Based on the National Investment Commission's Circular No. (15385) dated 20/10/2024, and in accordance with paragraph (Fourth/4) of Axis Two of Cabinet Resolution No. (23374) for 2023, which amends Resolution No. (245) for 2019, and states:

"Obtaining the approval of the Ministerial Council for the Economy is required if there is a change in the activity of investment licenses,"

And after taking into consideration the necessity of obtaining planning approval, and the approval of the owning entity and the sectoral entity regulating the activity, the National Investment Commission has issued the following regulations:

First: Permitted Cases for Changing or Adding Activities

1. For Residential Projects: It is permitted to add or change a commercial activity up to a maximum of 10% of the residential part, after obtaining the approval of the relevant sectoral authorities.
2. For Commercial and Recreational Projects within the Master Plan: Activity can be changed to residential up to a maximum of 15% of the total project area, provided that the total project area exceeds 100 dunams, and that it has obtained planning approvals prior to the issuance of these regulations, and only once.
3. For Commercial and Recreational Projects outside the Master Plan: It is permissible to add or change the activity to residential once, subject to the following conditions: a. Obtaining due approvals from the sectoral and owning authorities. b. Retaining the primary activity of the project, so that the percentage of change to residential does not exceed 25% of the total area. c. Segregating the residential part with a separate real estate deed, and not using the land jointly. d. Allocating 10% of the residential project area to the owning entity for investment, according to the provisions of Amended Regulation No. (6) for 2017. e. Allocating 5% of the number of residential units (vertical or horizontal) to the owning entity to dispose of according to the law.
4. For Commercial Projects: a. Located outside the Master Plan, it is permissible to change the activity to industrial, service, educational, or health, provided that the required area is available according to the sectoral authorities' regulations, and due approvals are obtained. b. Located within municipal boundaries, it is permissible to change the activity to educational or health, according to specified areas and official approvals.
5. Upon Project Ownership Transfer: After reaching 40% completion of the project within the license period, the new investor may request to change the activity to a new one, after the approval of the licensing authority, and the sectoral and owning entities, in accordance with Article (23) of Amended Investment Law No. (13) for 2006, provided that: a. Changing the activity of recreational projects is not permitted, except as stated in paragraphs (2) and (3). b. Changing the activity to residential within the Master Plan is not permissible. c. Changing the activity outside the Master Plan to industrial is permitted, according to paragraph (4).

Second: General Provisions

• a. Requests for changing or adding activities shall be submitted to the National Investment Commission, accompanied by the legal department's opinion, along with the feasibility study and financing plan.
• b. Amendments shall be presented to the License Amendment Committee after completing the procedures, including the approval of the Ministerial Council for the Economy.
• c. The lease or ownership contract for the project shall be amended according to the new activity, with an assessment of the lease or ownership fee.
• d. The costs of removing or demolishing the old project shall not be included in the cost of the new project.
• e. Adding residential activity to industrial, agricultural, commercial, service, or recreational projects is not permitted, except as stated in paragraphs (2) and (3).
• f. Activity change is permitted only once within the prescribed cases.
• g. These regulations shall be reviewed and their implementation results monitored after one year from their issuance date.

Third: Service Fees

Service fees for requests to change or add activities shall be collected in accordance with paragraph (2) of the service fee regulations issued under the National Investment Commission's Circular No. (9729) on 6/8/2023.

Fourth: Date of Effect

These regulations shall be considered effective from the date of their issuance and official endorsement.

Contact Iraq law company

We hope this detailed explanation of the regulations for changing or adding activities to investment projects in Iraq has been helpful. Given the complex and evolving nature of these regulations, and to ensure full compliance and avoid any potential legal complications, we emphasize the importance of consulting a law firm in Iraqi and investment.

Legal experts can provide precise and tailored guidance for your specific situation, help you understand all requirements, and manage the necessary procedures to ensure the process of changing or adding activities proceeds smoothly and in accordance with the law.

Do not hesitate to contact a trusted legal advisor to ensure the protection of your investments and the effective achievement of your objectives.