Home
Foreign direct investment in Iraq - capital movement to and from Iraq
October 09, 2023
Foreign direct investment in Iraq - capital movement to and from Iraq.
For more, click here https://cbi.iq/static/uploads/up/file-169683768241718.pdf
https://cbi.iq/news/view/2435
- Approximate translation of -
https://cbi.iq/static/uploads/up/file-169683768241718.pdf
Department of Investments and Foreign Transfers
Foreign investment plays a fundamental role in the development of the countries receiving it.
Through foreign capital, it is possible Countries - especially developing countries - may exploit their natural resources and complete major projects related to their infrastructure, such as roads “And airports” and establishing projects that require technical expertise, as foreign investment contributes significantly to financing Development processes and the formation of national expertise in countries hosting investments.
First: Iraq’s membership in the International Monetary Fund
Iraq's membership in the International Monetary Fund since (December 77, 1451) is obligated to implement and take all measures Possible measures to remove restrictions on the movement of capital,” as referred to in Article Eight and Article Four Ten of the fund’s incorporation agreement.
Article Eight implicitly states (A GY member may not impose - without... Fund approval - restrictions on the performance of payments and transfers related to international transactions. And matter 14 Implicitly indicates (whether the member is prepared to accept the obligations contained in Sections 2, 3 and 4 of Article Eighth).
Thus, the agreement encourages the free movement of capital between countries and the transfer of balances between other members.”
As well as establishing experimental and financial arrangements - international and bilateral - to facilitate the performance of international payments and working to find A stable exchange rate system, which provides the appropriate environment to attract foreign investments.
Second: Iraq’s accession to the 1965 Washington Agreement Investment (16510).
Iraq's accession to the aforementioned agreement means that this country has become bound by its provisions
It makes this treaty an integral part of the national legal system, and this entails harmonization of its contents
The agreement and the provisions contained in Iraqi legislation.
Page 1
Department of Foreign Investments and Transfers
The international center referred to above is considered the international organization that grants foreign companies and investors gall to stand on an equal footing with the host country for their investments.
Therefore, Iraq’s accession to the agreement It is necessary to attract investments and achieve economic development purposes, especially in light of transformation and adoption The free market economy as an economic system for the country gave way to the private sector in an unprecedented way.
Third: The Foreign Direct Investment Law in Iraq
2006 As stated above, Iraq legislated Foreign Direct Investment Law No. (13) of the year sly
Which provides the foreign investor with a set of advantages that can be summarized as follows:
1. Retaining the land for a fee determined between him and the land owner, without speculation, in accordance with controls set by the Authority National Investment and approval of the Council of Ministers.
2. Facilitating the allocation of necessary lands for housing projects and ownership of housing units for Iraqis after completion The project.
3. The law allows the investor to extract the capital he brought into Iraq and its returns.
4. The foreign investor has the right to trade in the Iraqi Stock Exchange in the stocks and bonds listed therein.
5. The law gives the investor the right to own the lands (an amendment to the law) necessary for the project after it has been established
The banker gives him the lease of the lands for the period during which the project is in existence, provided that it does not exceed (50) One year, renewable with the approval of the Authority.
6. The law guarantees the investor the right to employ non-Iraqi workers in the event of this impossibility Employing an Iraqi who has the necessary qualifications and is capable of doing the same job.
7 Granting foreign investors and non-Iraqi workers in investment projects the right to reside in Iraq
And facilitating their entry and exit to and from Iraq, and they may transfer their salaries and compensation outside Iraq.
8. It also guarantees that the investment project covered by the provisions of this law will not be confiscated or nationalized in whole or in part Except for what is issued by a final judicial ruling.
9. The project that obtains an investment license from the Authority enjoys an exemption from fees for a period of (3) years
There are (10) tax exemptions for imported project assets and (10) from the date of the start of commercial operation.
It has been confirmed Article (15) of the law stipulates this, with other exemptions, and the foreign investor enjoys additional benefits.
According to international agreements between Iraq and its state or multilateral agreements to which Iraq had joined.
Page 2
Department of Foreign Investments and Transfers
Article Eleven - First of the above law referred to the investor withdrawing the capital that he brought into the Iraq and its revenues, in accordance with the provisions of this law and the instructions of the Central Bank of Iraq, are transferable after payment All its obligations and debts to the Iraqi government and other parties.
Fourth: Investment agreements concluded by Iraq in 2003
1. Arab Investment Guarantee Corporation Agreement 1988.
2. The Unified Agreement for Arab Capital Investment of 2012, amended.
3. Convention for the Avoidance of Double Taxation and Tax Evasion 1997.
5. Amman Convention on Commercial Arbitration of 1988.
As for the bilateral agreements that were ratified and published in the Iraqi Gazette, they are:
6. Agreement to encourage and protect mutual investment between Iraq and France for the year 2012.
7. Agreement to encourage and protect mutual investments between Iraq and Armenia for the year 2014.
8. Agreement to encourage and protect mutual investment between Iraq and Japan for the year 2013.
9. Agreement to encourage and protect mutual investment between Iraq and Jordan for the year 20115.
10. Agreement to encourage and protect mutual investments between Iraq and the Code of 2014.
11 . Agreement to encourage and protect mutual investment between Iraq and Germany for the year 2012.
12. Investment incentives agreement between Iraq and the United States of America for the year 2012.
Most of these bilateral agreements and treaties include freedom of movement of capital.
Fifth: Mechanisms of capital movement to and from Iraq
The Central Bank of Iraq has a prominent role in encouraging investments, introducing capital, and creating a system
“Financial dealings with foreign banks to work in the country” and benefiting from his expertise to develop the Iraqi banking sector
Page 3
Foreign Transfers and Investments Department
And to create
H
They made money as a rule, From us and creating the economy contributes to support
As well as, local companies with Fassa
The role of that about Faddal, Aqiya
Before the trust is shaken To attract foreign banks and companies, no matter what they forget
What are these banks and who are they coming from?
Investment
1. bank Standard Trdircha Standard chartered bank
2. bank Aaat rice Turkish Ziraat Bankası
3. Egypt Ash F Turkish Türkiye İş Bankası
4. Jordan Bank Bank of Jordan
5. Abu Dhabi Islamic Bank Abu Dhabi Islamic Bank
6. Turkish Al Baraka Bank. Islamic Albaraka Bank
7. Turkish Vakif Bank Vakif Bank
The Representative banks have offices Foreign Representative Offices
8. City Bank Citi Bank
9. German J Bank merchants. Commerzbank
10. The first is Abu Dhabi Bank First Abu Dhabi Bank
Local and foreign banks Investment Subsidiaries in Iraqi Banks
11. Save the money from Al Ahly Bank. National Bank of Iraq Subsidiary of Capital Bank of Jordan
12. Al Mansour Bank Al-Mansour Bank Subsidiary of QNB Group
13. Baghdad Bank Bank of Baghdad Subsidiary of Jordan Kuwait Bank
14. Aq R Bank merchants Commercial Bank of Iraq Subsidiary of Ahli United Bank, Bahrain
Page 4
Department of Foreign Investments and Transfers
The Central Bank issued the strictest instructions and controls for the flow of capital to foreign investors in the years 2011, based on the provisions of Article (11) of Investment Law No. 13 of 2006, including what we stipulate (the right
It is permissible for an investor in the Republic of Egypt to use the amounts transferred to the Republic of Egypt and deposited at his disposal in the investment account with the local bank, in accordance with the provisions of the Investment Law, at the time of transferring them outside the Republic of Egypt and committing to the market exchange rate to finance his related import operations. In the investment activity...)
In 2023, the Bank will issue controls on investment-related transfers, as follows:
2/i/First: Capital projects are investment vehicles granted under the Investment Law (13) of 2006 and its amendments (after proving their income for this purpose earlier) and the returns of projects generated by the investor with the investment government after submitting audited financial statements proving the realization of profits and proof of the settlement of the liability. And the rest of the relevant parties inside the Arab Republic
2/1/Second: The assessor shall transfer the proceeds from the sale of shares to foreigners or foreigners (abroad, for the proceeds of the value of any zaganan found) in the event of selling them, provided that he provides support from the Arab securities market.
In addition, he directs the banks to make all authorized Arab government discounts and convert foreign currencies.
Executive transactions for the movement of money are fundamental investments.
By opening and transferring funds for investment projects granted licenses and in foreign currency into current accounts in the Arab dinar, the amounts are transferred and received by banks operating in the Arab world.
The amounts are transferred from these accounts and according to the Central Bank’s controls.
Page 5
Department of Foreign Investments and Transfers
The investor can transfer money from his accounts in foreign banks and their correspondents operating in celal to the account of the Central Bank of Iraq with one of its correspondents abroad and then receiving the equivalent from his account Open with one of the banks operating inside.
In the event that the investor withdraws money from Iraq as project capital, profits, or any transfers
For project workers and in foreign currency.
This is done according to the above controls through the electronic purchasing platform Dollar” where a request is submitted through the local bank for the purpose of transferring money through the platform
(after submitting all... The required documents include the investor’s data, the intermediary bank data and the correspondent, as well as evidence of its entry from Outside Iraq for this purpose at an earlier time and fulfilling all obligations with the government and relevant authorities in Iraq) and by debiting the equivalent of these funds in Iraqi dinars to the bank’s current accounts opened with the bank The Central Bank of Iraq at least two working days before and after that the external transfer is executed for these purposes.
Page 6
October 09, 2023
Foreign direct investment in Iraq - capital movement to and from Iraq.
For more, click here https://cbi.iq/static/uploads/up/file-169683768241718.pdf
https://cbi.iq/news/view/2435
- Approximate translation of -
https://cbi.iq/static/uploads/up/file-169683768241718.pdf
Department of Investments and Foreign Transfers
Foreign investment plays a fundamental role in the development of the countries receiving it.
Through foreign capital, it is possible Countries - especially developing countries - may exploit their natural resources and complete major projects related to their infrastructure, such as roads “And airports” and establishing projects that require technical expertise, as foreign investment contributes significantly to financing Development processes and the formation of national expertise in countries hosting investments.
First: Iraq’s membership in the International Monetary Fund
Iraq's membership in the International Monetary Fund since (December 77, 1451) is obligated to implement and take all measures Possible measures to remove restrictions on the movement of capital,” as referred to in Article Eight and Article Four Ten of the fund’s incorporation agreement.
Article Eight implicitly states (A GY member may not impose - without... Fund approval - restrictions on the performance of payments and transfers related to international transactions. And matter 14 Implicitly indicates (whether the member is prepared to accept the obligations contained in Sections 2, 3 and 4 of Article Eighth).
Thus, the agreement encourages the free movement of capital between countries and the transfer of balances between other members.”
As well as establishing experimental and financial arrangements - international and bilateral - to facilitate the performance of international payments and working to find A stable exchange rate system, which provides the appropriate environment to attract foreign investments.
Second: Iraq’s accession to the 1965 Washington Agreement Investment (16510).
Iraq's accession to the aforementioned agreement means that this country has become bound by its provisions
It makes this treaty an integral part of the national legal system, and this entails harmonization of its contents
The agreement and the provisions contained in Iraqi legislation.
Page 1
Department of Foreign Investments and Transfers
The international center referred to above is considered the international organization that grants foreign companies and investors gall to stand on an equal footing with the host country for their investments.
Therefore, Iraq’s accession to the agreement It is necessary to attract investments and achieve economic development purposes, especially in light of transformation and adoption The free market economy as an economic system for the country gave way to the private sector in an unprecedented way.
Third: The Foreign Direct Investment Law in Iraq
2006 As stated above, Iraq legislated Foreign Direct Investment Law No. (13) of the year sly
Which provides the foreign investor with a set of advantages that can be summarized as follows:
1. Retaining the land for a fee determined between him and the land owner, without speculation, in accordance with controls set by the Authority National Investment and approval of the Council of Ministers.
2. Facilitating the allocation of necessary lands for housing projects and ownership of housing units for Iraqis after completion The project.
3. The law allows the investor to extract the capital he brought into Iraq and its returns.
4. The foreign investor has the right to trade in the Iraqi Stock Exchange in the stocks and bonds listed therein.
5. The law gives the investor the right to own the lands (an amendment to the law) necessary for the project after it has been established
The banker gives him the lease of the lands for the period during which the project is in existence, provided that it does not exceed (50) One year, renewable with the approval of the Authority.
6. The law guarantees the investor the right to employ non-Iraqi workers in the event of this impossibility Employing an Iraqi who has the necessary qualifications and is capable of doing the same job.
7 Granting foreign investors and non-Iraqi workers in investment projects the right to reside in Iraq
And facilitating their entry and exit to and from Iraq, and they may transfer their salaries and compensation outside Iraq.
8. It also guarantees that the investment project covered by the provisions of this law will not be confiscated or nationalized in whole or in part Except for what is issued by a final judicial ruling.
9. The project that obtains an investment license from the Authority enjoys an exemption from fees for a period of (3) years
There are (10) tax exemptions for imported project assets and (10) from the date of the start of commercial operation.
It has been confirmed Article (15) of the law stipulates this, with other exemptions, and the foreign investor enjoys additional benefits.
According to international agreements between Iraq and its state or multilateral agreements to which Iraq had joined.
Page 2
Department of Foreign Investments and Transfers
Article Eleven - First of the above law referred to the investor withdrawing the capital that he brought into the Iraq and its revenues, in accordance with the provisions of this law and the instructions of the Central Bank of Iraq, are transferable after payment All its obligations and debts to the Iraqi government and other parties.
Fourth: Investment agreements concluded by Iraq in 2003
1. Arab Investment Guarantee Corporation Agreement 1988.
2. The Unified Agreement for Arab Capital Investment of 2012, amended.
3. Convention for the Avoidance of Double Taxation and Tax Evasion 1997.
5. Amman Convention on Commercial Arbitration of 1988.
As for the bilateral agreements that were ratified and published in the Iraqi Gazette, they are:
6. Agreement to encourage and protect mutual investment between Iraq and France for the year 2012.
7. Agreement to encourage and protect mutual investments between Iraq and Armenia for the year 2014.
8. Agreement to encourage and protect mutual investment between Iraq and Japan for the year 2013.
9. Agreement to encourage and protect mutual investment between Iraq and Jordan for the year 20115.
10. Agreement to encourage and protect mutual investments between Iraq and the Code of 2014.
11 . Agreement to encourage and protect mutual investment between Iraq and Germany for the year 2012.
12. Investment incentives agreement between Iraq and the United States of America for the year 2012.
Most of these bilateral agreements and treaties include freedom of movement of capital.
Fifth: Mechanisms of capital movement to and from Iraq
The Central Bank of Iraq has a prominent role in encouraging investments, introducing capital, and creating a system
“Financial dealings with foreign banks to work in the country” and benefiting from his expertise to develop the Iraqi banking sector
Page 3
Foreign Transfers and Investments Department
And to create
H
They made money as a rule, From us and creating the economy contributes to support
As well as, local companies with Fassa
The role of that about Faddal, Aqiya
Before the trust is shaken To attract foreign banks and companies, no matter what they forget
What are these banks and who are they coming from?
Investment
1. bank Standard Trdircha Standard chartered bank
2. bank Aaat rice Turkish Ziraat Bankası
3. Egypt Ash F Turkish Türkiye İş Bankası
4. Jordan Bank Bank of Jordan
5. Abu Dhabi Islamic Bank Abu Dhabi Islamic Bank
6. Turkish Al Baraka Bank. Islamic Albaraka Bank
7. Turkish Vakif Bank Vakif Bank
The Representative banks have offices Foreign Representative Offices
8. City Bank Citi Bank
9. German J Bank merchants. Commerzbank
10. The first is Abu Dhabi Bank First Abu Dhabi Bank
Local and foreign banks Investment Subsidiaries in Iraqi Banks
11. Save the money from Al Ahly Bank. National Bank of Iraq Subsidiary of Capital Bank of Jordan
12. Al Mansour Bank Al-Mansour Bank Subsidiary of QNB Group
13. Baghdad Bank Bank of Baghdad Subsidiary of Jordan Kuwait Bank
14. Aq R Bank merchants Commercial Bank of Iraq Subsidiary of Ahli United Bank, Bahrain
Page 4
Department of Foreign Investments and Transfers
The Central Bank issued the strictest instructions and controls for the flow of capital to foreign investors in the years 2011, based on the provisions of Article (11) of Investment Law No. 13 of 2006, including what we stipulate (the right
It is permissible for an investor in the Republic of Egypt to use the amounts transferred to the Republic of Egypt and deposited at his disposal in the investment account with the local bank, in accordance with the provisions of the Investment Law, at the time of transferring them outside the Republic of Egypt and committing to the market exchange rate to finance his related import operations. In the investment activity...)
In 2023, the Bank will issue controls on investment-related transfers, as follows:
2/i/First: Capital projects are investment vehicles granted under the Investment Law (13) of 2006 and its amendments (after proving their income for this purpose earlier) and the returns of projects generated by the investor with the investment government after submitting audited financial statements proving the realization of profits and proof of the settlement of the liability. And the rest of the relevant parties inside the Arab Republic
2/1/Second: The assessor shall transfer the proceeds from the sale of shares to foreigners or foreigners (abroad, for the proceeds of the value of any zaganan found) in the event of selling them, provided that he provides support from the Arab securities market.
In addition, he directs the banks to make all authorized Arab government discounts and convert foreign currencies.
Executive transactions for the movement of money are fundamental investments.
By opening and transferring funds for investment projects granted licenses and in foreign currency into current accounts in the Arab dinar, the amounts are transferred and received by banks operating in the Arab world.
The amounts are transferred from these accounts and according to the Central Bank’s controls.
Page 5
Department of Foreign Investments and Transfers
The investor can transfer money from his accounts in foreign banks and their correspondents operating in celal to the account of the Central Bank of Iraq with one of its correspondents abroad and then receiving the equivalent from his account Open with one of the banks operating inside.
In the event that the investor withdraws money from Iraq as project capital, profits, or any transfers
For project workers and in foreign currency.
This is done according to the above controls through the electronic purchasing platform Dollar” where a request is submitted through the local bank for the purpose of transferring money through the platform
(after submitting all... The required documents include the investor’s data, the intermediary bank data and the correspondent, as well as evidence of its entry from Outside Iraq for this purpose at an earlier time and fulfilling all obligations with the government and relevant authorities in Iraq) and by debiting the equivalent of these funds in Iraqi dinars to the bank’s current accounts opened with the bank The Central Bank of Iraq at least two working days before and after that the external transfer is executed for these purposes.
Page 6
