However the investment law doesn’t define what a “strategic” project is. As a result, critics say, a large number of property transactions have been taking place in the region but many of the transactions have been flawed or tainted by corrupt practices.
According to Salih, the problem lies in the arbitrary way that the land is allocated. The investment law doesn’t specify how much land can be granted but it does say that the land shouldn’t be given to the investor unless said investor fulfils his obligations. Salih says that in many cases when it comes to so-called “strategic projects”, this hasn’t happened.
“The investment law has many flaws that have led to violations and to corruption,” MP Mohammed explained further. “This kind of property ownership – and especially when property is held by foreign investors - will have a serious impact on future generations. Land is a public resource and it should be treated in accordance with well thought out plans.”
One example where distributing land for investment does not appear to have worked is in the housing area. Official numbers indicate that around 15,600 dunums (39 million square meters) of land were allocated to housing projects over the past five years in all parts of the state.
Salih referred to a number of upmarket housing complexes being built in Erbil. “The companies who built these complexes were given land free of charge or in return of symbolic amounts. Now they are selling the houses for extremely expensive prices,” Salih argued. When people are paying premium prices for the houses built upon this land, “is this really an investment?” he wondered.
Salih believed that this was “an indication that the investment policy has failed and that it has been unable to solve the housing crisis or remedy current housing problems.”
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