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IRAQ APPROVES PRIVATE FREE-TRADE ZONE NEAR BAGHDAD
Iraq, December 20, 2012
The Iraqi government approved an investment project for the construction of a private free-trade zone south of Baghdad in efforts to boost the country's economy.
The Ministry of Finance's General Commission for Free Zones "approved two requests submitted by a group of local investors to set up a private free-trade zone on an area of no less than five dunams (12,500 square metres) in the area of Uwaireej, south of Baghdad, to be used for commercial activities", Sabah al-Qaisi, the commission's chairman, told Mawtani.
"This investment project will be the first of its kind in the country," as no free-trade zone area was ever set up by the private sector before, al-Qaisi said.
The project was approved "in accordance with the instructions and guidelines stated in the Free Zones Law No. 3 and after extensive studies of its economic feasibility", he added.
Al-Qaisi said the investing parties will prepare special project designs by contracting a consultancy bureau, and then submit these designs to the Free-trade Zones Commission for approval in order to start construction.
The commission "is about to approve building two other free zones through private investment as well", he added. "The first is in the province of al-Sulaimaniya, and the other in the province of Dohuk, near the Ibrahim al-Khalil crossing with Turkey."
Iraq already has three main free-trade zones belonging to the public sector, located in Khor al-Zubair in Basra, Flaifel in Ninawa province, and another in al-Qaim, Anbar province, al-Qaisi said.
"These zones are quite large in size, because they host various economic activities and processes, including commercial and industrial," he added.
Al-Qaisi said it is important to allow for diversified investment in order to boost national development, adding that "it is important to encourage and attract local and foreign investors and provide the required facilities […] to advance the country".
"Free-trade zone projects could play a major role in energising the national economy by pushing the cycle of development forward and creating new work opportunities for Iraqis, in addition to playing an essential role in financing the state budget," al-Qaisi said.
"We set a condition that all investors must hire 50% of [the workers needed from] local manpower," he said, adding that it is important to "diversify sources of funding and to avoid total reliance on oil as the sole source of financial revenue".
Strategic link between east and west
Building a free-trade zone in Baghdad "is a positive step towards boosting commercial activity in Iraq by strengthening and facilitating world trade and preventing the accumulation of goods at the borders", MP Mahma Khalil, rapporteur for the parliament's economy and investment committee, told Mawtani.
"These projects often yield other economic benefits, which could bring in huge financial revenue to the state treasury, create jobs for the thousands of unemployed and boost investment," he added.
Khalil said "Iraq's strategic position as a link between East and West allows it to be at the forefront of trading nations."
"This requires that we build more free zones and accelerate the implementation of strategic projects, such as the Great Fao Port and the Dry Canal projects," he added.
Economic expert Majid al-Soury said building a private free-trade zone in Baghdad "falls within the framework of the government's policy and plans to boost the economy in Iraq and attract investors".
Similar experiences in other countries, including neighbouring states such as Jordan, proved the importance of such projects in accelerating economic and investment development, al-Soury told Mawtani.
A free-trade zone "offers investors and businessmen consolidated administrative and banking facilities as well customs exemptions", he added.
Al-Soury said it is also important to develop existing free-trade zones currently operating in Iraq and modernising them by introducing new technology.
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Iraq, December 20, 2012
The Iraqi government approved an investment project for the construction of a private free-trade zone south of Baghdad in efforts to boost the country's economy.
The Ministry of Finance's General Commission for Free Zones "approved two requests submitted by a group of local investors to set up a private free-trade zone on an area of no less than five dunams (12,500 square metres) in the area of Uwaireej, south of Baghdad, to be used for commercial activities", Sabah al-Qaisi, the commission's chairman, told Mawtani.
"This investment project will be the first of its kind in the country," as no free-trade zone area was ever set up by the private sector before, al-Qaisi said.
The project was approved "in accordance with the instructions and guidelines stated in the Free Zones Law No. 3 and after extensive studies of its economic feasibility", he added.
Al-Qaisi said the investing parties will prepare special project designs by contracting a consultancy bureau, and then submit these designs to the Free-trade Zones Commission for approval in order to start construction.
The commission "is about to approve building two other free zones through private investment as well", he added. "The first is in the province of al-Sulaimaniya, and the other in the province of Dohuk, near the Ibrahim al-Khalil crossing with Turkey."
Iraq already has three main free-trade zones belonging to the public sector, located in Khor al-Zubair in Basra, Flaifel in Ninawa province, and another in al-Qaim, Anbar province, al-Qaisi said.
"These zones are quite large in size, because they host various economic activities and processes, including commercial and industrial," he added.
Al-Qaisi said it is important to allow for diversified investment in order to boost national development, adding that "it is important to encourage and attract local and foreign investors and provide the required facilities […] to advance the country".
"Free-trade zone projects could play a major role in energising the national economy by pushing the cycle of development forward and creating new work opportunities for Iraqis, in addition to playing an essential role in financing the state budget," al-Qaisi said.
"We set a condition that all investors must hire 50% of [the workers needed from] local manpower," he said, adding that it is important to "diversify sources of funding and to avoid total reliance on oil as the sole source of financial revenue".
Strategic link between east and west
Building a free-trade zone in Baghdad "is a positive step towards boosting commercial activity in Iraq by strengthening and facilitating world trade and preventing the accumulation of goods at the borders", MP Mahma Khalil, rapporteur for the parliament's economy and investment committee, told Mawtani.
"These projects often yield other economic benefits, which could bring in huge financial revenue to the state treasury, create jobs for the thousands of unemployed and boost investment," he added.
Khalil said "Iraq's strategic position as a link between East and West allows it to be at the forefront of trading nations."
"This requires that we build more free zones and accelerate the implementation of strategic projects, such as the Great Fao Port and the Dry Canal projects," he added.
Economic expert Majid al-Soury said building a private free-trade zone in Baghdad "falls within the framework of the government's policy and plans to boost the economy in Iraq and attract investors".
Similar experiences in other countries, including neighbouring states such as Jordan, proved the importance of such projects in accelerating economic and investment development, al-Soury told Mawtani.
A free-trade zone "offers investors and businessmen consolidated administrative and banking facilities as well customs exemptions", he added.
Al-Soury said it is also important to develop existing free-trade zones currently operating in Iraq and modernising them by introducing new technology.
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