Bilateral Investment Agreements
Agreement on the Promotion and Protection of Investments between the Hashemite Kingdom of Jordan and the Syrian Arab Republic
A bilateral treaty intended to encourage investments by nationals and entities of each Party in the territory of the other through regulatory facilitation and legal protection. The agreement sets out definitions of investment, non‑discriminatory and fair treatment, protection against expropriation, free transfer of capital and returns, and dispute‑resolution mechanisms.
Updated: 15 December 2021
Prepared and reviewed by: Ashraf Al-Khawaja
Scope and Key Definitions
The treaty defines what constitutes an "investment" for its purposes, covering movable and immovable assets, shares, bonds, intellectual property rights and reinvested returns, and it defines "investor" to include nationals and juridical persons of either Party. The text also specifies territorial scope and a concept of convertible currencies to facilitate transfers of capital and returns. Eligibility for protections under the agreement depends on conformity with the host State’s applicable investment laws and regulations.
Promotion, Incentives and Treatment of Investors
Each Party undertakes to promote investments and to provide a favorable climate, including necessary entry, residence and work permits for investors and their personnel in accordance with domestic law. The treaty establishes fair and equitable treatment and non‑discrimination, and it provides that investors may benefit from incentives available under the host State’s investment laws where the investment is duly authorized. Practically, this creates a basis for investors to claim parity with nationals or investors of third States, while preserving the host State’s regulatory and licensing requirements.
Protection of Investments and Compensation for Expropriation or Loss
The agreement prohibits direct or indirect expropriation or equivalent measures except for a public purpose on a non‑discriminatory basis and subject to prompt, adequate and effective compensation. Compensation is to be calculated on the basis of the fair market value immediately prior to the public announcement of expropriation, or on equitable principles if market value cannot be determined. Provisions also address losses from war or civil disturbance, permitting affected investors to seek recovery or compensation and to transfer amounts abroad in accordance with the treaty. These protections do not relieve investors from complying with host State judicial or administrative proceedings where applicable.
Transfers of Funds and Dispute‑Resolution Mechanisms
The treaty guarantees the right to freely repatriate invested capital and returns in convertible currencies in accordance with applicable investment regulations, listing typical items covered (profits, dividends, liquidation proceeds, loan repayments, compensation). For dispute resolution, it provides that investor‑State disputes may be resolved by conciliation, arbitration or local courts, and it sets out a procedure for State‑to‑State arbitration with appointment rules, cost allocation and binding awards. The agreement also establishes a joint ministerial committee to monitor implementation and pursue amicable resolution of investment obstacles.
Legal notice
Warning: The foregoing is a general educational summary based on the published source linked on the page; it does not substitute for the official treaty text or for professional legal advice. Verify the authentic text, ratifications and any applicable laws, amendments or dates, and consult a licensed lawyer for tailored legal advice.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.