Solomon Islands is party to two key international agreements that are meant to prevent the country’s authorities from discriminating against foreign investors and to prevent foreign investors from acting outside of Solomon Islands law(s). The application of these principles are spelt out in the Foreign Investment Act (2005) and specifically cover the event that a dispute with a foreign investor(s) takes place and guarantees given to a foreign investor(s). The explanations given are for awareness reasons only and should not be relied on for legal matters or as legal advice. For legal advice, please contact a registered legal practitioner or the Attorney General’s Chambers.
Foreign investors conducting activities in the Solomon Islands will be dealt with under Solomon Islands laws. In an event that a dispute occurs, that foreign investor will be given the same rights and will be dealt with under the same law(s) that apply to Solomon Islands Citizens, as long as those laws are not inconsistent with the Convention of Settlement of Investment Disputes (which was signed by Solomon Islands in Washington on 12 November 1979 and acceded to by Solomon Islands on 8 October 1981).
Solomon Islands also adheres to three (3) guarantees that are spelt out under the APEC non-binding investment principles. These principles, which have been endorsed by the Solomon Islands and other Pacific Islands Forum Countries (member economies), are:
- Member economies will not expropriate foreign investments or take measures that will have a similar effect, except for a public purpose and on a non-discriminatory basis, in accordance with the laws of each economy and principles of international law, and against the prompt payment of adequate and effective compensation.
- Member economies will extend to investors from any economy treatment in relation to the establishment, expansion and operation of their investments that is no less favourable than that accorded to investors from any other economy in like situations, without prejudice to relevant international obligations and principles.
- Member economies will further liberalise towards the goals of free and prompt transfer of funds related to foreign investment, such as profits, dividends, royalties, loan payments and liquidations, in freely convertible currency.