Iraq's Parliamentary Economy Committee Discusses Amending the Investment Law
In September 2024, Iraq's Parliamentary Economy Committee convened to deliberate on amendments to the country's Investment Law. The discussions centered around the need to enhance the law to attract more foreign direct investment (FDI) and bolster the private sector, which has remained weak.
Background on Iraq's Investment Law
The current Investment Law, No. (13) of 2006, was enacted to create a more favorable environment for investments in Iraq. It established the National Commission for Investment, responsible for formulating national investment policies and granting investment licenses. However, the law has faced criticisms for not being fully effective in stimulating investment, primarily due to bureaucratic hurdles and security concerns.
Proposed Amendments and Objectives
The proposed amendments aim to address the shortcomings of the existing law and to create a more investor-friendly environment.
Key objectives include: Simplifying the investment licensing process to attract more FDI.
Strengthening the role of the National Commission for Investment to better support investors.
Providing clearer guidelines on land use and ownership for foreign investors.
Establishing a dispute resolution mechanism to address investor concerns.
Challenges and Opportunities
Iraq's economy, heavily reliant on oil revenues, has been seeking diversification and modernization of its financial and banking sectors. The proposed amendments to the Investment Law are seen as a critical step in this direction.
However, the country's political dynamics, corruption issues, and lack of basic services remain significant challenges.
Stakeholder Perspectives
Government: The new government, under Prime Minister Mohammed Shia’ al-Sudani. is optimistic about the potential of the amended law to attract FDI and boost the economy.
Investors: Foreign investors have shown interest but remain cautious due to security concerns and the slow pace of reform.
Civil Society:There are concerns among civil society groups about the transparency and accountability of investment deals, particularly in the upstream oil industry.
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