Section I: Definitions
The following words and phrases shall have the meanings explained here:
1. Region: Kurdistan region – Iraq
2. Government: Government of the region
3. Council: Supreme Council for Investment
4. President: President of the Supreme Council for Investment
5. Board: Investment Board in the region
6. Chairman of the Board: Chairman of the Investment Board
7. Project: Any economic activity or investment project set up by a natural or artificial person on an allocated plot of land, and with a national or foreign capital to which the provisions of this Law and relevant regulations and directives apply.
8. Taxes and Duties: These include all types of taxes and duties set under the applicable legislation.
9. Investor: Natural or artificial person, whether a local or a foreigner, who invests his funds in the region in accordance with the provisions of this law.
10. Competent Authorities: These include all government authorities responsible for the industry which the project is related to.
11. Invested Funds: Value of the funds invested in the Project and estimated in national or foreign currency.
12. Foreign Capital: Amount of investments, whether in cash, in kind or in rights and interests, which have a cash value in the region.
Section II: Areas of Investment
The provisions of this Law shall apply to the projects approved by the Board in one of the following sectors:
1. Manufacturing industries, electric power and related services
2. Agriculture, whether crop growing farms or animal farms, forestry and related services
3. Hotels, tourist and recreational projects, funfairs, and amusement parks
4. Health and environment
5. Science and technology research, and information technology
6. Modern communication and transport
7. Banks, insurance companies, and other financial institutions
8. Infrastructure projects, including construction, reconstruction and housing projects, roads and bridges, railways, airports, irrigation and dams
9. Free zones, modern commercial markets, and relevant advisory services
10. Education at all levels, within the framework of the educational policy of the region
11. Any project in any other industry which the council agrees that it is covered by the provisions of this law.
Section III: Treatment of Foreign Investors
Foreign Investors and Foreign Capitals shall be treated the same way as national Investors and national Capitals. A foreign Investor shall be entitled to own all the capital of any project that he sets up in the Region under this Law.
Section IV: Allocation of Plots of Land
1. The Board shall liaise with the ministries and departments involved in determining the locations of investment Projects which will be set up in every governorate under this Law, and shall put a note of caution on the titles that such locations are used for the purposes of the Board.
2. The departments concerned shall coordinate with the Board to specify and allocate the plots of land needed by the Project within the initial layout inside and outside the cities, either by lease or by land usufruct, at a promotional price, and in accordance with regulations to be set by the Board as an exemption from the “Law of Sale and Lease of Properties of the State”, which is applicable in the region.
3. Upon receiving a proposal by the Board, the Council may transfer the ownership of plots of land that are allocated to strategic Projects, at a promotional price or free of charge, provided that the nature and importance of the Project and the public interest will be taken into consideration when transferring the ownership as an exemption from the Law of Sale and Lease of Properties of the State, which is applicable in the region.
4. A note of caution shall be entered at the relevant Departments of Land Registry regarding the plots of land allocated to investment Projects. Such notes of caution shall be lifted only under the Board’s written consent, after complete fulfillment of the Investor’s obligations.
5. To ensure achievement of its purposes, the Board may possess, free of charge, freehold titles over plots of land that are already property of the State and have a burden of disposal rights, after charging off such rights by paying fair and appropriate compensation in accordance with the applicable laws, regulations and directives.
6. An Investor may buy or lease plots of land and real properties needed to set up, expand, develop and diversify the Project in accordance with the provisions of this Law, within the surface area and time scale estimated according to the Project’s objects and actual needs, without prejudice to the provisions of Paragraph (3) of this Article.
7. Plots of land needed for investment Projects under this Law shall be partitioned into surface areas estimated as per the Project’s objects and actual needs, in accordance with special controls and regulations set by the Board in exemption from applicable laws and regulations.
8. Alteration of the Project’s location shall be governed by the same standards and regulations as those of specifying the Project’s location for the first time.
9. Competent Authorities shall liaise with the Board to provide public services such as water supply, electric power, sewage pipes, public roads and communications etc. within the Project’s precinct. For this purpose, the necessary funds shall be allocated in the Budget.
10. In addition to the entitlement of a foreign Investor for the possession and lease of real properties and productive vehicles under this Law, he shall be entitled to buy or lease residential properties and non-productive vehicles needed for his Project, after obtaining the Board’s approval, and in compliance with controls and regulations set by the Board for this purpose.