Why Iraq
A Promising Business Destination

Iraq offers a dynamic and evolving business landscape, welcoming investors with a robust legal framework and strategic reforms. Since the implementation of its investment law in 2006, Iraq has been striving to create an investor-friendly environment, offering unique opportunities across various sectors. With a commitment to economic reform and stability, Iraq presents a compelling case for business expansion and investment.

 

Economic Reform and Investment Potential

Iraq is actively enhancing its business environment to attract investors. Despite challenges such as inflation and economic growth, the Government of Iraq (GOI) is implementing key reforms to drive progress and stability. Initiatives such as pension reform, and the reduction of refined oil subsidies are part of the broader strategy to create a sustainable economic future.

In addition to economic policies, Iraq is working towards World Trade Organization (WTO) accession, demonstrating its commitment to integrating into the global economy.

 

Openness to Foreign Investment

The Iraqi government has taken significant steps to encourage foreign investment by introducing the Investment Law No. 13 of 2006. This law aims to:

• Promote investment and transfer modern technologies to develop and diversify Iraq’s production and service sectors.
• Encourage both local and foreign private sector participation by providing necessary facilities and enhancing competitiveness in local and foreign markets.
• Develop human resources based on market demands and provide employment opportunities for Iraqis.
• Protect investors’ rights and properties.
• Expand exports and improve the country’s balance of payments and trade.

 

Key Benefits for Foreign Investors

The Investment Law No. 13 provides several privileges and guarantees, including:

• Capital Repatriation: Investors can repatriate their capital and profits in accordance with the law and Central Bank of Iraq regulations.
• Stock Market Participation: Investors can trade in shares and bonds listed on the Iraqi Stock Exchange (ISX) and form investment portfolios.
• Land Leasing: While the law does not allow foreigners to own land, investors can lease land for extended periods for up to 50 years with renewal options based, In the Kurdistan Region of Iraq (KRI), however, foreign investors are permitted to own land, offering further opportunities.
• Insurance Options: The flexibility to insure investment projects with any preferred foreign or national insurance company.
• Banking Facilities: Investors can open accounts in Iraqi or foreign currencies at local or international banks.
• Residency and Employment: Non-Iraqi workers and investors are granted residency and facilitated entry and exit procedures.
• The law also guarantees protection from project nationalization or seizure, ensuring a secure investment climate.
• Exemptions from taxes and fees for ten years, with an extension to fifteen years if an Iraqi partner holds over 50% of the project.
• Tax exemptions for hotels, hospitals, and educational institutions on imported furnishings and equipment.

 

Protection of Intellectual Property Rights

Iraq is in the process of enhancing its intellectual property rights (IPR) framework in compliance with WTO standards. It is a member of several international conventions, including:

– Paris Convention for the Protection of Industrial Property.

– World Intellectual Property Organization (WIPO).

– Arab Agreement for the Protection of Copyrights.