Focusing on the investment disputes and right of protection of foreign investors in Iraq
Abstract:
International restrictions and sanctions have historically been designed to persuade and compel recalcitrant states to alter their behavior and enhance their compliance with international law. Iraq, which adheres to its principles on economic and political ties, is one of the only examples of deviance in the globalist world system. Iraq has been subject to several international sanctions that impede its capacity to form economic partnerships and advance global investment. Foreign investment parties have continued to confront obstacles from bureaucracy, a weak financial structure, and corruption, making it exceedingly challenging to close investment projects successfully. The primary purpose of the financial institutions owned by states in Iraq is to serve and settle the country's public sector payroll. Except for a few regionally-owned commercial banks, privately-owned banks functioned exclusively as exchange enterprises until recently. The inability to effectively resolve investor disputes is one of the primary obstacles foreign investors encounter when considering doing business in Iraq. In recent years, however, the Iraqi Parliament has made substantial progress in enhancing the economic climate and offering better protections for international investors. Iraq has accepted accession to the New York Convention for the Settlement of International Investment Disputes, which would facilitate a more efficient and equitable dispute settlement process.