Adopted Foreign Investment Law 2015
23 Nov 2015
On 23 November 2015, Somalia passed a Foreign Investment Law to promote and protect foreign investments. The key changes introduced by the 2015 law include:
• Establishment of the Foreign Investment Board: The supreme authority on foreign investment matters, which was absent in the previous regime.
• Creation of SOMINVEST: An office to assist the Board and promote foreign direct investment.
• Defined Forms of Investment: Specifies acceptable forms such as convertible currency, machinery, equipment, and intellectual property, which were previously unclear.
• Arbitration for Dispute Resolution: Provides a clear arbitration mechanism with final and binding awards, unlike the previous regime’s lack of a well-defined process.
• Sector Exclusions: Specifies excluded sectors like mineral research, petroleum, military manufacturing, and nuclear power, which were less clear previously.
• Benefits and Obligations: Outlines investor benefits and the requirement to report transactions, with penalties for non-compliance, improving transparency and accountability over the previous regime.
Overall, the Foreign Investment Law of 2015 provides a more structured and transparent framework, aiming to attract and protect foreign investors.
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Type:
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Entry and establishment (Ownership and control)
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Treatment and operation (Dispute settlement)
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Promotion and facilitation (Investment facilitation )
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Industry:
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