Why Iraq Remains One of the Most Underrated Investment Destinations in the Middle East

1. Generous Investment Incentives under Investment Law No. 13 of 2006

Foreign investors in Iraq who obtain a license from the National Investment Commission (NIC) can enjoy:

• Up to 10 years of tax and fees exemption,

• Exemption from import duties for essential equipment within three years,

• Full repatriation of profits,

• Flexible incentives extended in proportion to Iraqi partner share—potentially up to 15 years of exemption if the Iraqi share exceeds 50%.

2. Strategic Location & Untapped Market Access

Iraq’s population exceeds 46 million (2024 est.), positioning it as a large domestic market and a bridge to neighboring regional markets. The ambitious "Development Road" project aims to connect Asia to Europe via the Grand Faw Port, serving as a nexus for trade with expected economic impact of billions annually .

3. High-Impact Infrastructure Projects Driving Growth

Iraq is actively pursuing mega-projects including the Development Fund (est. 2023), which has already attracted $7 billion in foreign direct investment and supports projects in energy, agriculture, ICT, and manufacturing.These initiatives signal a strong commitment to expanding the private sector.

4. Improving Macroeconomic Stability

Following sharp fluctuations, Iraq’s economy began stabilizing in 2024–2025. GDP growth is expected to modestly recover, and inflation remains controlled around 3–4%. Continued reforms are underway to support private sector credit and non-oil diversification.

5. Revitalized Development Vision and Momentum

With new leadership since 2022, Iraq is expanding its vision through projects like the Development Road, new cities, and restored public infrastructure. This renewed policy momentum is backed by foreign partnerships and substantial infrastructure funding.

Conclusion

Iraq is not merely recovering—it is reinventing itself as a strategic, high-opportunity frontier for global investors. With robust incentives, infrastructure expansion, macroeconomic normalization, and a youthful domestic economy, the landscape beckons forward-looking opportunities.

Hamurabi Iraq — Your Legal Ally in Iraq

At Hamurabi Iraq, we guide foreign investors through Iraq’s legal and regulatory landscape with precision and confidence. Trust us to safeguard your entry and operations—legally secure, strategically sound.