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Reconstructing Iraq

The Iraq war has caused widespread damage to the national economy, bringing many sectors to a standstill. Iraq needs development in almost every sector, in a country where piles of rubber and incomplete buildings are commonplace, more than 10 years after the war.

But as the country looks forward to overcome a prolonged period of conflict and stagnation, economic opportunities have opened up.

A number of large- scale infrastructure and real estate projects are under way and a combination of several factors makes Iraq a favorable business and investment destination.  The need for investment is high, as jobs need to be created to bring down the high unemployment rate. Laws in place for foreign investment allow 100% foreign ownership of businesses in all sectors except oil and mineral extraction. Also non- Iraqi citizens can now own land for housing project. Investment partnerships with state-owned enterprises are also possible for foreign companies, at present.

Another important law facility, attractive for investors, exempts foreign companies from tax for up to ten years and import fees for a period of three years.

Iraq, which has the world’s third biggest crude reserves hopes to rebuild the country using its oil revenues, which account for more than 95% of the state income. The Iraqi government has steadily opened the market to attract external investment and joint ventures, in housing, infrastructure, industry manufacturing, agriculture, food processing, transportation, financial services and tourism.

As national economy recovers housing demand, caused by high deficit at the end of the 20th century, increases and requires significant investment in development projects. Rebuilding Iraq’s roads and transport is vital for foreing companies to transport equipment and merchandise, as they develop their projects in the country.

The government has repeatedly announced its intention to focus on road infrastructure and housing investment, for which it has handed out multiple contracts. The 2012 budged highlights this focus.

OCTAGON decided to use the experience and knowledge in the construction field, gained over its 8 years of activity in Romania and abroad, to be part of Irak’s reconstruction process. We stared by opening a branch in Baghdad, in 2011 and we are already involved in construction projects (link spre works in progress).