Statistics show that construction projects are often exposed to risks and hazards, arising either from purely contractual and legal problems or unforeseen circumstances or natural hazards.
During recent years, there have been many court judgments and arbitration awards rendered against Iraqi government entities arising from contracts concluded during Saddam’s regime.
This article deals mainly with the question of Limitation Period under Iraqi Law. Creditors of claims against Iraq which arose from construction, financing and supply contracts concluded with the Iraqi government entities prior to the fall of Saddam Hussein`s regime in 2003 may find this article of interest.
Since the fall of Saddam Hussain`s regime and the occupation of Iraq by the American and the British forces on 9th April 2003, Iraqi laws have been in constant changes. Many old laws have been repealed and replaced by new legislation, and other laws have been amended; first by the US Civil Administrator Paul Bremer, and later by the governments of Iraq.
Contractors and banks intending to enter construction contracts or financing transaction for projects in the Middle East are faced with the questions of the application of Islamic Law and the compliance of certain provisions of their contracts with Sharia.
In this article we shall attempt to outline the definition of interest, so called( Riba) under the Sharia or Islamic law , followed by a short survey of the laws of some Arab countries which have prohibited or permitted charging interest.