Iraq Free Zones: Basra, Nineveh & Kurdistan Region

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Iraq Free Zones: Basra, Nineveh & Kurdistan Region

Last updated: August 2026

Iraq Free Zones: Basra, Nineveh & Kurdistan Region

Iraq isn’t one investment environment, it’s federal free zones under one law, plus the Kurdistan Region running its own separate framework. Which one fits depends on your sector and where you actually want to operate.

The Three Federal Free Zones

Governed by Iraq’s Free Zones Law and administered by the General Authority for Free Zones, with customs, tax, and other regulatory advantages for qualifying activities:

  • Khor Al-Zubair Free Zone (Basra Governorate), customs and tax incentives for industrial and logistics investment
  • Nineveh / Flaifil Free Zone (Nineveh Governorate)
  • Al-Qa’im Free Zone (Anbar Governorate)

Iraq is also developing additional economic and industrial zones, worth distinguishing from these three officially established federal zones when you’re comparing options.

Kurdistan Region

Runs its own Board of Investment framework under Kurdistan Investment Law No. 4 of 2006, separate from the federal free zone system. It’s widely used by foreign companies given the region’s more established business environment and international air links through Erbil.

FAQ

Frequently Asked Questions

How many federal free zones does Iraq have?

Three: Khor Al-Zubair in Basra, Nineveh/Flaifil in Nineveh, and Al-Qa’im in Anbar, all governed by Iraq’s Free Zones Law and administered by the General Authority for Free Zones.

Is the Kurdistan Region the same as Iraq’s federal free zones?

No. It runs its own investment framework under Kurdistan Investment Law No. 4 of 2006, separate from the federal system, and is a common choice for foreign companies due to its business environment and Erbil’s international air links.

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