IRAQ
MARKET INFORMATION
MARKET OVERVIEWS & GENERAL INFO
MARKET OVERVIEWS & GENERAL INFO
Kurdistan Region: Invest in the Future (PDF), February 11, 2008
The U.S. Chamber of Commerce's Middle East and Africa Affairs department, in cooperation with Newsdesk Media, Inc. and the Kurdistan Regional Government of Iraq, launched an important new publication: “The Kurdistan Region: Invest in the Future.” This groundbreaking publication provides potential investors and businesspersons with detailed information on the Kurdistan Region and its potential as a business and investment hub. Included in this publication is a special article by David Bohigian, Assistant Secretary for Market Access and Compliance, U.S. Department of Commerce entitled “Investing in Stability.”
U.S.-Iraq Business Dialogue Report and Policy Recommendations, February 9, 2008
In Baghdad, the U.S.-Iraq Business Dialogue (USIBD) presented its first formal recommendations, including improving transparency in public procurement and the creation of a joint U.S.-Iraq initiative to restart dormant private Iraqi industry. The USIBD is a bilateral council of private sector leaders from the United States and Iraq charged with advising the U.S. Secretary of Commerce and Iraqi Minister of Trade on private sector views, needs, and concerns about Iraqi private sector growth and the expansion of U.S.-Iraq commercial relations. The creation of the Dialogue was one of the objectives Secretary Gutierrez outlined with Iraqi Minister of Trade Abd Al-Falah Al-Sudani during his 2006 visit to Baghdad. Copies of the recommendations can be found here in English or Arabic.
Kurdistan Business Agenda, November 15, 2007
A coalition of Kurdish business associations presented its Kurdistan Business Agenda (KBA) to the Kurdistan Regional Government. An unprecedented effort in Iraq, the agenda will serve as a powerful advocacy tool for the private sector and shows that the Kurdish business community is determined to play a positive role in Iraq’s democratic and economic development. The Kurdistan Business Agenda was developed with the support of the Center for International Private Enterprise (CIPE), based on the CIPE national business agenda model. View the press release, the agenda (PDF), or more information about CIPE’s work in Iraq.
2007 Investment Climate Statement – Iraq
The State Department’s Investment Climate Statements provide a thorough description of the overseas environments in which U.S. investors must operate. The statements cover general characteristics, such as openness to foreign investment and treatment of foreign investors, as well as details about procedures for licensing and similar administrative matters.
Commercial Strategies for Iraq, September 2007
This article by Sean Reilly, Chairman of the Iraq Investment and Reconstruction Task Force at the U.S. Department of Commerce, was originally published for the Iraq, Oil, Gas, Petrochemical, and Electricity Summit in Dubai. It contains suggestions on business strategies for companies in Iraq’s complex environment.
Iraq’s National Development Strategy 2007-2010, May 2007 (3.7MB PDF Only)
The Iraqi Government’s official strategy, including budgetary spending targets, for Iraq’s key sectors including oil and gas, electricity, transportation, telecommunications, education, health, housing, agriculture, financial services, and tourism.
Also available: National Development Strategy, June 2005 (PDF only 1.2MB)
IZDIHAR Reports on Iraq’s Economic Sectors
USAID’s IZDIHAR project, which supports Iraq’s private sector growth and employment generation, has published a series of useful reports on specific sectors of Iraq, as well as Iraq’s overall economic and business climate.
Industrial Competitiveness Analysis for Iraq, May 2006 (650KB PDF only).
Fraud warning (PDF only) for companies interested in doing business in Iraq.
Department of State Weekly Status Reports on the status of several key areas in Iraq such as essential services, power production, and security. Prior to July 2004, the status reports were issued by the Department of Defense.
U.S. Army Corps of Engineers—Gulf Region Division Reconstruction Reports
For bi-monthly reconstruction reports provided by the US Army Corps of Engineers, visit this site and find the olive green “GWOT—Reconstruction Reports.”
Legal Guide to Investing in Iraq 2008
Iraq’s Gazette-a compendium of key Iraqi laws dating from the 1930s to about 2003. However, many of the laws listed have been superseded by Coalition Provisional Authority (CPA) orders. (Document is in English; websites/original laws are in Arabic).
Services Sector Regulations, as of July 2007 (PDF only) – A listing of applicable service sector regulations in Iraq.
Iraq’s Investment Law, as of October 2006
On October 10, 2006 Iraq adopted an investment law that offers an accommodating regulatory environment for U.S. business. An English translation of the law (PDF only) is available to the public. The official Arabic version as it appeared in the Iraqi Gazette on January 17, 2007 is also available. Although various actions must be taken before Iraq’s new investment regime is fully functional, there are several noteworthy features of the recently-approved law:
- All investors enjoy equal treatment under the law without regard to nationality (Art. 10);
- Iraqi workers receive priority in hiring, but investors may hire non-Iraqi workers if Iraqi workers do not have the necessary qualifications (Art. 12);
- Investors who obtain investment licenses from the National Commission on Investment are entitled to additional benefits including an exemption from taxes and fees for a period of ten years from the date commercial operations begin (Article 15.1) and an exemption from fees, for a period of three years from the time an investment license is granted, for assets imported for the purposes of an investment project (Art. 17.1); and
- The law prescribes clear procedures for obtaining an investment license (Art. 19-20).
Kurdistan Regional Government Investment Law, as of July 2006
On July 04, 2006 the National Assembly of the Kurdistan Regional Government enacted an Investment Law (PDF only) which, among other reforms, allows the foreign investor to own and lease land. The law also provides for the equal treatment of foreign and national investors, as well as a quick 30-day project licensing period.
Rule of Law Initiative’s Iraq Legal Development Program (ILDP), American Bar Association-completed in 2007, the ILDP completed a two-part initiative, including establishing a Judicial Reform Index for Iraq- with a supplement on Iraqi Kurdistan- and to provide support in the development of an independent association for Iraqi judges.
Ministry of Trade Business Registration, as of March 2006
Iraq's Ministry of Trade offers the option to submit an on-line registration application for preliminary review and request company name clearance. The Ministry of Trade will send e-mail notification to the registering company of any gaps in the information to reduce errors and delays upon subsequent hard copy submission. Final registration proceedings must be done in person at one of the Ministry’s offices in Baghdad, Erbil, or Sulaymaniyah.
Also available: Revised instructions and application form for domestic companies’ rules for registration (as of March 15, 2004).
Also available: Revised instructions, application form and a U.S. Department of Commerce guide to the company registration process for foreign companies (as of February 25, 2004).
Also available: Iraqi Company Law (210KB) amendments of March 3, 2004. Among other things, the amendments allow any Iraqi or foreign person or legal entity to establish or own an interest in a company in Iraq. The amendments also require the Registrar in the Iraqi Ministry of Trade to either approve or disapprove in writing within 10 days any application to register a new company.
Also available: CPA Order No. 64 (450KB)
Iraq's Constitution, October 2005 (580KB PDF only)
Overview of CPA Orders Affecting Iraqi Commercial Law, November 01, 2004
This overview summarizes reforms made to the Iraqi commercial law by the Coalition Provisional Authority (CPA) during its administration of Iraq.
Registration Requirements for Private Security Companies, June 26, 2004
Coalition Provisional Authority (CPA) Memorandum Number 17 (PDF only) sets out the requirements related to operating a private security company (PSC) in Iraq. All PSCs must register with the Ministry of Trade and obtain an operating license from the Ministry of Interior (MOI). PSCs may obtain a temporary operating license from MOI while their applications for permanent licenses are pending. In addition, all weapons must be registered and all PSC employees carrying weapons will need a weapons card from MOI.
Iraqi Intellectual Property Laws, April 26 - May 1, 2004
Amendments to Iraqi laws on trademarks, patents and copyrights have been recently issued. The Trademark and Descriptions Law No. 21 of 1957, as amended 2004 (Order No. 80 (190KB PDF only)), provides for modern trademarks provisions such as protection for well known marks and geographical indications. The Patent, Industrial Design, Undisclosed Information, Integrated Circuits and Plant Variety Law of 2004 (Order No. 81 (190KB PDF only)) provides for modern industrial property law, including patent protection for pharmaceutical products, and up-to-date protection for industrial designs, trade secrets, test data, integrated circuits and new plant varieties. The Amendment to the Copyright Law of 2004 (Order No. 83 (230KB PDF only)), provides for copyright protection of literary and artistic works, including in digital form, performers, producers of phonograms and broadcasters. In addition to these substantive laws, the Iraqi Minister of Interior has issued regulations providing for enforcement against unauthorized importation of counterfeit trademark and pirated copyright goods. These amendments to Iraqi laws and regulations are designed to bring Iraq up to current internationally-recognized standards of protection, in particular those required by the World Trade Organization.
Overview of Commercial Law in Pre-War Iraq, updated September 12, 2003
The Office of General Counsel of the U.S. Department of Commerce has prepared a paper describing Iraqi commercial law under the Saddam Hussein regime as found in public primary and secondary sources available in English.
Overseas Private Investment Corporation: Financing and Insurance for U.S. Companies, December 2007
As of December 2007 the Overseas Private Investment Corporation (OPIC), a U.S. Government agency, has over USD $210 million in outstanding loans, insurance policies, and loan guarantees to U.S. companies for their investments in the growing Iraqi market.
OPIC offers market-based financing and political risk insurance to U.S. investors and service providers in developing markets. In Iraq, both financing and insurance options are available to U.S. investors, U.S. companies, or to mixed investor/company groups with at least 25% U.S. equity. OPIC also can insure U.S. contractors and exporters for particular types of projects.
For more information on how OPIC services can assist your company’s business in Iraq, visit www.opic.gov, or call the OPIC InfoLine at (202) 336-8799.
Trade Bank of Iraq, November 27, 2007
The President and Chairman of the Trade Bank of Iraq (TBI), Mr. Hussein Al-Uzri, met with Department of Commerce officials to increase awareness of TBI’s activities and the opportunities it holds for U.S. investors.
TBI was created in November 2003 and entered into contact with a consortium of global financial institutions led by JPMorgan Chase. During its four years of operation TBI has issued 4,600 Letters of Credit (LCs) worth more than US$20 billion, providing reliable financial services needed for trade facilitation in the reconstruction process. TBI serves primarily as the financial baker of Iraqi government procurements offered by Iraqi government ministries and state-owned enterprises, providing bidding companies with the financial security that comes with 100% backing by the world's leading financial institutions.
Furthermore, Mr. Al-Uzri’s mission as TBI’s president and chairman is to develop the most up-to-date mechanism and automation of trade financing operations in line with Iraq’s transition to an open market economy and uphold the principles of good corporate governance. TBI is currently working with the private sector banks in distributing LCs through private Iraqi banks. Next year TBI plans to increase its domestic branch network and its international presence, including representative offices and branches in leading financial centers in Europe and the Middle East. The bank has already recruited top bankers to enhance its governance and procedures, which it will be implementing this year. TBI also plans to further enhance its role in project finance in the coming months and years. Already this year it has supported the first private power plant in Iraq, which is being built in the northern part of the country.
U.S. Department of Commerce officials expressed their continued support of TBI's efforts. For more information about TBI, please visit http://www.tbiraq.com/ to learn more.
Microfinance in Iraq, November 2007
Microfinance loans are now being issued in all provinces of Iraq with the support of the U.S. Agency for International Development’s IZDIHAR program. Since 2004, USG-funded microfinance institutions have distributed loans of over $131 million with a 99% repayment rate. As a part of this work, seven indigenous microfinance institutions are now operating in eight cities of Iraq: Kirkuk, Baghdad, al Qaim, Fallujah, Ramadi, Mosul, Tikrit and Baquba. For more about this initiative, visit www.izdihar-iraq.com.
Iraq Stock Exchange Opens to Foreign Investment, December 19, 2007
In August 2007, the Iraqi Securities Commission approved the opening of the Iraq Stock Exchange (ISX) to foreign investors. As of December 19, 2007, the total trading volume of the ISX for the year to date was USD $354m of which $14m was traded by foreign investors in the final four months of 2007. Go online for more information on the Trading Instructions for Non-Iraqi Investors in the ISX.
An Overview of the Iraqi Banking System, March 30, 2007
This paper provides a brief history of the modern banking industry and discusses the current status of both the private banks and state-owned banks in Iraq. The regulation and supervision of the industry are also examined, including the role of the Central Bank of Iraq (CBI). The paper was distributed at the first Iraq Banking and Finance Conference, "Banking in Iraq: The 21st Century Challenge", held in Amman, Jordan in April 2007. For additional resources on banking, see the banking and finance reference materials associated with the conference.
The Iraqi Company for Bank Guarantees, October 2006
The Iraqi Company for Bank Guarantees (ICBG), has been established in order to assist small and medium size enterprises in Iraq gain access to loan finance from Iraqi banks, and to assist banks using the guarantees to develop credible loan administration and risk management systems. The amount of the ICBG loan guarantees will vary with the risks that are ascertained, on a loan by loan basis. The guarantee will be up to 75% of the loan amount. For more information on applying for an ICBG guaranteed loan, or for a list of participating banks, please visit the ICBG website.
Iraq Middle Market Development Foundation: Financing for Iraqi Companies, September 2006
The Iraq Middle Market Development Foundation (IMMDF) now has over USD $45 million in outstanding loans to mid-size Iraqi companies looking to expand their business. Established in 2004 and supported by the Overseas Private Investment Corporation (OPIC) and Citibank, IMMDF now has offices in Baghdad, Hillah, Erbil, Sulaymaniyah, and Amman, Jordan. It provides market-priced loans at 10-12% rates to Iraqi companies. For more information visit www.immdf.org or click here for a loan application.
U.S. Small Business Administration (SBA) Trade Finance Programs, July 20, 2005
The SBA is now accepting applications from lenders for lines of credit that support the export of U.S. goods and services to Iraq. The exporter must be a small business as defined by SBA and may include contractors and subcontractors. The line of credit can support indirect sales, contract sales, and defense-related sales with the exception of any sales associated with nuclear power. For more information on the SBA Export Working Capital Guarantee Program (EWCG) and how to apply, contact the local SBA international credit officer in one of the U.S. Export Assistance Centers located throughout the United States. To find your local representative, visit www.sba.gov/oit. For more information on SBA's EWCG Program, please see attached Description (PDF only) and related FAQs (PDF only).
Making Payments in Iraq, March 2005
Learn the latest and greatest about check and cash payments, establishing a local bank account, and the status of Electronic Funds Transfer (EFT) by reading this essay (PDF only) prepared by the U.S. Embassy in Baghdad.
Export-Import Bank Offers Programs for U.S. Exports to Iraq, September 2004
Ex-Im Bank is accepting applications for exports to Iraq that involve buyers or letters of credit from banks located in third countries, and the Trade Bank of Iraq. Ex-Im Bank also offers a program supporting U.S. reconstruction subcontractors. Press Release
Presentations from the Iraq Defense, Security, and Communications Summit, Dubai, UAE, Feb. 16-17, 2008
The summit welcomed an unrivalled line-up of leading Iraqi officials, led by Minister of Defense Abdul Qadir Obeidi in the first meeting of the international business community with an Iraqi delegation of such magnitude. Outstanding information on this sector is available from their presentations.
“Conquering Disaster: Iraq’s Electricity Story” – Delivered by Iraqi Minister of Electricity Karim at the PowerGen show in New Orleans, LA, December 13, 2007.
State Company of Geological Survey and Mining – Website includes information on current market data, mineral and natural resource maps, tender opportunities and more.
“New Structure of the Iraqi Oil Industry” – Prepared by the Director General of Petroleum Contracts & Licensing, Ministry of Oil, N.K al-Bayati. Delivered at the Iraq Oil, Gas, Petrochemical & Electricity Summit, 2-4 Sept. 2007, Dubai, UAE
An Overview of the Iraqi Cement Industry, November 25, 2007
The Iraqi cement industry has enormous potential. This report provides a general overview of the world cement industry and Iraq's potential as a force in that industry. Regional markets and consumption are described, followed by a detailed analysis of the current Iraq cement market and developments in the Iraq cement industry.
Presentations from the Iraq Oil, Gas, Petrochemical, and Electricity Summit, Dubai, UAE, Sept. 2-4, 2007
The leading figures from within the global energy sector gathered for the world’s first event organized to consider the future of Iraq’s abundant energy resources through direct consultation with the international private sector. Outstanding information on this sector is available from their presentations.
The Tourism Industry in Iraq, July 17, 2007
This report focuses on immediate, short/mid-term and long-term recommendations for domestic and international policy makers, indigenous private sector, and investors to stimulate Iraqi’s tourism industry.
Pharmaceutical and Medical Products in Iraq, April 17, 2007
The aim of this study is to analyze the pharmaceutical and medical products sector to enable the development of recommendations for private sector business investment strategies and programs. This has been conducted, within the constraints of the current circumstances, to analyze the demand side of the sector, the nature of procurement and distribution within Iraq, and where available, current supply side, public and private, and competitive interests. The report looks at the supply of products within these sectors, and then examines the formal procurement and distribution system, and then the current position.
Presentations from the Iraq Information Communication Technology & Education Summit, Sharjah, UAE, February 27-28, 2007
Iraqi Ministers, U.S. government officials, international experts, and global business leaders met at this summit to discuss Iraq's crucial and fast emerging information communication technology and education sectors. Outstanding information on this sector is available from their presentations.
Iraq Oil: Reserves, Production, and Potential Revenues, April 2006 (PDF only)
Iraq's potential oil wealth remains largely unrealized. Substantial proven reserves exist and there are likely more resources awaiting discovery. However, oil production has been slow to fully recover during the post-Saddam period and obstacles stand in the way of achieving a stable export flow. Despite these difficulties, the existence of vast resources suggests easy exploitation and lucrative export earnings that could help fund Iraq's redevelopment. But the sheer resource size masks the difficulty, described in this paper, of generating export revenues that could fund reconstruction and development.
The Potential for Food Processing in Iraq, March 2006 (300KB PDF only).
Iraqi Mobile License Issues Consultation Paper, June 2005
In June 2005, the Iraqi National Communication & Media Commission (NCMC) issued this paper (150KB PDF only) to the public, the Government, private sector, consumer associations, international regulatory bodies, major financial institutions, and potential bidders to obtain feedback, comments, suggestions, and answers about the future of Iraq's mobile communications licenses.
Iraq's Cement Factories, July 2004
The Coalition Provisional Authority's Office of Strategic Analysis drafted this report (PDF only) on Iraq's existing cement plants, including design, labor force, and production capacity.
Iraq's Electrical System, April 06, 2005
Dr. Aiham Alsammarae, Minister of Electricity for the Iraqi Interim Government, delivered remarks entitled "Iraq's Electrical System: Status & Future Plan" at "Electric Power 2005" (April 05-07, 2005 in Chicago). Dr. Alsammarae's PowerPoint presentation (1.2MB PDF only) outlines the current design and capacity of the power system in Iraq and details plans for increasing generation, transmission, and distribution capacity.
Iraq's Construction Sector - An Overview, March 2005
A Commerce Department market research report (PDF only) on Iraq's construction equipment and materials sector.