The Government of Iraq's (GOI's) Council of Representatives passed a newinvestment law in October, and the Presidency Council subsequently approved the law no .(13) in November 2006for the following aims:
To promote investment and transfer modern technologies in order to contribute to the process of developing and enhancing Iraq and expanding and diversifying its production and service base.
To encourage the Iraqi and foreign private sector to invest in Iraq by providing the required facilities for establishing investment projects and enhancing its competitive capacities in the local and foreign markets for projects included in this law.
To develop human resources based on market demands and provide work opportunities for the Iraqis. To protect the rights and properties of investors.To expand exports and improve the balance of payments and the balance of trade of Iraq.
The new investment law grants the foreign investors great Privileges and Guarantees as Article( 10) of that law states that (The Investor irrespective of his/her nationality shall enjoy all privileges, facilitations and guarantees and shall be subject to the obligations stated in this law. The Iraqi and foreign investor shall have the right for, the purposes of housing projects, the use of the land for a sum to be determined between him and the land owner without land speculation according to conditions set forth by the National Commission for Investment and the approval of the Council of Ministers. The Commission shall facilitate the allocation of the required lands for the housing projects. The housing units shall be allocated for ownership by the Iraqis after the completion of the project.)
The question in mind for all investors is what kind of benefits shall the foreign investor be granted ? the new investment Law No. (13) answers that question and states in Article( 11 ) that the investor shall enjoy the following benefits:
First: The investor shall have the right to take out the capital he brought into Iraq and its proceeds in accordance with the provisions of this law and pursuant to the instructions of the Central Bank of Iraq in an exchangeable currency after paying taxes and debts to the Iraqi Government and all other authorities.
Second: The foreign investor shall have the right to: 1) Trade in shares and bonds listed in the Iraqi Stock Exchange; and 2) Form investment portfolios and bonds.
Third: Renting or leasing lands needed for the project for the term of the investment project, provided that it does not exceed 50 years renewable with the agreement of the Commission, and provided that the nature of the project and its benefit for the national economy is taken into consideration when determining the period.
Fourth: Insuring the investment project with any foreign or national insurance company it deems suitable.
Fifth: Opening accounts in Iraqi or foreign currency or both at a bank inside or outside Iraq for the licensed project. The new laws also guarantees the foreign investors the right to:
Employ and use non-Iraqi workers in case it is not possible to employ an Iraqi with the required qualifications and capable of performing the same task in accordance with guidelines issued by the Commission.Grant the foreign investor and non-Iraqis working in the investment projects the right of residency in Iraq and facilitating his/her entry and exit to and from Iraq.Non-seizure or nationalization of the investment project covered by the provisions of this law in whole or in part, except for projects on which a final judicial judgment was issued.
Non-Iraqi technicians and administration employees working in any project shall have the right to transfer their salaries and compensations outside Iraq in accordance with the law after paying their dues and debts to the Iraqi government and all other entities.