Iraq to ease property rules for foreign investors

Iraq plans to ease restrictions on foreign ownership of property as it seeks international investors to develop a series of new cities across the country.

The National Investment Commission (NIC), which manages foreign capital flows, has allocated 25 sq km of land in the capital, Baghdad, and the same area in Babylon province in central Iraq. Similar areas in other governorates will be earmarked, NIC official Adel Al-Yasiri told the state news agency on Thursday.

“We have completed the land allocation process in Baghdad and Babylon and contracted with a consortium of international consulting firms to design these cities in line with advanced global cities, featuring streets 35, 50 and 65 metres wide, pedestrian walkways, expansive green spaces, lakes and commercial towers,” he said.

Al-Yasiri said the government of prime minister Ali Al-Zaidi plans to amend a 1961 law to allow foreign investors to own property. It will submit the amendment to parliament in the coming days.

Iraqi experts said the existing law allows foreigners to own real estate in some areas under strict conditions, including on a reciprocal basis, in which the foreigner’s home country allows Iraqis to own property there.

Other conditions include legal residence of at least seven years in Iraq and security approvals for foreign ownership, said Nabil Al-Marsoomi, a local economist.

Iraq is seeking to build new cities and other residential areas to tackle a housing supply crisis caused by long-term underinvestment, conflicts and widespread poverty and joblessness.

In August, Al-Zaidi announced a plan to distribute 1 million residential land plots to citizens so they can build houses in various parts of Iraq.

Iraq’s planning ministry estimated in a report that the country needs up to 3 million houses to accommodate homeless and needy citizens. It added that at least 4 million people are living in informal settlements that lack basic services.

Further reading:

• Iraq plans to build one million houses in two years
• Design for new city in Iraq approved
• Iraq to distribute 1m land plots to tackle housing shortage