Article 5 of the investment law provides that a project is exempt from all customs-related taxes and fines for ten years from the start date of providing services or starting production.
The article also provides a tax exemption for spare parts imported for a project, as long as their value doesn't exceed 15% of the value of machines and tools. Imported raw production materials are also exempted from customs duties for five years.
Foreign investments in Iraqi Kurdistan constitute between 37% and 47% of local investments, in addition to roughly 15% of shared investments. “We are bullish, but our ambition is for the rate of investments to increase even more," Ali says. "The Kurdistan Region of Iraq has wide spaces that are suitable for agriculture, in addition to natural touristic regions that can attract tourists, especially during summer.”
Ali adds that the region's new interest in agriculture, industry and tourism is very important, and he says investors should launch industrial projects in Erbil, Sulaymaniyah and Dohuk. "The government must focus on profitable industries and facilitate the conditions to implement such projects,” he says.
Abdel Hamid Zebari is a contributing writer for Al-Monitor’s Iraq Pulse. A reporter from Erbil who works in the field of print journalism and radio, he has published several reports in local and world media, including Agence France-Press and Radio Free Iraq (Radio Free Europe).
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