The Political Environment and Its Role in Attracting Foreign Investment to Iraq

This study aims to assess the impact of political stability on foreign direct investment in Iraq. After 2003, the Iraqi government sought to attract foreign investment to address the growing disparity between available resources and increasing financial needs. The goal was to bridge the national resource gap, reduce the balance of payments deficit, and finance public investment to aid in the countrys reconstruction and industrial advancement. To achieve this, Investment Law No. 13 of 2003 was enacted, accompanied by various policies, procedures, guarantees, incentives, and benefits to encourage foreign direct investment in Iraq and support economic development. However, despite these efforts, the inflow of investments did not meet expectations due to persistent political and security instability. This instability led to weak global rankings and deterred both foreign and local investments from Iraq between 2013 and 2022.