MerchantBridge outlines changing investment landscape in Iraq

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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.

More good news for the future of Iraq

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.

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