Guarantee Contract on Foreign Investment against Non-Commercial Risks

Abstract

Foreign direct investment plays a crucial role in the economic advancement of developing nations, allowing for growth without the fiscal burden of external loans. To attract and retain foreign investors, it is imperative that host states establish a robust and reliable legal framework that ensures the protection of investments.

In recognition of this necessity, various jurisdictions have developed internationally recognized investment insurance mechanisms designed to safeguard foreign investors against risks that may not be covered by conventional insurance providers. Such mechanisms provide investors with the requisite security in cases of unforeseen liabilities or state actions that could jeopardize their capital.

This research critically examines the Iraqi investment framework through the lens of security concerns affecting foreign investors. It highlights the gaps in current protections and underscores the need for government intervention to establish comprehensive security guarantees. Accordingly, this study is submitted as a formal motion to the relevant governmental authorities, urging the implementation of adequate protective measures to mitigate investment risks—particularly those for which standard insurance policies offer no recourse.