Study urges early Iraqi welcome of foreign investment

11/08/2004
Iraq can accelerate reconstruction and boost its economic growth if it promptly welcomes foreign direct investment (FDI) to its oil industry and establishes a stable fiscal regime.The fiscal format most appropriate to such a regime, says a study by the International Tax & Investment Center (ITIC), Washington, DC, is the production-sharing agreement (PSA).Guidance on PSAs can come from other countries' experiences, the study points out. Although Iraq's political fragility means risk for investors, "international experience shows that political uncertainties need not deter core investments from getting under way."Specialists from the Centre for Global Energy Studies, Oxford Economic...
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