Foreign Investment Law

There is no doubt that foreign investors must be aware of the foreign investment law pertaining to their foreign investment interests. These foreign investment laws are intended as protection for the interests of the country concerned by regulating foreign investment. While countries do invite foreign investors they do not want investors to rob the country of its potential wealth, which should be sustained within the country. Foreign investment law is designed to protect all concerned parties. Several countries have had to enact foreign investment law to protect national security and that has been the case with United States. Foreign investment laws will put restrictions on certain products in order to keep those products within their country's control.

However, foreign investment law is not uniform across the board and therefore the investor must really be knowledgeable about the product and the country he or she wishes to do investing in. Some of the restrictions put upon investors covered under foreign investment law include: obtaining government review and approval for foreign investment in specific areas of the country's industry deemed necessary for national security, economic security and cultural importance. It is because of some very controversial business ventures that foreign countries have had to tighten up their foreign investment law. Since various countries are changes their laws. It is important as investors to stay abreast of the changes in the country in which they intend to do business. There are however, similarities among different countries for their foreign investment law as well.

Many countries have some sort of government review body to regulate the interests of the investors in their foreign investment law. Many countries have issues of concern centering on national security. These issues can include national energy products, their industrial base, sovereign wealth funds, and foreign government owned enterprises. A country's foreign investment law may impose restrictions even on the approved transaction such as making it mandatory that the board of directors in the new enterprise, or merger and acquisition must be citizens of their country.

Two examples of foreign investment law which differs is that Netherlands, will limit foreign investment on such products as their public utilities and it is not subject to a review process. On the other hand the foreign investment law for the United Arab Emirates limits foreign investments in all sectors without a review process.