Under Cabinet Resolution No. (123121) for the year 2023, a team has been formed to establish new residential cities in Iraq that cater to low-income individuals. The plan includes constructing affordable housing within these cities, aiming to address and alleviate the housing crisis and provide residential land plots to citizens.
Table of Contents
Team Formation for Establishing New Residential Cities in Iraq
The team is composed of:
- Minister of Construction and Housing as Chairman.
- Membership of the Minister of Environment.
- Chairman of the Advisory Board.
- Chairman of the National Investment Commission.
- Mayor of Baghdad.
- Governor of the concerned province.
- Head of the Legal Department in the General Secretariat of the Council of Ministers.
- Director-General of Regional Development at the Ministry of Planning.
The team is responsible for planning, working on, and supervising the establishment of the new cities, creating a conducive environment for their success, including the areas surrounding Baghdad Airport or other prime lands in the provinces.
The team aims to balance supporting housing projects for low-income individuals and encouraging the private sector and investors to participate in establishing new cities and improving the quality of services.
Team Duties
The team’s duties include setting regulations and standards for land distribution and investment in the cities, facilitating the procedures for granting investment licenses, enhancing the level of government services, and providing them efficiently.
The Council of Ministers has authorized the team to approve new urban development plans, refer them for ratification, and negotiate with investors to implement the infrastructure and investment projects related to establishing new cities. This includes preparing innovative partnership models with the private sector and granting them investment opportunities in prime, economically viable locations in Baghdad and the provinces, in return for encouraging them to establish infrastructure and low-cost housing in the new cities.
The team is tasked with reviewing investment applications for the new cities, selecting the qualified ones, and referring them to investment authorities to issue and grant investment licenses according to the law.
New Cities
Under Cabinet Resolution No. (23573) for the year 2023, the following new cities have been approved for establishment:
- Al-Jawahiri New City / Baghdad
- Dhi Qar New City / Holy Karbala
- Al-Ghazlani New City / Nineveh
- Al-Janayen New City / Babylon
The percentage of housing units sold by the investor to any company or individual must not exceed (1%).
Special Exceptions
Under Cabinet Resolution No. (24072) for the year 2024, the Ali Al-Wardi Residential City project was exempted from paragraph (1) of Cabinet Resolution No. (234) for the year 2019 concerning land ownership transfer to the investor before achieving (20%) of project completion. The investor is granted the right to freely sell residential units at market price, provided that the land value is not included in the sold unit’s price to the citizen.
The investment license will be issued in the name of the company (Ora Developers Iraq) after completing the legal procedures for its establishment according to the law. The company will present a comprehensive legal, technical, and commercial offer along with an economic feasibility study, authorizing the Minister of Construction and Housing to sign the investment contract with the executing company.
Ongoing Efforts
Under Cabinet Resolution No. (23427) for the year 2024, the Ministry of Construction and Housing was exempted from paragraph (1) of Cabinet Resolution No. (234) for the year 2019 concerning the transfer of land ownership for housing units to the investor after achieving (20%) of project completion. The investor is allowed to sell on the map freely without the condition of achieving (20%) completion.
The mentioned exceptions include the investment contract for Al-Jawahiri City and Al-Ghazlani City, with the authorization of the ministerial team to extend these exceptions to other cities.
Under Cabinet Resolution No. (23052) for the year 2023, the province, in coordination with the Ministry of Construction and Housing, is responsible for establishing municipal institutions in the new cities. The Ministries of Finance and Agriculture are committed to completing the procedures for transferring land ownership for the new cities to the existing or newly established municipal institutions.
Future Outcomes
According to the circular from the Ministry of Construction and Housing No. (12843) on 14/4/2024, instructions were given not to grant any investment license within the administrative boundaries of city centers in addition to the new cities. The team responsible for the new cities will also be provided with all data on prime lands in the provinces to include them as investment opportunities in the new cities.
The aforementioned procedures confirm that the Council of Ministers has launched a major initiative to address the housing crisis by forming a specialized ministerial team and establishing a new entity called the "New Cities Authority" within the Ministry of Construction and Housing to oversee the establishment of new cities and create a suitable environment for their success. The establishment of four major residential cities with varying areas in the provinces of Baghdad, Karbala, Nineveh, and Babylon has been approved. In the near future, 8-9 new residential cities will be announced in the provinces of Baghdad, Najaf, Dhi Qar, Al-Muthanna, Wasit, and Maysan with different areas.
Facilitations and Incentives for Investors
This initiative is expected to contribute to solving part of the housing crisis in Iraq by granting facilitation and incentives to investors according to the amended Investment Law No. (13) of 2006.
