Wednesday, October 11, 2006
New law passed on foreign investment in Iraq
Foreign investment
Iraqi lawmakers have unanimously approved a law which they hope will encourage foreign investment in the rebuilding of their war-torn oil-based economy. Among the sweeteners contained in the new investment law, however, is an offer of tax-free status over 10 years for licensed projects, and a vow not to expropriate or nationalise foreign-owned firms. "The law is passed in order to push forward the economic and social process, bring expertise and scientific expertise, develop human resources and create jobs for Iraqis," the text said.
Under the law, a National Committee on Investment will be formed under the prime minister's office to set Iraq's broad economic strategy and priorities for investment. A second panel, dubbed the Committee for Investment in the Provinces and Governorates, will issue licences to foreign investors and maintain offices in Iraq's 18 provinces. "Regardless of his nationality, the investor shall enjoy all merits and facilities and shall be subject to the obligations hereby mentioned," the 16-page law stipulated. Some politicians had expressed concern that foreigners might buy up vital assets in Iraq's potentially lucrative oil sector at fire-sale prices amid the post-war chaos, but the final draft was broadly welcomed.
