Business Climate

• Key Documents & Overviews
• Legal Environment
• Finance
• Industry Information
• General Info

Key Documents & Overviews

Industrial Competitiveness Analysis for Iraq

May 2006

Industrial Competitiveness Analysis for Iraq (650KB PDF only).

Iraq Oil: Reserves, Production, and Potential Revenues

April 2006

Iraq's potential oil wealth remains largely unrealized. Substantial proven reserves exist and there are likely more resources awaiting discovery. However, oil production has been slow to fully recover during the post-Saddam period and obstacles stand in the way of achieving a stable export flow. Despite these difficulties, the existence of vast resources suggests easy exploitation and lucrative export earnings that could help fund Iraq's redevelopment. But the sheer resource size masks the difficulty, described in this paper, of generating export revenues that could fund reconstruction and development.

Iraq Oil: Reserves, Production, and Potential Revenues (PDF only).

The Potential for Food Processing in Iraq

March 2006

The Potential for Food Processing in Iraq (300KB PDF only).

Breaking Into Iraq's Marketplace

February 2006

The U.S. Department of Commerce is pleased to publish this report that discusses strategies for the Iraqi marketplace.

Iraq's New Constitution

October 2005

Iraq's new constitution (580KB PDF only).

Fraud Warning

A fraud warning (PDF only) for U.S. Companies interested in doing business in Iraq is available.

Iraqi National Development Strategy

September 19, 2005

In June 2005, the democratically elected Government of Iraq published its first National Development Strategy (PDF only 1.2MB), which sets out strategic priorities for Iraq's reconstruction and development, including the financial services, oil and gas, electricity, transportation, telecommunications, education, health, housing, agriculture, and tourism sectors.

International Monetary Fund (IMF) Report on Iraq

August 16, 2005

In June 2005, IMF staff held consultations with officials of Iraq on economic development and policies. This report (PDF only 800KB) summarizes those consultations and provides information on Iraq's banking sector, trade and exchange rate regime, recent economic developments, external debt, and political/security environment. For more information on the IMF and Iraq, please visit the IMF website.

Business Guide for Iraq

May 20, 2005

The Business Guide for Iraq has been updated to include the latest information on Iraq reconstruction and industry sector specific information.

FAQs on Doing Business in and Traveling to Iraq

May 18, 2005

The Doing Business FAQs answer many practical questions, such as what business opportunities are available; can foreign companies invest in Iraq; how to register a business; and what type of financing is available. Doing Business in Iraq FAQs

The Travel FAQs include information such as visa requirements; details on the security environment and resources; how to get to Iraq; hotel names and contact information; and what phone service is available. Traveling to Iraq FAQs

Science & Technology Policy Infrastructure Guidelines & References

August 2004

This document is intended to serve as a resource for those in the international community interested in developing their science and technology (S&T) policy infrastructure. It is available on the Technology Administration's website.

Report (PDF only)

Section I (725KB)

Section II (1MB)

Industry Sector Overviews

June 4, 2004

Industry sector specific information is available.

Transitional Administrative Law And Annex

March 8, 2004

• Transitional Adminsitrative Law
• Transitional Administrative Law Annex

Legal Environment

Services Sector Regulations

July 2007

Services Sector Regulations (PDF only)

Kurdistan Regional Government Passes Investment Law

July 2006

On July 04, the National Assembly of the Kurdistan Regional Government enacted an Investment Law (PDF only) which, among other reforms, allows the foreign investor to own and lease land. The law also provides for the equal treatment of foreign and national investors, as well as a quick 30-day project licensing period.

Ministry of Trade Launches On-Line Registration Process

March 2006

Iraq's Ministry of Trade now offers the option to submit an on-line registration application for preliminary review and request company name clearance. The Ministry of Trade will send e-mail notification to the registering company of any gaps in the information to reduce errors and delays upon subsequent hard copy submission.

Overview of CPA Orders Affecting Iraqi Commercial Law

November 01, 2004

This overview summarizes reforms made to the Iraqi commercial law by the Coalition Provisional Authority (CPA) during its administration of Iraq.

Change in Licensing of Sensitive U.S. Exports and Reexports to Iraq

July 30, 2004

On July 30, the President signed an Executive Order terminating the national emergency declared in Executive Order 12722, revoking it and certain related Executive Orders. Among other things, the termination of the national emergency ends the Department of the Treasury's authority to maintain export controls pursuant to those Executive Orders. By virtue of this action, export licensing jurisdiction reverted from the Department of the Treasury's Office of Foreign Assets Control (OFAC) to Commerce's Bureau of Industry and Security (BIS). Also on July 30, 2004, BIS published a rule defining the new licensing policy and requirements for Iraq. For more information, please visit Treasury's OFAC website and Commerce's BIS website. You may also contact BIS' Office of Exporter Services, at tel. (202) 482-4811. On August 26, BIS and Vastera co-sponsored an audio conference on the rule change for exporting and re-exporting goods and materials to Iraq. That conference is available here in MP3 format (44MB, approximately one hour long).

Iraq Transitions to Full Sovereignty

June 28, 2004

Until Iraq has a new constitution, Iraq will be governed under the Transitional Administrative Law (TAL) and the Annex to the TAL.

Note that Article 26 (A) of the TAL provides that laws in effect in Iraq on June 30, 2004, will remain in effect until rescinded or amended by the Iraqi Transitional Government which will be elected in winter 2004-5. These laws include the orders, memoranda, etc. issued by the Coalition Provisional Authority (CPA) and revised where necessary to take account of Iraqi sovereignty by CPA Order Number 100 (PDF only).

Legal Immunity for Certain Contractors and Consultants

June 27, 2004

The Coalition Provisional Authority (CPA) Revised Order Number 17 (PDF only) continues certain administrative and official act immunities from Iraqi law for contractors supplying goods and services in Iraq under contracts or grants with foreign governments. The Order also provides immunity from Iraqi law to international consultants provided by foreign governments to the Iraqi government and officially accepted in that role by the Iraqi government.

Registration Requirements for Private Security Companies

June 26, 2004

Coalition Provisional Authority (CPA) Memorandum Number 17 (PDF only) sets out the requirements related to operating a private security company (PSC) in Iraq. All PSCs must register with the Ministry of Trade and obtain an operating license from the Ministry of Interior (MOI). PSCs may obtain a temporary operating license from MOI while their applications for permanent licenses are pending. In addition, all weapons must be registered and all PSC employees carrying weapons will need a weapons card from MOI.

Pending Reconstruction Contracts Financed with Iraqi Funds

June 18, 2004

Coalition Provisional Authority (CPA) Regulation Number 11 (160KB PDF only) and Memorandum Number 15 (PDF only) cover reconstruction contracts which (1) were entered into by the CPA or the Multinational Force-Iraq on behalf of Iraq on or before June 30, 2004, (2) were financed with monies from the Development Fund for Iraq (DFI), (3) require continued performance and/or payment after June 30; and (4) are not covered by a fully funded letter of credit. Regulation Number 11 sets up a special subaccount of the DFI account at the U.S. Federal Reserve Bank of New York to provide for payments under these contracts. Although the Iraqi Interim Goverment assumes control over the DFI on June 30, Memorandum Number 15 allows the Iraqi Minister of Finance to delegate his authority to the Chief of Mission of the U.S. Embassy and/or to the Commander of the Multinational Force-Iraq with respect to administering these contracts and making payments out of this subaccount.

Iraqi Intellectual Property Laws

April 26 - May 1, 2004

Amendments to Iraqi laws on trademarks, patents and copyrights have been recently issued. The Trademark and Descriptions Law No. 21 of 1957, as amended 2004 (Order No. 80 (190KB PDF only)), provides for modern trademarks provisions such as protection for well known marks and geographical indications. The Patent, Industrial Design, Undisclosed Information, Integrated Circuits and Plant Variety Law of 2004 (Order No. 81 (190KB PDF only)) provides for modern industrial property law, including patent protection for pharmaceutical products, and up-to-date protection for industrial designs, trade secrets, test data, integrated circuits and new plant varieties. The Amendment to the Copyright Law of 2004 (Order No. 83 (230KB PDF only)), provides for copyright protection of literary and artistic works, including in digital form, performers, producers of phonograms and broadcasters In addition to these substantive laws, the Iraqi Minister of Interior has issued regulations providing for enforcement against unauthorized importation of counterfeit trademark and pirated copyright goods. These amendments to Iraqi laws and regulations are designed to bring Iraq up to current internationally-recognized standards of protection, in particular those required by the World Trade Organization.

Ministry of Trade Revises Registration Rules for Domestic Companies

March 15, 2004

The Ministry of Trade has issued revised instructions and an application form for registering domestic companies in Iraq. The streamlined instructions make clear that foreign investors will be treated the same as Iraqi investors in connection with establishing domestic operations in Iraq with a few exceptions and special rules (such as for retail operations) allowed by CPA Order No. 39.

The revised instructions and application form are available in Adobe Acrobat PDF format.

Ministry of Trade Revises Registration Rules for Foreign Companies

February 25, 2004

The Ministry of Trade has issued revised instructions and an application form for registering the branches and trade representation offices of foreign companies. The revised instructions and application form implement the streamlined registration process set forth under CPA Order No. 39 on "Foreign Investment", as amended. The revised instructions also indicate that the Ministry considers the previous special requirements for commercial agents of foreign companies nullified by Order No. 39.

The revised instructions , application form and a U.S. Department of Commerce guide to the company registration process are available in Adobe Acrobat PDF format.

Iraqi Company Law Amended

March 3, 2004

Iraqi Company Law #21 of 1997 has been amended. Among other things, the amendments allow any Iraqi or foreign person or legal entity to establish or own an interest in a company in Iraq. The amendments also require the Registrar in the Iraqi Ministry of Trade to either approve or disapprove in writing within 10 days any application to register a new company. An English version of the revised Iraqi Company Law (210KB), incorporating the changes in Order No. 64, is available in Adobe Acrobat PDF format.

The text of CPA Order No. 64 (450KB) is available Adobe Acrobat PDF format.

Overview of Commercial Law in Pre-War Iraq

Updated September 12, 2003

The Office of General Counsel of the U.S. Department of Commerce has prepared a paper describing Iraqi commercial law under the Saddam Hussein regime as found in public primary and secondary sources available in English.

This paper is available in Adobe Acrobat PDF format .

Treasury Lifts U.S. Iraq Sanctions

Updated June 13, 2003

The Treasury's Department's Office of Foreign Assets Control (OFAC) issued a General License that lifts most U.S. economic sanctions against Iraq. The General License permits most trade between U.S. and Iraqi entities except trade in arms, certain cultural artifacts, and transactions with Baath party and certain other Iraqi officials.

The text of the General License is available from the Department of Treasury.

Finance

U.S. Small Business Administration (SBA) Trade Finance Programs for Iraq

July 20, 2005

The SBA is accepting applications from lenders for lines of credit that support the export of U.S. goods and services to Iraq. The exporter must be a small business as defined by SBA and may include contractors and subcontractors. The line of credit can support indirect sales, contract sales, and defense-related sales with the exception of any sales associated with nuclear power. For more information on the SBA Export Working Capital Guarantee Program (EWCG) and how to apply, contact the local SBA international credit officer in one of the U.S. Export Assistance Centers located throughout the United States. To find your local representative, visit www.sba.gov/oit. For more information on SBA's EWCG Program, please see attached Description (PDF only) and related FAQs (PDF only).

Making Payments in Iraq

March 2005

Learn the latest and greatest about check and cash payments, establishing a local bank account, and the status of Electronic Funds Transfer (EFT) by reading this essay (PDF only) prepared by the U.S. Embassy in Baghdad.

Export-Import Bank Support for U.S. Exports to Iraq

October 5, 2004

The Export-Import Bank of the United States (Ex-Im Bank), the Iraqi Ministry of Finance, and the Trade Bank of Iraq signed a framework agreement today that enables Ex-Im Bank to continue to support U.S. exports for Iraqi reconstruction. The agreement replaces an agreement concluded last December between Ex-Im Bank, the Trade Bank, and the Coalition Provisional Authority (CPA). For more details, please visit the Ex-Im Bank's website.

Export-Import Bank of U.S. Supports U.S. Exports to Iraq

April 28, 2004

The Export-Import Bank of the United States announced the first transaction under its short-term insurance program for Iraq. Ex-Im Bank is insuring the $15 million export sale of fogging machines and accessories for insect abatement manufactured by Tifa Ltd. of Millington, N.J., for the Iraqi Ministry of Health, State Company for Marketing Drugs and Medical Appliances. This insurance will support a letter of credit issued by the Trade Bank of Iraq and confirmed by JPMorgan Chase Bank. Read the full release.

Export-Import Bank Offers Programs for U.S. Exports to Iraq

Updated November 21, 2003

Ex-Im Bank is accepting applications for exports to Iraq that involve buyers or letters of credit from banks located in third countries. Ex-Im Bank also offers a program supporting U.S. reconstruction subcontractors.

Ex-Im recently announced a $500 million insurance facility to support the new Trade Bank of Iraq by providing coverage for public and private sector transactions involving imports from U.S. suppliers.

Press Release
More Information and Contacts

Small Business Financing Facility

December 19, 2003

The International Finance Corporation, the private sector arm of the World Bank Group, approved plans to establish an Iraq Small Business Finance Facility of up to $200 million to help Iraqi banks finance small businesses.

Press release

Industry Information

Iraq Mobile Telecommunications Licenses Tender Process to Begin

March 2006

The Iraqi National Communications and Media Commission (NCMC) announces the commencement of the process to award 15-year national mobile telecommunications licenses. It is expected that these licenses will begin after the current regional licenses expire on June 30, 2006. Interested companies will have to undergo a prequalification stage and submission of confidentiality agreements to PricewaterhouseCoopers, financial advisor to the NCMC. For more information, please review the attached summary or contact PricewaterhouseCoopers at e-mail: iraq_mobile_licensing@uk.pwc.com or tel. +44 20 7804 5497.

Iraqi Mobile License Issues Consultation Paper

June 2005

The Iraqi National Communication & Media Commission (NCMC) issues this paper (150KB PDF only) to the public, the Government, private sector, consumer associations, international regulatory bodies, major financial institutions, and potential bidders to obtain feedback, comments, suggestions, and answers about the future of Iraq's mobile communications licenses. All submissions will be published on the NCMC website.

State-Owned Enterprises (SOEs) Descriptions

November 23, 2004

The Iraqi Ministry of Industry and Minerals has provided fact sheets that describe its SOEs in the textiles, construction materials, engineering industries, food & drugs, industrial services, and chemical & petrochemical sectors.

Iraq's Cement Factories

July 2004

The Coalition Provisional Authority's Office of Strategic Analysis drafted this report (PDF only) on Iraq's existing cement plants, including design, labor force, and production capacity.

Iraq's Electrical System

April 06, 2005

Dr. Aiham Alsammarae, Minister of Electricity for the Iraqi Interim Government, delivered remarks entitled "Iraq's Electrical System: Status & Future Plan" at "Electric Power 2005" (April 05-07, 2005 in Chicago). Dr. Alsammarae's PowerPoint presentation (1.2MB PDF only) outlines the current design and capacity of the power system in Iraq and details plans for increasing generation, transmission, and distribution capacity.

Iraq's Construction Sector - An Overview

March 2005

Don't' miss this new Commerce Department market research report (PDF only) on Iraq's construction equipment and materials sector!

World Bank and UN Iraq Needs Assessments

October 9, 2003

On October 9, the World Bank and the United Nations released a Joint Iraq Needs Assessment to identify priority reconstruction needs and costs in preparation for the Donor Conference in Madrid on October 23-24, 2003. The Conference will seek funding from donor countries for Iraq's reconstruction.

Press Release
Full Needs Assessment (410k) in Adobe Acrobat PDF format.

General Information

AmCham-Iraq Accepting Charter Members

June 24, 2005

The American Chamber of Commerce - Iraq (AmCham-Iraq) has been authorized by the U.S. Chamber of Commerce to begin accepting members. Cost of a charter membership is only $100 for the remainder of calendar year 2005. Membership is open to firms and individuals of all nationalities who share the common values and goals of AmCham. Benefits include monthly business roundtable luncheons in Baghdad, VIP receptions, networking opportunities, and access to trade events throughout the region. For more information, please review welcome letter (PDF only) , AmCham-Iraq backgrounder (PDF only), and membership application (PDF only). For more information please visit the AmCham website or you may contact AmCham-Iraq directly by e-mail at: amchamiraq@yahoo.com

Iraq's First Democratic Government Sworn In

May 09, 2005

Prime Minister Ibrahim al-Jaafari pledged to unite Iraq's ethnic and religious factions and fight terrorism during swearing-in ceremony of the nation's first democratically elected government. A listing of the Iraqi Transitional Government (ITG) Cabinet is available. For additional information, please see the curricula vitae of ITG cabinet members (PDF only).

Department of State Weekly Status Reports

The Department of State issues weekly reports on the status of several key areas in Iraq such as essential services, power production, and security. Prior to July 2004, the status reports were issued by the Department of Defense.

Iraq Project & Contracting Office (PCO) Weekly Update

The Department of State issues weekly reports on the status of several key areas in Iraq such as essential services, power production and security. Prior to July 2004, the status reports were issued by the Department of Defense. They are available below as Adobe Acrobat PDF files. File sizes average 3MB.

KEY DOCS