Business Service | Foreign Investment in IRAQ

Business Service | Foreign Investment in IRAQ

Business Service | Foreign Investment in IRAQ

Ilham Musa Mauroa · 16 February 2020

In light of the global trend towards investment and due to the fact that world countries are creating new horizons for investment opportunities to improve all fields and to develop the investor's role, to contribute to the recovery of the economy, and to develop technical expertise which lead to advancing the development, recovery, and welfare of societies, some countries allow foreign investors as well as foreign investment companies to take advantage of investment opportunities and features given by laws to national investors.

 

Al-Abyadh Consulting Adopts the Investment Process in Iraq 

Al Abyadh Consulting adopts the investment process in Iraq by providing continuous legal consultations, logistical support, and rounds of negotiations with official, semi-official, and private entities for all foreign investment companies. The Investment Act No. 13 for the year 2006 listed a set of benefits for foreign investors including giving them the right to own lands and real estate for investment purposes as well as the right to rent lands and real estate from the state, private, and mixed sectors for a renewable period of up to 50 years, as well as transferring ownership of the investment project in whole or in part during the authorization period to any Iraqi or foreign investors. 

 

Investment Capital 

As for capitals and trading in stocks and bonds, the Act allows investors to take out the capital that entered Iraq and its revenues for investment purposes, provided that this is done in accordance with the applicable regulations in addition to trading in the Iraq Stock Exchange in shares and bonds listed therein, and the acquisition of membership in private and mixed joint stock companies. This does not prevent the ownership of real estate within the assets of the aforementioned companies, the formation of investment portfolios in stocks and bonds, and the opening of accounts in Iraqi or foreign currency, or both, with a bank in or outside Iraq for the project

 

Investment Insurance 

In the context of preserving investment projects, insurance on the investment project is permissible with any national or foreign insurance company that the investor finds appropriate for them and for the objectives of their project, the protection of investment projects by not confiscating or nationalizing it in all or in part, exemption from taxes and fees for a period of (10) ten years from the date of the commencement of the commercial operation with the potential to be increased up to (15) fifteen years in some cases, and the exempting of imported assets from fees within (3) three years from the date of granting the investment license, as well as spare parts imported for the project purposes provided that the value of these parts do not exceed (20%) percent of the value of the purchased of assets.

 

Investor Freedom

The Iraqi legislator also focused on granting the investor the freedom in terms of simplifying the procedures for granting entry permits and residency of foreigners. It allows hiring of foreign manpower within investment projects and granting the foreign investor and workers in non-Iraqi investment projects the right to live in Iraq and facilitate its entry and exit to and from Iraq and to grant entry benefits by this merit. It gives foreign technical and administrative workers in a project the right to transfer their salaries and compensations out of Iraq.

 

Our company, Al Abyadh Consulting, is responsible for the legal consultations for managing investment projects files, holding meetings and representing investors with the relevant authorities.

You can contact us for more information and we will be happy to be in touch with you and answer your questions.