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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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4 posters

    U.S. Department of State - 2013 Investment Climate Statement - Iraq

    Proven
    Proven
    NNP TEAM
    NNP TEAM


    Posts : 1858
    Join date : 2012-12-21

    U.S. Department of State - 2013 Investment Climate Statement - Iraq Empty U.S. Department of State - 2013 Investment Climate Statement - Iraq

    Post by Proven Fri 01 Mar 2013, 12:40 pm

    Could not get the whole article loaded. Picked out the most important part[size=21]. The National Investment Law will become active once chapter 7 is lifted![/size]

    U.S. Department of State - 2013 Investment Climate Statement - Iraq


    2013 Investment Climate Statement
    Bureau of Economic and Business Affairs
    February 2013
    Report




    Currency Conversion and Transfer Policies


    The currency of Iraq is the Dinar (IQD - sometimes referred to as the
    New Iraqi Dinar). Iraqi authorities confirm that in practice there are
    no restrictions on current and capital transactions involving currency
    exchange as long as underlying transactions are supported by valid
    documentation. The International Monetary Fund’s annual publication on
    Exchange Arrangements and Restrictions states that “restrictions on
    capital transactions are not enforced; however, documentation and
    reporting requirements apply.” The National Investment Law contains
    provisions that, once implemented, would allow investors to maintain
    Iraqi bank accounts and transfer capital inside or outside of Iraq.


    The Government of Iraq’s monetary policy since 2003 has focused on
    maintaining price stability primarily by appreciating the IQD against
    the U.S. dollar while seeking to maintain exchange rate predictability.
    Banks may engage in spot transactions in any currency, but are not
    allowed to engage in forward transactions in Iraqi Dinar for speculative
    purposes. There are no taxes or subsidies on purchases or sales of
    foreign exchange. Improved security has allowed for an increased supply
    of goods and services which, along with the Central Bank of Iraq’s
    monetary and exchange rate policies, have continued to help temper
    inflation. The CBI has brought inflation down from a peak of more than
    70 percent in 2006 to below 10 percent since early 2008, primarily
    through appreciating the currency. The CBI has held the official
    exchange rate at close to 1,170 IQD/1.00 USD since 2009.


    [You must be registered and logged in to see this link.]
    Hkp1
    Hkp1
    Interacting Investor
    Interacting Investor


    Posts : 3118
    Join date : 2012-12-19

    U.S. Department of State - 2013 Investment Climate Statement - Iraq Empty 2013 Investment Climate Statement - Iraq

    Post by Hkp1 Fri 01 Mar 2013, 12:51 pm

    2013 Investment Climate Statement - Iraq



    2013 Investment Climate Statement


    Bureau of Economic and Business Affairs


    February 2013


    Report





    [You must be registered and logged in to see this link.]



    Openness to Foreign Investment
    Investors in Iraq face both tremendous opportunities and significant
    challenges. After decades of oil-driven statist economic policy,
    followed by years of conflict and instability, the Government of Iraq
    (GOI) seeks to identify and promote policies to strengthen the country’s
    small private sector, create jobs for its citizens, and spur economic
    development. Owing to increased petroleum production for export, Iraq’s
    economy grew by approximately 10 percent in 2012, as it did the prior
    year, making it one of the fastest growing economies in the world. Iraq
    has 143 billion barrels of proven oil reserves, the second-largest in
    OPEC, and oil exports now stand at their highest level in 30 years.
    While oil generated over 90 percent of government revenue in 2011, the
    petroleum sector accounts for only one percent of Iraqi employment. The
    GOI is seeking to diversify Iraq’s economy to create jobs for its labor
    force. Official statistics place unemployment at around 17 percent, but
    the actual rate is likely much higher, factoring in underemployment and
    discouraged job seekers.


    Potential investors remain concerned about security, but are now more
    likely to cite regulatory hindrances, difficulties working out
    financing arrangements, and other practical barriers to doing business
    ranging from corruption to bureaucratic red tape to electric power
    shortages. Sectarian violence and acts of terrorism continued in 2012,
    but in lower numbers than during the 2009-2010 period. In 2011, foreign
    firms and investors reported over $55 billion in investments, service
    contracts, and other commercial activities across Iraq, according to
    private consultants. This activity amounted to an increase of 80.4
    percent over 2010, while total deal value increased by 40.3 percent. The
    International Trade Centre (ITC) – a joint venture of the United
    Nations and the World Trade Organization ([You must be registered and logged in to see this link.])
    – estimated that Iraq attracted over $1.6 billion of foreign direct
    investment (FDI) inflows in 2011 (the most recent statistics available),
    representing an increase of approximately 52 percent since 2007.


    The lion’s share of investment has gone to energy related projects.
    The GOI has held four oil and gas licensing (“bid”) rounds since 2009,
    in which foreign firms were allowed to bid for contracts to develop a
    significant portion of Iraq’s oil and gas resources. A planned fifth bid
    round (for gas fields only) is expected in 2013. Iraqi production of
    crude oil may increase dramatically over the next ten years, although
    internal infrastructure constraints and other factors may limit full
    realization of Iraq’s potential. Iraq’s oil and gas licensing rounds in
    2009 and 2010 were widely regarded as transparent and competitive; the
    2011 round, however, attracted fewer bidders and resulted in the award
    of only four of twelve blocks. The government has publicly recognized
    the need to offer better terms in future rounds, but has not specified
    what terms might change. The oil and gas contracts awarded are expected
    to bring in billions of dollars of investment in oil and gas-related
    industries going forward and spur growth in the foreign and domestic
    private sector in Iraq.


    Despite positive developments throughout Iraq, the overall investment
    climate remained challenging, especially for small- and medium-sized
    firms and investors. Potential investors should prepare to face
    significant costs to ensure security, cumbersome and confusing
    procedures for business visas and new business registration, long
    payment delays on some GOI contracts, and dispute resolution mechanisms
    that are neither reliable nor transparent. Delays at customs are another
    common complaint of businesses. Though the Iraqi population is expected
    to reach 40 million in the next 15 years, skilled human resource
    capacity remains limited due to emigration of many former educated
    Iraqis and low rates of higher education. Allegations of corruption are
    still widespread, and the legacy of central planning and inefficient
    state owned enterprises continues to inhibit economic development. In Doing Business 2013: Making A Difference for Entrepreneurs,
    the World Bank ranked Iraq 165 out of 185 countries in its overall
    “ease of doing business” category. Transparency International ranked
    Iraq 169 out of 176 in its 2012 Corruption Perception Index
    (representing little change from its score of 175 out of 182 the
    previous year). The Heritage Foundation did not rank Iraq in its 2013
    Economic Freedom Index.


    Efforts to address many of these impediments to doing business will
    be undertaken by the United States government and the GOI through the
    bilateral dialogue mechanism provided under the U.S.-Iraq Strategic
    Framework Agreement, which established Joint Coordination Committees
    (JCCs) in a number of areas of mutual interest. The economic-related
    JCCs are 1) Energy; 2) Services, Technology, Environment and
    Transportation; and 3) Trade and Finance. The Energy JCC met in 2012,
    and the Services, Technology, Environment and Transportation JCC met for
    the first time in November 2012. In addition, the USG continues to
    assist the GOI through many capacity-building programs intended to
    strengthen private sector development and create an enabling environment
    for investment.


    Under the Iraqi Constitution, some competencies relevant to the
    overall investment climate are either shared by the federal government
    and the regions or are devolved entirely to the regions. Investment in
    the Iraqi Kurdistan Region (IKR) operates within the framework of the
    Kurdistan Region Investment Law (KRIL) (Law 4 of 2006) and the Kurdistan
    Board of Investment (KBOI), which is designed to provide incentives to
    help economic development in areas under the authority of the Kurdistan
    Regional Government (KRG). In the sections that follow, this statement
    takes note of important differences between the investment climate in
    the IKR and rest of Iraq.


    Investors in the IKR face many of the same challenges as investors
    elsewhere in Iraq, including corruption, red tape, and inefficiency, but
    a business-friendly investor law and generally stable security
    situation continue to attract foreign businesses. Foreign and domestic
    investment in the IKR has been rising annually for the last six years,
    with over 500 major projects valued at almost $25 billion awarded under
    the KRIL since 2006 and $6 billion in investment projects awarded in
    2012 alone. The KRIL applies only to non-oil and gas projects.


    Since passing its own Kurdistan Oil and Gas Law of 2007, the KRG has
    directly signed about 50 contracts to develop IKR energy reserves. The
    federal government has disputed the legal authority of the KRG to
    conclude most of these contracts, some of which are also in areas with
    unresolved administrative boundaries in dispute between the federal and
    regional government. Political blocs within the federal government have
    been unable to agree on comprehensive hydrocarbons legislation to
    address these issues. It is the position of the USG that signing
    contracts for oil exploration or production with any region of Iraq,
    without approval from federal Iraqi authorities, exposes companies to
    potential legal and financial risks.


    In sum, investors looking to enter Iraq face the potential of much to
    gain but they should also be cognizant of the constraints on business
    activity and other barriers to investment that currently exist and will
    persist in the short- to medium-term as Iraq transitions to a market
    economy with a more diverse and broad private sector base.


    The GOI has publicly stated its commitment to attract foreign
    investment and has taken several steps to improve its investment
    climate. The National Investment Law (NIL), originally passed in 2006,
    provides a baseline for a modern legal structure to protect foreign and
    domestic investors in addition to providing tax and other incentives. (A
    copy of the National Investment Law can be obtained from the U.S.
    Department of Commerce Iraq Task Force website – [You must be registered and logged in to see this link.]
    An amendment to the NIL, passed in early 2010, allows for limited
    foreign ownership of land, albeit solely for the purpose of developing
    residential real estate projects. The amendment also sought to bring
    clarity to land allocation and use, a major barrier to attracting
    foreign investment. In December 2010, the GOI approved implementing
    regulations to the Amendment that are intended to specify the conditions
    not only for ownership of land for housing but also for long-term
    leasing of land for other types of investment projects. As of early
    2013, Iraqi authorities were still in the process of interpreting these
    regulations and applying them to specific licensees. Many licensed
    investment projects remain stalled due to continuing confusion over land
    use at both the provincial and national levels.


    The GOI has continued to work on revising the investment law to
    create a better investment climate and is currently considering further
    amendments to the 2006 NIL. It is expected that the new amendments will
    provide greater clarity relating to land rights, transfer for ownership,
    and issuing regulations, as well as outline the creation of a technical
    department within the NIC.


    Formed in accordance with the NIL of 2006, the National Investment
    Commission (NIC) and the Provincial Investment Commissions (PICs) are
    designed to be “one-stop shops” that can provide information, sign
    contracts, and facilitate registration for new foreign and domestic
    investors. In reality, however, the NIC and the PICs remain works in
    progress. Investment Commissioners struggle to operate with unclear
    lines of authority, budget restrictions, and the absence of regulations
    and standard operating procedures, compounded by a lack of staff
    familiar with prevailing practices in international business. An overall
    lack of legislative clarity regarding the NIL and mechanisms to ensure
    interagency coordination under the GOI has resulted in many of the
    investments that have received NIC approval still waiting to break
    ground.


    The NIC, together with select PICs, have participated in several
    international conferences intended to attract investors to Iraq. A
    Department of Commerce-led trade mission of U.S. businesses to Iraq in
    October 2010 opened new opportunities for U.S. firms in Iraq and
    underscored the desire of Iraqi firms to partner with U.S. companies. In
    November 2012, the U.S. pavilion at the Baghdad International Fair
    featured over 35 organizations, including 24 companies and seven
    universities. Under the U.S.-Iraq Strategic Framework Agreement, U.S.
    and Iraqi officials continue to work together to identify and alleviate
    problems in Iraq’s business and investment climates. Individual
    governments and international organizations also manage numerous
    programs in support of private sector development in Iraq, which
    cumulatively are laying some of the foundation for future growth.


    The NIL does not apply to investment in the IKR, which is regulated
    by its own investment law (Law 4 of 2006) and the KBOI. The law provides
    specific incentives for companies to develop strategic investment
    projects, which the KBOI evaluates and awards based on the project’s
    perceived economic and environmental impacts. If approved, a company is
    awarded an investment license that could include free land, a ten-year
    exemption from corporate taxes, and a five-year exemption from customs
    duties. (A copy of the IKR Investment Law can be obtained from the KBOI
    website – [You must be registered and logged in to see this link.]
    ). Over 500 projects have been approved since 2006. Investors who do not
    wish to receive the incentives for their projects under the investment
    law may invest without applying for the investment license by working
    directly with the relevant sector ministry.


    Currency Conversion and Transfer Policies
    The currency of Iraq is the Dinar (IQD - sometimes referred to as the
    New Iraqi Dinar). Iraqi authorities confirm that in practice there are
    no restrictions on current and capital transactions involving currency
    exchange as long as underlying transactions are supported by valid
    documentation. The International Monetary Fund’s annual publication on
    Exchange Arrangements and Restrictions states that “restrictions on
    capital transactions are not enforced; however, documentation and
    reporting requirements apply.” The National Investment Law contains
    provisions that, once implemented, would allow investors to maintain
    Iraqi bank accounts and transfer capital inside or outside of Iraq.


    The Government of Iraq’s monetary policy since 2003 has focused on
    maintaining price stability primarily by appreciating the IQD against
    the U.S. dollar while seeking to maintain exchange rate predictability.
    Banks may engage in spot transactions in any currency, but are not
    allowed to engage in forward transactions in Iraqi Dinar for speculative
    purposes. There are no taxes or subsidies on purchases or sales of
    foreign exchange. Improved security has allowed for an increased supply
    of goods and services which, along with the Central Bank of Iraq’s
    monetary and exchange rate policies, have continued to help temper
    inflation. The CBI has brought inflation down from a peak of more than
    70 percent in 2006 to below 10 percent since early 2008, primarily
    through appreciating the currency. The CBI has held the official
    exchange rate at close to 1,170 IQD/1.00 USD since 2009.


    Expropriation and Compensation
    Article 23 of the Iraqi Constitution prohibits expropriation in Iraq,
    unless it is "for the purpose of public benefit in return for just
    compensation." The constitutional provision further stipulates that this
    provision shall be regulated by law, but specific legislation has yet
    to be considered. Article 12 of the National Investment Law (NIL) also
    guarantees “non-seizure or nationalization of the investment project
    covered by the provisions of this law in whole or in part, except for a
    project on which a final judicial judgment was issued.” Elements of the
    GOI have taken issue with the NIL, and the judiciary has not reviewed or
    ruled on any cases concerning it to date. As a result, whether foreign
    investors will enjoy protection from expropriation that meets
    international standards will likely depend on domestic implementing
    legislation and/or future bilateral treaty obligations with investor
    states. The United States does not have a Bilateral Investment Treaty
    (BIT) with Iraq.


    Dispute Settlement
    During decades of war and sanctions, Iraqi courts became isolated
    from developments in international commercial transactions. In recent
    years, however, trade with foreign parties has played a more significant
    role in Iraq’s economic growth and Iraqi courts are beginning to see a
    significant increase in complex commercial transactions. In direct
    response, the Iraqi judiciary has specifically requested specialized
    training for its trial and appellate court judges in the area of
    international sales contracts, commercial court procedure and
    litigation, international arbitration, intellectual property and
    documentary credit to ensure consistency and predictability for foreign
    companies in the Iraqi legal environment. The U.S. Department of
    Commerce’s Commercial Law Development Program (CLDP) is conducting a
    multi-phase judicial development effort to support Iraq’s commercial
    courts, which has featured seven in-depth workshops for nearly 100
    judges from across Iraq’s different provinces in all of the requested
    program areas. CLDP’s workshops are also used as the Iraqi judiciary’s
    primary tool to select and prepare judges for the country’s new
    commercial courts. CLDP will continue to develop and implement workshops
    on similar topics and new topics that are identified based on the needs
    of the Iraqi courts.


    In November 2010, Iraq’s Supreme Judicial Council established the
    First Commercial Court of Iraq, a court of specialized jurisdiction for
    disputes involving foreign investors that is part of a national strategy
    to improve Iraq’s investment climate. This court began hearing cases in
    January 2011. It has jurisdiction only over cases involving a foreign
    party in Baghdad province. The court has received over 500 cases since
    its establishment. Over 350 of these cases have been adjudicated, many
    in as few as 30 days since the judges are able to give their full
    attention to these cases. This record stands in stark contrast to
    general jurisdiction trial courts that receive up to 30 cases per day
    and do not give priority to commercial cases, thereby causing commercial
    cases to be delayed for months or years before a resolution is
    achieved. Iraqi judicial officials have since created two additional
    commercial courts in Najaf and Basrah. Given that all of Iraq’s
    ministries are located in the capital, and the vast majority of
    commercial cases involve a foreign party and an Iraqi government agency,
    the Baghdad Commercial Court reviews far more commercial cases than the
    general jurisdiction courts in the surrounding provinces. Please see
    also discussion of the Westinghouse Case decided in 2012 under
    Protection of Intellectual Property Rights below.


    While the law of domestic arbitration is fairly well developed in
    Iraq, international arbitration is not sufficiently supported by Iraqi
    law. Iraq is a signatory to the League of Arab States Convention on
    Commercial Arbitration (1987) and the Riyadh Convention on Judicial
    Cooperation (1983), and is considering, but has not yet signed or
    adopted, the two most important legal instruments for international
    commercial arbitration: The United Nations New York Convention on
    Recognition and Enforcement of Foreign Arbitral Awards (1958 -- commonly
    called the New York Convention) and the attendant rules and procedures
    established by the UN Commission on International Trade Law (UNCITRAL).


    Article 27 of the NIL, which details the rights of Iraqis and
    foreigners with respect to Iraqi law, refers to dispute resolution.
    However, the absence of implementing regulation makes application of the
    law uncertain in practice. In the IKR, if the KBOI determines that
    investors are using land awarded under investment licenses for purposes
    other than those outlined in the license, it can impose fines and
    potentially confiscate the land. Article 17 of the region’s investment
    law outlines an investor’s arbitration rights.


    Domestic arbitration is provided for in Articles 251-276 of the Iraqi
    Civil Procedure Code, which require arbitration agreements to be in
    writing. These Articles also apply to the IKR. Panels of arbitrators are
    available through the Iraqi Union of Engineers, the Iraqi Federation of
    Industries, and private arbitrators.


    Performance Requirements and Incentives
    The NIL theoretically allows both domestic and foreign investors to
    qualify for incentives equally. It also allows for investors to take out
    capital brought into Iraq, and its proceeds, in accordance with the
    law. Foreign investors are able to trade in shares and securities listed
    on the Iraqi Stock Exchange. In principle, the law also allows
    investors who have obtained an investment license to enjoy exemptions
    from taxes and fees for a period of ten years. Hotels, tourist
    institutions, hospitals, health institutions, rehabilitation centers and
    scientific organizations also are granted additional exemptions from
    duties and taxes on their imports of furniture and other furnishings.
    The exemption increases to fifteen years if Iraqi investors own more
    than 50 percent of the project; however, the lack of precedent or
    implementing regulations to the NIL results in continuing uncertainty
    regarding the application of the articles contained therein.


    Under the IKR’s investment law, foreign and national investors are
    treated equally and are eligible for the same benefits. Foreign
    investors may choose to invest in the Kurdistan Region with or without
    local partners, and full repatriation of profits is allowed. While
    investors have the right to employ foreign employees in their projects,
    priority is given to awarding projects that employ a high share of local
    staff and ensure a high degree of knowledge transfer. Additionally, the
    law allows an investor to transfer his investment totally or partially
    to another foreign investor with the approval of the KBOI.


    Right to Private Ownership and Establishment
    Foreign investors in Iraq are able to own enterprises as well as investment portfolios in shares and securities.
    Prior to the 2009 amendment to the National Investment Law, the NIL
    did not allow foreigners to own land. The amendment allows foreign
    interests to own land in Iraq for the express purpose of developing
    residential real estate projects. Additionally, the amendment sought to
    clarify the land use aspect of the NIL, in which foreign investors are
    permitted to rent or lease land for up to fifty years (renewable).


    In December 2010, the GOI approved implementing regulations to this
    amendment, in the form of a Prime Ministerial decree. The regulations
    allow investors to obtain land for residential housing projects with no
    initial down payment. The government instead is compensated by receiving
    a specified percentage of units built once the project is completed.
    The percentages are given in ranges that vary by location: urban center,
    provincial center, outside city limits, and so on.


    For non-residential, commercial investment projects--including
    agriculture, services, tourism, commercial, and industrial projects--the
    decree allows for leasing and allocation of government land, but not
    ownership. The terms and duration of these leases will vary, depending
    on the type of project and negotiations between the parties. Land for
    non-residential projects will be leased free of initial down payment,
    and compensation will be either a percentage of pre-tax revenue or a
    specified percentage of the “rent allowance” for the land -- a figure
    determined by a formula specified in an earlier law. These smaller
    percentages of the “rent allowance” rate -- ranging from one to 25
    percent -- amount to significant rent reductions for leased land, as
    specified by type of investment project in the decree. Iraqi authorities
    are still in the process of interpreting these regulations and applying
    them to specific licensees.


    In the IKR, foreign land ownership is allowed under Law 4 of 2006.
    The KBOI initially awarded over half of all investment licenses to
    housing projects, though the lack of a clear sector strategy and
    speculation in housing properties prompted the board to freeze all new
    investment licenses issued in the sector by mid 2012. Investment
    licenses that include land ownership are more likely to be issued in the
    KBOI’s priority sector development areas of tourism, agriculture, and
    industry.


    Protection of Intellectual Property Rights
    Iraq currently does not have adequate statutory protection for
    intellectual property rights (IPR). The GOI is in the process of
    developing a new IPR law to comply with the WTO Agreement on Trade
    Related Aspects of Intellectual Property Rights (TRIPS). The draft law
    covers patents, trademarks, and copyrights. It is hoped that strong
    implementing regulations will help consolidate IPR protection functions,
    which are currently spread across several ministries, into a “one-stop”
    IPR office. (The Central Organization on Standards and Quality Control
    (COSQC), an agency within the Ministry of Planning, handles patent
    registry and the industrial design registry; the Ministry of Culture
    handles copyrights; and the Ministry of Industry and Minerals houses the
    office that registers trademarks.) Although the new draft would offer
    adequate statutory IPR protections, it has been stalled in the
    constitutional review process since mid-2007. The GOI’s ability to
    enforce IPR protections remains weak.


    The USG is continuing efforts to bolster understanding of
    intellectual property rights and build GOI capacity to protect them. In
    June 2012, the Federal Court of Cassation, the highest civil court in
    Iraq, upheld a finding by the Baghdad Commercial Court that ruled in
    favor of U.S. firm Westinghouse in a trademark dispute, setting a
    positive precedent for IPR protection in Iraq. The Commercial Court has
    jurisdiction over commercial disputes that involve at least one foreign
    party and disputes over various commerce-related issues including trade,
    real estate, banking, trademarks and intellectual property,
    transportation, and other areas. It was established in November 2010
    under the Higher Judicial Council (HJC) with the assistance of the
    Commercial Law Development Program, which provided technical assistance
    and training to Iraqi judges who serve on the court.


    Iraq is a signatory to several international intellectual property
    conventions and to regional or bilateral arrangements, which include:
    1)Paris Convention for the Protection of Industrial Property (1967 Act),
    ratified by Law No. 212 of 1975; 2) World Intellectual Property
    Organizations (WIPO) Convention, ratified by Law No. 212 of 1975. Iraq
    became a member of the WIPO in January 1976; 3) Arab Agreement for the
    Protection of Copyrights, ratified by Law No. 41 of 1985; and 4) Arab
    Intellectual Property Rights Treaty (Law No. 41 of 1985).


    Transparency of the Regulatory System
    The lack of clear and definitive implementing regulations for the
    National Investment Law and its amendment remains a source of delay and
    confusion in the approval of investment projects. Once fully
    implemented, the law would establish a legal framework for investment.
    Potential investors, however, would likely still face laws, regulations,
    and administrative procedures that continue to make Iraq’s overall
    regulatory environment relatively opaque. Over 950 firms—both foreign
    and domestic—have filed for investment licenses in Iraq to date, but
    fewer have moved to an execution phase. PICs have also been active in
    assisting regional investors. However, NIC and PIC Commissioners and
    their staff often lack training and expertise, and are still building
    their operations to serve as effective “One-Stop Shops” for investors to
    ease their entrance into the Iraqi market.


    The absence of other laws in areas of interest to foreign investors
    also creates ambiguity. Iraq’s Legislative Action Plan for the
    Implementation of WTO Agreements – the legislative “road map” for Iraq’s
    eventual WTO accession – requires competition and consumer protection
    laws that are critical for leveling the business playing field. The
    Council of Representatives passed a Competition Law and a Consumer
    Protection Law in 2010; however, the Competition and Consumer Protection
    Commissions authorized by these laws have yet to be formed. Without
    these Commissions, investors do not have recourse against unfair
    business practices such as price-fixing by competitors, bid rigging, or
    abuse of dominant position in the market. In the IKR, the KRG
    implemented the Consumer Protection Law by passing Law 9 of 2010.


    The way in which the Iraqi government promulgates regulations can be
    opaque and lend itself to arbitrary use. Regulations imposing duties on
    citizens or private businesses are required to be published in the
    official government gazette. However, there is no corresponding
    requirement for the publication of internal ministerial regulations.
    This loophole allows bureaucrats to create internal requirements,
    procedures, or other “turnstiles” with little or no oversight, which can
    result in additional burdens for investors and other businesspersons.


    Efficient Capital Markets and Portfolio Investment
    The Central Bank of Iraq (CBI) is responsible for conducting monetary
    policy in Iraq. The CBI was reorganized by Coalition Provisional
    Authority (CPA) Order No. 56 as a legal public entity possessing
    financial and administrative independence. The Iraqi banking system
    includes seven state-owned banks, with the three largest (Rafidain Bank,
    Rasheed Bank, and Trade Bank of Iraq) accounting for about 96 percent
    of banking sector assets. There are also 34 privately owned banks
    licensed by the CBI (see CBI’s website
    [You must be registered and logged in to see this link.] Eleven foreign banks
    either have licensed branches in Iraq or have strategic investments in
    Iraqi banks. The removal of CBI Governor Shabibi and arrest of CBI
    employees for alleged corruption in October 2012 raised concerns in the
    international community about CBI independence.


    Although the volume of lending by privately-owned banks is growing,
    many privately-owned banks do more business providing wire transfers and
    other fee-based transaction services than lending. Businesses therefore
    largely self-finance or obtain credit from individuals in private
    transactions. Financial transfers from the government to provincial
    authorities or individuals, rather than business loans, represent the
    major activity of the state-owned banks. Iraq’s economy remains
    primarily cash-based.

    The Trade Bank of Iraq (TBI) was established as an independent
    government entity under CPA Order No. 20 in 2003. The TBI's main purpose
    is to provide financial and related services to facilitate import
    trade, particularly through letters of credit (LCs). In 2009, the
    Ministry of Finance (MOF) opened the government LC business by granting
    private banks permission to issue LCs below $4 million in size; however,
    private banks report that they have yet to receive any LCs over $2
    million.


    The letter of the National Investment Law allows for foreign
    investors to exchange shares and securities listed in the Iraqi Stock
    Exchange (ISX). The NIL also allows foreign investors to form investment
    portfolios. Automation of the ISX was completed in 2009, and by the end
    of 2010 all companies listed on the ISX were being traded
    electronically. In addition, a new securities law has largely completed
    the Constitutional review process but has not yet been passed by the
    Iraqi government. Until the new law passes, an extension of previous
    regulations will secure the status of the Iraqi Securities Commission.
    Creation of an Erbil Stock Exchange (ESX) was announced in February
    2010, and is expected to begin operation in 2013. The ESX plans to list
    companies from all regions of Iraq.


    Competition from State-Owned Enterprises
    GOI ministries currently own and operate over 192 State-Owned
    Enterprises (SOEs), a legacy of the state planning system of Iraq’s
    former regime. These firms employ over 800,000 Iraqis, many of whom are
    underutilized. As a result of years of sanctions and war, most of these
    SOEs suffer from underinvestment or actual physical damage. Many of them
    are non-viable economically, although some have adapted and are
    producing goods, including several with foreign partners. Iraq imports
    many goods—ranging from foodstuffs to apparel to light-industrial
    products—a result of both the deterioration of Iraq’s industrial base
    and the opening of Iraq’s borders in 2003.


    In 2010, the Prime Minister approved a national policy of
    corporatization of SOEs based on a “Road Map” derived from international
    best-practices, but implementation has been slow-going. Selected SOEs
    under the Ministry of Industry and Minerals (MIM) are participating in a
    pilot project under this plan to help them develop business and
    investment plans, remove the surplus labor from the SOEs, develop
    corporate governance structures, and form international strategic
    partnerships (ISPs) with the goal of eventually becoming commercially
    viable entities. The Ministry of Finance is also setting up an Asset
    Valuation Unit, a step that is necessary to attract private and/or
    foreign investors. A handful of Iraqi SOEs already have foreign
    investors as partners; this number is expected to grow in the coming
    years.


    While few SOEs compete with Iraq’s private-sector companies, most
    SOEs now face increasing competition from foreign firms, most of which
    are privately-owned, as a result of the opening of Iraq’s market. Faced
    with this competition, Iraq’s SOEs are losing market share in certain
    sectors open to competition because their equipment and production
    technology are obsolete. As a result, an increasing number of Iraqi SOEs
    is attempting to form strategic partnerships with foreign firms to
    obtain newer technology, investment, and managerial expertise. Several
    such partnerships have already materialized, because foreign firms
    interested in entering the Iraqi market see SOEs as desirable partners;
    SOEs usually have a well-known brand, long-established distribution
    channels, and priority access to GOI procurement. Iraq’s MIM is the
    ministry that oversees the largest number of Iraqi SOEs. Having had
    little success at privatizing these SOEs, MIM now views strategic
    partnerships between foreign firms and its SOEs as a more limited, but
    more certain, way for the latter to acquire the technology, investment,
    and managerial expertise they require to succeed.


    The degree to which SOEs compete with private companies varies by
    sector. For example, the Ministry of Communications (MOC) has been
    pursuing a policy since 2007 to give a mobile telecommunications license
    to the Iraq Telecommunications and Postal Company (ITPC), a MOC SOE, so
    that it could compete with the three existing private mobile operators
    ostensibly to improve competition in a market of 27 million subscribers
    and growing. The ITPC’s stagnant landline voice service, however, stands
    in marked contrast to the success of the private mobile operators as
    the ITPC is estimated to have fewer than one million customers while
    employing more than 22,000 Iraqis. Moreover, the company has made little
    progress in deploying broadband data networks for residences or
    businesses. If the ITPC were to receive a mobile license, the MOC’s
    regulatory policies and the ITPC’s monopoly over the fiber optic network
    and international gateways almost certainly would give the firm an
    unfair advantage over its private competitors and stymie the growth of
    Iraq’s telecommunications sector.


    Corporate Social Responsibility
    The international oil companies active in Iraq are required to
    observe international best practices in this area as part of their
    contracts with the GOI. As conditions improve, awareness of corporate
    social programs and responsibilities is likely to increase beyond the
    oil sector.


    Political Violence
    Some regions within Iraq have experienced more violent incidents than
    others in recent years, and violence and threats against U.S. citizens
    persist. Despite the general decline in terrorist-related violence
    directed against USG facilities or personnel, threats of attack against
    U.S. citizens in Iraq continue and U.S. citizens in Iraq remain at risk
    for kidnapping. Methods of attack in the past have included roadside
    improvised explosive devices (IEDs), including explosively formed
    penetrators (EFPs); magnetic IEDs placed on vehicles; human and
    vehicle-borne IEDs; mines placed on or concealed near roads; mortars and
    rockets, and shootings using various direct fire weapons. Numerous
    insurgent groups, including Al Qaida in Iraq, remain active throughout
    the country. Although Iraqi Security Forces (ISF) operations against
    these groups continue, terrorist activity persists in many areas of the
    country. While sectarian and terrorist violence occurs at levels lower
    than in previous years, it occurs often, particularly in the provinces
    of Baghdad, Kirkuk, Ninewa, Salah ad Din, Anbar, and Diyala.


    The security situation in the Iraqi Kurdistan Region (IKR), which
    includes the provinces of Sulaimaniyah, Erbil, and Dahuk, has been more
    stable relative to the rest of Iraq in recent years, and the region has
    experienced fewer terrorist attacks and lower levels of violence, but
    threats remain. U.S. government personnel in the IKR are required to be
    accompanied by a protective security detail when traveling outside of
    secure facilities. Increasingly, many U.S. and third-country business
    people travel throughout many parts of Iraq; however, they do so under
    restricted movement conditions and almost always with security advisors
    and teams.


    The Turkish military continues to carry out operations in northern Iraq
    against elements of the Kongra-Gel terrorist group (formerly Kurdistan
    Workers' Party or PKK). Additionally, extensive unmarked minefields
    remain along the same border. The Government of Iran also sometimes
    carries out military operations against armed groups in the mountain
    regions along the Iraq-Iran border. These operations have included troop
    movements as well as both aerial and artillery bombardments. U.S.
    citizens should avoid areas near the Turkish or Iranian borders because
    of these ongoing military operations. Borders in these areas are not
    always clearly defined. In 2009, three U.S. citizens were detained by
    Iranian authorities while hiking in the vicinity of the Iranian border
    in the Kurdistan region. The resources available to the U.S. Embassy to
    assist U.S. citizens who venture close to or cross the border with Iran
    are extremely limited. The Department of State cautions U.S. citizens to
    avoid travel in close proximity to the Iranian border.


    The U.S. Department of State issues up-to-date travel warnings for
    countries throughout the world, and U.S. companies and visitors are
    advised to assess carefully the situation in Iraq by consulting the
    Department's Travel Warning at [You must be registered and logged in to see this link.] and its Consular Information Sheet at [You must be registered and logged in to see this link.]. These sites contain essential security and safety information on travel to Iraq.


    Corruption
    While large-scale investment opportunities exist in Iraq,
    particularly for sophisticated investors, corruption remains a
    significant impediment to conducting business, and investors can expect
    to contend with it in many forms. While the GOI has moved toward greater
    effectiveness in reducing opportunities for procurement corruption in
    sectors such as electricity, oil, and gas, credible reports of
    corruption in government procurement are widespread, with examples
    ranging from bribery and kickbacks to awards involving companies
    connected to political leaders. Investors may come under pressure to
    take on well-connected local partners to avoid systemic bureaucratic
    hurdles to doing business. Similarly, there are widespread reports of
    corruption involving government payrolls, ranging from “ghost” employees
    and salary skimming to nepotism and patronage in personnel decisions.
    Moving goods into and out of the country continues to be difficult and
    bribery of port officials is reportedly common (Iraq ranks 179th out of
    185 countries in “trading across borders” in the World Bank’s 2013 Doing Business
    report). Iraq ranked eight places from the bottom in Transparency
    International’s 2012 Corruption Perceptions Index, improving four spots
    since 2011. Iraq also ranked in the eighth percentile of the World
    Bank’s 2012 Control of Corruption Index. Notably, Iraq came in last
    place among Middle East countries on both indices. In view of the
    conflict and sanctions Iraq has endured over recent decades, the
    resulting breakdown in institutional effectiveness that would curb high
    levels of corruption is not surprising. The USG is implementing several
    programs to address corruption at the institutional level, with some
    positive impact.


    There are three principal institutions specifically designated to
    address the problem of corruption in Iraq. CPA Order 57 established
    Inspectors General (IGs) for each of Iraq’s ministries. Similar to the
    role of IGs in the U.S. Government, these offices are responsible for
    inspections, audits, and investigations within their ministries. The
    Commission of Integrity (COI), initially established under the Coalition
    Provisional Authority (CPA), is an independent government agency
    responsible for pursuing anti-corruption investigations, upholding
    enforcement of laws and preventing crime. The COI investigates
    government corruption allegations and refers completed cases to the
    Iraqi judiciary. Paragraph one, Article 61, and paragraph three, article
    73 of the Iraqi Constitution were the authorities referenced for
    updating the CPA provisions in COI Law No. 30, passed in 2011. Law No.
    30 grants the COI broader responsibilities and jurisdiction through
    three newly created Directorates: Asset recovery, Research and Studies,
    and the Anti- Corruption Academy.


    The Board of Supreme Audit (BSA), established in 1927, is an analogue
    to the U.S. Government’s General Accountability Office (GAO). It is a
    financially and administratively independent body that derives its
    authority from Law 31 of 2011 – The Law of the Board of Supreme Audit.
    It is charged with fiscal and regulatory oversight of all publicly
    funded bodies in Iraq. In October 2012, several amendments to the BSA’s
    authorizing legislation, including a name change to the “Federal Board
    of Supreme Audit” (FBSA), gave it jurisdiction over audits of all
    federal revenues, including any revenues received from the IKR. Neither
    the COI nor the IGs have effective jurisdiction within the IKR. Regional
    revenues are audited by the Kurdistan Board of Supreme Audit with KRG
    Parliament oversight. The KRG passed the Commission on Public Integrity
    (Law No. 3 of 2011), which established a regional Commission of
    Integrity that has yet to be staffed. The KRG Parliament has also
    established an integrity committee to promote anticorruption efforts in
    the region, but during 2012 the committee’s chairman and three of the
    other seven members resigned and had not been replaced at the time of
    publication of this statement.


    Coordination among the three institutions is currently overseen by
    the Joint Anticorruption Council (JACC), which reports to the Council of
    Ministers, and a small office that advises the Prime Minister on
    anticorruption issues. Within the Council of Representatives, corruption
    issues are the primary responsibility of the Integrity Committee. Of
    note, the JACC was instrumental in drafting the GOI’s National
    Anti-Corruption Strategy for 2010-2014, which is designed to guide all
    three anti-corruption institutions and be used as an effective tool in
    preventing, deterring, and counteracting corruption at all levels. The
    strategy is part of Iraq’s response as a signatory to the UN Convention
    Against Corruption (UNCAC), to which Iraq acceded in 2007. As part of
    JACC, the COI developed this high-level strategy, which is the first of
    its type in Iraqi history.


    Iraq signed and ratified the UNCAC in March 2008 and in March 2010
    unveiled a strategy to achieve compliance with the convention. The
    strategy, which was coordinated by the JACC and under the supervising
    authority of the COI, included a detailed, five-year action plan
    addressing more than 200 specific areas. By the end of 2010, all Iraq’s
    ministries had submitted their individual plans to carry out the
    strategy and most had begun implementation. The UN Office of Drugs and
    Crime (UNODC) has submitted a concept paper for consideration for
    further funding in building on Iraq’s work to date to become UNCAC
    compliant. Regarding Iraq’s application for membership in the Extractive
    Industry Transparency Initiative (EITI), as of December 12, 2012, the
    country was accepted as a member, having been found compliant with EITI
    requirements. The Board did, however, stipulate that the GOI should
    include oil and gas production in the Kurdistan Region as well as sales
    revenue to the KRG.


    Failure of the GOI to seek Council of Representatives (COR)
    confirmation of key anti-corruption appointments, however, has
    undermined the independence of Iraq’s principal institutions to combat
    corruption. The result has been that many high-level officials operate
    in an acting capacity and are thus subject to removal at any time by the
    Prime Minister. While the GOI has made progress in some areas, it
    remains to be seen how vigorously the Government will move to address
    the problem of corruption system-wide. Article 136(b), which allowed
    Ministers to shield Ministry employees from work-related prosecution for
    official acts, was abolished on November 14, 2011. While such a
    provision could serve as a legitimate shield against politically-driven
    prosecution, the provision had increasingly been used to block
    corruption investigations at higher levels within the GOI.


    Iraq’s existing Anti-Money Laundering/Counter Terrorism Financing
    (AML/CTF) regime is completely inadequate. The country’s financial
    system needs a major overhaul of its anti-money laundering regime to
    meet the Middle East North Africa Financial Action Task Force (MENAFATF)
    standards. Iraq joined MENAFATF in 2005 and underwent its first ever
    Mutual Evaluation (ME) in 2012. The ME team was led by World Bank
    experts early in 2012 to determine if the GOI conformed to the
    international standards stated in the 40-plus-9 recommendations issued
    by FATF; the Mutual Evaluation Report (MER) on Iraq was provided to the
    GOI in June. Although Iraq was found non-compliant in 35 of the 40
    categories, the GOI delegation was forthright in admitting its
    deficiencies and given one year (until November 2013) to make needed
    corrections before referral to the International Cooperative Review
    Group (ICRG). During the plenary, the GOI delegation highlighted several
    accomplishments signifying Iraq’s determination to work toward meeting
    MENAFATF goals: the establishment of a major Financial Crimes Task Force
    (FCTF) consisting of members from agency and ministerial bodies with
    AML/CTF law enforcement authority – the first such operational body in
    the Middle East; an increasingly effective Financial Intelligence Unit
    (FIU) under the Central Bank; and a commitment to push through new
    Anti-Money Laundering/Counter-Terrorism Financing legislation that
    conforms more closely to international standards.


    Bilateral Investment Agreements and Regional Cooperation
    Iraq is a signatory to some form of investor protection agreement or
    memorandum of understanding with 35 bilateral partners and nine
    multilateral groupings. However, none of these agreements is as
    all-encompassing as a U.S. Bilateral Investment Treaty (BIT). The
    agreements include arrangements on Investments Promotion and Protection
    (IPPA) within the Arab League, as well as arrangements with Afghanistan,
    Bangladesh, India, Iran, Japan, Jordan, Kuwait, Germany, Mauritania,
    Republic of Korea, Sri Lanka, Syria, Tunisia, Turkey, the United
    Kingdom, Vietnam, and Yemen. In 2010, Iraq concluded BITs with France,
    Germany and Italy; the BITs with France and Germany were ratified by the
    Iraqi Council of Representatives in 2012, while the BIT with Italy has
    yet to be ratified. These agreements include general provisions on
    promoting and protecting investments, including clauses on profit
    repatriation, access to arbitration and dispute settlements, fair
    expropriation rules and compensation for losses. However, the Iraqi
    government’s ability and willingness to enforce such provisions remains
    unknown.


    In addition, Iraq has bilateral free trade (FTA) agreements with the
    following 11 countries: Algeria, Egypt, Jordan, Lebanon, Oman, Qatar,
    Sudan, Syria, Tunisia, Yemen, and the United Arab Emirates. Iraq is also
    a signatory to several multilateral agreements, including the "Taysir"
    agreement with Arab countries.


    On July 11, 2005, Iraq and the United States signed a Trade and
    Investment Framework Agreement (TIFA) as a first step toward increasing
    trade and investment cooperation between the two countries. The
    Government of Iraq ratified the agreement in December 2012.


    OPIC and Other Investment Insurance Programs
    The Overseas Private Investment Corporation (OPIC) and the Government
    of Iraq executed an Investment Incentive Agreement (IIA) in 2005, and
    the government ratified the agreement in December 2012. Even without the
    IIA, OPIC has been able to offer limited programs in Iraq on a
    temporary basis through a Congressional waiver of OPIC’s statutory IIA
    requirement. Some of OPIC's basic programs have included structured
    finance projects, political risk insurance, investment funds and
    financing for small and medium-sized enterprises, and a planned mortgage
    pilot program.


    Labor
    Iraqi labor law remains weak. While it provides for workers’ rights,
    including freedom of association and the right to collective bargaining,
    these rights are not respected in practice. The law also regulates
    working conditions and prohibits all forms of forced or compulsory
    labor, but the GOI has not effectively monitored or enforced the law,
    which has resulted in unacceptable working conditions for many workers.
    Iraq continues to face a high level of violence and insecurity, high
    unemployment, a large informal sector, and lack of satisfactory work
    standards.


    The existing Saddam-era labor law, which also applies to the IKR,
    addresses working conditions for foreign expatriate workers and rules
    governing working hours. A law more consistent with current
    international standards was drafted with the assistance of the
    International Labor Organization (ILO) and approved by the Shura Council
    in 2010, but it has yet to be enacted.


    Iraq is a party to both International Labor Organization (ILO)
    conventions related to youth employment, including child labor. The
    Ministry of Labor and Social Affairs (MOLSA) sets a minimum monthly wage
    for unskilled workers. In addition, according to Iraqi law, all
    employers must provide some level of transport, accommodation, and food
    allowances for each employee. The law does not fix these allowance
    amounts.


    The National Investment Law states that priority in employment and
    recruitment shall be given to Iraqis. However, international companies
    have noted that Iraq lacks a skilled labor force and the country has a
    need for human resource development. With a lack of skilled workers,
    foreign investors often must rely on foreign workers. However, there are
    labor-related requirements for foreign companies employing Iraqi or
    third-country nationals. Furthermore, foreign investors are expected to
    help train Iraqi employees to increase their efficiency, skills, and
    capabilities.


    Foreign Trade Zones and Ports
    The Free Zone Authority Law No. 3/1998 (FZL) permitted investment in
    Free Zones (FZ; similar to a U.S. Foreign Trade Zone) through
    industrial, commercial, and service projects. This law operates under
    the Instructions for Free Zone Management and the Regulation of
    Investors' Business No. 4/1999 and is implemented by the Free Zones
    Commission in the Ministry of Finance.


    Under the law, capital, profits, and investment income from projects
    in an FZ are exempt from all taxes and fees throughout the life of the
    project, including in the foundation and construction phases. Goods
    entering into Iraqi commerce from FZs are subject to Iraq’s five percent
    tariff; no duty is leveled on exports from FZs.


    Activities permitted in Free Zones include: (a) industrial activities
    such as assembly, installation, sorting, and refilling processes; (b)
    storage, re-export and trading operations; (c) service and storage
    projects and transport of all kinds; (d) banking, insurance and
    reinsurance activities; and (e) supplementary and auxiliary professional
    and service activities. Prohibited activities include actions
    disallowed by other laws in force, such as weapons manufacture,
    environmentally-polluting industries and those banned because of place
    of origin.


    Four geographic areas are currently designated as Free Zones. The
    Basrah/Khor al-Zubair Free Zone is located 40 miles southwest of Basrah
    on the Arab Gulf at the Khor al-Zubair seaport. This area has been
    operational since June 2004. The Ninewa/Falafel Free Zone is located in
    the north, near roads and railways that reach Turkey, Syria, Jordan and
    the Basrah ports. The Al-Qa'im Free Zone is on the Iraqi–Syrian border.
    Although it is not currently operational, there is a project to
    rehabilitate it to its pre-2003 state. An undeveloped zone in Fallujah
    is in the planning stages. In the Kurdistan Region, a separate zone is
    being developed outside of Sulaymaniyah, to be led by private master
    developers. However, none of these areas is operating as a significant
    focal point for investment or trade, and only the Ninewa/Falafel zone
    has businesses operating in it. The Free Zone Commission lacks capacity
    and is further inhibited by its being placed under the Ministry of
    Finance, which lacks specific focus on developing the FZs.


    Foreign Direct Investment Statistics
    According to the United Nations Conference on Trade and Development
    (UNCTAD), FDI flow into Iraq reached $1.6 billion in 2011 (the most
    recent year for which statistics are available), up from $1.4 billion in
    2010.

    FDI (USD million)

    2005

    2006

    2007

    2008

    2009

    2010

    2011

    FDI Inflow

    515

    383

    972

    1,856

    1,598

    1,396

    1,617

    FDI Outflow

    89

    305

    8

    34

    72

    125

    77

    Source: UNCTAD
    Trade (USD million)

    2005

    2006

    2007

    2008

    2009

    2010

    Imports

    26,096

    24,198

    21,488

    36,986

    41,936

    49,467

    Exports

    24,053

    30,887

    40,455

    65,693

    46,230

    57,966

    Source: UNCTAD
    According to an analysis by Investment Consulting Associates in “The
    New Iraq – 2013 Discovering Business,” from 2003 to 2011 the country
    attracted almost US$70 billion in FDI, with a sharp increase in FDI
    projects after 2008. Although 2011 showed an increase in the number of
    jobs created and capital attracted, the total number of FDI project
    declined for the first time since 2007.


    According to the National Investment Commission, over 950 firms have
    filed for investment licenses in Iraq, at both the national and
    provincial level, with a total value of approximately $50.5 billion. All
    but 27 were issued by PICs, and 145 of them were issued to foreign
    companies, though in some cases there are Iraqi investors or capital
    along with the foreign partner. However, the granting of a license by
    the NIC or a PIC does not guarantee that the proposed investment will be
    implemented. In many cases, it takes months or years for projects to
    materialize, if they do at all. In addition, press announcements of
    investment projects are relatively meaningless as they almost invariably
    report the intended or proposed investment amount for a given project.
    Both these figures are unreliable in estimating actual monies brought
    into Iraq and put to work.


    In the IKR, 128 licenses were granted in 2012 with a total potential
    value of $6.3 billion. While the granting of a license by Kurdistan
    Board of Investment does not guarantee that the proposed investment will
    be implemented, the potential value of the projects increased 133
    percent over the licenses issued in 2011. Most of the investment in 2012
    (67 percent) went to the governorate of Erbil.


    Real estate remains the largest non-oil area of foreign participation
    in Iraq’s economy. In 2011, the GOI began negotiations with foreign
    companies for its largest housing project yet, a 100,000-unit complex
    located in Besmayah. The $8 billion contract was won by Korean firm
    Hanwha, and the complex is expected to take several years to complete.
    Other major building contracts signed in 2012 include a $45 million
    contract with UAE’s Construction Tech to rebuild the CBI, $185 million
    to Kar Construction & Engineering to build 2,000 homes north of
    Baghdad, $55 million to a Turkish firm to build 1,200 homes in Kirkuk,
    $247 million to an Italian firm to build 2,000 homes in Diwaniya, and a
    $98 million contract with RW Middle East to develop 1,300 housing units
    in Samawah. The British firm Harlow International will officially open
    in 2013 the Harlow Riverside business park, consisting of residences,
    offices, restaurants, and amenities. In Thi Qar province, U.S. firm,
    Markez Inc. won a contract to build 1,000 housing units in Nasiriyah.


    In October 2012, Iraq signed a $14 million deal with U.S. consortium
    North America Western Asia Holding (NAWAH) to modernize the Maqal Port
    on the Shatt al-Arab waterway. The ten-year agreement includes dredging
    the waterway to nine meters to make it a deep water port. The NAWAH is
    headed by Paul Brinkley, former Director of the Task Force for Business
    and Stability Operations (TFBSO) in Iraq, responsible for economic
    revitalization and stabilization efforts in the country.


    Oil sector representatives say investment in oil production could be
    on the order of $15-20 billion in 2013; since the Iraqi government is
    contractually obligated to reimburse oil companies for these
    expenditures and therefore is the owner of the equipment, it is
    considered government investment rather than FDI.






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    Hkp1
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    U.S. Department of State - 2013 Investment Climate Statement - Iraq Empty Re: U.S. Department of State - 2013 Investment Climate Statement - Iraq

    Post by Hkp1 Fri 01 Mar 2013, 12:55 pm

    Proven wrote:Could not get the whole article loaded. Picked out the most important part[size=21]. The National Investment Law will become active once chapter 7 is lifted![/size][size=21]

    No worries Proven, got your back on this. Posted it in full... Thanks for article
    ron-man
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    U.S. Department of State - 2013 Investment Climate Statement - Iraq Empty Re: U.S. Department of State - 2013 Investment Climate Statement - Iraq

    Post by ron-man Fri 01 Mar 2013, 1:04 pm

    Thanks Hkp1
    Neno
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    U.S. Department of State - 2013 Investment Climate Statement - Iraq Empty Re: U.S. Department of State - 2013 Investment Climate Statement - Iraq

    Post by Neno Fri 01 Mar 2013, 1:56 pm

    The National Investment Law contains
    provisions that, once implemented, would allow investors to maintain
    Iraqi bank accounts and transfer capital inside or outside of Iraq.
    "ONCE", is a big word and the reason Ali went ahead and sold his interest in UIB. Not saying it is not going to happen but with the NEW US laws of foreign accounts, it has hindered it greatly for the common investor and hasn't happened yet.

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    U.S. Department of State - 2013 Investment Climate Statement - Iraq Empty Re: U.S. Department of State - 2013 Investment Climate Statement - Iraq

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