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Challenges and opportunities
Economical 10/31/2024
D. Nebras Aziz
The investment environment in Iraq faces major challenges, which have confounded local investment and created a state of hesitation among foreign investors, led to the reluctance of local and international capital from long-term projects, and the trend of foreign investors towards real estate investments, which guarantee quick profits and lower risks.
The investment climate, as it is known, is formed as a result of economic, social, political, legal and financial factors.
When these elements are present in a harmonious and stable manner, the environment becomes attractive for investment. In Iraq, the challenge lies in creating this harmony, as investments are hampered by several factors, including economic instability resulting from low interest rates and high inflation rates.
From a legal perspective, the lack of legislative stability, and the disparity of laws between the old and the new, pose two major challenges, as this is reflected in investor confidence.
Also, the judicial system is witnessing slow procedures, especially with regard to investment disputes, as these disputes often depend on the civil judiciary, which does not take into account the privacy of investment relations.
Despite the existence of an arbitration system, the absence of competent arbitration cadres and the weakness of judicial confidence in the arbitration outcomes enhance the complexity of this process.
To improve the investment climate and make it attractive to foreign capital, bold steps must be taken in legislation and policies, the most important of which is expanding the right to own real estate for foreign investors, to include all investment projects, not just the housing sector, and simplifying the procedures for granting investment licenses, and making them under the authority of the Investment Authority alone, without the need For approval by other administrative authorities.
Improving the investment climate requires removing restrictions imposed on investment in banks and insurance companies, because these two sectors have a stimulating role in the investment process, as well as amending the sanctions system for investors, in a way that ensures transparency and reduces obstacles facing investors.
Iraq seeks to be a global investment destination, benefiting from its large natural and human resources,
but achieving this goal requires a stable and attractive legal and economic environment, capable of competing with other investment destinations in the region and the world.
The serious movement that we are following by the government to improve the investment environment in Iraq, and
part of it is the legal detail, represents an important step on the path to reviving investment in Iraq, and attracting local and international efforts, with its advanced technology and capital, to the field of the Iraqi economy.
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Economical 10/31/2024
D. Nebras Aziz
The investment environment in Iraq faces major challenges, which have confounded local investment and created a state of hesitation among foreign investors, led to the reluctance of local and international capital from long-term projects, and the trend of foreign investors towards real estate investments, which guarantee quick profits and lower risks.
The investment climate, as it is known, is formed as a result of economic, social, political, legal and financial factors.
When these elements are present in a harmonious and stable manner, the environment becomes attractive for investment. In Iraq, the challenge lies in creating this harmony, as investments are hampered by several factors, including economic instability resulting from low interest rates and high inflation rates.
From a legal perspective, the lack of legislative stability, and the disparity of laws between the old and the new, pose two major challenges, as this is reflected in investor confidence.
Also, the judicial system is witnessing slow procedures, especially with regard to investment disputes, as these disputes often depend on the civil judiciary, which does not take into account the privacy of investment relations.
Despite the existence of an arbitration system, the absence of competent arbitration cadres and the weakness of judicial confidence in the arbitration outcomes enhance the complexity of this process.
To improve the investment climate and make it attractive to foreign capital, bold steps must be taken in legislation and policies, the most important of which is expanding the right to own real estate for foreign investors, to include all investment projects, not just the housing sector, and simplifying the procedures for granting investment licenses, and making them under the authority of the Investment Authority alone, without the need For approval by other administrative authorities.
Improving the investment climate requires removing restrictions imposed on investment in banks and insurance companies, because these two sectors have a stimulating role in the investment process, as well as amending the sanctions system for investors, in a way that ensures transparency and reduces obstacles facing investors.
Iraq seeks to be a global investment destination, benefiting from its large natural and human resources,
but achieving this goal requires a stable and attractive legal and economic environment, capable of competing with other investment destinations in the region and the world.
The serious movement that we are following by the government to improve the investment environment in Iraq, and
part of it is the legal detail, represents an important step on the path to reviving investment in Iraq, and attracting local and international efforts, with its advanced technology and capital, to the field of the Iraqi economy.
[You must be registered and logged in to see this link.]
