Iraq is pitching itself as a rising investment hub in the turbulent region after years of instability and sluggish economic reforms, with more than $100 billion pledged for investment since early 2023.
About $64 billion has come from foreign investors and $38.6 billion from domestic companies, Haider Makiya, chairman of the National Investment Commission, told The National.
“Iraq is a fertile ground for investment projects,” Mr Makiya said. The government is planning to add a further $100 billion in investment projects in the next two years.
Decades of war, UN-imposed economic sanctions, instability, corruption and mismanagement have derailed growth in Iraq, despite it being the second-largest oil producer in Opec. The country has a rapidly growing population, with under-25s accounting for at least half of its nearly 45 million people.
In 2006, Iraq endorsed for the first time its landmark investment law but progress was hindered by chronic political instability, civil war, weak infrastructure and cumbersome bureaucracy.
The unprecedented political and security stability in the country since late 2022, when the government of Mohammed Shia Al Sudani took over, has encouraged authorities to launch infrastructure projects and introduce reforms to improve the business environment.
Iraq is building sprawling residential complexes, hotels, shopping malls and new roads, upgrading airports and ports, modernising its agriculture, and strengthening trade ties with neighbours and the West.
NIC has adopted several administrative reforms and eased bureaucracy, such as reducing the period for issuing visas to 24-48 hours from up to 10 days, Mr Makiya said. A set of amendments to the Investment Law that address different issues has been prepared and sent to parliament for approval. However, the issuance the investment licence still takes two to three months due to a lack of co-operation with other ministries, he added.
Last year, in a significant milestone, Iraq signed the UN Convention on International Settlement Agreements Resulting from Mediation, known as Singapore Convention, to attract foreign investors.
The Convention eases the enforcement of mediated settlement agreements, paving the way for enhanced international trade and commerce between countries.
It aims to strengthen Iraq's legal framework for dispute resolution, making the country a more attractive destination for foreign investment by providing a predictable, efficient and amicable process for resolving international commercial disputes.
As Iraq joined that Convention, a “red light switched off and a green one switched on for the investors”, Mr Makiya said.
“We hope that with 10 more years of stability in Iraq, the situation will look more promising,” he added. He expressed optimism that the country will emerge as a major investment hub in the region given its location, resources and vast needs.
The most sought-after projects investors are focusing on are in energy, industry, agriculture and housing, he said. “We are looking for projects that serve as the cornerstone for the infrastructure,” he said, adding that the country needs at least one trillion dollars of investment in infrastructure.
On housing projects, about 660,000 new units are either complete or under construction across Iraq, excluding the semi-autonomous Kurdistan Region in the north, he said. That is still far from the three million needed.
Iraq has also secured significant projects in energy with international companies in recent months.
UK energy company BP signed a deal this year to develop several oilfields in Kirkuk with at least 7 billion barrels of reserves. It will spend more than $25 billion during the course of the project in Kirkuk to boost production to 420,000 barrels per day from the current 300,000 bpd, capture and treat 400 million cubic feet per day of associated gas, and build a power station and solar power plant.
In May, Iraq signed a multibillion, fully integrated energy project in the southern province of Basra, with a consortium that includes Chinese company Geo-Jade and Iraqi company Hilal Al Basra (Crescent Basra) that will combine upstream oil and gas production with downstream refining, petrochemicals and power generation.
In 2023, Iraq signed a deal worth $27 billion with French company TotalEnergies to develop oil and gas as well as renewable energy projects in the south. Several other deals have been signed with companies from the US, Europe and the Gulf.
Investment in Iraq will definitely be impacted by any conflict in the region, and we hope Iraq stays out of it
Haider Makiya,
chairman of National Investment Commission
Some of those leading Iraq's government have pushed for a major economic integration project known as the Development Road – a $17-billion project that will connect Iraq’s southern Gulf ports to Turkey. Iraq, Turkey, Qatar and the UAE have signed a preliminary agreement for joint co-operation on the project. As part of the initiative, a high-speed road and rail link, running from Iraq's port city of Basra on the Gulf to the Turkish border and later to Europe, will also be extended.
The New York-based Oliver Wyman is providing financial and economic advisory services and is preparing an economic study and model for the project, Mr Makiya said, adding that the final report is expected to be finalised in two to three months.
The initial plan is to implement the project in phases by dividing it into sectors, and economic and industrial areas will be established in different areas along the road, he said. The project will be managed by a new company or commission to be established by a separate law with more powers.
Turkey, Qatar and the UAE are still “interested in this project and [we are] just waiting [for] the final report,” he said without giving more details.
The country is also eyeing an ambitious plan to establish advanced data centres in Iraq and extend optical cable to neighbouring countries to enhance Iraq's strategic geographic position as a regional connectivity hub, he added.
The National Investment Commission is also planning an international conference in Baghdad on September 27 and 28 in which it will offer more than 100 investment opportunities, he said. That event was initially scheduled for June but was called off when the Israel-Iran war broke out.
“Investment in Iraq will definitely be impacted by any conflict in the region, and we hope Iraq stays out of it,” Mr Makiya said.
The rules of the road keeping cyclists safe
Cyclists must wear a helmet, arm and knee pads
Have a white front-light and a back red-light on their bike
They must place a number plate with reflective light to the back of the bike to alert road-users
Avoid carrying weights that could cause the bike to lose balance
They must cycle on designated lanes and areas and ride safe on pavements to avoid bumping into pedestrians
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Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
Sri Lanka-India Test series schedule
- 1st Test India won by 304 runs at Galle
- 2nd Test Thursday-Monday at Colombo
- 3rd Test August 12-16 at Pallekele
Episode list:
Ep1: A recovery like no other- the unevenness of the economic recovery
Ep2: PCR and jobs - the future of work - new trends and challenges
Ep3: The recovery and global trade disruptions - globalisation post-pandemic
Ep4: Inflation- services and goods - debt risks
Ep5: Travel and tourism
Who is Allegra Stratton?
- Previously worked at The Guardian, BBC’s Newsnight programme and ITV News
- Took up a public relations role for Chancellor Rishi Sunak in April 2020
- In October 2020 she was hired to lead No 10’s planned daily televised press briefings
- The idea was later scrapped and she was appointed spokeswoman for Cop26
- Ms Stratton, 41, is married to James Forsyth, the political editor of The Spectator
- She has strong connections to the Conservative establishment
- Mr Sunak served as best man at her 2011 wedding to Mr Forsyth
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
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Company Profile
Founder: Omar Onsi
Launched: 2018
Employees: 35
Financing stage: Seed round ($12 million)
Investors: B&Y, Phoenician Funds, M1 Group, Shorooq Partners
Important questions to consider
1. Where on the plane does my pet travel?
There are different types of travel available for pets:
- Manifest cargo
- Excess luggage in the hold
- Excess luggage in the cabin
Each option is safe. The feasibility of each option is based on the size and breed of your pet, the airline they are traveling on and country they are travelling to.
2. What is the difference between my pet traveling as manifest cargo or as excess luggage?
If traveling as manifest cargo, your pet is traveling in the front hold of the plane and can travel with or without you being on the same plane. The cost of your pets travel is based on volumetric weight, in other words, the size of their travel crate.
If traveling as excess luggage, your pet will be in the rear hold of the plane and must be traveling under the ticket of a human passenger. The cost of your pets travel is based on the actual (combined) weight of your pet in their crate.
3. What happens when my pet arrives in the country they are traveling to?
As soon as the flight arrives, your pet will be taken from the plane straight to the airport terminal.
If your pet is traveling as excess luggage, they will taken to the oversized luggage area in the arrival hall. Once you clear passport control, you will be able to collect them at the same time as your normal luggage. As you exit the airport via the ‘something to declare’ customs channel you will be asked to present your pets travel paperwork to the customs official and / or the vet on duty.
If your pet is traveling as manifest cargo, they will be taken to the Animal Reception Centre. There, their documentation will be reviewed by the staff of the ARC to ensure all is in order. At the same time, relevant customs formalities will be completed by staff based at the arriving airport.
4. How long does the travel paperwork and other travel preparations take?
This depends entirely on the location that your pet is traveling to. Your pet relocation compnay will provide you with an accurate timeline of how long the relevant preparations will take and at what point in the process the various steps must be taken.
In some cases they can get your pet ‘travel ready’ in a few days. In others it can be up to six months or more.
5. What vaccinations does my pet need to travel?
Regardless of where your pet is traveling, they will need certain vaccinations. The exact vaccinations they need are entirely dependent on the location they are traveling to. The one vaccination that is mandatory for every country your pet may travel to is a rabies vaccination.
Other vaccinations may also be necessary. These will be advised to you as relevant. In every situation, it is essential to keep your vaccinations current and to not miss a due date, even by one day. To do so could severely hinder your pets travel plans.
Source: Pawsome Pets UAE
