Iraq is changing rapidly and as life is returning to normal, so too is economic activity. 

The country has entered a new, positive phase. Demand for goods and services is growing, and the country is proving why many believe it to be one of the world’s most attractive markets. Iraq offers almost unparalleled opportunities to international corporations and investors. At the same time, Iraq can finally benefit from foreign investment into its economy. Iraq’s needs are broad, range across all sectors, and include railroad and port projects, residential and urban development, electricity plants, refineries, hotels, and telecommunications infrastructure expansion – just to name a few of the larger initiatives.

Success Story

Success Story

Reasons to invest

1.Superb strategic location — a gateway to the region

Iraq has historically occupied a pivotal position in the Arabian Gulf and Middle East region. It has strategically important ports and airports and can prove to be a cost-effective trading and distribution location.

2.Numerous green and brownfield opportunities across multiple sectors

There are investment needs across all sectors of the Iraqi economy. The Government of Iraq has identified hundreds of investment opportunities throughout Iraq in a variety of sectors. These include construction, manufacturing industry, agriculture, tourism, housing, telecommunications and healthcare. Most of these are immediately available and further details can be obtained by contacting the National Investment Commission.

3.Unmet needs of a diverse domestic market

Iraq’s strategic position, availability of people and competitive cost base make it an excellent location from which to export to the region and to the world. However, given that the majority of goods sold now in Iraq are imported, Iraq’s domestic market of 36 million people offers an obvious opportunity to produce and sell goods and service to provide import substitution.

4.Increasing middle class creating demand for new products and services

As Iraq’s stability and security continues to improve, its displaced professionals are slowly returning home and re-entering the workforce. Iraq’s expanding middle-class is proving to have the expendable income to demand better products and services.

5.Educated, talented and available workforce

The workforce in Iraq is well-educated. Over 21% are graduates or post-graduates and 14% have higher-level academic or technical qualifications. Iraq traditionally is strong in disciplines such as engineering, medicine and agriculture and has also abundant numbers of people with administrative and organizational skills. the number of youth people reached to 9.3 millions.

Iraq’s population of 38 million is one of the world’s youngest with 71% under the 30 years of age and an astounding 83% under 40. Factors such as the current unemployment rate of 11% and high levels of underemployment clearly show the enormous capacity of the Iraqi workforce to provide a strong people solution to investors’ needs.

6.Competitive wages and operating costs

Iraq’s cost base is one of the most competitive in the region and globally. For example, an engineering professional is 89% cheaper than the UAE and a skilled operative 92% cheaper than the UK. Whilst wages rates are dramatically below those in the United States or Europe, this factor, combined with Iraq’s availability of graduates and professionals means an overall excellent value for money investment proposition.

7.Strong investment incentives, tax exemptions and guarantees offered

Iraq offers investors a period of ten years free from all taxes, including corporation tax and fees. This period is extended to 15 years if the project is a joint venture with a majority Iraqi stakeholder. Additional incentives include the right to repatriate investment and profits from investment, the right to employ foreign workers when needed and three years exemption from import fees for required equipment. The Government of Iraq also guarantees that investments will not be nationalized or confiscated.

8.Low corporate tax rates

Even after the generous tax-free period has been completed, investors will continue to benefit from Iraq’s company tax rate of only 15% – one of the most competitive in the region and globally. Both the tax free period and the low ongoing rate help investors to become profitable more quickly and encourages reinvestment.

9.Ample opportunity for local partnerships

The Iraqi economy boasts a number of established companies, state-owned-enterprises and service providers. As the country continues to refine its investment environment and bring stability to its political, security and economic activities, local partners serve as good option to expedite and navigate the legal, regulatory and physical landscapes of Iraq. Local partners have access to vital market knowledge; navigate regulatory requirements; provide labor and other inputs at competitive rates; utilize pre-established sales network; and maintain other necessary business relationships, i.e. banking, legal, and distribution, which are critical to the success of an operation.

10.Abundant and untapped natural resources

Iraq holds one of the principal hydrocarbon reserves in the world. With proven reserves estimated at 144 billion barrels, Iraq’s undiscovered oil reserve is considered to have the second largest reserve in the world — possibly 300 billion barrels. Iraq also has reserves of gas of 98 trillion cubic meters. Iraq is also rich in other minerals, including sulphur, phosphate and iron.

Sector opportunities

1.Telecommunications Sector

The communication sector (wired and wireless) has witnessed substantial growth in FDI attraction in the recent years especially in the mobile phones and internet technologies which can be highly attributed to the existence of an independent organizing agency and the renewable opening up to the foreign companies.

Investment opportunities in the communication sector

• Mobile Phones:
• Internet System:
• Stationary Line Phone and Fibers:
• Local Wireless Stationary Ring:

2.Oil and Gas Sector

Iraq is blessed with vast reserves of oil and natural gas, and is one of the most promising, still largely undeveloped sources of hydrocarbon resources in the world. After decades of underinvestment due to conflict and sanctions, the importance of oil is not only limited to its importance in developing Iraq but exceeds that to the role which it can play on the level of the international oil market for the big reserves which can be reinforced in the future because of Iraq’s being one of the most responding countries to the increase demand of energy and it is expected for Iraq to be the second largest international resource for the crude oil, this sector contributed to the GDP with the fixed prices by 50% during the year 2012 while the growth rate in the GDP for the period 2009-2011 regarding this sector is 6,6%. Iraq is actively seeking international investment and expertise to help in the development of its oil and gas sectors. From efforts to harness associated gas from southern oil fields to the launching and negotiation of Iraq’s first post-war oil and gas bid rounds, Iraq has begun the process of substantial reengagement with investors from around the world.

3.Electricity Sector

Electricity sector in Iraq presents a number of attractive investment opportunities to local and foreign investors. The government has ambitious plans aiming at raising the sector’s capacity through motivating investors in the fields of building, operating and supplying.

The Ministry of Electricity (MoE) has sought to activate the role of the private sector in several fields like finance, quick construction and the contribution to raising the generation capacity to cover the country need. The demand has grown furiously mainly by families in the recent years. Since the national power grid does not meet the local needs of the Iraqi families, they are forced to pay large amounts of money to be provided with electricity from the private sector.

Investment opportunities available in the electricity sector.

. Project’s name:

• Al-Yusfiya Gas Station Project (Combined Cycle),  Capacity 1500 Mega Watt, Baghdad, Al-Yusfiya

• Salman Bak Gas Station Project (Combined Cycle) 1500 Mega Watt, Baghdad, Salman Bak

4.Agriculture Sector

The agriculture sector has been a major contributor to general domestic production, because of the availability of the fundamental factors for success, including fertile plains, irrigation water from Tigris and Euphrates, large land areas, human and other material resources. Therefore, Iraq was considered the Middle East food basket and a main source of various agricultural products. However, this sector deteriorated significantly during the last quarter of the past century. Such deterioration can be attributed to factors like negligence, poor management of water resources, and population rise

Investment Opportunities

Agriculture sector Opportunities

5.Housing and Infrastructure sector:

Economically speaking, housing is a very vital sector for the important roles it plays in the formation of the fixed capital, generating incomes and creating job opportunities and through the connection with other sectoral activates. Many countries which enjoy financial surpluses go to maximizing the role of this sector, in other words considering it as a producing sector.

Investment Opportunities

Housing and Construction Sector Opportunities

6.Transportation Sector

It is one of the important economic sectors for its direct impact on the daily life of people and its tangled connection with the other economic sectors which can’t be improved and developed without good infrastructure and efficient services of the transport system.

This sector is characterized by a big contribution of the local and foreign private sector and investments in implementing and operating lots of its projects.

Investment Opportunities

Transport Sector Opportunities

7.Industry and Minerals sector

The Industrial sector is seen as one of the most prominent component of the non- oil economy, and the Ministry of Industry and Minerals (MIM) is considered as the main pillar for the industrial policy in Iraq which encourages investment according to investment law No. 13 for the year 2006 as amended and it runs the state owned enterprises (SOEs) and seeks to develop these SOEs in cooperation with other sides willing to invest to raise efficiency of performance. MIM also specified a number of projects through which it is aiming to attract foreign investments especially that this Ministry already has a number of investment bases and regulations.

Investment Opportunities

Industry and Manufacturing Sector Opportunities

8.Tourism Sector:

Iraq’s cultural, religious and natural environment is regarded as an attracting factor for investors and visitors since it is a country of ancient civilization, international archeological sites and sacred religious sites in addition to the outstanding natural sites in the northern parts of Iraq.

Investment Opportunities

Tourism Sector Opportunities

9.Education Sector

Sustainable development concept is always at the forefront of the international community interests, and since human being has always occupied the first priority among the sustainable development factors, international world gave more importance to paying strong attention to develop the mental abilities and learning opportunities for the human beings making education is a human right for each individual in the society guaranteed by all international laws. The education standards in any country are seen as a measure for its advancement and development and in Iraq; laws guarantee the opportunity of obtaining good education for all Iraqis.

Investment Opportunities

Education Sector Opportunity

10.Services Sector

Services provision is considered as one of the main factors for a successful investment environment, so GOI has been serious to pay much attention to provide best services as it plays an essential role to achieve productivity and social stability.

Investment Opportunities

Services Sector Opportunities

11.Youth and Sport Sector

Youth and Sport Sector provides essential services for a successful investment environment, therefore; the government keens to secure this sector to provide services and care for youth since this sector has a great importance in increasing productivity and achieving stability and welfare for youth.

Investment Opportunities

https://investpromo.gov.iq/all-province-youth-and-sport-sector/