Iraq is in the course to revive its economy as it enters into post-war era. The government of Iraq is committed to stabilize the country’s macroeconomic framework and resurrect most sectors in the country’s economy.
Considering the potential and developing business optimism of this Gulf nation, various countries across the globe along with global funds, organizations and investors are eyeing Iraq as a potentially lucrative investment destination.
Why Invest in Iraq?
- An access to nearly 40 million population market: With a population of nearly 40 million people, Iraq remains an attractive consumer market with blooming potential for the investors. Additionally, Iraq has high percentage of youth population, which is one of its economic strengths. Over 60% of its population is under the age of 25, which makes Iraq uniquely positioned to harness the potential of its young generation during the course to revive its economy.
- No restrictions on transfer of funds and tax exemption: Iraq has a healthy foreign international reserve and stable exchange rate regime pegged to the US dollar with no restrictions on transfers of funds across borders. Additionally, qualified investors will be enjoying various benefits such as tax exemption and fees for a period of 10 years from the date of commencement of commercial operations.
- Tap the untapped resources: Iraq possesses huge untapped reserves of mineral oil, natural gas and phosphate. This calls for immense investment opportunities for excavation and extraction of minerals along with equipment suppliers for mineral extraction.
- National development plan encouraging private sectors contribution: The country aims to boost its economy via privatization. In fact, the country plans to not only privatize existing state-owned enterprises (SOEs) but also support SMEs through tax and financial incentives. This is expected to unfold immense business prospects for private sectors especially in those that are currently in dire need of rebuilding and development such as banking, minerals, and many more.
All in all, enabled by the prospect of greater stability and security, Iraq has listed a total of over 212 projects ready for investment in more than 10 sectors. Of these sectors, oil & refineries is the most promising sector to investors followed by industrial and manufacturing, infrastructure, health and education, energy and agriculture.
The country also plans to attain a GDP growth rate of 10% annually in the next decade by focusing on Oil & Gas value downstream value chain, Minerals value chain, tourism and financial services, hence makes Iraq an ideal destination for investors across the globe.
Ali Mirmohammad is a Sr. Consultant & Business Development Manager with Frost & Sullivan. He can be reached at email@example.com