The new Iraq: Changing investment landscape in Iraq

[TonyDownTheShore]

Tuesday, November 22, 2011

The New Iraq ~ MerchantBridge outlines changing investment landscape in Iraq

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Tuesday November 22, 2011

MerchantBridge outlines changing investment landscape in Iraq

MerchantBridge, the international private equity group with diverse investment interests operating from Iraq, Lebanon, Saudi Arabia and the United Kingdom, presents today ‘The New Iraq – Discovering Business 2012’.

The 3rd edition is published by Allurentis and is in association with the National Investment Commission and UK Trade & Investment (UKTI).

Major building blocks were put in place in 2010, whilst 2011 has been a year of continuation and stabilisation; MerchantBridge believes that 2012 will be a year of opportunities and financial rewards for Iraq.

To-date, MerchantBridge is the largest (non-oil) private investor in Iraq with investments of over US$1.5 billion in debt and equity since 2003, with a track record of over 40% IRR year on year.

Continues ...read more ..

Key highlights to note about the changing investment landscape in Iraq are:

• Iraq Stock Exchange: The Iraqi Stock Exchange (ISX) witnessed more than 43% growth and a 90% increase in liquidity in 2011. International investors were active traders in the market with net foreign trading volumes up more than 300 percent year on year to US$127.7 million in 2011, compared to US$38.4 million for 2010.

• Housing and Construction: Iraq announced a plan to allocate US$2.0 billion for the construction of housing units for low income households.

• Transport and Logistics: Despite being a major oil producer, the country currently has limited export capabilities; the government allocated US$2.3 billion for building a new floating oil terminal and the construction of single point mooring buoys.

• Power: The Ministry of Electricity have announced projects worth US$4.5 billion. Following suit has been Kurdistan, declaring its first IPP programme for the construction of power plants with capacity in excess of 6,000MW.

• Telecommunications: The telecom sector has been the centre of attention in recent months and will remain a key focus in 2012. Major drivers will be the successful IPOs of the three telecom operators and the tendering of a fourth license. Once listed, the companies could add more than US$4.0 billion in value to the ISX, providing additional liquidity.

• Banking: The central bank of Iraq issued new capital requirements for private banks, which will be required to raise more than US$2.5 billion in funds.

Mr. Eric le Blan, MerchantBridge Group Acting Chief Executive Officer, said today: “We believe in long term investment opportunities in Iraq, which are offering attractive double digit returns. Iraq has planted the seeds for local overall growth and economic development spanning from its major construction and infrastructure targets, banking sector improvements, oil & gas developments, transport upgrades to a fourth telecom license. Iraq is open to investors around the world. Our strategy is to engage with best in class investors and partner with them on entering the Iraq market".

Robin Ord-Smith, MVO, Director of UK Trade and Investment added: "British companies’ interest in the opportunities in Iraq has shown a sharp increase in recent months. Many have long understood the underlying, fundamental potential of a country with a large population and enormous hydrocarbon reserves. The improving security situation, ambitious development plans and large levels of investment are creating the conditions that will attract many more. This timely publication provides essential information and guidance for companies looking at the opportunities in Iraq".

Laura Curtis, Founder and Managing Director of Allurentis, concluded: "We are delighted to present ‘The New Iraq – Discovering Business 2012’, which is now established as the leading guide to doing business in Iraq. Our continued relationships with organisations and authorities such as MerchantBridge make the production of this guide possible”.

About MerchantBridge:

MerchantBridge is an international private equity group established over a decade ago by a group of industry veterans focused on the Middle East and Europe regions. It is authorised and regulated by the FSA in London and also has offices in Iraq, Saudi Arabia and Lebanon.

MerchantBridge also offers corporate finance advisory services in select situations to multinational corporations and governments including having been the advisor to the UK Ministry of Defence on their offset program in Saudi Arabia. It specialises in identifying opportunities across the MENA region and Europe and executing on complex, cross-border opportunities. It completed eight private equity transactions in Europe and the Middle East over the past few years with US$400 million in committed capital and investments with Enterprise Value of over US$$3 billion.

In Iraq, MerchantBridge is already engaged in telecommunications (“Asiacell”), commercial banking (“Mansour Bank”) and cement production (“Karbala Cement Manufacturing Ltd.”).

http://www.bi-me.com/main.php?id=55397&t=1&c=33&cg=4&mset=

[Alex38]

Nice!

[Blu Collar Guru]

VERY NICE INDEED

[oneremedy]

http://www.iraq-businessnews.com/media/The_New_Iraq_2011_Discovering_Business.pdf?d9c344

[CrappieShark]

Notice they all fail to mention Iraqs outstanding debt to investors who have purchased dinar and gave them dollars to spend while they were in desperate need of a world traded currency. WTO acceptance is the big thing as Iraqi dinar is not a recognized currency until the WTO and the World bank accepts them. They could say their dinar is worth 20.00 to the USD and it would mean nothing without being accepted by the WTO.

[JWJW11]

Man Im sure Turkey and everyother country who rd their currency was saying the same stuff!!! LMAOO

NOT!!!

Get ready DVs the ride is almost over!