ERBIL, Kurdistan-Iraq, 6 July (IRIN)
- The parliament of Iraq's northern Kurdistan region unanimously
approved a new investment law this week in hopes of luring foreign
capital to the region.
"We hope the passing of this law will entice foreigners and locals
to invest here so we can rebuild infrastructure in the areas of
industry, agriculture and transportation," said Dler Haqi Shaways,
head of the Erbil-based Kurdistan parliament's economic and
financial committee. "This law will offer investors guarantees and
facilities with regard to taxation and custom tariffs."
Infrastructure in the region is badly dilapidated as a result of
decades of war – first between Iraq and Iran, later between Iraq and
US-led coalitions – and UN sanctions.
The new investment law, therefore, will allow foreign companies to
bring in the machinery and facilities needed for infrastructure
projects free of taxes and custom duties. The legislation will also
grant investors 10-year tax holidays upon completion of their
respective projects
Before the unification of the region's two separate administrations
– which had been run by two rival Kurdish factions – in May, two
different investment laws had been applied.
According to those regulations, foreign companies with projects in
the region were only allowed to hold minority stakes, while majority
shares went to local firms – a requirement that served to deter many
foreign investors. Under the new legislation, however, foreign firms
will be allowed to hold up to 100 percent of a given project.
Additionally, foreigners will also be allowed to own land, a
provision opposed by many local economists. "Foreign companies must
not be given the right to own property, because that would come at
the expense of national sovereignty," said Erbil-based economist
Shamal Nouri.
He conceded, however, that, in a country as volatile as Iraq, "You
need to offer investors certain privileges to motivate them to
invest".
Ever since the US-led invasion and occupation of the country in
2003, the Kurdish region has been spared much of the bloodshed seen
elsewhere in Iraq, leading a number of foreign companies to set up
projects in the area.
According to figures from Kurdish Regional Government officials,
Turkish firms currently account for the lion's share of investment,
estimated to be in the hundreds of millions of US dollars.
According to the nascent constitution, the regional parliament is
authorised to pass legislation governing the region's internal
affairs. In cases of a dispute between the central government in
Baghdad and the regional government, according to the national
charter, regional law prevails.
Irinnews org Top |
® 