ENABLING AND SUSTAINING PRIVATE FOREIGN INVESTMENT IN IRAQ First Meeting of the Working Group on Investment Zones in Iraq Agenda Organised by the MENA-OECD INVESTMENT PROGRAMME In association with 29-30 March 2011 Zara Room, InterContinental Jordan Hotel Amman, Jordan
An Investment Zones Strategy for Iraq A workshop on the Iraqi economic zones (EZ) strategy was held at the OECD headquarters in Paris on November 25-26, 2010, at the request of the Iraqi National Investment Commission (NIC). The workshop was attended by the Chairman of the NIC and five of his key staff, as well as several international experts. The topics discussed included: economic zone models ranging from traditional export-processing areas to special economic zones; the Iraqi legal framework for economic zones; the status of existing zones; sector prioritization; EZ policy frameworks and incentives; and EZ management structures. The participants agreed on the following actions: 1. The NIC will provide a detailed evaluation of existing economic and industrial zones in Iraq to determine their role in the new investment zones strategy; 2. The new strategy will give priority to an investment zone model focused on the domestic market and offering an incentives package based on quality infrastructure, security, and streamlined administrative services rather than tax and customs duty preferences; 3. The new strategy will target multiple sectors in accordance with the Iraqi National Development Plan 2010-2014 and with WTO and trade agreement obligations, but especially: a. General manufacturing, transport and logistics b. Oil refining, petrochemical and heavy industry c. A wide area special agricultural economic zone d. A multi-modal sea transport hub/economic zone at Al-Faw e. A multi-modal air transport hub/economic zone at Baghdad International Airport (BIAP); 4. The new strategy will favour the use of the simpler forms of public-private partnerships (PPP), such as build-operate-transfer (BOT) models; 5. A dedicated investment zones unit will be created within the NIC to coordinate implementation of the strategy; 6. The will provide drafting assistance for a new investment zones implementation regulation for the 2006 Investment Law, covering: a. A description of the investment zones concept b. Privileges and incentives (other than tax or customs related) for zone tenants, including one-stopshop licencing services, security and infrastructure c. Site selection criteria d. Creation of an NIC unit responsible for investment zones e. Authorization of private sector involvement in zone management via: The institutional and management structure of investment zones (including the delegation of certain responsibilities) Investment zone Boards (including representatives of the NIC, relevant PICs, private developers, tenants, the Ministry of Industry, and the Ministry of Planning) A one-stop-shop located in each investment zone; 7. A broad study of the tax and customs duty issues that may affect investment zones as the Iraqi tax system develops, involving the relevant Task Force for Economic Reform and Private Sector Capacity (TFER) working group; 8. The Grand Al-Faw Port project or the BIAP site could be the focus of initial implementation efforts given their advanced and strategic status. This first meeting of the Working Group on Investment Zones in Iraq will review progress on implementation of the action plan and the associated timeline based on the expertise of the NIC, the MENA-OECD Investment Programme, and relevant international experts. It will issue a final declaration and action plan charting the way forward for the remainder of 2011.
Government of Iraq Representatives Mr. Abdulla Albander, Advisor to the Chairman, National Investment Commission Mr. Abdul-Jabbar Mahmoud Ahmed, Legal Expert, National Investment Commission Mr. Mazin Sabah Ahmad, Economist, National Investment Commission Mr. Basim Abdalhade Hassan, Economist, National Investment Commission Mr. Khaled Yassin Khudair, Legal Expert, National Investment Commission Ms.Basma Amer Omar Nadhmi, Legal Expert, National Investment Commission Mr.Haider Zaid Abdulkareem, Promotion Department, National Investment Commission Mr. Ammar Abdulkareem Hasan, Economist, National Investment Commission Mr. Sarmad Kasim Al-Khyat, One-Stop Shop Unit, National Investment Commission Mr. Amar Alnajar, National Investment Commission Mr. Alaa Harba, Chairman, Babil Investment Commission Mr. Amer Abdulrazak Abdul Lateef, Expert, Ministry of Industry and Minerals Mr. Abdulaziz Shwan, Office of the Deputy Prime Minister for Infrastructure Mr. Sabah Salih Mahdi Al-Qaysi, Ministry of Finance Mr. Husham H. Kalil, Ministry of Planning International and OECD Experts Ms. Hana Uraidi, Director, Cross-Cutting Support Directorate, JEDCO Dr. Alexander Böhmer, Head of Unit,, OECD Mr. Carl Dawson, Iraq Project Coordinator,, OECD Dr. Bilal Al-Bashir, Chief Commissioner, Development Zones Commission, Jordan Mr. Omar Hourani, Commissioner of Investment Services and Economic Development, Development Zones Commission, Jordan Mr. Eugene Brennan, Director, Consultancy Services Group, Shannon Development Ms. Rand Hannun, Partner, Nabulsi and Associates, Jordan Ms. Lana Nimri, Senior Policy Officer, Cross-Cutting Support Directorate, JEDCO
Tuesday 29 March 2011 9:30-10:00 Opening Remarks Ms. Hana Uraidi, Director, Cross-Cutting Support Directorate, Jordan Enterprise Development Corporation Dr. Alexander Böhmer, Head of Unit, Mr. Abdulla Albander, National Investment Commission (NIC), Iraq 10:00-12:00 Session 1 The current state of economic zones in the MENA region and Iraq This session will review selected MENA region experiences of economic zones, examine the assessment of existing economic and industrial zones in Iraq prepared by the NIC, and discuss relevant data emerging from the Iraq investment map process. Key lessons from selected economic zones in the MENA region Dr. Alexander Böhmer, Head of Unit, Main features and accomplishments of the Jordanian Development Zone Regime Mr. Omar Hourani, Investments Commissioner, Development Zones Commission, Jordan An assessment of existing economic and industrial zones in Iraq Mr. Mazin Sabah Ahmad, Economist, National Investment Commission, Iraq Mr. Alaa Harba, Chairman, Babil Investment Commission, Iraq 12:00-14:00 Lunch 14:00-15:30 Session 2 An Investment Zones Strategy in Iraq This session will discuss the draft Investment Zones Strategy for Iraq prepared by the National Investment Commission and refined by the. Designing an investment zones strategy for Iraq Mr. Mazin Sabah Ahmad, Economist, National Investment Commission, Iraq Mr. Carl Dawson, Iraq Project Coordinator, Discussant: Mr. Eugene Brennan, Consultancy Services, Shannon Development 15:30-16:00 Coffee Break 16:00-17:30 Session 3 Creating intragovernmental synergies for IZ strategy implementation This round table session will focus on synergies between the NIC and the ministries of finance, industry and planning for the implementation of the Investment Zones Strategy. The case of Jordan will illustrate possibilities for intragovernmental cooperation. Moderator: Dr. Alexander Böhmer, Head of Unit, Mr. Abdulla Albander, National Investment Commission, Iraq Mr. Amer Abdulrazak Abdul Lateef, Expert, Ministry of Industry and Minerals, Iraq Mr. Husham H. Kalil, Ministry of Planning, Iraq Mr. Omar Hourani, Commissioner of Investment Services and Economic Development, Development Zones Commission, Jordan
Wednesday 30 March 2011 9:30-12:30 Session 4 Draft Implementation Regulation for the 2006 Investment Law 9:30 10:45 This session will review the draft investment zones implementation regulation for the 2006 Investment Law prepared by the. A draft investment zones implementation regulation for the 2006 Investment Law Mr. Carl Dawson, Iraq Project Coordinator, KEY THEMES FOR PART I: INSTITUTIONAL ARRANGEMENTS Consultative Committee on Investment Zones Investment Zones Unit, NIC Investment Zone Management Boards Discussants: Mr. Abdulla Albander, National Investment Commission, Iraq Ms. Rand Hannun, Partner, Nabulsi and Associates, Jordan Mr. Eugene Brennan, Consultancy Services, Shannon Development, Ireland Dr. Bilal Al-Bashir, Chief Commissioner, Development Zones Commission, Jordan 10:45-11:15 Coffee Break 11:15-12:30 KEY THEMES FOR PART II: ZONE LICENSING Licensing of Zone Developers Licensing of Zone Users Discussants: Mr. Abdulla Albander, National Investment Commission, Iraq Ms. Rand Hannun, Partner, Nabulsi and Associates, Jordan Mr. Eugene Brennan, Consultancy Services, Shannon Development, Ireland Dr. Bilal Al-Bashir, Chief Commissioner, Development Zones Commission, Jordan 12:30-14:00 Lunch 14:00-15:30 Session 5 Forthcoming MENA-OECD and NIC collaboration This session will focus on the way ahead for MENA-OECD/NIC/ministries collaboration for an investment zones strategy in Iraq. Moderators: Mr. Abdulla Albander, NIC, and Dr. Alexander Böhmer
CONTACTS Government of Iraq Dr. Sami Al-Araji Chairman, National Investment Commission E-mail: samialaraji@yahoo.com Telephone: +964 7901 933821 (www.oecd.org/mena/investment) Dr. Alexander Böhmer Head of Unit E-mail: alexander.boehmer@oecd.org Telephone: +33 1 45 24 19 12 Mr. Carl Dawson Iraq Project Coordinator E-mail: carl.dawson@oecd.org Telephone: +33 1 45 24 75 53 Ms. Maha El Masri Consultant, Iraq Project E-mail: maha.elmasri@oecd.org Telephone: +33 1 45 24 96 54 Mr. Fifi Luhumbu Project Assistant E-mail: fifi.luhumbu@oecd.org Telephone: +33 1 45 24 88 23 Fax: +33 1 44 30 60 14