✂ Fed’s first rate cut since 2020: Use our free Stock Screener to find new opportunities fastExplore for FREE

Iraq aims to allow foreign investors to own land

Published 05/25/2009, 01:22 PM
Updated 05/25/2009, 01:24 PM

By Mohammed Abbas

BAGHDAD, May 25 (Reuters) - Iraq's investment commission is pushing for foreign firms to be allowed to own land, a move seen as key to attracting the developers required to build houses and repair and expand the country's creaking infrastructure.

National Investment Commission Chairman Sami al-Araji told Reuters on Monday the proposal was one of several amendments to an investment law that was meant to herald a flood of foreign capital, but has been neutered by bureaucracy and red tape.

Violence in Iraq has fallen since last year, but that has yet to be accompanied by major investment. The cash-strapped and oil-reliant country is keen to stimulate its private sector after oil prices tumbled from last year's record highs.

"The investor has a right to own Iraqi land. The lands open to investment will be administered by the investment commission, without going through the ministries," Araji said, outlining two amendments to the law meant to strengthen its powers.

Araji hopes the amendments will be ratified by September.

Businessmen have long bemoaned the difficulty in securing land in Iraq. Some is protected by agricultural laws, and other laws only grant foreigners land ownership for a limited time, after which it and any buildings on it revert to the state.

Other proposed amendments include the exemption of foreign investors from having to bid for plots of land or stakes in public-private partnerships. Instead, the commission will be able to allocate land or stakes at its discretion if it feels the investment will benefit Iraq.

The commission aims to attract about $500 billion of foreign investment by 2015, including for the development of millions of new homes, and hotels to cater for millions of Shi'ite Muslim pilgrims who visit holy sites in Iraq each year.

Araji said there was great interest in investing in Iraq, which has the world's third largest proven oil reserves, but that plans had been hit by the global financial crisis.

"Before then we travelled, had discussions, then the crisis happened and the credit needed for investment ended."

There has also been a spike in violence lately, sowing doubt about the durability of recent security gains, but Araji said potential investors he had spoken to were unperturbed.

"We haven't had an investor come to us and say we cannot invest anywhere because of tensions. They know it's temporary."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.