Nechirvan: Investment law officially took effect 12.8.2006 

The investment law which was approved earlier this month gives certain privileges to foreign investors in Kurdistan and equalizes them to national investors. Foreign investors, according to the law, will have the right to own property and will be exempted from custom tariffs and enjoy a ten-year tax holiday.

The region which witnessed a large-scale destruction at the hand of the former regime of Saddam Hussein and a decade of international sanctions, hopes to revive its economy through massive foreign investment.

Enjoying relative stability and security, Kurdistan Region is believed to have extensive investment potentials, something that has pushed hundreds of foreign firms to the Region.

Since the overthrow of Saddam's government in 2003, Kurdistan has undergone an economic revival campaign. Among the foreign companies active in the region, Turkish firms have got the lion share of investment with dozens of contracts exceeding over one billion dollars.

The law is believed to pave the way for that end, though it has not passed un-criticized in the local media and economic circles.

The main criticisms revolve around the questions whether it provides further job opportunities for the regions residents and whether it is not in the long-run threatening to Kurdistan's national security to enable foreigners to own property and land in the region.

Before the ratification of this law, there were two different investment laws in Erbil and Sulaimaniyah which were run by the Kurdistan Democratic Party and the Patriotic Union of Kurdistan respectively.

Hwelerglobe 

Top