Page 119 - investment-map-En-2021

108 Iraq Investment Map 2020-2021

7- Industry and Minerals sector

The Industrial sector is seen as one of the most
prominent component of the non- oil economy, and
the Ministry of Industry and Minerals (MIM) is
considered as the main pillar for the industrial
policy in Iraq which encourages investment
according to investment law for the year 2006 as
amended and it runs the state owned enterprises
(SOEs) and seeks to develop these SOEs in
cooperation with other sides willing to invest to
raise efficiency of performance. MIM also
specified a number of projects through which it
aims at attracting foreign investments especially
that this Ministry already has a number of
investment bases and regulations.
Law No.22 for the year 1997 (regarding state
owned companies) focuses on rehabilitating the
operating plants which employ capitals and special
expertise and it allows the SOEs to conclude
agreements with foreign investors who will also be
covered by the incentives and privileges provided
by the investment law No. 13 for 2006 that
encourages investment and it also provide
protection to foreign investments in this sector among other economic sectors.
MIM launched an ambitious program in 2005 for granting licenses to establish joint ventures
and production sharing agreements for the purpose of promoting investment in this sector
where investor should undertake all the rehabilitation processes, management and operating
the plant at his own within the framework of the investment concept announced by the
Ministry against a share of the production within a pre specified duration of 15-20 years, and
the investor is free to suggest rehabilitation through rehabilitating the available machines and
equipment or substitute all by new machinery, in all cases, the Ministry will be an active
partner and shall be ready to provide the investor with all available database in addition to
helping in issuing the entry visas for the technical teams to the plant sites.
The developments in this sector included evaluating the suggestions to reduce the imports
volumes to reinforce domestic products and ensure a package of comprehensive reforms
which guarantee protection of investors' benefits and help to maintain a framework for the
sustainable investment in SOEs, it is expected that the reforms package wall not only lead to
rehabilitate this sector but will result in producing new proactive energies and enforcing the
available laws.
Iraq currently has diversified light and heavy industries like carpets, automobile assembling,
pharmaceuticals, petrochemicals, fertilizers and other more industries. It is hoped that SOEs
can play an important role in supplying both the state and private industries with the required
products and services in light of applying a series of technical and management reforms and
the investment directions to improve the quality of performance and production.