Abdul Karim said, “Iraq can be accessible to global agricultural companies; they can invest in livestock in addition to establishing plants for the processing of agricultural products. This can be achieved through the agricultural licensing rounds that will first begin in the safe areas such as the majority of south and central Iraq.”
Abdul Karim’s plan put forward several ideas such as “signing agreements with international companies for 25 years to cover domestic consumption and export the remainder by developing certain standards and laws in order to avoid the same mistakes that occurred in the oil licensing rounds.”
He added, “With such agreements that will take into account the interests of farmers, the state and the investing company without harming the country’s sovereignty, Iraq will become rich and the state's resources will grow stronger.”
The revival of the agricultural sector could be impeded by many factors, such as the lack of water and the deteriorating security situation, particularly in the provinces classified as agricultural areas such as Ninevah, Anbar and Salahuddin, which have turned in recent years into an arena for battles with the Islamic State (IS). In addition, Iraq has been importing agricultural goods between 2003 and 2015 worth $54.1 billion.
Hisham al-Madfai, an expert on agriculture and water, fears incompetent foreign companies would invest in the country. Madfai told Al-Monitor, “Agricultural licensing rounds will serve the country very much by bringing in global agricultural investment companies.” He stressed, “Arable land, water and a labor force are available in Iraq, and investment companies will only have to bring technology and experts.”
He added, “The Iraqi environment is all set for companies to invest, especially since Mosul is being liberated from IS. The state can eliminate the armed groups that blackmail companies.”
Madfai continued, “Foreign companies can lease large state land for 40 years to produce and export [crops] as well as develop local livestock production.”
On Oct. 23, 2015, the Iraqi state amended the Investment Law No. 13 of 2006 by granting facilities to foreign investors, and the Iraqi Ministry of Agriculture welcomed the idea of agricultural licensing rounds because there was zero foreign investment in the agricultural sector.
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