Investment Opportunities in Iraq? For several decades Iraq had an economic framework based mainly on oil production and export. During the last few years, there has been an increase in the oil price of production and export followed by an increase in the GDP of the State. Iraq is recognizing the need for broader economic development to ease the State’s economic dependence on oil production.
Iraq is a strategically located nation with an educated and enterprising population and vast natural wealth. Iraq aims to boost the country’s economic performance through enhancing political stability and security, building and improving infrastructure, promoting investment in non-oil sectors, and supporting the development of the financial sectors.
The Iraqi government has undertaken steps to develop greater investments in the public and private sectors, thus contributing to the economic development that has characterized Iraq in recent years. This promises to further increase thanks to the incentives and strengthening projects planned for all the less developed sectors.
Foreign Direct Investment and Investment Opportunities in Iraq
In the global economy, foreign direct investment (FDI) is a key component in national strategies to achieve sustainable economic and social development. This has long been recognized by OECD countries, which are both the largest providers and largest beneficiaries of FDI worldwide. The experience of OECD countries suggests that there are, broadly speaking, two requirements for attracting high levels of FDI:
- Building a stable environment conducive to business and investment through progressive macro-economic and structural policies, and legal frameworks; and
- having the capacity to compete effectively on world markets for mobile FDI
After decades of war, sanctions, and destruction, Iraq needs significant investment inflows to rebuild its infrastructure, create employment, foster growth, and – in the case of FDI – transfer modern technology and know-how.
With improvements in Iraq’s security and economic stability, the Iraqi government now is to attract and build technical and scientific expertise, develop human resources, create job opportunities, and remove red tape.
Foreign investment is surging. Strategic and financial investors from around the world are seeking ways to invest in Iraq with reliable, experienced, well-connected partners. The Iraq reconstruction opportunity is singular in scale and scope. Iraq possesses what could prove to be the largest oil reserves in the world and it is the only important oil and gas producer in the world. Iraq has the potential and the intention to increase production by a factor of four or more times over the coming decade.
Business Establishment in Iraq
The steps to establish a company in Iraq do not last more than 30 days. First of all, the investor must choose a valid business name to be reserved later at the Baghdad Chamber of Commerce.
Possible Business Entities to Establish in Iraq
Limited Liability Company is the most common and widespread business entity in Iraq. LLC must be composed of at least two members, a shareholder and a director. At least 51% of the ownership of the company LLC must be Iraqi (the percentage value may vary in relation to the type of sector in which the company intends to operate)
A foreign investor can establish a Joint Stock Company in Iraq with at least four other members and five directors.
In Iraq it is possible to establish Branch Offices of Foreign Corporations in cases where these are necessary to support certain government functions or if they intervene to collaborate with companies that support government functions. A foreign investor who decides to establish a branch office in Iraq has the possibility to own it 100%.
Sectors with Investment Opportunities in Iraq
- Oil and gas sector
- Infrastructure and construction sector
- Healthcare
- Agricultural sector
- The sector of alternative and renewable energies
Oil and Gas
Infrastructure and Construction
Healthcare
Agriculture
Alternative and Renewable Energies
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