The Kingdom’s investment authority signed an agreement yesterday to promote and protect investments between the United Arab Emirates (UAE) and Cambodia, a move government officials hope will attract foreign direct investment from the oil-rich Gulf state, which currently stands at almost zero.

Sok Chenda Sophea, secretary-general of the Council for the Development of Cambodia, signed the bilateral investment protection agreement with Saif Alshamsi, the UAE ambassador based in Bangkok, Thailand.

Chenda Sophea said it “will send a positive message about Cambodia to UAE investors that are looking for business opportunities in Cambodia”.

“Currently, we do not have any UAE investment in Cambodia besides Emirates Airlines,” he said. “But by signing this agreement today I hope there will be more investment in the next three years.”

He added that UAE’s minister of foreign affairs will visit Cambodia this year with an accompanying business delegation.

Emirates Airlines expanded its presence in Cambodia after launching a daily passenger flight between Dubai and Phnom Penh, with a stopover in Yangon, on July 1. The airline’s passenger service follows its initial cargo freight operations that began in mid-2016 with a weekly flight.

Pressed on details of the agreement, Chenda Sophea explained it ensures that investors are fully protected based on rule of law, but does not protect them from losses due to environmental impacts or natural disasters.

This is the 28th bilateral agreement the Cambodian government has signed with other countries to promote and protect investments.