sermawezê 25, 2025
Iraq is becoming a more accessible destination for foreign investors. Here is a high-level look at the regulatory landscape.
Foreign investment in Iraq is regulated through a combination of federal investment law, sectoral regulations, and — in the Kurdistan Region — its own investment regime.
Available structures
- Investment licence through the National Investment Commission for projects above certain thresholds.
- Standard LLC formation with foreign partners holding up to 100% in many sectors.
- Branch of a foreign company, suitable for execution of specific contracts.
- Joint venture with an Iraqi partner, often required in sensitive sectors.
Incentives worth noting
- Customs and tax exemptions for licensed investment projects.
- Long-term land leases for industrial, agricultural, and tourism projects.
- Repatriation of profits is generally permitted, subject to standard banking compliance.
Sectors with the highest activity
- Energy and petrochemicals
- Construction and real estate development
- Telecommunications and IT services
- Healthcare and education
- Agriculture and food processing
Practical tips
- Decide early between a federal Iraq structure and a Kurdistan Region structure — the registration paths differ.
- Confirm sector-specific restrictions before committing capital.
- Build local-currency hedging into your financial model.
Our firm advises both Iraqi joint-venture partners and incoming international investors. We can help you choose the right structure and steer the registration through to operation.
