Baghdad says open for investors
Conference start of stability, security: KCCI chief
KUWAIT CITY, Feb 13, (Agencies): War-battered Iraq sought Tuesday to attract international investors to rebuild the country after defeating the Islamic State group, offering hundreds of projects and touting extensive legal guarantees.
“Iraq is open for investors,” declared Sami al-Araji, chairman of Iraq’s National Investment Commission, on the second day of a major reconstruction conference in Kuwait. The government in Baghdad says it needs nearly $90 billion to rebuild devastated homes, schools, hospitals and economic infrastructure after three years of war against IS.
World Bank officials joined Iraqi government representatives on Tuesday in Kuwait City to seek pledges from more than 2,000 representatives of international firms in attendance. Araji said that Iraq, which has been either at war or under inter- national sanctions since 1980, is offering projects in almost every field of the economy -from oil to agriculture.
He gave a brief introduction on 212 projects of various sizes available for local and international investors, whom he promised will enjoy a high degree of legal protection.
The projects introduced include building oil refineries and developing oilfields, in addition to massive housing and industrial ventures as well as at least four power plants.
Other projects included building and rehabilitating airports, railways, metros and roads.
Araji said the country is offering as many as 86 projects in the agricultural sector, many others in the health and education sectors, in addition to key ventures in tourism.
Iraq is also planning to establish four economic zones, he said.
The plan spans the next 10 years and Iraq announced on the opening day of the conference that the country needs investments worth $88.2 billion, of which $22 billion were required immediately.
Non-governmental organisations on Monday pledged $330 million but the main commitments are expected to be made by about 70 countries on the final day of the conference on Wednesday.
Iraqi and World Bank officials on Tuesday talked up legal guarantees available in post-IS Iraq, pointing to an investment law that offers ownership, unlimited cash transfers and tax breaks, among other benefits.
Nizar Nasser Hussein, the head of the legal department at the National Investment Commission, said the latest version of the law does not distinguish between foreign and Iraqi investors.
“Foreign investors can establish Iraqi companies,” he told AFP, adding that investors would be given lease contracts for 50 years, renewable for a similar period.
In addition, investors will be exempt from customs duties and income tax for 10-15 years, Hussein said.
Araji said investors in Iraq will find “high risks, but high returns”.
The (Invest in Iraq) conference is the beginning of a phase of security and stability in the region, said Chairman of Kuwait Chamber of Commerce and Industry (KCCI) Ali Al-Gahnim Tuesday.
This came in Al-Ghanim’s opening remark of the conference, which is part of the overall Kuwait International Conference for the Reconstruction of Iraq (KICRI); held from February 12 to 14.
“Kuwait does not see the conference only as yet another experience that deep-seats Kuwait’s Arab, regional and international role, but also as a pioneering endeavor in restoring pan-Arab relations, with an outlook to reconciliation.
The conference, organized by KCCI, will provide an opportunity for the private sector to be introduced to investment opportunities and promising venture-making environments in post-IS Iraq.
The (Invest in Iraq) is considered an investment singularity, with some 1,500 companies from 50 countries participating, which reflects these companies’ optimism, noted Al-Ghanim.
All in here realize that the second day of KICRI (Kuwait International Conference for the Reconstruction of Iraq) represents its “true economic pulse,” Al-Ghanim said, stressing at the same time the role of the private sector in this regard, with potential of development projects in Iraq booming.
On his part, Salman Al-Jimaili, Iraqi minister of planning, called on investors to enter the Iraqi market and explore opportunities and guarantees offered by the government, as well as business-friendly laws.
Meanwhile, Sami Al-Araji, head of the Iraqi National Investment Commission, said that food security was a priority for investment, as well as industrial and oil sectors.
He revealed plans of a road and railway network between Baghdad to Mosul, then linking it to China’s ‘Sild Road’ project through Iran.
He added that Iraq is working on building some 25,000 housing units in many provinces as a first step for development.
Mouayed Makhlouf, regional director for the International Finance Corporation (IFC) in the Middle East and North Africa said IC is investing USD 1.7 billion in Iraq, in addition to being on the lookout for new investments.