Why you should be investing in Iraq

When you’re thinking about countries to invest your company’s hard earned cash, Iraq might not be at the top of your list. But it probably should be.

Most of us are familiar with the turmoil that followed the US invasion in 2003. In the 20 years since, the political and security situation in the region has remained fragile. Under the surface, though, Iraq and the Iraq Kurdistan Region boast huge and largely untapped potential.

Like its Middle Eastern neighbours, Iraq has abundant oil reserves. According to 2022 OPEC data, it boasts the world’s fourth largest supply, roughly 12% of the world’s oil and more than Kuwait and the UAE. But there’s much more on offer than just oil.

Key sectors to invest in

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.

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.

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 organisational skills. the number of youth people reached 9.3 million.

Iraq’s population of 38 million is also one of the world’s youngest with 71% under the 30 years of age and 83% under 40.

Incentives to invest

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 and the right to employ foreign workers when needed.

The Government of Iraq also guarantees that investments will not be nationalised or confiscated, 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.

First steps

One of the biggest obstacles to investment in Iraq and the Kurdistan Region is the bureaucracy involved

GHI are experts in helping individuals and companies navigate their way through the red tape.

Through our partner firms in Iraq we can help you through the entire process from company registration to visas for your employees.

Contact us at Info@GHILegal.com to find out more.