How Some Investors Are Taking The 'Long View' Of Iraq Despite War !

[DinarThug]

CNN. Broadcasting While Taking The Long View From An Iraqi Short Bus !

 

(by cshessman)

EMERGING MARKETS

How some investors are taking the 'long view' of Iraq despite war

Dawn Kissi | Javier E. David

3 Hours Ago
CNBC.com

Heinz-Peter Bader | Reuters
Iraq's Oil Minister Jabar Ali al-Luaibi arrives at a hotel ahead of a meeting of OPEC oil ministers in Vienna, Austria, November 28, 2016.

As Iraq's government battles against terrorists, a few investors aren't entirely deterred from seeing opportunities in the war-weary country, which has yet to ascend to formal emerging market status. Some are taking a "long view" that calibrates inherent risks against potential opportunities. 

Iraq is gradually emerging from a brutal two-year economic downturn, coupled with a bloody conflict with ISIS conflict and still percolating civil strife that has wreaked havoc on its infrastructure and institutions. Last month, one investor told CNBC a full-fledged economic revival would take at least a decade to come to fruition.

Yet a 2015 State Department report noted Iraq's "long term potential" for U.S. investors, largely based on its status as the world's fifth largest repository of oil reserves and massive reconstruction and infrastructure development needs. "U.S. companies have opportunities to invest in security, energy, environment, construction, healthcare, agriculture, and infrastructure sectors," the report said, noting Iraq's voracious import demand needs.

Meanwhile, a few experts point to the oil rich country's vast natural resources, and a youthful and growing population that provides it with the manpower to achieve stability—eventually. Along with a growth rate predicted to top 7 percent this year, Iraq's underlying fundamentals make it a golden opportunity for investors brave enough to look beyond the sound and fury. So where might crafty investors place their faith—and funds?

"Two major themes will drive Iraq's revival over the immediate and long term," Ahmed Tabaqchali, chief investment officer of the Iraq Fund at Hong Kong-based Asia Frontier Capital told CNBC recently. The firm specializes in frontier and exotic investments.

Tabaqchali explained that rebuilding with the country's booming population in mind should help drive growth. 

"Wholesale infrastructure, careful rebuilding of the economy and reconstruction of ISIS-liberated areas are key," he told CNBC in an interview from London, as will consumer consumption. "Iraq's young population is hungry to catch up with the rest of the world after all the years of conflict," he added.

Phototreat | iStock/360 | Getty Images

As it stands, the stock market isn't an ideal place to park money, Tabaqchali added, citing figures that show less than 20 percent of Iraq's population holds an active bank account. Credit to the private sector currently stands at around 6.8 percent of 2014 growth, the fund manager said—which could benefit from the adoption of the "banking culture" that exists in more developed nations.

As the fog of war dissipates, telecommunications, mobile and Internet also stand to benefit,Tabaqchali added.

First, the war-torn country must guard its assets against terror and collateral damage, said Asha Mehta, lead portfolio manager of Acadian Asset Management, which holds around $70 billion under management) in developing market assets.

Currently, Iraq lacks a formal financial custodian that can hold funds. Without confidence that invested capital will be returned—and because Iraqi markets are generally illiquid—direct investment opportunities are limited for most investors. 

However, Mehta points to recent positive developments that can ease investor concerns, including a financial lifeline from the International Monetary Fund, rising commodity prices and strong growth. Just this week, the IMF completed a review of a more than $5 billion tranche of funding that will immediately free up around $618 million.

It all creates what Mehta called "bottom up opportunities …[in] a volatile market." The long-view requires not only patience, but a solid time horizon tied to real progresson the social front. 

"Returns may be sentiment driven, so even thinly traded markets such as Iraq have the potential to boast strong returns. For example, progress on the military front in Iraq could be a catalyst for market level returns," said Mehta.

http://www.cnbc.com/2016/12/11/how-some-investors-are-taking-the-long-view-of-iraq-despite-war.html

 

[YukonJohn]

Thanks DT, great article! Iraq is about to burst on the investment front!

[ChuckFinley]

DT thanks for sure. We are on board this train early and that puts us in great position.  

[calkid11]

Thank you Thugs 

[10 YEARS LATER]

Does being in this investment for nearly 14 years count as the LONG VIEW ?   

At the ready for popping Champagne Corks !!!!!

[pokerplayer]

1 hour ago, 10 YEARS LATER said:

Does being in this investment for nearly 14 years count as the LONG VIEW ?   

At the ready for popping Champagne Corks !!!!!

You and me both DoD, you and me both.

pp

[DrHow2]

https://www.yahoo.com/news/m/6a1fb47a-a0fa-312f-9e5d-9ab0616adcfb/iraq%26%2339%3Bs-future-is-so.html

 

This kind of article is what I like to read...

[DinarThug]

2 hours ago, DinarThug said:

 

How some investors are taking the 'long view' of Iraq despite war

 

Iraq's Oil Minister Jabar Ali al-Luaibi arrives at a meeting of OPEC oil ministers in Vienna, Austria, November 28, 2016.

 

2 hours ago, YukonJohn said:

Thanks DT, great article! Iraq is about to burst on the investment front!

The Future's So Bright - He's Gotta Wear Shades ! 

        

 

[Blitz]

 

 

World

Iraq's future is so bright some investors are wearing shades—and taking the 'long view'

Dawn Kissi 21 hours ago 

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As Iraq's government battles against terrorists, a few investors aren't entirely deterred from seeing opportunities in the war-weary country, which has yet to ascend to formal emerging market status. Some are taking a "long view" that calibrates inherent risks against potential opportunities.

Iraq is gradually emerging from a brutal two-year economic downturn, coupled with a bloody conflict with ISIS conflict and still percolating civil strife that has wreaked havoc on its infrastructure and institutions. Last month, one investor told CNBC a full-fledged economic revival would take at least a decade to come to fruition .

Yet a 2105 State Department report noted Iraq's "long term potential" for U.S. investors, largely based on its status as the world's fifth largest repository of oil reserves and massive reconstruction and infrastructure development needs. "U.S. companies have opportunities to invest in security, energy, environment, construction, healthcare, agriculture, and infrastructure sectors," the report said, noting Iraq's voracious import demand needs.

Meanwhile, a few experts point to the oil rich country's vast natural resources, and a youthful and growing population that provides it with the manpower to achieve stability—eventually. Along with a growth rate predicted to top 7 percent this year, Iraq's underlying fundamentals make it a golden opportunity for investors brave enough to look beyond the sound and fury. So where might crafty investors place their faith—and funds?

"Two major themes will drive Iraq's revival over the immediate and long term," Ahmed Tabaqchali, chief investment officer of the Iraq Fund at Hong Kong-based Asia Frontier Capital told CNBC recently. The firm specializes in frontier and exotic investments.

Tabaqchali explained that rebuilding with the country's booming population in mind should help drive growth.

"Wholesale infrastructure, careful rebuilding of the economy and reconstruction of ISIS-liberated areas are key," he told CNBC in an interview from London, as will consumer consumption. "Iraq's young population is hungry to catch up with the rest of the world after all the years of conflict," he added.

As it stands, the stock market isn't an ideal place to park money, Tabaqchali added, citing figures that show less than 20 percent of Iraq's population holds an active bank account. Credit to the private sector currently stands at around 6.8 percent of 2014 growth, the fund manager said—which could benefit from the adoption of the "banking culture" that exists in more developed nations.

As the fog of war dissipates, telecommunications, mobile and Internet also stand to benefit, Tabaqchali added.

First, the war-torn country must guard its assets against terror and collateral damage, said Asha Mehta, lead portfolio manager of Acadian Asset Management, which holds around $70 billion under management) in developing market assets.

Currently, Iraq lacks a formal financial custodian that can hold funds. Without confidence that invested capital will be returned—and because Iraqi markets are generally illiquid—direct investment opportunities are limited for most investors.

However, Mehta points to recent positive developments that can ease investor concerns, including a financial lifeline from the International Monetary Fund, rising commodity prices and strong growth. Just this week, the IMF completed a review of a more than $5 billion tranche of funding that will immediately free up around $618 million.

It all creates what Mehta called "bottom up opportunities …[in] a volatile market." The long-view requires not only patience, but a solid time horizon tied to real progress on the social front.

"Returns may be sentiment driven, so even thinly traded markets such as Iraq have the potential to boast strong returns. For example, progress on the military front in Iraq could be a catalyst for market level returns," said Mehta.

 

Comments (4)Comment Guidelines

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[DinarThug]

How some investors are taking the 'long view' of Iraq despite war

As Iraq's government battles against terrorists, a few investors aren't entirely deterred from seeing opportunities in the war-weary country, which has yet to ascend to formal emerging market status. Some are taking a "long view" that calibrates inherent risks against potential opportunities.

Iraq is gradually emerging from a brutal two-year economic downturn, coupled with a bloody conflict with ISIS conflict and still percolating civil strife that has wreaked havoc on its infrastructure and institutions. Last month, one investor told CNBC a full-fledged economic revival would take at least a decade to come to fruition.

Yet a 2105 State Department report noted Iraq's "long term potential"for U.S. investors, largely based on its status as the world's fifth largest repository of oil reserves and massive reconstruction and infrastructure development needs. "U.S. companies have opportunities to invest in security, energy, environment, construction, healthcare, agriculture, and infrastructure sectors," the report said, noting Iraq's voracious import demand needs.

Meanwhile, a few experts point to the oil rich country's vast natural resources, and a youthful and growing population that provides it with the manpower to achieve stability—eventually. Along with a growth rate predicted to top 7 percent this year, Iraq's underlying fundamentals make it a golden opportunity for investors brave enough to look beyond the sound and fury. So where might crafty investors place their faith—and funds?

"Two major themes will drive Iraq's revival over the immediate and long term," Ahmed Tabaqchali, chief investment officer of the Iraq Fund at Hong Kong-based Asia Frontier Capital told CNBC recently. The firm specializes in frontier and exotic investments.

Tabaqchali explained that rebuilding with the country's booming population in mind should help drive growth.

"Wholesale infrastructure, careful rebuilding of the economy and reconstruction of ISIS-liberated areas are key," he told CNBC in an interview from London, as will consumer consumption. "Iraq's young population is hungry to catch up with the rest of the world after all the years of conflict," he added.

As it stands, the stock market isn't an ideal place to park money, Tabaqchali added, citing figures that show less than 20 percent of Iraq's population holds an active bank account. Credit to the private sector currently stands at around 6.8 percent of 2014 growth, the fund manager said—which could benefit from the adoption of the "banking culture" that exists in more developed nations.

As the fog of war dissipates, telecommunications, mobile and Internet also stand to benefit, Tabaqchali added.

First, the war-torn country must guard its assets against terror and collateral damage, said Asha Mehta, lead portfolio manager of Acadian Asset Management, which holds around $70 billion under management) in developing market assets.

Currently, Iraq lacks a formal financial custodian that can hold funds. Without confidence that invested capital will be returned—and because Iraqi markets are generally illiquid—direct investment opportunities are limited for most investors.

However, Mehta points to recent positive developments that can ease investor concerns, including a financial lifeline from the International Monetary Fund, rising commodity prices and strong growth. Just this week, the IMF completed a review of a more than $5 billion tranche of funding that will immediately free up around $618 million.

It all creates what Mehta called "bottom up opportunities …[in] a volatile market." The long-view requires not only patience, but a solid time horizon tied to real progress on the social front.

"Returns may be sentiment driven, so even thinly traded markets such as Iraq have the potential to boast strong returns. For example, progress on the military front in Iraq could be a catalyst for market level returns," said Mehta.

http://www.cnbc.com/2016/12/11/how-some-investors-are-taking-the-long-view-of-iraq-despite-war.html

 

[siberian_shaddow]

Much appreciated Thugs, there setting up to go global.

[skeetdog]

Thanks DT...Hopefully, Buzzy was working on one of these project investments for our DV family this past week...

[billbill]

Thanks DT

[davis411]

16 hours ago, ChuckFinley said:

DT thanks for sure. We are on board this train early and that puts us in great position.  

god i hope so

i feel my train lost 4 wheels

ran out of fuel

 

[Kraidle]

14 hours ago, DinarThug said:

 

The Future's So Bright - He's Gotta Wear Shades ! 

        

 

As do we.

[tigergorzow]

DinarThug Thanks,  DV,  Foreign Investors know exactly what Iraq has to offer in Oil & Gas, natural resources as well as other BIG ticket opportunities.  You can bet they all are chopping at the bit to get in once the Liberation of Mosul is completed and monetary reforms are done.  Remember the article "10 times richer that Kuwait".    Iraq will definitely rise from the ashes IMHO in a BIG WAY!!  "Follow the money folks and it will lead us to the promised land of the RV / RI  IQD...   I'm certain Adam M has great investment opportunities Post RV in Iraq as well so we need this to happen ASAP!!

Keeping the faith!!

GO RV!!

 

Edited December 13, 2016 by tigergorzow