São Paulo – The Minister of Finance of Iraq approved the project by a group of local investors for construction of the first private free zone in the country. It should be built in Uwaireej, to the south of country capital Baghdad, in an area of approximately 12,500 square meters.
According to information disclosed by Iraqi news agency Mawtani, the consortium of businessmen is now going to hire an office to elaborate the detailed project of the free zone. The project will be delivered to the Free Trade Zone Commission of the Ministry of Finance. After the project is approved, construction should begin.
According to the chairman of the consortium, Sabah al-Qaisi, the project should help Iraq diversify its economy, generate jobs and reduce the dependence on funds coming from the exploration of oil, currently one of the only sources of income in the country. He also stated that investors have already established a rule that companies interested in participating in the project should hire 50% Iraqi labour.
The rapporteur for the Iraqi Economic and Investment Parliamentary Committee, Mahma Khalil, stated that creation of the free trade zone may result in benefits like investment in the country and greater taxes for the Treasury. “It is a positive step to boost the commercial activities in Iraq while it strengthens and eases international trade and avoids accumulation of produce on borders,” he said.
According to al-Qaisi, there are already other free trade zones in operation in Iraq, all belonging to the government. One of them is in Basra, another in Ninawa province and the third in Anbar province. Apart from this private unit, there are projects for the construction of another two free zones. One in al-Sulaimanyia province and another in Dohuk province, close to the border with Turkey. “It is important to encourage and attract local and foreign investors and provide them the necessary facilities for the country to progress,” said al-Qaisi.
*Translated by Mark Ament
