Foreign Direct Investment in Post-Conflict Countries: The Case of Iraq's Oil and Electricity Sectors


  • Ghassan Faraj Hanna ISL Business Consulting, Inc.
  • Mohamad Saleh Hammoud Arts, Sciences and Technology University in Lebanon
  • Judith A. Russo-Converso Northcentral University


Foreign direct investment is new phenomenon to Iraq, a post conflict country with abundance of natural resources. With dominant state-controlled public sector, attracting foreign investment is an added challenge to an economy devastated by years of wars. A qualitative case study was conducted to assess determinants of foreign direct investment in Iraq’s energy sector. Data was collected from interviews with business and government subject matter experts, and a review of publically available documents. Lack of security, political instability, corruption, and inadequate government policies towards foreign direct investment as symptoms found and typically shared by other post-conflict countries. The persistence of violence was not seen as a deterrent; however, foreign direct investment activity in the energy sector was virtually limited to the semi-autonomous region of Kurdistan. Investments were either wholly-owned or joint-venture enterprises. Implications to other post conflict countries, using Kuwait and Nigeria as illustrative examples, are presented and recommendations made.

Keywords: Foreign direct investment; Iraq; post-conflict country; energy

JEL Classifications: F21; F23; O53; P28 


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Author Biographies

Ghassan Faraj Hanna, ISL Business Consulting, Inc.

President of ISL Business Consulting, San Diego, CA, USA

Mohamad Saleh Hammoud, Arts, Sciences and Technology University in Lebanon

Dean of the School of Business Administration - Arts, Sciences and Technology University in Lebanon, Beirut - Lebanon

Judith A. Russo-Converso, Northcentral University

Graduate School Dissertation Chair - Northcentral University, Prescott Valley, AZ, USA




How to Cite

Hanna, G. F., Hammoud, M. S., & Russo-Converso, J. A. (2014). Foreign Direct Investment in Post-Conflict Countries: The Case of Iraq’s Oil and Electricity Sectors. International Journal of Energy Economics and Policy, 4(2), 137–148. Retrieved from