April
2003 - Iraq Update:
The recent
extensively reported downfall of the Regime in Iraq
is expected to have a dramatic impact on the legal business
and commercial environment in Iraq. The likely liberalization
of the Iraqi economy will involve changes and amendments of
major presently applied laws.
While
the main laws of general application such as the Civil
Code Law No. (40) of 1951, which regulates civil and general
contractual transactions are not expected to be substantially
changed particularly since this Civil Code was promulgated
during the monarchy based on Islamic
law (Shariah) and European legal concepts mainly the French
laws incorporated into the Egyptian Civil Code.
However,
other important laws regulating specific aspects of business
will probably be revoked and replaced. We provide below our
some of the laws that in our opinion have to be replaced.
1. The
Commercial Agency Law No. (51) of 2000, which provides
strict regulation of agency has to be moderated and practical
in line with Middle Eastern Agency laws.
2. The
Central Bank Law No. 64 of 1976, which provides strict
foreign exchange controls that should be revised.
3. The
Commercial Companies Law No. (21) of 1997, to facilitate
companies registration and the establishment of branches of
foreign companies.
4.
Arab Investments Law No. (46) of 1988, to encourage Arab
and foreign investments in development projects.
Furthermore,
this web site will continue to provide regular updates on
legal and practical developments on the Iraqi economy.
Contact
GLS for further detailed advice on specific aspects
of these developments.
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