June 28, 2006, - While the rest
of Iraq is torn by conflict, its northern Kurdistan region plans to
adopt a law to lure foreign investors with long-term tax holidays
and hefty concessions on duties.
While the rest of Iraq is torn by conflict, its northern Kurdistan
region plans to adopt a law to lure foreign investors with long-term
tax holidays and hefty concessions on duties.
Deprived of strong economic development under the former regime, the
virtually autonomous region is now leaving no stone unturned to woo
investors especially given its proximity to Turkey, Iran and Syria.
"We want to make Kurdistan the commercial door of Iraq," said
regional prime minister Nishirvan Barzani, adding that a bill
promoting foreign investment will be put forward in Kurdistan's
parliament.
Barzani said the new law would guarantee the rights of investors and
that it opens all sectors, including oil, to investment.
The new investment-friendly law, consisting of 26 articles, is said
to be liberal enough to lure foreign money into the region.
It will allow foreigners to repatriate their profits and also enjoy
a 10-year tax holiday. The companies will also be able to import raw
materials without paying customs duties.
The bill also aims to liberalize all the industrial sectors for
foreign investment, including the vital oil industry, which remains
state-controlled in the rest of Iraq.
"This law will contribute to the prosperity of Kurdistan," said
Kurdish contractor Badram Sadik. The present law, based on a
socialist model, favors state-owned enterprises.
Kurdistan is currently witnessing a boom in the construction sector,
with new projects such as shopping centers and tourist hotels.
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