Iraq shapes up as a destination for UAE investors

Emirati investors may be increasingly tempted to look at Iraq after additional safeguards are introduced under a new bilateral investment treaty, observers believe.

The treaty between Iraq and the UAE was signed in October 2021 and ratified by both states last year. All that is left now is for the instruments of ratification to be exchanged.

When this happens new investment protection will be available to investors a month from the date of the exchange.

Ali Metwally, director of economic intelligence at ITI Consulting, told AGBI that would-be investors from the UAE were likely to find encouragement in the treaty.

“Despite Iraq’s long-standing economic and financial potential, much of it remains untapped, making this partnership all the more compelling,” he said.

Sami Tannous, a Dubai-based partner at the law firm Freshfields Bruckhaus Deringer, said in a research note that Iraq had historically been a challenging market for investors.

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The latest Corruption Perceptions Index by Transparency International ranked Iraq 154th out of 180 countries.

Source: Trade Finance