Law Second Amendment to the Investment Law No. 13 of 2006
27 October 0.2015
Great news for Iraq and for us ! They finally amended and passed the Investment Law ! Several things jump out at me in this law. First is that it encompasses both foreign and domestic investors as it should.
Secondly is that this law is giving great authority to the National Authority for Investment to develop and sustain investment in the country.
“National Investment Commission has a moral personality represented by Chairman of the Board or his nominee shall be responsible for drawing up the national policy for investment and the development of controls and monitoring its application and specializes in investment projects and strategic projects of a federal nature.”
It has a built in fail safe if the authority isn’t doing it’s job “cabinet dismissal Chairman of the National Authority for Investment and his deputy at the request of the Prime Minister and the imperative reasons for the dismissal, and endorsed by the House of Representatives.”
There will be a Board of Directors in each region or province who will answer to the National Investment Commission as well as private sector appointee’s to help with the details.
There is a single window and Investor Services Department which will ease the red tape and allow the investors to get all they need at one place.
Not only is this law determining the scope of application of rights and obligations of the state and the investors but it is also offers financial assistance ” encourage Iraqis and foreign investors in partnership with the Iraqis through the provision of loans and financial facilities for them in coordination with the Ministry of Finance and other financial institutions that invested completion takes into account 25% of the project
and to ensure the facilities of the project and determine the soft interest rate for residential projects and beneficiaries final to take into account the use of hands Iraqi working commensurate with the size of the loan.” Article 10 is a really good one !
“Article 10 first Iraqi or foreign investor enjoys all the benefits, facilities and guarantees and is subject to the obligations set forth in this law.”
This article also specifies land ownership and leasing and really goes into detail about government projects both on-going (stalled) and any new projects set forth by the GOI and private infrastructure projects ie ; the investments the country wishes to attract . Investors will have these simplified guidelines to follow.
It also goes into detail about the ramifications if these contracts/licenses are not fulfilled.
They have imposed a timeline for licensing as well “government agencies all committed after the issuance of the investment license in cooperation with the Organization for the completion of the requirements of direct investment project within a period of (30) thirty days from the date of issuance.” All of this sets mandates for investment, whether it be on the side of the Commission or the side of the investor.
Article 13 touches on international law and allows for arbitration when needed ” first subject arising from the application of this law to the Iraqi law and the mandate of the Iraqi judiciary disputes, and may agree with the investor to resort to commercial arbitration (national or international) in accordance with the agreement concluded between the parties under which the arbitration determines the destination and procedures applicable law. ”
This will be a big confidence booster for the foreign investors knowing that their rights are protected. The Commission will have the power to prosecute any violations by investors too which should curb fake contracts and corruption considerably .
Article 20 of this law shall be the date of its publication in the Official Gazette. I am fairly confident the President will ratify the law quickly. This law is going to open Iraq to world and allow foreign money into the country.
The PROTECTION provided to investors will make all the difference in how Iraq goes forward ! It’s a great day for us as BondLady has always said it all about the laws ! I am excited about our future !