Abstract
Following the July 1958 revolution in Iraq, the private sector was restricted from undertaking significant investments across economic sectors due to the prevailing ideologies that framed political thought, where a socialist approach dominated the management of economic activities. Consequently, the state nationalized most major private investments, particularly within the industrial sector in the early 1960s, ensuring that public activity remained the dominant force across all economic functions; this policy deprived the Iraqi economy of the national private sector's potential contributions, limiting it to small-scale, capital-restricted investments, while also hindering technological development and the acquisition of expertise by barring foreign investment. The significance of national and foreign investment arises not only from the capital requirements of resource-scarce nations but also from the role of private and foreign capital in facilitating technology transfer, providing technical expertise, and creating employment opportunities to mitigate unemployment in developing countries, including Arab nations. Recognizing investment's vital role in economic growth and inter-sectoral balance, most developing nations have enacted investment promotion laws and adopted reform policies to create an environment conducive to attracting foreign capital, especially after the growing conviction in the necessity of economic reforms and engagement with global shifts—most notably international openness—which has led to a substantial surge in capital flows toward developing regions over the past two decades. Present-day Iraq requires the adoption of modern reform policies more than ever to restructure its economy on contemporary foundations, revitalize various sectors beyond the extractive industries, and prioritize investment incentives in all forms to rebuild the national economy; a pivotal step in shifting this developmental paradigm was the enactment of the New Investment Law No. 13 of 2006, which represents a landmark move toward encouraging national, Arab, and foreign private investments.
DOI
10.33095/jeas.v15i55.1272
Subject Area
Economics
First Page
123
Last Page
134
Recommended Citation
Al-Rawi, A. O. (2009). Private Investment and Its Role in the Process of Economic Reform in Iraq. Journal of Economics and Administrative Sciences, 15(55), 123-134. https://doi.org/10.33095/jeas.v15i55.1272
