Despite the dispute between Kurds and the Iraqi government over the country’s controversial oil law, Iraq’s parliament could still pass it within weeks, according to a report by Reuters.
However the dispute between the two sides is seen as worsening the foreign investment climate already damaged by spiralling violence.
Iraq’s central government the Kurds will meet as early as the weekend to try to reach an agreement. But Reuters reports that analysts are arguing that even if parliament rubber-stamps the law, a perceived lack of legal clarity and poor security on the ground means it will take years for Iraq to develop an environment conducive to business.
“Lack of security is already keeping out the international oil companies and the added public objections to the oil law will make the situation even worse,” said Muhammed-Ali Zainy from the London-based Centre for Global Energy Studies. “Who would dare come to Iraq to develop and explore when they know there is widespread resentment towards them, the oil law and the constitution?”