Largely driven by increasing demand Iraq has been experiencing a construction boon in the past few years.

On 23rd 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.

Statistics show that construction projects are often exposed to risks and hazards, arising either from purely contractual and legal problems or unforeseen circumstances or natural hazards.

Contractors and banks intending to enter construction contracts or financing transaction for projects in the Middle East are faced with the questions of the application of Islamic Law and the compliance of certain provisions of their contracts with Sharia.