Approves Investors and Investments Protection Law

On 1 March 2023, the Parliament of Somalia approved the Investors and Investments Protection Law, which aims to protect both foreign and domestic investments within the country. The law facilitates the establishment of investments and provides legal protection to investors through the Most Favoured Nation (MFN) Treatment and the National Treatment. Additionally, it enables foreign investors to freely transfer funds to and from the country and to repatriate their investments in the event of unforeseen circumstances. The law recognizes the sovereign right of the Government to regulate and manage its resources but also provides for fair compensation to investors in the event of expropriation as well as indirect expropriation. Finally, it includes mechanisms for grievance management and dispute resolution, offering a system for investors to file grievances and seek redress of their complaints. The law also provides for dispute resolution through arbitration or other means.

• Type:

  • Treatment and operation (Non-discrimination, Nationalizations and expropriations, Capital transfer and FOREX)
  • Treatment and operation (Nationalizations and expropriations, Capital transfer and FOREX, Dispute settlement)
  • Promotion and facilitation (Investment facilitation )

• Industry:

  • Not industry specific

• Sources:

  • The East African, We’ve lifted barriers to foreign investment, Somalia PM Hamza Barre says, https://www.theeastafrican.co.ke/tea/news/east-africa/we-ve-lifted-barriers-to-foreign-investment-somalia-pm-says-4602866, 25 Apr 2024
  • Somalia Investor, Somalia aims to Protect Investors to Boost Economic Growth, https://somaliainvestor.so/somalia-aims-to-protect-investors-to-boost-economic-growth/, 01 Mar 2023