Gulf Developers Eye Iraq’s Housing Sector

On 23^rd November 2009, Iraq's Parliament approved the first draft Amendment to Law No 13 of 2006 (the "Investment Law"). The Amendment is designed to encourage applications from foreign developers to invest in and develop new housing projects in Iraq through the availability of land ownership and other incentives.

The Amendment still requires the approval of Iraq's Presidential Council and will not come into force until it is published in the Iraqi Gazette. Nonetheless, given the relative lack of opportunities for new projects in the Gulf countries, many Gulf developers are already active in identifying and securing development opportunities in Iraq.

The Opportunity

Following the cessation of hostilities and the return to relative norm, Iraq is facing a serious housing shortfall. Iraq's National Investment Commission ("NIC") estimates that over three million new homes will be needed across the country over the next five years, citing a combination of