Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

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4. Results: Answers
Trends and predictions
How would you describe the current fintech landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

Answer ... The Iraqi financial sector offers substantial growth potential. Technology and mobile banking are highly attractive, especially given the numerous out-of-date banking practices. The Iraqi population is largely unbanked, but despite the challenges, fintechs are contributing to the empowerment of this population and are attempting to move the economy from a cash-based economy to a digital economy.

However, fintechs face many challenges, including the following:

  • the lack of specific legislation and regulation governing fintechs;
  • the need to register their business as an incorporated company, with all of the related financial and time constraints, including the need for a physical address;
  • difficulties in attracting the right skills and talent; and
  • difficulties in attracting foreign investment.

Security surveillance systems, e-governance, telecommunications, database management, internet services and electronic and mobile financing are reportedly government priority areas for investment.

At the time of writing (January 2020), draft laws on cybercrime and telecommunications and information technology have been prepared, but have not yet been enacted, and their content may be subject to review by the Iraqi Parliament before their enactment.

For more information about this answer please contact: Lama Abou Ali from Aljad Law