Foreign business in Iraq quadruples in 2011

[Munsch]

A customer left their USA Today at my business and I saw this article on the front page. I tried searching to see if anyone posted anything but did not find it. Sorry if it is a duplicate though.

http://www.usatoday.com/money/world/story/2011-12-28/foreign-business-quadruples-iraq-2011/52260544/1

U.S. investment and other business in Iraq has quadrupled this year despite concerns over violence and sectarian rivalry as the last American troops withdrew from Iraq.

U.S. companies reached deals worth $8.1 billion through Dec. 1, up from $2 billion last year, according to Dunia Frontier Consultants, which studies emerging markets.

The surge follows a number of years in which U.S. companies were fearful of entering Iraq and have lagged behind some European and regional countries.

STORY: Foreign investment begins to pour into Iraq

"The U.S. has lagged up to this point because of a perception almost more than anything else that it was a dangerous place, an unstable place," said Lionel Johnson of the U.S. Chamber of Commerce, which has worked to encourage American investment in Iraq.

"It's finally reached a tipping point," said Kyle Stelma, managing director of Dunia.

Iraq's oil industry is attracting U.S. and other foreign companies, and Iraq's government is spending billions of dollars to upgrade infrastructure, such as housing, roads and port facilities.

Iraq's infrastructure has been worn down by years of war. "It's important for foreign companies to invest," said Ayad Salman Yahya, managing director of the Al-Bilad Islamic Bank.

The government plans to build a subway in Baghdad and monorails linking some cities. Cranes dot the skyline of Baghdad, where a large mall is under construction, and city streets are clogged with late-model cars.

Hill International, a New Jersey-based construction management company, recently won a $3.3 million government contract to manage construction of $100 million, 30,000-seat sports arena in Anbar province, once one of Iraq's most violent regions.

Total foreign investment and business activity in Iraq has swelled to $70 billion, up from $42.7 billion last year, Dunia's preliminary statistics show.

Iraq looks stable in light of the upheavals in nearby countries, including Syria, Yemen and Egypt. "Our neighboring countries have problems," Yahya said.

Nevertheless, there are political risks, including rising tensions between Iraq's Shiite-dominated government and the Sunni minority, and terrorist attacks.

"There are many political issues remaining in Iraq," said Kyle McEneaney, Middle East chief at Ergo, a global intelligence and advisory firm. But he said those risks have been there for the past two years, as the number of U.S. troops declined.

"At the end of the day, the fundamental story is still quite compelling," McEneaney said.

Wisam Ahmed, a sales manager for a Dodge, Chrysler and Jeep dealer in Baghdad, said he expects to sell about 700 vehicles this year, up from 600 last year. The sales are all in cash, because car loans are almost unheard of in Iraq, and the new cars can cost up to $50,000.

Iraqis like the Grand Cherokee and Dodge Charger, he said. "They've had enough with the Korean and Japanese vehicles," Ahmed said.

[pchester]

To bye a new car at $50,000 dollars in cash,at the rate of the dinar,wonder how they get that pile of dinar to the dealership........GO R/V

[Carrello]

Hey Zig, one of your questions, regarding the car loans - dinar vs. dollar loans - is answered. There ain't any!

Thanks, Munsch. It is nice to see you around. Happy New Year!

Edited December 30, 2011 by Carrello

[John in Kuwait]

This is good news, It's just a matter of time. The people will get tired of the partisan BS and want what's best for Iraq.

[zigmeister]

Hey Zig, one of your questions, regarding the car loans - dinar vs. dollar loans - is answered. There ain't any!

Thanks, Munsch. It is nice to see you around. Happy New Year!

That was something I wondered and now I know. If there was an RV it would not effect any loans because there are none. It seems to me an RV at this time probably would not make anyone rich in Iraq.

[Stryker365]

To bye a new car at $50,000 dollars in cash,at the rate of the dinar,wonder how they get that pile of dinar to the dealership........GO R/V

There was an article out the other day that stated that they use USD to buy cars, houses and things like gold and dinars are only used for small purchases but we hope this will change soon.

That was something I wondered and now I know. If there was an RV it would not effect any loans because there are none. It seems to me an RV at this time probably would not make anyone rich in Iraq.

Your right zig, for our sake we hope a lot if not most of the big notes have made there way into vaults in the CBI by now.