B. Pearson Building
125 Sussex Drive
Ottawa, Ontario K1A 0G2