Business in Iraq

Business in Iraq: A Landscape of Emerging Opportunities

Iraq is undergoing a significant transformation, presenting a wealth of opportunities for international investors. The nation's commitment to economic diversification, infrastructure development, and regulatory reforms is creating a conducive environment for business growth.

Economic Diversification and Growth

Iraq's focus on diversifying its economy beyond oil is yielding positive results. The non-oil sector is projected to grow by 4% in 2025, driven by advancements in agriculture and increased government spending. This shift indicates a move towards a more balanced and resilient economic structure.

Investment-Friendly Legal Framework

The Iraqi Investment Law offers several incentives to attract foreign investors, including:

A 10-year tax exemption for qualified investments.

Exemptions from import duties on essential equipment and materials.

Freedom to transfer capital and profits abroad.

Equal treatment for foreign and domestic investors.

Additionally, the Kurdistan Region provides further benefits, such as full property ownership rights and extended lease agreements, making it an attractive destination for investment. 

Infrastructure Development Initiatives

Iraq is investing heavily in infrastructure to stimulate economic growth:

The Grand Faw Port is set to become one of the largest ports in the Middle East, enhancing Iraq's trade capabilities.

The Development Road project aims to connect the Grand Faw Port to Turkey, facilitating trade between Asia and Europe.

Major energy projects, such as TotalEnergies' $27 billion deal, are expanding Iraq's capacity in oil, gas, and renewable energy sectors. 

Strategic International Partnerships

Iraq is strengthening its global economic ties through strategic agreements:

A $25 billion agreement with BP to redevelop oil and gas fields in Kirkuk, aiming to boost production and energy self-sufficiency.

A £12.3 billion trade package with the United Kingdom, focusing on sectors like defense, infrastructure, and technology. 

Iraq's evolving economic landscape, supported by proactive government policies and international collaborations, offers promising opportunities for businesses and investors. The country's commitment to diversification, infrastructure development, and regulatory reforms positions it as a compelling destination for investment in the Middle East.