Page 91 - investment-map-En-2021

Iraq Investment Map 2020-2021 84

in charge of the investment area, whether purely Iraqi or with a foreign
partner.
- The creation of new economic communities with an advanced
infrastructure largely independent of the existing infrastructure in the
cities because they are dilapidated and weak in addition to the new
projects in reliance on some of the existing services will lead to the
weakening of such services as electricity, and thus the investment areas
represent a more attractive environment due to the availability of
services and infrastructure.
- Reduce bureaucratic procedures and routine as well as exceeding the
delay in some commissions due to the delay of sectoral approvals and
the lack of clarity of powers between some institutions.
- The application of such model will greatly reduce the dependence on
allocations of the investment budget for the establishment of these
areas, where the private sector, whether local or foreign will build
these areas.
- Iraq adopts a free-market approach, and therefore, allowing national
and foreign private sector initiatives is the direction that should be
encouraged at the present time.

B. Advantages of establishing investment zones:
1. Encourage the establishment and rapid growth of large and medium-
sized industries within a specific location.
2. Expanding and increasing employment opportunities, thus reducing
unemployment, training and upgrading human resources.
3. Creating competitiveness ability and development among the products of
the factories established in the city with each other on one hand and
between them and similar imported goods on the other hand.
4. Transfer, use and localization of modern technologies.
5. To grant projects in these areas privileges according to the investment
law and the system of safe investment zones, which the NIC is working to
accomplish in accordance with the legislative methods.
6. Developing local capital and attracting foreign capital.
7. Achieving coherence among different sectors.
8. Reduce the cost of establishing, operating, maintaining and developing
projects.

C. The role of investment zones in economic and urban development:
These zones play an important role in economic and urban development:
1. Reducing population density in large cities, thus reducing pressure on
transportation, housing and energy.
2. Protecting residential areas from pollution hazards and thus avoiding the
impact of industrial waste on the environment.
3. Create new and developed areas of cultural and social aspects, especially
in the districts and villages where the investment areas are established in
addition to raising the living standers and the economic base,
productivity and employment.
4. Provide special services for workers in these areas at appropriate rates.