April 14, 2011
Iraq seeks to reactivate trade ties with Kuwait
The _Kuwait Chamber of _Commerce and Industry (KCCI) welcomed an Iraqi trade delegation yesterday at its premises.
During the meeting which was well-attended by many kuwaiti businessmen, the representatives from both sides discussed reactivating commercial and economic relations between Kuwait and Iraq and also considered investment opportunities in Basra.
The Iraqi delegation was headed by the Basra Governor and included the Head of the _Basra _Investment Commission Dr _Haidar Fadhel, the Iraq _Ambassador to Kuwait Mohammed Bahr Al-Olum, and other Iraq businessmen and investors.
Rabaah Al-Rabaah, General Director of the KCCI welcomed the members of the Iraqi delegation and hoped this meeting would bring positive results and strengthen the economic ties between the two countries.
"Kuwait and Iraq are neighbors and have many common traditions and history. I hope that this visit will be successful and will improve the relations in all fields of life," he pointed out.
The Acting Head of the Basra Chamber of Commerce Mazin _Abdulzahra agreed with Al-Rabaah on the strong historical relations between the two countries. "Both the countries are able to build a strong economy as they are well-developed.
The real resource for development lies in industries, not oil alone. It's necessary for Kuwaiti goods to be on the same price level as other products in the region, so that the Iraqi market will be able to absorb it with this high competition.
Also it's a good opportunity to establish new factories in Iraq," he said.
The Head of the _Basra _Investment Commission Dr Haidar _Fadhel highlighted the fact that the commission is supporting the Kuwaiti investors by giving them legal security according to the Foreign Investor Law and Foreign Capital.
"The Iraqi government providing security for the investment projects was established in Iraq. Cases were filed at the court to return Kuwaiti property in Iraq, which were confiscated illegally. Kuwaitis possess a substantial chunk of real estate in Basra, which translates to about 12percent of the registered realty of individuals and companies," he said.
The Iraqi Investment Law allows companies and investors low taxes.
"For the first 10 years, the investors have complete tax and customs exemption on all the material used in the project.
The investors can also benefit from decreased tax on profit, even after the free trial has expired.
***Also the newly built Al-Faw Port will provide more than $1 billion investments and will turn Basra into a Mega Investment City, " added _Fadhel.
Kuwaiti businessman Jawad Bu Khamseen praised the situation in Iraq and said that it's a good place to invest in. "I have been doing business there for more than five years and have never faced any problems.
*The New Iraqi Investment Law is excellent as it allows 100 percent ownership.
We suffered regarding proprietorship in Egypt, Syria, and Lebanon, but didn't have to go through this in Iraq," he noted.
He elucidated further about the advantages in Iraq. "There 25 banks, manpower is available, and investors can work on the B.O.T. system. I encourage the Kuwaiti investors to enter this market. I also call upon the Iraqi government to solve the problem of Kuwaiti real estate in Iraq," he said.
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