September 19, 2003: US Administrator in Iraq Rewrites Foreign Investment Laws

US administrator for Iraq Paul Bremer signs CPA Order 39 setting terms for foreign investment that are far more favorable than those that existed under the previous government. The order eliminates Iraq’s longstanding restrictions on foreigners’ rights to own property and invest in Iraqi companies. It grants foreign investors the right to fully own Iraqi enterprises and transfer 100 percent of all profits outside of Iraq. Prior Iraqi law, which allowed citizens of Arab countries to invest in Iraq, required that a certain percentage of investment profits be reinvested in Iraq. Order 39 also prohibits the government from establishing any terms for investment that would favor Iraqi investors over foreign investors. The order also states that in cases “where an international agreement to which Iraq is a party provides for more favorable terms with respect to foreign investors undertaking investment activities in Iraq, the more favorable terms under the international agreement shall apply.” [Coalition Provisional Authority, 9/19/2003 ]