Baghdad – Economic Developments
The Ministerial Council for Economy convened today to approve an essential measure aimed at bolstering the industrial sector in Iraq. The Council has decided to exempt industrialists from rental allowances during the foundational phase of their projects.
The session was chaired by Deputy Prime Minister and Minister of Foreign Affairs Fouad Hussein and included participation from key officials such as the Deputy Prime Minister and Minister of Planning, the Ministers of Finance, Agriculture, Trade, Industry, and Social Affairs, as well as the Secretary-General of the Council of Ministers, the Governor of the Central Bank of Iraq, and representatives from the Ministry of Oil, the National Investment Authority, and the Prime Minister’s advisers on economic and legal matters.
During the meeting, the Council reviewed its agenda, made significant decisions, and discussed recent political and economic developments affecting the Iraqi economy, particularly in light of regional and international changes. A key focus was the implications of regional conflicts on the global economy and their effect on the oil market.
Notably, the Council approved a request from the Ministry of Industry regarding the Board of Directors of Industrial Cities, allowing for a two-year exemption from rental allowances for industrialists during the project establishment phase. This exemption applies to industrialists who hold a license issued by either the General Directorate of Industrial Development or the National Investment Authority. Additionally, the agreed-upon rental fee is set at 250,000 dinars per month for each industrial division, which encompasses an area of half a dunum.
Furthermore, the Council decided to increase the reserve rates for contracts pertaining to the electrical stations in both the industrial city of Dhi Qar and the Industrial City in Basra, indicating that this measure will be enacted without raising the overall project costs.
Regarding the modern villages project, the Council resolved that agricultural land distribution will proceed under the Agricultural Full Law rather than the modern villages law. They have tasked both the provincial governments and the Ministry of Environment with clearing war-related waste and mines from these areas.
Additionally, it was concluded that the Ministry of Industry and Minerals’ request to suspend proceedings regarding the Iraqi Djelhiya Company project will remain in effect until negotiations with Serbian firms are concluded. It was emphasized that the project must ultimately be owned by the Ministry of Industry and Minerals, with a requirement to report the outcomes of these negotiations for subsequent decision-making.