Legal Frame to invest in the Healthcare Sector
The Ministry of Health initiated a committee to consider investment requests. The fields that need investment are pharmaceutical industries, hospital construction, and medical services in health centers. The Ministry of Health has developed a plan to invest in the health sector, with a view to expanding the health services provided to citizens and developing the sector as a whole. Member of the Health and Environment Committee at the parliament Hassan Alkhatiti confirmed to Radio Free Iraq that “the Committee has completed the reading of the Law on Private Health Institutions, which will support the conversion of several hospitals of the Government into investment”, noting that “this law will enable those institutions to bring foreign medical personnel, in addition to relieving pressure on government hospitals.
The second amendment of the national investment law no 13 of 2006 was a milestone that grants foreign investors great privileges and guarantees such as:
- Exemption of imported assets from the imports duties
- The right to transfer capital, profits, and wages abroad.
- An opportunity to rent the land
- Accessibility of entry and exit visas and residence permits
Many laws must be observed before entering the world of health investment in Iraq. Iraq is a country in great need of health investments. For all sectors related to the health and medical needs of the citizen. It is difficult for a foreign or non-Iraqi company to enter the trade competition arena Without relying on minds from within the country, especially those who did business and investment in Iraq. Different types of investment in healthcare include:
INVESTING IN MANUFACTURING
Pharmaceutical manufacturing plants for the public sector are affiliated with the ministry of industry and not with the Ministry of Health. The Ministry of industry is the real owner of the factory. The investor should consider dialogue with the Ministry of Industry on the manufacturing aspect. Although the buyer, or consumer of the drug, is the Ministry of Health, what requires the investor to market their manufacturing and investment ideas to the two ministries, the first is the Owner manufacturer and the second is the buyer.
The country has a proximity 6 factories in Iraq, which are run entirely by the government, and the history of those factories is probably in the mid-sixties when the idea of opening a Samarra pharmaceutical plant began until it began to expand so that the number of factories now reaches to six factories produce low and inefficient services. The Iraqi state has begun to think very much about investing, with the contribution of global companies. To get rid of that burden.
INVESTMENT IN DRUG PROMOTION
Today cannot be promoting Any pharmaceutical products except through the scientific bureau. These scientific bureaus are important for the private sector, and it is important for the investor to understand Its role in the pharmaceutical or medical distribution strategy in general.
The license of the Scientific bureau is given by the pharmacist syndicate to one of the Iraqi pharmacists who does not work in the public sector but is confined to its work in the private sector only.
Iraq issued law No. 60 of 1998 and regulations No. 4 of 1998, organizing the scientific bureau for drug promotion, allowing the pharmacist syndicate to grant licenses to open scientific bureaus, and the drug promotion department is charging 5% of contract values.
INVESTING IN HOSPITAL CONSTRUCTION
Regulations No. 4 of 1984 and regulations No. 3 of 2001 regulating private hospitals state that The Ministry of health approaches the competent authorities to allocate a suitable plot of land and a suitable site for the construction of the hospital. Moreover, a private Hospital is a company in accordance with the provisions of corporate law no 21 of 1997.
This sort of investment is promising and active. Most of the medical furniture used in Iraq is imported from countries like Turkey, China, and India. This investment is huge and starts by entering the corporate with an agreement with the ministry of health for supplying the hospital with the necessary furniture. This agreement shall be one year. In the second year ongoing, the corporate commits to building its own factory in Iraq after signing a long-term agreement with MOH.
SPECIALIZED CENTERS OF CANCER, CARDIAC, DIABETIC
There are few numbers of these centers in Iraq and ran and owned entirely by the government. These centers are not as productive as the centers abroad. The services provided by the centers are weak and disappointing. Investment in this sort is huge and promising as well. The company interested in investment normally entered into a long-term agreement with the ministry of health. Large capital is required due to the lack of the necessary medical equipment and technology which all centers in Iraq are suffering from. Cancer investment is considered one of the biggest investments in the healthcare sector with an amount of money of 100 million US per annum.
INVESTMENT IN KIMADIA
It’s the most important investment in the healthcare sector. Kimadia is the largest pharmaceutical company and it manages all the health investments. It is responsible for purchasing pharmaceutical products and medical equipment and most of the health investments relating to MOH.