Popular Post tjmunson Posted May 25, 2011 Popular Post Report Share Posted May 25, 2011 Wednesday, May 25, 2011 Iraq opens its doors for business With growth forecast to hit 11.5 per cent this year, investors are finally looking beyond the oil sector. As populations across the Middle East demand democracy and freedom, Iraq – for so long the region's horror story – looks to be ahead of the game. The Arab Spring that has swept Iraq's neighbours has coincided with a new-found sense of order in the country under the coalition government. That relative stability offers the prospect of greater prosperity in the region's sleeping giant. Increased oil production and prices and deals with international oil companies prompted the International Monetary Fund to up its 2011 growth forecast to 11.5 per cent from 7.9 per cent with no let-up next year. That rate of growth puts Iraq ahead of the famous Bric giants – Brazil, Russia, India and China – and ranks it with plenty of smaller emerging markets courted by Western companies. What's more, Iraq has a young population of potential consumers, huge infrastructure needs and 115 billion barrels of oil to pay for them. Roads, ports, airports, water treatment, housing – the list of planned upgrades after years of neglect is huge. Investment spending for the next three years amounts to an estimated $186bn on 2,700 projects. And the country's relative stability and potential growth offer big opportunities to British companies that get in early to build relationships ahead of their competitors. That was the message at yesterday's Iraq Britain Business Council summit in London, where more than 200 business people and professionals gathered at the Mansion House. Hussein al-Urzi, chairman of the Trade Bank of Iraq (TBI), says: "Our democracy is new and is taking root in the sense that if someone is unhappy with the government, they don't say there should be a military coup – and this is very important for us." TBI was set up soon after the 2003 invasion to finance trade and investment. The bank recorded record profits of $361m for 2010 as increased private sector investment boosted loan demand. Mr Urzi says the government now realises it needs a blossoming private sector to finance, build and operate the infrastructure and services to fulfil its potential as a regional commercial hub. The Kurdish region is an example of how the private sector can step in. While the rest of the country struggles on with electricity operating five or six hours a day, the private Kurdish energy company has electricity flowing almost 24 hours a day. The major British success story in Iraq is BP's deal, signed in late 2009, to develop the giant Rumaila oil field with its 16 billion-barrel capacity. Along with China's CNPC, BP will pump $15bn into the field over the next 20 years to boost production. Other big UK companies operating in Iraq include the banks Standard Chartered and HSBC. BP's deal capitalises on Iraq's greatest asset – energy. The country's plans to capitalise on its huge oil and gas reserves will dominate Iraq's growth story and present big opportunities for Britain's energy sector as well as the bankers, lawyers and consultants that work on such projects. But the conference heard that oil can be a danger as well as a benefit by leaving an economy unbalanced. Andrew Nevin, a strategy consultant at PwC, says: "The size of Iraq's economy should be between $500bn and $1 trillion in 10 to 15 years. The aspiration is there and it's attainable. "Countries need to think carefully about their economies. If you are wholly dependent on one commodity – oil – you feel good at the moment because prices are high but it creates challenges in creating a healthy economy and society." Mr Nevin and others at the conference argue that agriculture (wheat production almost doubled last year), mining, and services – from restaurants to the professions – should all be on Iraq's list of industries to encourage. Mr Urzi says tourism could be a major industry because Iraq has thousands of historic sites. However, despite the country's improved prospects, it faces problems. A key factor in the renewed stability is improved security. Compared with three or four years ago, civilian casualties are down 90 per cent. But the threat continues and last year 20 central bank staff and 26 TBI employees were killed in separate attacks. The financial system also remains underdeveloped – only about 15 per cent of Iraqis have bank accounts and staff at big international companies are still paid in cash. Access to capital markets for funding major projects is still negligible and there is no significant mortgage lending to help finance the two million homes Iraq needs to to plug a housing gap. Iraq is also still rife with bribery and bureaucracy. It ranks 153rd out of 183 countries in the world for ease of doing business and is near the bottom in the rankings for corruption. Chris Frost, a consultant at PwC, says: "For foreign companies, there are still enormous challenges but the Iraqis are tackling them. They need regulation, legislation and a rule of law that works. Dealing with the bureaucracy of government requires enormous patience but I'm hearing that if you are patient the system works and you can get things done quicker than you'd think." But if companies smaller than BP and the big banks want to tap into Iraq, they cannot afford to wait until everything is sorted out. There are plenty of German, Scandinavian and French businesses there putting down roots already. An executive from a large UK-based multinational warned the conference: "Many of your international competitors are in Iraq doing business and Britain is in danger of being left behind if it isn't in Iraq." http://www.independent.co.uk/news/business/news/iraq-opens-its-doors-for-business-2288557.html 25 Link to comment Share on other sites More sharing options...
Tubbs Posted May 25, 2011 Report Share Posted May 25, 2011 Nice find... gave you a + Good looking after Go R V Link to comment Share on other sites More sharing options...
Texhad Posted May 25, 2011 Report Share Posted May 25, 2011 Thanks for the post. Go RV! Blessings, Texhad 1 Link to comment Share on other sites More sharing options...
crookedhaylo Posted May 25, 2011 Report Share Posted May 25, 2011 Nice post thanks! Link to comment Share on other sites More sharing options...
JCOUTEE Posted May 25, 2011 Report Share Posted May 25, 2011 Thanks for the Post !!!!!!!!!!! Link to comment Share on other sites More sharing options...
finderladi Posted May 25, 2011 Report Share Posted May 25, 2011 thanks for the post, good article Link to comment Share on other sites More sharing options...
sandfly Posted May 25, 2011 Report Share Posted May 25, 2011 good going, let it roll on home Link to comment Share on other sites More sharing options...
zaborniake Posted May 25, 2011 Report Share Posted May 25, 2011 This country has so much upside. If they could just RV and get into the WTO the possibilities are endless. 3 Link to comment Share on other sites More sharing options...
aaanth Posted May 25, 2011 Report Share Posted May 25, 2011 wow!!! 11.5%... that's almost garrish and gaudy, to out strip CHINA??? OMG! well, TJ, at least we know we ain't messin 'round with no chump change... Now just give us our money and we'd be glad to spend it for you. and, oh yeah... US! 1 Link to comment Share on other sites More sharing options...
thatoneguy Posted May 25, 2011 Report Share Posted May 25, 2011 http://youtu.be/fiWUPHj2V2k Link to comment Share on other sites More sharing options...
easyrider Posted May 25, 2011 Report Share Posted May 25, 2011 Wow great post TJ. Man, all the positive news is getting me soooooooo excited and i just can't hide it lol Iraq has major potential as someone said above major upside to this country lets get it done!!! make your country the wealthiest in the world Iraq you can dooooooooooooo it. 1 Link to comment Share on other sites More sharing options...
Bigchclte Posted May 25, 2011 Report Share Posted May 25, 2011 Excellent post! Thank you... Link to comment Share on other sites More sharing options...
kwg Posted May 25, 2011 Report Share Posted May 25, 2011 TJ you get some good stuff!!!!!!!!!!! That was a good one :rolleyes: Link to comment Share on other sites More sharing options...
eatmoney Posted May 25, 2011 Report Share Posted May 25, 2011 k Link to comment Share on other sites More sharing options...
keepmwlknfny Posted May 25, 2011 Report Share Posted May 25, 2011 I hope everyone reads this article.....this is great news for Iraqs economy.....and it also points out that foriegn investors are NOT worried about Iraqs currency and that anything that happens with the dinar, good or bad, is NOT going to influence investment either way.....these companies are 1, either already jumping in head first, or 2, are waiting for the stabillity, and security issues to improve from what they are......foriegn investors are itching to get inside Iraq now (yes even with toilet paper for currency cause guess what? It doesnt matter!) The processes are slow and like the artivle said, its not exactly the easiest country to do business in, and the ranking of corruption is still quite high.....those are factors that matter when it comes down to foriegn investment.....Iraq could RD, RV, or leave the value where it is now for god knows how long and it wouldnt matter one bit.....STABILITY and SECURITY are major issues...... 7 Link to comment Share on other sites More sharing options...
familyguy Posted May 25, 2011 Report Share Posted May 25, 2011 NICE post TJ +!. looks like everyone's lining up to get there piece. GO RV Link to comment Share on other sites More sharing options...
AoK Posted May 25, 2011 Report Share Posted May 25, 2011 Thanks TJ! Very encouraging news!! As Keep said, the fact that foreign investors are lined up and clamoring to do business in Iraq indicates they're not too worried about Iraq's currency. I'd like to think this indicates they're NOT goin to LOP, but we'll see.... great find BTW and Go RV!!!!!! Link to comment Share on other sites More sharing options...
2fast4u2c Posted May 25, 2011 Report Share Posted May 25, 2011 News like this is all good news for "us". We are investors in Iraq as well. GO RV! 1 Link to comment Share on other sites More sharing options...
wingsofhope Posted May 25, 2011 Report Share Posted May 25, 2011 Great Information TJ, thanks Link to comment Share on other sites More sharing options...
blessedman Posted May 25, 2011 Report Share Posted May 25, 2011 I hope everyone reads this article.....this is great news for Iraqs economy.....and it also points out that foriegn investors are NOT worried about Iraqs currency and that anything that happens with the dinar, good or bad, is NOT going to influence investment either way.....these companies are 1, either already jumping in head first, or 2, are waiting for the stabillity, and security issues to improve from what they are......foriegn investors are itching to get inside Iraq now (yes even with toilet paper for currency cause guess what? It doesnt matter!) The processes are slow and like the artivle said, its not exactly the easiest country to do business in, and the ranking of corruption is still quite high.....those are factors that matter when it comes down to foriegn investment.....Iraq could RD, RV, or leave the value where it is now for god knows how long and it wouldnt matter one bit.....STABILITY and SECURITY are major issues...... Well I can hardly believe it but I totally agree with keep that the security and stability issues are paramount to not only to investment and business opportunities but also as been stated by Shabby time and again as some of the main factors for RV. He has been very consistent about this, thats why RV doesn't look to promising as of yet, unless there is enough outside pressure to do so..................................The Plan.............still skeptical...................sure hope it happens soon. Link to comment Share on other sites More sharing options...
Yabadabado Posted May 25, 2011 Report Share Posted May 25, 2011 Stability and Security... very nice... Link to comment Share on other sites More sharing options...
Darin Posted May 25, 2011 Report Share Posted May 25, 2011 In other news.... M is claiming that political & security is quite stable. Interesting...... Now we are hearing about foreign investors putting their hands in the honey pot... K98 put up a nice article of several countries investing into their country. UAE - oil refinery Iran - helping out with electricity Germans, and other countries as well. A lot of foreign investors pouring in. 30 million people for population, and most of them are younger. Wait til that age group booms into a work class people. They'll have improved the private sector. R/D, RV, or nothing at all... There is $ to be made by the simple minded speculators like ourselves. The ISX is one to play with...... Find a nice stock to invest in undervalued and has long-term potential & just wait..... Link to comment Share on other sites More sharing options...
wildinar Posted May 25, 2011 Report Share Posted May 25, 2011 Great news Link to comment Share on other sites More sharing options...
Lilalbertus Posted May 25, 2011 Report Share Posted May 25, 2011 RV this thing already, I have a world travel Link to comment Share on other sites More sharing options...
csradave Posted May 25, 2011 Report Share Posted May 25, 2011 Great post. BTW anyone getting cold feet and want out, let me know. Link to comment Share on other sites More sharing options...
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