Updates on Iraq’s Investment Environment 2026
What Has Changed for the Foreign Investor?
Executive Summary
The year 2026 marks a radical transformation in the Iraqi business environment. The most significant change is not the issuance of an entirely new investment law, but rather the strict application of amendments and executive decisions tied to the primary Investment Law No. (13) of 2006. The Iraqi Government and the National Investment Commission (NIC) have transitioned from a phase of ”attracting investors at any cost” to a phase of ”compliance, execution, and revocation of licenses for stalled projects.”
Top 3 Changes and Updates in the Investment Environment (2026)
- Strictness in Land Allocation and License RevocationPreviously, some companies obtained an investment license merely to reserve land without actual implementation. In 2026, strict procedures were activated to revoke the investment licenses of stalled projects that exceed the timelines specified in the feasibility study without a legitimate justification, with the lands being returned to state ownership (pursuant to Article 28 of the Investment Law and Council of Ministers’ directives).
- Activation of the ”Single Window” and Bureaucracy ReductionForeign investors have long suffered from dealing with multiple departments to obtain approvals (Environment, Baghdad Municipality, Antiquities, etc.). Currently, new government decisions compel relevant departments to assign fully authorized representatives to the National Investment Commission (the Single Window) to finalize initial approvals within specific legal timeframes, significantly reducing the time required to obtain a license.
- Mandatory Linkage with the New Social Security LawThe tax privileges (10-year exemption) granted under Article (15) of the Investment Law are now conditional upon full compliance with the Retirement and Social Security Law for Workers No. (18) of 2023. An investor cannot enjoy exemptions or renew entry visas for their foreign workers without proving the registration of all workers (including the mandatory 50% Iraqi workforce quota) with the Social Security Directorate.
Marsa Law’s Advice to Investors
”Obtaining an investment license has become easier, but keeping it now requires daily legal compliance. Ensure your technical feasibility study aligns with your true financial capacity, and start by appointing an Iraqi chartered accountant and legal counsel from day one.”
Approved Official Sources and References
All information in this article is based on the following official government texts and platforms:
- Primary Law: Iraqi Investment Law No. (13) of 2006 and its amendments (First Amendment No. 2 of 2010, and Second Amendment No. 50 of 2015).
- Associated Security Law: Retirement and Social Security Law for Workers No. (18) of 2023.
- National Investment Commission (NIC): The official platform for investment decisions and the Single Window.
https://investpromo.gov.iq/
- Iraqi Official Gazette (Al-Waqai Al-Iraqiya): Iraqi Ministry of Justice (Official Legislation and Regulations Database).
https://moj.gov.iq/
Prepared by: Lawyer Muhammed – Muhammed A.Taha
Founder – CEO – Marsa Law Firm
May 2026