IRAQ Trends and Developments Contributed by: Buraq Al-Hamdy, Waddah Hamed, Sajida Ankouni and Mohammad Jaber, Basrah Obelisk Law Firm Ltd
Iraq: Evolving Legal and Commercial Landscape – Key Trends for Foreign Investors Introduction Iraq continues to present significant opportunities for foreign investors, particularly in the oil and gas, energy, construction and infrastructure sectors. These opportunities are driven by sustained government investment, ongoing infrastructure development and increasing participation from international contractors and service providers. At the same time, Iraq’s current legal and commer- cial environment is shaped by continued economic activity, regulatory evolution and gradual institutional reform. Government efforts to attract foreign invest- ment and support large-scale projects have contrib- uted to sustained commercial momentum across key sectors. However, Iraq remains a complex jurisdiction from a legal and regulatory perspective. Businesses are required to navigate not only formal legal frameworks, but also the practical realities of how procedures oper- ate in practice. As a result, commercial outcomes are often shaped as much by administrative implementa- tion and procedural dynamics as by the written law itself. In recent years, a clear pattern has emerged. While Iraq’s legal system remains rooted in civil law princi- ples, its commercial environment is gradually aligning with international practice. However, this evolution is uneven, with progress in some areas – such as con- tracting sophistication and regulatory digitalisation – co-existing with persistent procedural and enforce- ment constraints. Investment landscape and market entry realities Foreign investment in Iraq remains concentrated in strategic sectors, particularly oil and gas, energy, construction and infrastructure development. Gov- ernment-led projects and public-private initiatives continue to play a central role in economic activity and often involve international participation. In practice, entering the Iraqi market requires careful navigation of regulatory processes. Company regis- tration, licensing and sector-specific approvals typi-
cally involve multiple authorities, and timelines may vary significantly depending on the activity and juris- diction involved. While the legal framework for foreign investment is relatively established, its implementation can be less predictable. A recurring practical issue is the gap between formal legal requirements and administrative execution. Delays in approvals, document processing and inter-agency co-ordination are not uncommon. For this reason, successful market entry depends heavily on early preparation, structured documenta- tion and proactive engagement with local advisers who understand how regulatory processes operate in practice. Regulatory compliance and digital transformation A notable development in recent years has been the gradual digitalisation of regulatory and administra- tive processes in Iraq. Key institutions, including the Companies Registration Department, the General Commission for Taxes and the Social Security Direc- torate, have introduced electronic systems for filings and record management. This has improved efficiency in certain areas, particu- larly routine corporate compliance and administrative submissions. Businesses are increasingly able to sub- mit documents electronically and track procedures more efficiently than in the past. However, this progress remains uneven. While admin- istrative processes are becoming more modernised, other areas of the legal system – particularly dispute resolution and enforcement – continue to operate through traditional, paper-based procedures. This creates a dual operating environment in which companies must simultaneously adapt to digital regu- latory systems and conventional judicial processes. In practice, this requires a more integrated approach to compliance and legal risk management. Dispute resolution in transition Iraq’s dispute resolution landscape is best described as being in gradual but uneven transition. The court system remains the primary forum for resolving dis-
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