Iraq has set up its first dedicated court for investment and commercial lawsuits, a move designed to reassure foreign investors and attract them to the war-ravaged country, the head of the court said on Monday.

Ameer Al-Shimery, the chief justice of the court, said it had been established in November after a year of preparation.   

For the court to have jurisdiction, one of the parties must be foreign, he said. So far, the court has handled 10 cases including ones involving US, Swedish and Lebanese firms. No rulings have been issued yet.   

"This is a new trend in the Iraqi judiciary," Shimery said.  "After the economic openness and the issuing of the investment law which let the foreign companies come to Iraq, the Iraqi Supreme Judicial Council saw the necessity of establishing a specialised judiciary," he told Reuters in an interview.

Iraq is trying to shake off the legacy of years of violence, sanctions and economic decline by opening up its economy and luring foreign investment and expertise to help it rebuild.

Iraq's parliament passed an investment law in November 2009 to allow foreigners to own land for housing projects, and to streamline regulations and applications for foreign investment.

Shimery, 47, said the court's specialised focus would address investors' need to resolve commercial disputes quickly.

Shimery, who served for 13 years as a judge, said he travelled to the United States and Lebanon to study their approach to handling investment disputes. He said a group of Iraqi judges would receive specialised training from a foreign legal delegation in January.

Shimery said the court could draw on the country's trade, investment or civil laws, depending on what is most suitable to each case. But he said more legislative amendments were needed to meet investors' needs outside the courtroom as well.

"We seek legal amendments to create more room for arbitration and decrease the role of the court," he said. "That would help please firms and assure them about working in Iraq."  - Reuters