EUROMED & GCC B2B MARKETPLACE

2010-05-14T09:03:00.008+02:00

BOSTON - MIT is stepping up its research into solar energy, hoping to finally make sunlight an affordable, efficient p…http://www.boston.com/news...

Wartsila wins contracts for Iraqi floating power stations | News | MEED http://www.meed.com/sectors...

Egyptian wind-energy ambitions zoom thanks to $430m loan - Wind - Renewable energy news - Recharge - wind, solar, biof…http://www.rechargenews.com/energy...

Le Plan solaire marocain, un projet de taille à positionner le Royaume comme le leader de la région http://www.entreprendre.ma/Le-Plan...

Photovoltaique : Etapes-clefs pour réaaliser les projets, par FIDAL avocats http://www.linkedin.com/osview...

Le Maroc élu président de l'Association méditerranéenne des agences nationales de maîtrise de l'Energie http://www.map.ma/fr...

Union pour la Méditerranée, le For'UM à Marseille, 27 Mai, 2010- Ministère du Développement durable"

Building Technologies Program: Building E2 News http://apps1.eere.energy.gov/buildin...

EU2010 - L'Espagne mise sur la coopération en matière de connexions électriques entre le nord et le sud de la Méditerr…http://www.eu2010.es/fr...

ENPI - Info Centre - Your Gateway to the ENPI http://www.enpi-info.eu/mainmed...

Le Plan Solaire Marocain: pétrole vert du Royaume http://www.atlasinfo.fr/Le-Plan...

FEMIP mise sur 20 nouveaux gigawatts d’énergies renouvelables d’ici 2020 http://www.econostrum.info/La-FEMI...

Abengoa switches on new 50-MW solar thermal plant in Spain http://www.ecoseed.org/en...

Lafarge launches $200 mln Iraq plant renovation http://www.linkedin.com/groupAn...

Approach to North African solar schemes slammed as 'chaotic' - Solar - Renewable energy news - Recharge - wind, solar,…http://www.rechargenews.com/energy...

"EC launches €35 million call for projects that turn environmental challenges into business opportunities" ( http://ec.europa.eu/environ... )

Véhicules propres au Salon de Genève 2010 : bilan et comparatif des voitures hybrides et électriques [Suisse] - http://www.bulletins-electroni...

Organisé en partenariat avec la CCI Marseille Provence, le ministère de l’Economie, de l’Industrie et de l’Emploi, et…http://www.for-um.org/

"Eurazeo launches €500m fund targeting French SMEs, makes €50m solar investment" ( http://www.altassets.com/private... )

Majid Al Futtaim Properties to invest US$3.5 billion in four new shopping malls - http://www.bi-me.com/main...

"Paris spotlight on cleantech innovations of the next decade | Cleantech Group" ( http://bit.ly/bed5f9 )

Promotion de l'efficacité énergétique et des énergies renouvelables PlaNet Finance et ses partenaires lancent, av…http://lnkd.in/cNH-fd

Maroc : don japonais de 7,4 millions de dollars pour une centrale solaire | Réseau international d'accès aux énergies …http://lnkd.in/HQKBfd

Construction d’une ville nouvelle pilote (Ch’rafat-région de Tanger) à faible consommation d’énergie. http://lnkd.in/zjY3Ad

Italy's Edison promotes cheaper version of Nabucco" ( http://www.euractiv.com/en... )

Iraq launches $1bn Wasit tourist city http://www.ameinfo.com/229364...

Merchant Bridge and Lafarge to tender $150m Karbala cement project http://industry.gov.iq/news...

Turkish officials aim to have 20 gigawatts (GW) of installed wind capacity by 2023 – up from the 1GW in the ground tod…http://www.rechargenews.com/energy...

The North African state is courting Masdar and three unnamed European companies in a bid to secure funding and technic…http://www.arabianbusiness.com/586029-...

134 000 emplois seront créés d'ici 2020 dans la filière des énergies renouvelables http://www.enerzine.com/1...

"Conférence Internationale du réseau mondial Global Intelligence Alliance du 7 au 9 juin 2010 à

Energies Alternatives en Méditerranée: Source : CCFA n°38, Mars 2010Les projets d’énergie alternative sur les rive... http://soniabessamra.blogspot.com/2010...

"Eolien : Théolia parie sur le Maroc" ( http://www.usinenouvelle.com/article... )

"Activists release climate change report" les climato-sceptiques peuvent se recoucher ! ( http://www.upstreamonline.com/live... )

"the Mediterranean Solar Plan on Google Map" ( http://www.medemip.eu/calc... )

USTDA / Morocco: RFQ MOROCCO: CLEAN AND RENEWABLE ENERGY DEFINITIONAL MISSION https://www.fbo.gov/index...

RT @CGEM: Le Président de la CGEM, M. Mohamed HORANI lance son blog www.oser-innover.com " Véritable expérience communicationnelle "

Le Maroc sera bientôt la « deuxième Roumanie » du constructeur Renault http://www.lesechos.fr/info...

The Mediterranean Energy Scene: What Now? What Next? Europe's World: http://www.europesworld.org/NewEngl... #MED #Energy

"GCC electricity grid will be operational by 2012" ( http://www.zawya.com/story... )

15 Avril depuis Twitter - Commentaire - Partager - Modifier

"When Your Voicemails and Emails Go Unanswered, What Should You Do?" ( http://blogs.hbr.org/bregman... )

"COEXEL" plateforme de veille et Intelligence économique pour les secteurs innovants ( http://www.coexel.com/MainPag... )

Livre Blanc sur les Investissements français en Turquie http://www.slideshare.net/soniabe...

"North Africa and Middle East Solar Opportunities booming in 2010" ( http://social.csptoday.com/pr... )

"World's largest solar project set to gain new partners" ( http://www.euractiv.com/en... )

Blue Ocean Strategy "A Different Way to Look at Law Firm Strategy" ( http://www.slaw.ca/2010... )

Spin in : "Comment Google rachète les bonnes idées de ses salariés" ( http://www.lexpansion.com/economi... )

Energies renouvelables et nouvelles filières, comment présenter une offre institutionnelle différenciée pour pénétrer de nouveaux marchés?

"Photovoltaïque : les agriculteurs sont mieux lotis" ( http://www.territorial.fr/PAR_TPL... )

"Photovoltaïque : la France atteint la 7ème place mondiale" ( http://www.batiactu.com/edito... )

Le Pnud s'appuie sur la diaspora libanaise pour financer des projets de développement "Live Lebanon" ( http://www.livelebanon.net/Templat... )

"EDF EN et FIRST SOLAR : Bientôt la construction de la plus grande usine de panneaux solaires en France" ( http://www.developpement-durab... )

@solarfeeds Israel, Egypt May Collaborate on Major Solar Energy Project http://www.solarfeeds.com/getsola...

"Solar project Desertec plans to add five partners" ( http://af.reuters.com/article... )

"Rapport de la mission d’identification pour le plan solaire méditerranéen" ( http://www.eurosfaire.prd.fr/news... )

"UKTI Today: Scotland welcomes major biotech venture Stemgent, from San Diego" ( http://www.ukinvest.gov.uk/OurWorl... )

"Friends of supergrid" is the future electricity system to allow Europe transition to sustainability" ( http://www.friendsofthesupergrid.eu/ )

"Friends of a pan-European supergrid launch project | Cleantech Group" ( http://cleantech.com/news... )

"Interconnectors: Second batch of 4-billion-euro package goes to 43 pipeline and electricity projects" ( http://europa.eu/rapid... )

to follow "Tynt Insight » See What’s Copied" ( http://www1.tynt.com/see-wha... )

Excellente initiative : Geo-targeted messaging with government agencies and organizations through "Nixle" ( http://www.nixle.com/governm... )

Capacity of Solar PV in Italy has topped one gigawatt, making it Europe's second-biggest market after Germany

"Solar Conference: How to finance, develop and build utility scale solar projects in North Africa and Middle East" ( http://www.newsolartoday.com/solar-c... )

Green business BFM: pour dooz.com, Financités (Planet Finance) apporte des financements aux TPE

"More diligence and less capital coming for startups (and their investors)" ( http://venturehacks.com/article... )

excellente initiative US "Create jobs in US, get a green card! The StartUp Visa Act of 2010" ( http://business.rediff.com/special... )

"Sequoia Solar hires three execs" ( http://www.bizjournals.com/sanfran... )

"Winning Online is About Serving Your Audience, not Impressions | Nielsen Wire" ( http://blog.nielsen.com/nielsen... )

"Investissement : Casainvest.ma, un portail très visité" ( http://www.lematin.ma/Actuali... )

"Le siège de l'UpM ouvre ses portes le 4 mars à Barcelone" ( http://www.econostrum.info/Le-sieg... )

"Impregilo awarded $387m contract for Libyan conference centre | News | MEED" ( http://www.meed.com/3005619... )

via @huffingtonpost: Bid Farewell to Nuclear Arms http://www.huffingtonpost.com/her-maj...

"Twitter unveils advertising system" ( http://www.ft.com/cms... )

Fwg...Expansion of Majid Al Futtaim group in the EMEA region

"Solaire : AREVA acquiert la société américaine Ausra | Business Wire" ( http://www.businesswire.com/portal... )

ConstructionWeekOnline.com provides free access to the latest publicly available tender listings from across the Gulf …http://www.constructionweekonline.com/...

"List of French Companies in China - La France: Export | XING" ( https://www.xing.com/net... )

"The Top Angels in Tech - BusinessWeek" ( http://bwnt.businessweek.com/interac... )

Union for the Mediterranean sets priority areas for regional cooperation. Jordan Times: http://www.jordantimes.com/... #UPM

Réseau électrique calif0rnien: Quand le solaire se connecte au Smart Grid" ( http://www.bulletins-electroni... )

"L’Union pour la Méditerranée en forum à Marseille" ( http://www.ccimp.com/ccimp... )

"Chinese turbine suppliers burst into top five" ( http://www.rechargenews.com/busines... )

"Iraq invites foreign firms for $50 bln housing plan" ( http://www.arabtimesonline.com/NewsDet... )

"Classe Export Magazine - Les CCI internationales veulent s'affirmer à l'export" ( http://www.classe-export.com/vdoc... )

"Le projet Transgreen va t'il concurrencer Désertec ? < rel="nofollow" href="http://bit.ly/aWU5ep" title="http://www.enerzine.com/1/9447+le-projet-transgreen-va-til-concurrencer-desertec+.html">http://www.enerzine.com/1... )

"Veolia cherche des start-up françaises des cleantech| GreenUnivers" ( http://bit.ly/dcCgaE )

"'Kurdistan ready for oil exports" ( http://bit.ly/cwbWLJ )

" Solaire : premières Journées collaboratives du pôle Tenerrdis" ( http://bit.ly/cHsO8t )

"Le marché européen des quotas de CO2 de nouveau secoué par un scandale" ( http://bit.ly/chTbI9 )

Excellent idea "Containers to Clinics: Out of the Box Healthcare" ( http://bit.ly/8ZTZg1 )

Solar energy opportunity in an ecocity Egypt: looking for promoter/investors

un nouveau moteur de recherche plus intelligent que Google ( http://bit.ly/aljTvC )

"ARPA-e financerait une troisième vague de projets pour un montant de $100 millions" ( http://arpa-e.energy.gov/NewsMed... )

"Nord Stream which will pipe Siberian gas to Europe under the Baltic Sea closes in on loan" ( http://www.upstreamonline.com/live... )

"Eolien : Succès croisés pour des entreprises du Club ADEME International en Méditerranée " ( http://www.newspress.fr/Communi... )

France / Italie "Investing and living abroad» 1er Observatoire BNP Paribas International Buyers http://www.bnpparibas-pf.com/medias...

"Israel to Set Up Feed-in Tariff, European Bank to Invest €100M in Israeli Ashalim solar-power project" ( http://www.renewableenergyworld.com/rea... )

"Dix-sept projets majeurs à travers l'Hexagone - Les Echos.fr" ( http://www.lesechos.fr/journal... )

Appel à la création d'un réseau euro-méditerranéen des journalistes (conférence) http://www.midipress.com/2010...

"French multinational AREVA buying CSP player Ausra - Solar - Renewable energy news" ( http://www.rechargenews.com/energy... )

"Anne-Marie Idrac, The French Minister Of State For Foreign Trade At VINCENT Industrie" ( http://solarpv.tv/watch... )

"Installations photovoltaïques innovantes 2010 - Région Bretagne, appel à projets" ( http://www.bretagne.fr/interne... )

"Energies renouvelables : l'Imeder (Perpignan) prospecte le pourtour méditerranéen" ( http://lesinfosvertes.hautetfort.com/archive... )

"Abu Dhabi sovereign wealth fund takes off with Gatwick stake" ( http://www.altassets.com/private... )

Morocco: The World Bank Approves a New Strategy Which Strengthens its Partnership with the Kingdom of Morocco and Commits US 200 Million Dollars to Expand Access to Financial Services in the Country & ensure environmental sustainability in the context of a changing climate - http://www.semide.net/themati...

"Region embracing solar energy" ( http://www.meed.com/supplem... )

"Voile - Odyssea présenté aux conseillers de l'Union pour la Méditerranée" ( http://www.lindependant.com/article... )

"Deutsche Bank, Masdar cleantech fund reaches $265m first close" ( http://www.altassets.com/private... )

"Morocco to take bids for first 500MW Saharan CSP plant - Solar" ( http://www.rechargenews.com/energy... )

"En 2009, un festival d'investissements Sud-Sud, par Joël Ruet" ( http://www.lemonde.fr/opinion... )

CloudShare Raises $10MM Series B Funding from Sequoia Capital, Gemini Capital, and Charles River Ventures" ( http://techstartups.blogspot.com/2009... )

Exemple du photovoltaique : Etapes-clefs pour realiser les projets

2010-05-13T18:22:00.001+02:00

Exemple du photovoltaique : Etapes-clefs pour realiser les projets

View more presentations from PARIS.

Projet intégré de production solaire Maroc

2010-05-13T18:21:00.001+02:00

Projet intégré de production solaire Maroc

View more presentations from PARIS.

$150 billion needed to tackle climate change by 2020

2009-11-16T07:05:00.002+01:00

A key figure to focus on is $150 billion. That's the amount of investment developing countries will need each year by 2020 to tackle climate change, according to the European Union. Under proposals still being worked out, money would come from both (mostly Western) public coffers and the private sector (tentatively under an expanded version of the Clean Development Mechanism that provides economic incentives for companies to invest in emerging economies). Billions more will be spent in developed countries to cut carbon output.

If countries agree to the $150 billion goal, it could open up new opportunities for business. For one, existing plans for renewable energy generation in emerging economies, particularly in China and India, may get a shot in the arm. But the money wouldn't just focus on green energy. Agriculture, water management, and energy efficiency -- to name a few -- could also fall under the financial program. Ancillary industries, such as project management and carbon reporting, may similarly become sought after services.

Iraq: Turkey to be major outlets for gas exports

2009-10-05T13:07:00.001+02:00

22 septembre 2009

(MENAFN) A spokesman for Iraq's Oil Ministry said that Turkey would be one of the major outlets for Iraqi gas exports in the future, once local needs are covered, Aswat Al Iraq reported.

He said that after Iraq's gas output reaches the export stage, Turkey is expected to be a major outlet through the Nabucco pipeline to Europe, and the joint Arab gas pipeline.

The spokesman said that Iraq is planning to boost oil production and accordingly reflect on its gas output in the different oilfields, such as the Akkas oilfield or the ones in the province of Basra.

Turkey's Minister of Energy & Natural Resources, Taner Yildiz, said earlier that his country and Iraq have gone through discussions regarding the potential signing of a memorandum of understanding (MoU) to export Iraqi natural gas to Europe via the Turkish territories through the Nabucco pipeline whose investments reaches $11.6 billion.

The Minister noted that the pipeline network is backed by several European Union (EU) countries and the US. The pipeline is expected to carry gas from the Caspian Sea and the Middle East to central Europe, in line with plans of curbing dependence on Russia by the year 2014.

Turkey, Iraq in extensive cooperation talks

2009-10-05T12:55:00.002+02:00

Senior ministers from Turkey and Iraq met here Thursday for two-day talks aimed at boosting cooperation in a wide range of areas, mainly in the economic field.

Turkish Foreign Minister Ahmet Davutoglu hailed the meeting as "a new model of partnership" between the two neighbours, whose ties have often been troubled by separatist Kurdish rebels taking refuge in the mountains of northern Iraq.

"The objective is to secure genuine economic integration on the highest possible level between our countries," Davutoglu said.

"The projects that we are going to develop will link Basra and Edirne," he said referring to the southern Iraqi city and Turkey's westernmost province.

His counterpart Hoshyar Zebari, who led the Iraqi delegation, pledged to boost cooperation "in all fields ... security, economics, energy, water and health."

The meeting was meant to prepare the ground for a visit to Baghdad by Turkish Prime Minister Recep Tayyip Erdogan, planned for October, during which the two sides are expected to launch a series of joint projects.

The two countries' ministers of the interior, foreign trade, energy, construction, health, transport, agriculture and environment were taking part in the talks.

Turkish-Iraqi ties have improved since last year after Baghdad and the Iraqi Kurds pledged to end the safe haven Kurdish rebels enjoy in northern Iraq, setting up a three-way commission, including the United States, to deal with the problem.

Later Thursday, Davutoglu and Zebari were to be joined by Syrian Foreign Minister Walid Muallem and Arab League Secretary General Amr Mussa for talks aimed at defusing simmering tensions between Baghdad and Damascus.

Turkey has been acting as a peacebroker after the neighbours' tit-for-tit recall of envoys last month, six days after massive bomb attacks in Baghdad whose masterminds, Iraq says, are harboured in Syria.

Syrian President Bashar al-Assad had separate talks with Erdogan in Istanbul Wednesday.

Iraq says it has evidence backing allegations that militants based in Syria orchestrated the August 19 truck bombings that killed 95 people and wounded 600 at the finance and foreign ministries in Baghdad.

The flare-up threw into disarray extensive efforts in the past year to boost ties between the countries, which had been weak under Iraqi dictator Saddam Hussein and his Baathist rule but had recently been improving.

2009-09-06T08:54:00.000+02:00

SUMMARY OF PROCEDURES AND COSTS FOR SETTING UP A BUSINESS IN IRAQ

STANDARDIZED COMPANY

Legal Form: Private Limited Liability Company

Minimum Capital Requirement: 2,000,000 ID

City: Baghdad

This table summarizes the procedures and costs associated with setting up a business in Iraq.

Registration Requirements for setting up a company
No:	Procedure	Time to complete	Cost to complete
1	Search for a company name; obtain a name reservation letter from the Baghdad Chamber of Commerce	2 days	ID 350,000
2	Hire a lawyer to draft articles of association	1 days	about ID 900,000
3	Deposit initial capital at commercial bank and obtain confirmation receipt	2 days	ID 5,000
4	File for registration at the Commercial Registry	14 days	ID 250,000 - 350,000
5	Advertise incorporation notice in the newspaper	3 days	USD 70
6	Make company seal	2 days	ID 20,000
7	Obtain registration certificate	1 days	included in proc. 4
8	Report to tax authority to establish tax registration	2 days	no charge
9	Legalize accounting books	2 days	USD 150
10	Register employees for social security	3 days	about ID 20,000
11	Apply for a trade license	30 – 60 days	ID 200,000

Canada SNC-Lavalin, URUK shortlisted for Iraq deals

2009-09-04T05:39:00.001+02:00

BAGHDAD, Sept 3 (Reuters) - Canada's SNC-Lavalin Group Inc. and Iraqi-owned URUK Engineering Services have been shortlisted for $255 million in contracts to install gas turbines in three power stations, an Iraqi official said.

Laith al-Mamury, the head of the investments and contracts office in the Iraqi Electricity Ministry, said SNC was a finalist for contracts to install the turbines in two of the three sites. Dubai-based URUK was shortlisted for one site.

"We have recommended these two companies to the cabinet and we are waiting for approval," Mamury told Reuters on Thursday.

Mamury said the three sites would produce 660 MW of power.

The ministry, starved of resources this year after tumbling oil prices forced Iraq to slash its 2009 budget three times, had $100 million of the money needed, and would divide that up among the three sites for start-up costs.

The balance -- $155 million -- would be funded in the 2010 budget, Mamury said.

The gas turbines being installed were delivered by General Electric under an earlier contract. (Reporting by Aseel Kami; Editing by Michael Christie)

Deutsche Bahn to Rebuild Iraqi Rail Network

2009-09-04T05:36:00.002+02:00

Tuesday, June 23rd, 2009

Germany’s rail operator Deutsche Bahn wants to help rebuild Iraq’s rail network. CEO Rüdiger Grube aims to draw up an initial agreement with the Iraqi Transport Minister later this week.

Deutsche Bahn, which runs Germany’s railway network, has set its sights on rebuilding the Iraqi railways. Deutsche Bahn’s Chief Executive Rüdiger Grube is meeting with Iraqi Transport Minister Amir Abdul-Jabar later this week to seal an initial agreement. The company is particulary interested in working to rebuild the country’s freight train network and is hoping to operate it later with Iraqi partners.

There are still no details of the value of the investment planned nor the scale of the project.

Until now, talks between Deutsche Bahn and Iraq have remained highly secretive. The company’s former boss Hartmut Mehdorn first sent reprepresentative to Iraq a year ago to evaluate the business opportunites in the country.

Germany has a long history of railway building in the region. More than a century ago, Kaiser Wilhelm II struck a deal with the Ottoman Empire to build the Baghdad railway with finance from Deutsche Bank.

Last year, Germany and Iraq signed a bilateral investment agreement designed to boost business links between the two countries. The deal was said to be the first of its kind following the 2003 US-led invasion of the country.

At the time, German Economy Minster Michael Glos said: “With backing by investment guarantees from the federal government … German firms can in future make an important contribution to the reconstruction of Iraq.”

– jas, SPIEGEL and wire reports

IRAQ: In Need Of Infrastructure Investment

2009-08-22T22:09:00.005+02:00

The Iraqi government is keen to invite foreign investment into the power sector. With demand estimated at between 8,500MW and 9,000MW nationwide, and supply into the national grid averaging just 5,400MW over the first four months of 2009, generation is in need of a considerable boost. The Iraqi government is trying to address the problem, and has pledged to install up to 30,000MW of generating capacity.

Well Short Of Demand

Iraq - Electricity Supplied To National Grid

Source: BMI, Brookings Institution

Baghdad has made deals with GE Energy and Siemens for the delivery of turbines with a combined generation capacity of 10,150MW, but the government has yet to make plans for the installation and commissioning of these turbines in power plants. Moreover, as Baghdad has been forced to slash its 2009 capital expenditure budget (due to low oil prices), it is now looking for increased foreign involvement in the process.

Although overseas contractors will be wary of entering the power sector at this stage, some progress is being made. In May, Iraq signed a US$120mn deal with Pratt & Whitney to build a gas power station with a capacity of 180MW in Missan province. The follows the announcement in January that the company had won a US$70mn contract to supply gas turbines. The structure of this deal is unclear. However, BMI understands that the model the government intends to use for Independent Power Production (IPP) contracts is still in the works, and so companies are likely to prefer engineering, procurement and construction (EPC) contracts for now. Indeed, EPC contracts would commit companies to Iraq for a shorter time period, and the financial risk is lower (though not negligible) as the government will guarantee payment.

Instability Hindered Investment

Iraq - FDI Inflows (US$mn)

Source: BMI, UNCTAD

Iraq's reconstruction and economic development will require hundreds of billions of dollars of infrastructure investment and Baghdad hopes that foreign partners will play a sizeable role. We would therefore expect to see a number of major deals over the coming years such as the one announced in April, whereby Iraq entered into an agreement with an Italian consortium to construct a US$3.7bn port close to Basra in the Gulf. Infrastructure projects will likely be principally directed towards supporting the oil and gas sector for now, but over the longer-term, broader-based projects are likely to also take off.

But Challenges Abound

Foreign investors are likely to find that doing business in Iraq is going to be challenging for several years to come (at least), and there will be a reluctance among many to be first (or early) movers. The challenges are reflected in our proprietary business environment ratings, where Iraq scores a low 23.5 (159th out of 167 countries we rank), with this score weighed down by a very poor score of 18.9 (160th) in the 'infrastructure' sub-component. That said, the other main sub-components do not paint a much better picture: 'institutions' score 25.7 (149th) and 'market orientation' scores 25.9 (155th).

Three particular issues stick out for attention. Firstly, there is the problem of governance. Institutional infighting, competing local vested interests, and an inefficient bureaucracy has meant that the investment process has heretofore been excessively time-consuming and frustrating. This was acknowledged by Deputy Prime Minister Barham Saleh, who stated at the recent Invest Iraq conference in London: 'The number one issue for investors was the legislative environment and some of the bureaucratic impediments that an investor would have to deal when they contemplate working in Iraq.' In order to cut through the cumbersome bureaucracy, the government recently formed the National Investment Commission, which it intends to act as a 'one-stop shop' for foreign investors.

Still Bottom Of The Class

Transparency International's Corruption Perception Index (out of 10)

Source: BMI, Transparency International

Secondly, and related to the first point, corruption in Iraq is high. According to Transparency International's 2008 Corruption Perceptions Index, Iraq comes in 178th out of 180 countries surveyed. A degree of corruption can certainly grease the wheels of commerce in the early stages of a country's development, and oil companies in particular have investments in countries where perceptions of corruption are high. However, endemic corruption will likely act as a hindrance to investment over the longer-term.

Thirdly, the shallowness of the domestic financial services sector threatens to act as a major impediment to investment. In Iraq, housing banks or mortgages do not yet exist, so even though the government is keen to encourage investment from foreign property developers to help remedy the country's housing shortage, these investors will no doubt have reservations. As another example, the underdeveloped banking system means that many Iraqi would-be importers may struggle to secure trade finance, without which potential export partners are just not going to be interested. Consequently, economic development will be hampered unless Iraq rapidly builds up its financial infrastructure. Baghdad has been keen to lay down the welcome mat to foreign companies, hopeful of securing a 'peace dividend'. We do see investment picking up over the coming years, but serious impediments clearly remain.

Small businesses in Iraq deserve credit

2009-08-22T21:53:00.001+02:00

Published: 21 August 2009 12:08 GMT
Author: Sophie Evans

Until more small firms get ready access to credit, the Iraqi economy will fail to live up to its potential.

Iraq's aspiring entrepreneurs are being held back by the unwillingness of the country's banks to lend to small companies.

Although the US-led Coalition Provisional Authority encouraged Iraq's private companies by awarding reconstruction contracts after the end of the 2003 war, a weak banking sector has starved new businesses of credit.

Just 36 largely undercapitalised banks operate in the country, and in June average local currency interest rates for loans of up to five years in length were a prohibitive 16.4 per cent.

The most prominent local lender is Trade Bank of Iraq (TBI), which was established by the Finance Ministry to facilitate Iraq's international trade and the reconstruction of the country after 2003.

Established in partnership with a foreign consortium led by US investment bank JP Morgan, TBI introduced Iraq's first international credit card in 2005 and built relationships with an international network of 120 prime banks covering 60 cities in 37 countries.

In 2008, it issued $9.1bn worth of letters of credit and guarantees. But this multi-billion-dollar loan book only focuses on extending credit to Iraq's large companies; it is not proving easy for local small and medium-sized enterprises to avail themselves of credit.

Foreign-owned banks, such as Bank of Baghdad, part of Kuwait's Kipco, Credit Bank of Iraq, part of National Bank of Kuwait, and Al-Mansour Bank, owned by Qatar National Bank, enjoy the benefits of their parent companies' deeper pockets to invest in new technology and offer more diverse products, including lines of credit for small and medium-sized enterprises. Until more of these businesses can get ready access to credit, the Iraqi economy as a whole will fail to live up to its potential.

2009-08-22T10:28:00.002+02:00



Bureaucracy biggest deterrent to Turkish business in Iraq
Iraq offers opportunities like few other countries for those businesses brave enough to enter a market whose reputation has been tainted by more than one well-publicized beheading of a businessmen as well as countless abductions, suicide attacks and car bombings.
Just Friday, a suicide bomber blew himself up in Iraq, killing upwards of 37 people. But while it is the violence and various security issues that garner the attention of the media and many international businesses, Turkish businessmen are increasingly pointing out that it is not security issues that factor heavily on the list of barriers to greater trade with the country, but rather hurdles that are ultimately bureaucratic in nature. Despite the two governments' repeated calls to put priority on trade and investment between the two countries as a means to promote security and cooperation, businessmen feel too little is being done by the government to actualize this goal. Ercüment Aksoy, head of the Foreign Economic Relations Board's (DEİK) Turkish-Iraqi Business Council is one such businessman who does not complain about the security situation in the country, but rather the opportunities to be found and the lack of government incentives to exploit these opportunities. “The country is being built from scratch,” said Aksoy, adding that “the government needs to support us if we are to reach [State Minister Zafer] Cağlayan's stated goal of $25 billion in trade by 2012.” Indeed, Iraq has now become Turkey's third largest trading partner and observers believe that the country is poised to go on to become an even larger partner in the coming years as the many hundreds of billions of dollars in oil and gas wealth that lies beneath the ground goes on stream. Trade has been rising dramatically over the last six years from zero in 2002 to $941 million in 2003 to just under $5.25 billion in 2008. This figure is all the more impressive given the fact that trade was virtually nonexistent just six years ago. Iraq's prosperity is intimately tied to Turkey as Turkey is Iraq's largest trading partner. In the first six months of 2009, Turkish export figures are already just under $2.9 billion -- up from the $2.185 billion posted during the same period of 2008. Iraq needs everything When asked what opportunities could be found in the country, Aksoy told Sunday's Zaman: “Everything. Everything in Iraq needs to be built from zero.” Although he said that all products were needed, he remarked that infrastructure projects were especially important. “There is no asphalt on the roads in Iraq. You are lucky if you get two hours of electricity a day in Baghdad,” he said, and added: “Factories that were once state owned are now deserted. There are no schools. There are 3-5 million educated Iraqis living abroad.” He added that the Turkish construction sector could also profit on housing as estimates say there is a shortage of 2-3 million houses in the country, a significant number given the total population of the country amounts to approximately 31.2 million. What makes Iraq different from other war-torn countries in dire need of development is the fact that Iraq actually has the financial resources to realize these requirements. Key to this rapid increase in trade between the two countries is Iraq's ability to realize its potential in the fields of oil and gas, which some estimates say amounts to over $300 billion in gas and oil revenue per year. So too, is its ability to convince more businessmen to invest in Iraq. Aksoy is hopeful that recent breakthroughs in the field of gas will help Iraq to realize this potential. Nabucco, the planned 3,300-kilometer pipeline that will bring Caspian and Middle Eastern gas to Europe through Turkey received a boost last month when Iraq agreed to contribute 15 billion cubic meters of gas to the pipeline. Last month, BP became the only winner in Iraq's first oil-licensing round since the US invasion and despite the considerable concessions made in order to finalize the tender, which included reducing its fees by half, BP will still be able to turn a profit at the Rumaila oil field -- which is in line with the profits that can be extracted elsewhere. This comes as a surprise to some observers who questioned the profitability given the higher than expected security costs and the required concessions. In early June, Genel Enerji, Çukurova's energy company, along with its Canadian partner, Addax Petroleum, announced that it had begun the first oil shipments from the Taq Taq oilfield in the northern region of the country to Ceyhan in Turkey. The oil was delivered by truck to the pipeline which begins in Khurmala. Earlier in the year, the Kurdistan Regional Government (KRG) approved a complete field development plan to the same groups for the Taq Taq fields, which are believed to have a production capacity of 180,000 barrels per day (bbl/d). This is in addition to the 70,000 bbl/d capacity that presently exists in the area. There are also talks of building a pipeline directly from the site to Turkey. Risks abound But despite the comments of Aksoy and others downplaying the threat of risks, there are real fears regarding the country's security situation. The recent US troop withdrawals have served only to reinforce the fear that anarchy might be returning to the streets of Iraq. “Of course we are worried,” said one senior manager from an İskanderun-based construction company operating in Iraq who spoke to Sunday's Zaman on condition of anonymity the weekend before the troops were withdrawn, “but we have taken precautions.” Just what those precautions were he did not elaborate on. Nonetheless, Aksoy maintains that this risk is a positive for Turkish business. “The higher the risk, the higher the profit.” He qualified this, however, by saying that the risks were not so great as to deter businessmen from going. “I ask people what the risk factor is. Is it to lose life? Or to lose money? I have a company principle: If I am hesitant about going to Baghdad, I won't send my colleagues.” He said that even after the US troop withdrawal, he hadn't taken any extra security precautions. “It's simple; if you go to Iraq, don't go to eat out at night (an act he admitted to having succumbed to four times during his last trip). This is dangerous. If you want to bring your family back a gift, don't go to the market. This is dangerous. Don't wear a necktie. This is dangerous. But doing business in the country and helping Iraqi people is not dangerous.” Ironically, Samet İnanır, DEİK's strategy and communications director, said: “When performing a SWOT [strengths, weaknesses, opportunities and threats] analysis, the risk of violence is not a weakness for Turkish business: it is a plus.” He said the situation allows Turkish companies to have a much larger piece of the pie. If it was less risky, he continues, the Danes and the Swedes would also be operating in Iraq. The main barriers to trade with Iraq come not from the security system, or even corruption, says Aksoy, but rather from the endless bureaucratic hurdles that must be overcome and the difficulty in working with financing tools. “Obtaining a letter of credit [LC] takes months,” said Aksoy. And the Trade Bank of Iraq, established with JPMorgan with a mandate to help finance trade, was said to have been anemic in its assistance to the business sector. He was also not happy with what he called “stupid regulations” that required bid bonds to take part in government contracts, and then performance bonds if the bid is successful -- both of which are costly and time consuming. He was hopeful that the January parliamentary elections would yield considerable benefits and help disperse the smoke, giving a clearer picture of things to come for businesses wishing to operate in the country. He reiterated, "Security is not an issue."
09.08.2009
Business
DAVID NEYLAN

Baghdad approves changes to Investment Law

2009-08-20T11:51:00.002+02:00

The Iraqi government has approved a bill amending the country's Investment Law, which will allow foreign companies to buy land dedicated to a specific investment project.

The changes will also permit foreign investors to trade on the Iraq Stock Exchange and form joint ventures with public and private companies.

The amendments are part of a series of measures that Baghdad has been considering to attract more foreign direct investment (FDI).

The Investment Law was passed in 2006 but potential investors have complained that it contains too many loopholes and does not guarantee the security of an investment.

Until now, foreign investors have also not been allowed to own land in Iraq.

The bill must now be approved by the Council of Ministers (cabinet) and then parliament.

SUMMARY OF INVESTMENT INCENTIVES IN IRAQ

2009-08-19T11:38:00.002+02:00

FEDERAL GOVERNMENT OF IRAQ INVESTMENT LAW	KURDISTAN REGIONAL GOVERNMENT INVESTMENT LAW
Investors may only rent or lease project land for a maximum of 50 years.	Total ownership of project land allowed, except for land containing oil, gas or mineral resources.
Prohibits investment in oil and gas extraction/ production, as well as banks and insurance companies.	Does not explicitly prohibit investment in these areas, but Supreme Council for Investments may allow investment in any sector it chooses other than those explicitly listed in the law’s categories (e.g. hotels, transportation, services).
Full repatriation of project investment and profits allowed.	Full repatriation of project investment and profits allowed.
Project income tax exempt for ten years from starting date. If Iraqis accounted for more than 50% of original project investment, project income tax exemption may be extended up to 15 years in total.	Project income tax exempt for ten years from starting date; no provision for extension of income tax exemption.
Import of spare parts tax exempt up to 20% of project cost.	Import of spare parts tax exempt up to 15% of project cost.
Hotels, hospitals, universities, schools, tourist institutions granted tax-exempt import of linens, carpets, furniture and other renovation items every four years.	Hotels, hospitals, universities, schools, tourist institutions granted tax-exempt import of linens, carpets, furniture and other renovation items every three years.
Employment of foreign workers allowed, provided no capable Iraqis available; foreign workers may repatriate earnings.	Employment of foreign workers allowed, provided no capable Iraqis available; foreign workers may repatriate earnings
tax exemption from duties, taxes and import licenses for vehicles, equipment, instruments, etc., provided they are imported within three years of investment license approval.	tax exemption from duties, taxes and import licenses for vehicles, equipment, instruments, etc. provided they are imported within two years of approval granted by Investment Commission.
Foreign investor and capital treated on equal footing with national investor.	Foreign investor and capital treated on equal footing with national investor.
Law silent as to provision of basic services to project area.	KRG will provide services (water, electricity, sewage, public road, telecommunications, etc.) to the boundary of the project.
Law silent as to import of raw materials for production.	Five years Duty tax exemption for Imports of raw materials for production.
Law silent as to additional incentives for project investment in less developed areas or joint projects between Iraqis and foreigners.	Additional incentives for projects in “less developed areas” and “joint projects” between Kurds and foreigners.
Foreign and/or domestic insurance of project allowed.	Foreign and/or domestic insurance of project allowed.
Regions and Governorates shall pass investment laws that do not contradict the federal investment law.	Supremacy of Kurdistan Law (Art. 115 of Iraq’s Constitution): “If there is any contradiction (between this law and “other relevant laws”), the provision of this law shall be applicable.”

Iraq tops Arab telecom survey

2009-08-19T06:37:00.002+02:00

Iraq has overtaken Jordan to become the Arab world’s most competitive mobile market, while Qatar emerged as the least competitive, according to the latest Cellular Competition Intensity Index from Jordan-based Arab Advisors Group.

Iraq gained 91%, the highest score out of the 19 countries in the survey, which assesses and ranks the level of competition in the region’s cellular markets. Jordan followed closely on 82.7%, Saudi Arabia on 79.2%, and Palestine on 78.6%.

The report demonstrates the huge strides made by Iraq since the end of the 2003 war, when the country lacked a single mobile network and instead relied on a state-run landline operation.

Iraqi now has three national GSM operators, Zain Iraq, Asiacell Iraq, and Korek Telecom, and is set to gain a fourth operator, possibly in the next 12 months. The country also has two regional players in the Kurdistan region, according to Andrewes Snobar, research manager, Arab Advisors Group.

“While Iraq’s largest operator, Zain, has a substantial market share of more than 50%, Iraq’s score benefited from the availability of corporate offers, operational ILD competition and 3G services,” he said.

Elsewhere in the survey, more developed countries ranked far below Iraq. For example, the UAE languished in 12th place, with a score of just 50.2%, placing it behind Yemen on 57.6%, Bahrain on 55.2%, Kuwait on 54.4%, and Tunisia on 51.5%.

Iraq to establish free trade zones with neighbours

2009-08-18T05:42:00.003+02:00

Iraq has signed agreements to create seven free trade and industrial zones in the country to help strengthen commercial ties with its neighbours.

August 17, 2009

BAGHDAD / Aswat al-Iraq: The Iraqi Ministry of Industry has signed several agreements to create seven free trade and industrial zones with neighboring countries.

“The agreements have been signed with Turkey, Iran, Syria and Jordan,” the minister of industry, Fawzi al-Hariri, told Aswat al-Iraq news agency.
“Three free zones will be set up with Iran: one in the north, another in the middle and a third in the south; while two zones will be created with Syria: in Anbar and in Mosul,” the minister pointed out.
“Coordination has taken place with the local councils to facilitate all procedures,” he added.
On August 5, a spokesperson for the Iraqi government, Ali al-Dabbag, said that the cabinet had authorized the trade minister to negotiate and sign a draft agreement between the governments of Iraq and Jordan to create a free trade zone.

IRAQ: Energy major signs three-year contract for Risha gas field

2009-08-11T09:49:00.002+02:00

UK's BP to produce and export hard to extract gas from site near Iraqi border.

UK energy major BP is to produce and export gas from Jordan's Risha field after striking a deal with the Natural Resources Authority (NRA).

Maher Hijazin, director general of the NRA, tells MEED the authority finalised the terms of its agreement with BP in July. It had previously signed a preliminary agreement with the oil major in January covering the field's 'tight', or hard to extract, gas reserves.

BP has agreed to invest $237m in the field, which is close to Jordan's border with Iraq, over an initial three-year exploration period. It can request a one-year extension to its three-year commitment, according to Hijazin, while Jordan can approve a fifth year if required.

"If BP receives promising results from its drilling, it will move into a development period," says Hijazin. "It is required to submit a development plan within 18 months, which then requires the approval of the government."

Under the initial phase, a new joint venture company will develop the field, with Jordan owning a 51 per cent stake and BP 49 per cent. BP's share of the venture will drop to 40 per cent as gas production increases.

Hijazin says BP will have up to eight years to finalise production and gas sales deals after it completes the exploration phase. Jordan will receive an up-front bonus of $20m at the exploration stage, and a further $30m when BP makes its final investment decision.

The kingdom's state-run National Petroleum Company (NPC) currently manages the field, which is located in a concession 360 kilometres east of Amman near the Iraqi border.

The field produces about 20 million cubic feet a day (cf/d) of gas, but the ministry plans to boost production more than tenfold to at least 250 million cf/d by 2015.

NPC estimates that the field has total reserves of 200 billion cubic feet of gas. "There are varying studies about the gas reserves, but we do know there is huge potential," says Hijazin.

The Risha field was first discovered in 1987. Gas output started in 1989 and peaked in 2003 at 38 million cf/d before falling back to about 20 million cf/d today.

Sarah Haggas, an analyst at UK energy consultant IHS, says production from the Risha field should increase quickly. "We think BP can increase production to 300 million cf/d within a five-to-six-year period," she says.

Lacking conventional hydrocarbons resources, Jordan currently imports almost all of its energy from nearby countries such as Saudi Arabia and Kuwait.

Its oil consumption in 2008 stood at 108,000 barrels a day.

"BP is the right investor and the right company for this field," says Hijazin. "It has the right to export gas from the field and sell it back to the domestic market if it wishes."

BP declined to comment.

The NRA is government run and charged with the exploration and production of mineral resources in the kingdom.

In July, Jordan's parliament approved the NRA's $500m concession agreement with the UK/Dutch Shell Group to exploit the kingdom's oil shale reserves.

The deal could result in Shell producing more than 100,000 barrels a day (b/d) of oil from oil shale in the latter half of the 2020s.

Shell will split the deal into four phases covering exploration, assessment, operations and design. It expects to complete this work in 2023.

The exploration phase will involve drilling on a 22,000-square- kilometre concession, about 25 per cent of the land area of Jordan, in the northeast and south of the country (see Agenda, page 16).

Author: Perry Williams. Senior Energy Writer
London

Iraq’s banking renaissance

2009-08-11T09:06:00.002+02:00

By: Mike Gallagher

By June 2008, there were a total of seven state-owned and 31 private banks in Iraq, with 11 of the private banks having some foreign ownership.

If ever there was a Middle Eastern country with enormous, untapped potential, then it is Iraq. It is one of the largest countries in the Middle East with an educated and sophisticated population of nearly 30 million, the vast majority of whom are in their late teens to early 20s.

It has potential oil reserves that may equal those of Saudi Arabia’s and a reasonably modern infrastructure, most of which was built during the boom years in the 1970s. It also has the desirable demographics, land mass and abundant resources that only two other countries in the region can match, those being Saudi Arabia and Iran.

In a perfect world, it would be actively competing with the big economies of the Middle East such as Saudi Arabia, Kuwait, Qatar, Bahrain, Iran, Oman and the UAE. However, in this imperfect world, despite painful changes, Iraq has done much to turn itself around.

The country to all intents and purposes is a potential goldmine, which is why investors the world over started licking their lips when regime change took place around five years ago. Many were keen to invest in a country that sits at a strategic crossroads between East and West and known as the cradle of civilisation.

While banks around the world cautiously watch the markets and the US financial meltdown, Iraq’s private banks have been experiencing something of a renaissance over the past five years. Private Banks in Iraq are expanding their branch numbers, modernising their capabilities and increasing services available to their customers in a move to put the large, oil-rich Middle Eastern nation in a better position to compete with many of its Gulf neighbours. Iraq’s private banks are aggressively seeking to give the state-owned banks, who have dominated the sector since 1965, a run for their money and their customers.

A brief history of banking in Iraq

Iraq’s banking industry was once the pearl of the Middle East. In July 1964, the first Ba’ath regime implemented a policy of nationalisation that scooped up private banks, insurance companies and a number of industries. The nationalisation decree was followed by a series of bank mergers that eventually resulted in two state owned banks, Rafidain and Rasheed. Through all of this, Iraq’s credit rating remained high, until Saddam Hussein bankrupted the country by going to war with Iran, Kuwait and the United States.

During the years of Hussein’s rule, state-owned banks were frequently used as outlets for government payments of subsidies, pensions and distributions to Ba’ath party favorites. All government revenue was deposited and distributed via Rafidain Bank and Rasheed Bank. Loans were made to government officials, state owned enterprises and only rarely to private individuals. Scant attention was paid to repayment, so when US and Multi-National Forces arrived in April 2003 to begin assessing and stabilising the banking sector, most loans had long been in default.

Government ministries had for years been blindly directing business to the state-owned banks, regardless of the expense and their ability to deliver high quality, reliable service. Naturally this resulted in correspondingly poor levels of efficiency, poor customer service and severe overstaffing. This practice meant that the state-owned banks did not have to compete for deposits, nor act aggressively to develop loans. That was because both were being delivered by the government. At the same time, Iraqi consumers were losing trust in banks and those without connections to the party or huge amounts of collateral were usually unable to take out loans.

Private Banks were not allowed to operate until 1992, following the war in 1991. The regime under Saddam Hussein showed little interest in bolstering the financial sector and instead seemed to spend most of its time and energy attempting to circumvent some of the sanctions which had been in place by the United Nations. During this time, private banks constantly risked being seized by the government if they showed any signs of profit.

Iraq’s banking landscape, post-Saddam

In the summer of 2003, a diagnostic financial review of all of Iraq’s banks was completed by the United State Government. It was the first such evaluation in nearly forty years and the findings showed that virtually all banks were in a desperate financial condition.

Rafidain Bank, Rasheed Bank and four other smaller state-owned special banks held over 90 per cent of Iraq’s bank assets and liabilities, consisting mostly of loans to state-owned enterprises or government officials and deposits from the government. The state-owned banks blanketed the country in 2003 with over 300 branches, however each branch operated mostly as an independent unit. Rafidain Bank and Rasheed Bank were hobbled with billions of dollars of defaulted Iraq Government obligations on their books and were completely ill-equipped to deal with the demands of the modern consumer.

Some of the banks were so comprehensively looted and the security situation was so volatile, that many people either sent their money abroad, or kept it at home. The black market naturally thrived in such circumstances and government officials realised that they not only had to create a viable and efficient banking system, but also had to create a sense of security that would encourage entrepreneurship at a local level and encourage foreign investors to keep at least some of their money in the country.

The state-owned banks and branches were top targets of looters, creating many millions of dollars of losses for the banks. At least $1 billion is thought to have been taken from Iraq’s banks in a four week period between mid-March and mid-April 2003, leaving the country’s banking system in a critical state.

Iraq’s private banking renaissance: 2003-2008

Since 2003 there has been steady growth in the private banking sector. The difficult security situation has, to some degree, hampered the numbers, but gutsy investors and emerging market speculators saw the potential in Iraq. In 2004, at the time of the U.S. economic assessment, there were 17 private banks. These private banks operated 89 branches in Baghdad and 50 additional branches spread throughout the country.

The 2003 reviews also revealed serious capital deficiencies. None of the banks were within 50 per cent of the minimum capital required by the Iraq Banking Law of ID10 billion (approx $8.5 million).

The choices for capital investment expansion included earnings and investments from either stockholders or investors from abroad. The private bankers were advised to target much more than minimum capital because they would soon be competing against new, 100 per cent foreign-owned banks which would have minimum capital of ID 50 billion (approx $42.7 million). More importantly, the headquarters of these foreign banks would be able to support their Iraq financial institution, if needed, with additional capital as well as providing the latest bank technology and current market experience.

By June 2008, there were a total of seven state-owned and 31 private banks in Iraq, eleven of the private banks having some foreign ownership. Total private bank assets are still less than 10 per cent of total Iraq bank assets. Most importantly, private bank loans as of June 2008 represent about 32 per cent of total bank loans in Iraq according to the Central Bank of Iraq Research and Statistical Department.

The ID1,200 billion growth in private bank capital since the end of 2004 has been remarkable, given the difficult circumstances the country has been through. The total capital of the 31 Iraqi private banks was about ID 1,300 billion; giving an average private bank capital of ID42 billion ($35.8 million) as of June 2008. The increase in capital since 2004 amounts to almost $1 billion. About 75 per cent of this capital growth occurred in private banks which are owned by Iraqis, something that officials in Iraq say underscores their commitment to the future.

Deposits in the Iraqi banking system from December 2004 to June 2008 increased approximately 250 per cent. However, the rate of deposit growth in private banks specifically was more than twice that, evidence that private banks are gaining market share. This success was achieved by the private banks despite the fact that virtually all Iraqi government deposits were directed to the state-owned banks. Nevertheless, there are other factors to consider. The growth in deposits automatically triggers pressure to augment capital because the banking law requires banks to maintain capital at no less than 12 per cent of assets. More deposits, supported by additional capital and an increase in the amount of loanable funds, provides private banks with the additional wherewithal to increase their market share of Iraq’s banking business.

To be fair, Iraq’s private banks have had a little help. The Task Force to Improve Business and Stability Operations in Iraq (TFBSO), a part of the US Department of Defense, sought to leverage US government spending in Iraq to build the capacity of the private banking sector and move cash off the streets and into banks.

The United States spends nearly $10 billion a month on supplies and support for their operations in Iraq. The Iraqi First Initiative, was devised to help revitalise the Iraqi economy by driving United States government spending to capable Iraqi vendors. It requires that Iraqi vendors of services and supplies be used whenever possible, and that payments to these vendors must be conducted via EFT (electronic funds transfer), thereby requiring vendors to open accounts with private banks that offered EFT services in order to receive payment on their invoices.

Kris Haag, the director of the TFBSO Banking and Financial Networks Team said, “We set out to use DOD spend to get Iraqi vendors into banks. Our approach was to build up account and deposit bases so that lending would come more easily. The program really helped the private banks regain a foothold in the Iraqi banking sector.”

The challenges for Iraq’s private banks

It goes without saying that gaining the trust of the Iraqi consumer was one of the most significant obstacles faced by Iraq’s emerging private banks. The ordinary Iraqi citizen constantly feared having their homes, incomes and other investments confiscated during the decades of the Ba’ath regime. Many resorted to storing their cash in their homes and opted not to show signs of wealth to avoid attracting attention to their families. Thus, a largely cash-based economy emerged along with the state-owned banking system.

Bank services deteriorated rapidly and there was no competition whatsoever until 1992 when private banks were allowed to operate again. Between 1992 and 2003, the seizure of private banks by the regime remained a constant and real concern. Many banking services which were taken for granted throughout the world, such as loan products, debit and credit cards, ATM machines and Point of Sale devices, were alien to the Iraqi consumer. Officials knew that marketing the benefits of such products would be a major challenge to the banks because most Iraqi consumers were largely unfamiliar with those sorts of services.

Reversing the brain drain caused by years of conflict has been difficult because security remains somewhat unpredictable. Most of Iraq’s business people who were not associated with the regime fled the country, creating a generation of future bankers who are unfamiliar with the concepts and practices of modern banking and financial services. The challenge now, say officials, is to reverse the brain drain, bringing the knowledge of international banking standards and systems gained by these individuals overseas back to Iraq. Common standards, such as anti-money laundering and ‘know your customer’ procedures are beginning to be implemented, but the task of fully modernising Iraq’s private banks remains a challenge.

As with any endeavor in Iraq, security remains the biggest challenge. While there have been improvements, only time will tell if they will last.

IRAQ's NEW INVESTMENT OPPORTUNITIES

2009-08-10T08:04:00.003+02:00

The Ministry of Industry and Minerals has the pleasure to announce its Investment Program for the year 2009 and invites Investors, International Specialized Companies and Financers to participate in this Investment opportunity to rehabilitate and modernize some of its plants on partnership basis in Management and Production to increase the production capacity.

List of State companies' factories announced for rehabilitation :

Construction Sector

State Company for Northern Cement
1. Badoosh Cement Factory
2. Hammam Al_Alil Cement Factory
State Company for Construction Industries
1. Plastic Pipes Factory/ Baghdad
2. Plastic Pipes Factory/ Misan

Engineering Sector

Ur State Company for Engineering Industries
1. Aluminum Factory
2. Cable Factory
State Company for Electrical Industry
Al Zawraa Company

Chemical & Petr. Sector

Al Furat State Company for Chemical Industries
1. Starch & Dextrin Factory
That Al-Sawary State Company for Chemical Industries

a. Rock Wool Factory

b. Fiber Glass Factory

Abu AL-Khaseeb Fertilizer Factory
State company for Petrochemical Factories

Food and Drug Sector

1- State company for Tobaccos and Cigarettes

a. Baghdad Factory

b. Al_Nasir Factory

2- State Company for Drugs & Medical Supplies Industry/ Sammra

3- State company for Dairy products

a. Abu_Graib factory

4- State Company for Vegetable Oils Industries

a. Baghdad Factories

b. Al_Mua'atasem Factory

Textile Sector

1- State Company for Woolen Industries Factories

2- State Company for Leather Industries Factories

Investors are invited to participate in this valuable opportunity due to the need of the products of these plants to fulfill the high local market demand.

Investors are requested to contact Investment Department at the Ministry of Industry and Minerals (Head Office) to obtain a copy of the Investment File against a sum of ID. 150,000 (one hundred fifty thousand Iraqi Dinar) not refundable for each plant. In addition the Ministry is ready to assist the Investors with additional detailed information and take necessary arrangements to facilitate visiting the factory. The Ministry would like to draw the investor's attention that offers should be submitted in accordance to the terms and conditions stated in the Investment File. Concentration will be on the financial, Technical modernizing capability stated in the submitted offers.

For further information, visit the Minstry of Industry and Minerals website www.industry.gov.iq or contact Investment Dept. / Ministry of Industry and Minerals for any additional information of the following address :

Tel: 00964 1 8166040

Mobile: 00964 7901 371 867

E-mail: invest@industry.gov.iq

UAE Company Enters Northern Iraq's Lucrative Exploration and Production Market

2009-08-06T14:38:00.003+02:00

Historic Investment Opportunity in Time of Regional Expansion, Says CEO of Dubai-based BlackGold (Zawya, July 6th, 2009)

Dubai, UAE: BlackGold - a fully owned subsidiary of Al Zarooni Enterprises - has become one of the first UAE companies to enter the lucrative energy exploration and production market in northern Iraq, according to its CEO.

Najib Al Zarooni, Chief Executive Officer of BlackGold, said it had invested millions of US dollars in the Northern Iraq project, and that exploration is scheduled to start in 2010, with production likely commencing in early 2011.

"Northern Iraq holds great promise for both exploration and production investment, and we are excited to be one of the first UAE companies to boldly move into this new regional energy frontier. BlackGold sees this project as an historic investment opportunity in a time of regional expansion," said Zarooni

Iraq needs billions of dollars of foreign investment as ten year property plans are unveiled

2009-08-06T09:44:00.005+02:00

Iraq needs billions in foreign investment

A serious shortage of residential property in Iraq due to years of war, neglect and insufficient investment needs billions of dollars of foreign investment, officials admit.

A new report from the United Nations shows that Iraq's total housing stock is around 2.8 million homes and another 1.5 million are needed while more than half of the country's population is living in slum like conditions.

Now the government has set out its construction targets which include building 3.5 million new homes. It wants to provide 350,000 units every year for the next decade.

'There are substantial opportunities for construction and development. Our rebuilding programme is massive. As well as housing we need to invest in schools, roads, bridges and other infrastructure,' said a government spokesman.

Key infrastructure projects include a new £3 billion international airport at Karabala, new rail lines worth $5 billion and a number of multibillion dollar housing developments around the country.

The United Nations agrees that the development must begin urgently. In its report it points out that the lack of housing is likely to become even more of a problem as the country's urban population is expected to double by 2030.

'Iraq has an increasing housing shortage, crumbling infrastructure and a lack of basic services as a result of years of war, neglect and lack of sufficient investment. We need to address this urgently,' said Planning Minister Ali Baban.

He added that it could not be done without foreign investment and estimated that 85% of the necessary funding would need to come from overseas. 'Sustainable urban development is a major challenge for Iraq,' he said.

A number of property development companies have already expressed an interest. Baghdad Mayor Saber al-Issawi said the city had received bids from seven foreign companies to build 150,000 flats, stores, parks and cinemas over 10 years in one rundown area of northeastern Baghdad.

A second $20 billion housing project in eastern Baghdad in an area that was a military camp in Saddam Hussein's time will include 65,000.

Rethinking Iraq

2009-08-03T18:40:00.002+02:00

FDI REPORT

Published: June 12, 2009

With the security situation much improved, and a government committed to private investment, Iraq could be a risk worth taking, says Lara Williams.

Conflict in Iraq may have put off foreign investors over the past five years, but improvements in security during the past 12 months have stabilised the economy, which, in turn, has meant that the demand for goods and services has risen rapidly. This heralds a turning point in Iraq’s economic development which offers encouragement for foreign investors considering a return to the country.

The current Iraqi administration has developed a reputation for being business-friendly, outlining a strategy for expanding the country’s private sector and attracting international investors. Foreign investment into the country in 2008 was the highest recorded since 2003, evidence that companies are beginning to view Iraq as a viable investment location.

According to greenfield investment monitor fDi Intelligence, inward investment reached $20.17bn in 2008, creating 12,152 jobs, compared with $457.6m in 2007, when foreign firms created just 902 jobs.

Signed, sealed, delivered

At the Invest Iraq 2009 conference in London in April, Iraq’s deputy prime minister, Dr Barham Salih, expressed the importance of economic reconstruction to the lasting stability of the country. He said: “Jobs and services are the best counter-insurgency strategy – economic reconstruction based on private-sector initiatives.”

Iraq’s public sector provides 43% of the country’s jobs and nearly 60% of all full-time employment, so the government has some way to go in expanding the country’s private sector. Iraq’s government realises that economic regeneration cannot be achieved through public-

sector spending alone.

The Iraqi government is attracting foreign investment by overhauling the regulatory environment to make doing business easier, promoting private-sector engagement and through the equal treatment of foreign and domestic investors in all areas except land ownership. However, it is also in the process of amending this law in cases of strategic investments.

Oil dependence

Apart from security, other challenges include inflationary pressures and the state’s over-

dependence on oil revenue, which makes up more than 60% of GDP and 19% of budget revenues. The global financial crisis is intensifying the need to boost oil production and to diversify the economy generally.

UK business minister Peter Mandelson believes that the security situation has improved and a more stable business environment has already attracted UK companies to the country. “The sheer scale of the oil on which Iraq sits means it is paramount to unlock that wealth to drive economic growth and future prosperity,” he said at the Invest Iraq conference.

The importance of diversification

Economic diversification is also important because growth in 2009 is expected to be slower than in 2008 due to lower oil prices, and growth in the non-oil private sector is too low to fully compensate and will be constrained by global economic conditions.

Despite a fall in oil prices and the international economic crisis, the IMF estimates that the Iraqi economy will grow by more than 7% during 2009 and will continue to increase at this rate for the next five years.

So with improved security, an abundance of natural resources, a business-friendly administration and the abatement of conflict, Iraq may see much-needed inward investment start to flow through after the economic stagnation of the war years.

2009-08-03T07:29:00.005+02:00

Oil exports and revenue increase

Wednesday, 29 July 2009

By BEN LANDO, Iraq Oil Report

BAGHDAD – Iraq’s oil sales earned $3.7 billion in June, continuing its monthly gain since February on the backs of increased exports and rising oil prices.

Meanwhile, Iraq’s cabinet has approved a law reestablishing the national oil company to be charged with overseeing most operations. Also, Iraqi Oil Ministry spokesman Assem Jihad said the second auction, offering 10 oil fields to foreign investors, will take place by the end of November.

Tankers filling up at the Tawke field station in June 2008. (source: Ben Lando)

The Oil Ministry data show oil exports reached 1.923 million barrels per day (bpd) last month, up from 1.906 million bpd in May. Iraqi crude fetched an average $64.37 per barrel, a more than $7 per barrel increase on May.

Iraq earned nearly $62 billion in oil revenue last year and through July 22 this year’s exports have brought in $17.11 billion, according to the U.S. State Department’s most recent Iraq Status Report. It also estimated July production thus far at 2.46 million bpd and exports at 1.99 million bpd.

Oil exports posted monthly growth since February’s 1.803 million bpd year low, while the average price has climbed steadily since December’s $34.57 per barrel. Last year’s global oil price all-time highs contributed to Iraq’s earnings. The government overestimated oil prices for 2009 and has had to revise its budget three times.

Iraq consumes about 500,000 bpd domestically. In June Iraq produced a total of 2.4 million bpd, according to the global energy information firm Platts.

Iraq’s exports, split between the northern pipeline into Turkey and southern Gulf offshore terminals, increased from both directions. A small percentage is trucked to Jordan, at a discount rate to its neighbor, depending on security.

Exports north increased from 522,580 bpd in May to 526,667 bpd in June, as the Tawke and Taq Taq fields, developed by three foreign firms under a controversial contract signed by the Kurdistan Regional Government, began feeding into the pipeline to the port of Ceyhan, Turkey.

Iraq’s al-Basra Oil Terminal (ABOT) and Khor al-Amaya Terminal (KAOT) off the southern coast increased exports to 1.396 million bpd following a 1.38 million bpd showing in May. The terminals fed 1.413 million bpd to global customers in April. (Editor’s note: June buyers listed at the end of this story.)

Much of the production comes from the Rumaila field which on June 30 was awarded to a consortium of BP and the Chinese National Petroleum Corp. in partnership with the state-run South Oil Co. to increase production from today’s 960,000 bpd to 2.85 million bpd within six years.

While security in Iraq’s southern oil infrastructure has been more stable than the north – where the pipeline was nearly always bombed offline from 2003 until mid 2007 – British forces stationed at the oil terminals and training the Iraqi Navy there will be forced to leave after the Parliament this week delayed action on an extension.

While politics have affected the oil tendering process and, perhaps, security of the oil terminals, a new bill in Parliament may remove politics from many Iraq’s technical operations of the world’s third largest oil sector.

It’s not clear when the legislative body will take up the draft law reconstituting the Iraqi National Oil Co. In theory, a new INOC will run the country’s dozens of state-controlled oil firms as a proper company. Currently the companies are part of the Oil Ministry, which serves as regulator and political province as well, leading to complaints from Iraqi oil technocrats. INOC was shuttered by Saddam Hussein, who consolidated the oil power into his allied Oil Ministry’s hands.

June purchasers of Iraqi oil:

Britain: BP and Shell
China: Sinochem and Unipec
France: Total
Greece: Hellas
India: Hindustan, IOC
Italy: API Oil, Eni, ERG and Saras
Japan: Nippon and Petro-Diamond
Jordan: Jordan Petroleum Co.
Malaysia: Petronas
Morocco: Samir
Russia: Lukoil
Spain: Repsol
South Korea: SK Energy
Turkey: Tupras
United States: Chevron, ConocoPhillips, Exxon Mobil, Koch and Valero

The Oil Sector in Iraq: Prospects and Problems

2009-08-03T07:25:00.001+02:00

By: Dr. Nimrod Raphaeli *

Introduction

Iraq is acknowledged to have the world's third largest proven petroleum reserves (after Saudi Arabia and Iran) and some of the lowest extraction costs. Although just a fraction of its known fields are in development, much of its oil infrastructure is in poor shape due to years of wars, sanctions, and neglect that characterized much of Saddam Hussein's rule in Iraq. When full explorations finally get under way, Iraq may prove to have far more than the current estimate of 115-120 billion barrels. Indeed, Iraqi Deputy Prime Minister Barham Salih told TheTimes of London that geological surveys and seismic data "by reputable, international oil companies" would suggest that Iraq has the world's largest proven reserves - 350 billion barrels - exceeding the proven reserves of Saudi Arabia--264 billion barrels. [1] Furthermore, unlike Saudi Arabia, Iraq also has huge quantities of natural gas which have yet to be explored commercially. If its hydrocarbon resources are thoroughly explored and well managed, Iraq could easily emerge as one of the global key energy players for years to come. However, as some oil executives have said, while the opportunities are huge, the uncertainties, challenges, and risks remain daunting. [2]

Oil is the most significant element of the Iraqi economy. It contributes 60 percent of the country's GDP and more than 90% of government revenues. It is also a potential source of conflict between the central government and the provinces, particularly the three Kurdish provinces of Erbil, Suleymaniya, and Dehook, which make up the Kurdish Regional Government (KRG). According to the findings of the Iraq Study Group, the stabilization of Iraq is highly correlated with Iraq's economic success or failure, which in the medium-term is highly dependent on its hydrocarbon industry. [3]

Current Production and Future Targets

The invasion of Iraq and the destruction of a number of oil facilities, followed by sustained sabotage activities against oil installations and infrastructure, caused a sharp decline in production between 2002 and 2003, from about 2.6 million barrels a day (b/d) to about 1.5 million b/d. The crude production has since averaged 2.3 million b/d but it is below the levels of production in both 2001 and 2002, which were about 2.7 million. Iraq is striving to increase production to 2.9 million b/d by the end of 2009, but efforts so far have met with limited success. [4] Minister of Oil Hussein Al-Shahristani's frequent assertions that Iraq will raise its production to 6 million b/d by the end of the 2008-2017 10-year plan seem less than convincing. [5]

In fact, given that facilities are aging and that new wells are not being drilled, there is substantial concern that by 2010 Iraq's oil production will decrease rather than increase. In the words of Jabbar Al-Luaibi, adviser to the oil ministry (recently promoted to deputy minister of oil), "It has reached the point where we have 300 wells not flowing in some of our biggest fields, and that means a lot of work just to get us back on track to where we were a few years ago." [6] As a result, Al-Shahristani is facing growing criticism from members of parliament for what is perceived as the failure of the ministry of oil to increase production, which still remains below the pre-2003 level, and to attract foreign investments. In an unusual parliamentary precedent, 140 members of parliament have signed a petition calling on Al-Shahristani to appear before parliament for questioning. [7] One member of parliament went as far as to accuse Al-Shahristani of subjecting 300 oil wells to ruin. [8]

Uncertain Levels of Production

The level of production of Iraqi oil is uncertain because of the unaccounted-for smuggling by the Saddam regime and the subsequent theft following the invasion of Iraq in 2003. Indeed, using estimates from experts, The Iraqi Study Group pointed out that as many as 150,000 to 200,000, and perhaps as many as 500,000 barrels a day (b/d), were being stolen, and it recommended the installation of a metering system on both ends of the supply line. [9] The smuggling of both crude and refined oil and the sabotage of the oil facilities and infrastructure have been so extensive that, in 2007, the Iraqi government established a special police force known as "The Oil Police" responsible for protecting pipelines, oil trucks, and the oil fields themselves. In May 2009, Lt.-Gen. Abdullah Ibrahim, the commander of the oil police, told the press that the smuggling of oil had almost entirely ceased and the acts of sabotage have declined by 90 percent. As a result, the losses incurred by the Iraqi oil industry have been sharply reduced, from $6 billion annually in previous years to $250 million at the present time. [10] There is no confirmation from the ministry of oil of this accomplishment.

The Oil Law

A draft hydrocarbon law was approved by the Iraqi government in February 2007 as an umbrella for four key subordinate laws: first, managing hydrocarbon investment, particularly upstream; second, revenue-sharing between the central government and the provinces; third, restructuring the ministry of oil; and fourth, establishing the Iraqi National Oil Company (INOC). The draft hydrocarbon law was taken up by the parliament, but no consensus could be reached, particularly between the central government and the Kurdistan Regional Government. Perhaps no less thorny is the future of oil-rich Kirkuk, which the Kurds consider a part of their homeland, a view completely rejected by its Arab and Turkmen residents. With the elections for parliament set for January 2010, and given domestic political complexities and the attempts by recently elected provincial politicians to have a say in national oil policy, it is highly unlikely that in the current session of parliament there will be the resolve or the time to pass the hydrocarbon law.

In the absence of a national law regulating the issue of oil exploration, investment, and revenue-sharing, the KRG, acting on its own, has proceeded to grant oil and gas exploration rights to a number of foreign companies, including those from Norway, the United Arab Emirates, Korea, the U.K., and Turkey. The central government, and, in particular, oil minister Hussein Al-Shahristani, a Canadian-trained nuclear engineer, has strongly rejected the authority of KRG to offer oil concessions to anyone outside the jurisdiction of the central government and has taken the next step of excluding any foreign company operating under licensing arrangement with KRG from participating in any future dealings with the central government.

Rising Tensions between Central Government and KRG

In the meantime, the tensions between the central government and KRG appear to be rising. Apart from the issue of oil and gas and the future of Kirkuk, the Kurds are particularly agitated by the recent statements made by Prime Minister Nouri Al-Maliki denouncing what he described as "consensus democracy" [al-dimuqratiyah al-tawafuqiyah] based on power-sharing [has-hasah] in favor of a strict majority rule which is viewed by the Kurds and the Sunnis as an attempt by the Shi'a to monopolize political power. In response to the prime minister, Iraq's president Jalal Talabani said that "consensus democracy is deeply rooted and it is an effective way to unite the diversified groups in Iraq. Iraq cannot be ruled by [a simple] majority. The situation continues to require a consensus." [11] The leading Shi'ite cleric in Iraq, Grand Ayatollah 'Ali al-Sistani is reported to have refuted al-Maliki's position as well. [12]

Steps to Increase Production: Two-Tier Licensing Rounds

Al-Shahristani has estimated the cost for developing the oil and gas sector at $50 billion, a sum which Iraq cannot mobilize by itself - hence the attempt to bring back into Iraq the international oil companies whose assets were nationalized by Saddam Hussein in 1975. These investments will be secured through a two-tier licensing procedures. [13] The bidding will cover up to 100 billion barrels of proven oil reserves and some 80 trillion cubic feet of proven gas reserves.

The First Licensing Round for the development of oil and gas fields was announced on June 30, 2008, to rehabilitate six giant producing oil fields covering 44 billion barrels and two gas fields covering 44 billion barrels of crude and 22 trillion cubic feet of gas reserves. The oil fields would generate extra production of 1.5 million b/d within three to four years, with an estimated investment of $15 billion. The Second Licensing Round was announced on December 31, 2008. The round is intended to execute full development of 10 explored but not yet fully developed oil fields covering 35 billion barrels of crude and 26 trillion cubic feet of gas, distributed widely throughout the country. The aim of this round is to add further production capacity of nearly 2 million b/d, costing an estimated investment of $20 billion, thus approaching the aimed strategic production target of 6 million b/d by adding the existing capacity of 2.5 million b/d to the first round addition of 1.5 million b/d and the 2 million b/d of the second round. [14]

In a world in which 80% of proven crude reserves are state-controlled, Iraq offers the international oil companies an unprecedented opportunity to tap into one of the last available huge crude and gas reserves in the world. But precisely because of this recognition, Iraq is offering potential oil and gas company bidders bidding parameters that are "eye-watering tough." [15] For example, Iraq demands an up-front "signing bonus" be paid to the host country by the selected bidders to secure exploration rights. However, it does not guarantee future revenues. [16] As one oil executive told Middle East Economic Survey (MEES), "One of the big issues was that companies were to make all the investment and take all the liability and they were to have no control over the destiny of that investment and money spent." [17]

At least 35 oil companies, eventually increased to 41, including most of the majors [reference to fully-integrated international oil companies] have taken part in the bidding. These companies quickly discovered that what they were bidding for was not lucrative production-sharing agreements but rather service contracts that would offer them cash or oil as a compensation for their services. The only company thus far to have accepted these conditions is China National Oil Company (CNOC) which signed a service agreement worth $1.2 billion to cover a small oil field, Al-Ahdab, in southern Iraq, scheduled to produce about 90,000 b/d. [18] The new service agreement replaces an earlier production-sharing agreement signed in 1997. Being a state company, CNOC may have non-commercial considerations for signing the agreement.

The Return of the Western Oil Companies

The new bidding system will most likely bring back to the Iraqi oil scene a number of international oil companies, some of which had a monopoly over Iraqi oil business between 1925 and 1961. These include ExxonMobil, Shell, British Petroleum, and Total, which formed in the 1920s what was known at the time as the Iraqi Petroleum Company, or IPC. IPC was nationalized in 1972, and the assets of the foreign companies were nationalized in 1975. While the selection of the winning bidders, scheduled for the end of June, will be governed by a system of competitive bidding, the U.S. companies coming back to Iraq must be doubly careful to avoid giving credence to those who have argued that the invasion of Iraq was motivated largely by the Anglo/American desire to take control again of the country's rich oil resources. [19]

Russian Involvement

Potential Russian investment in Iraqi oil may have been a key item on the agenda during Al-Maliki's visit to Russia on April 10. While in Russia, Al-Maliki met with executives from the Russian major oil company Luk Oil. There was speculation of a "behind-the-scenes" deal allowing a Russian company to develop a major oil field as a reward for Russian cancellation of Saddam-era debt. [20] A Russian official publication in Arabic, Rusya al-yawm [Russia Today], said that Iraq has pre-qualified four major Russian oil companies, namely Luk Oil, Gazprom, Rozneft, and Tatneft, to submit bids under the first licensing round. However, it said that these companies would have to face a serious competition from other companies. [21]

Sudden Shift toward Export of Crude from Kurdistan

With declining oil revenues, and with Al-Shahristani coming under strong pressure to show progress in crude production, Iraq announced that it would allow the export of 100,000 b/d from Kurdish oil fields of TaqTaq and Tawki beginning June 1, with accrued revenues going to the central government. The oil fields in Kurdistan are estimated to contain 40 billion barrels of oil. [22] On June 1, the two Kurdish leaders, Iraqi President Jalal Talabani and KRG President Mas'oud Barazani inaugurated the flow of Kurdish oil for export through the State Oil Marketing Organization. No official from the federal ministry of oil attended the ceremony, but the Kurdish minister of natural resources said the export could be increase to 250,000 b/d within a year. [23]

While the two sides have not agreed on a long-term arrangement for the distribution of export revenues, a source in Kurdistan revealed to this author that KRG considers the deal as a breakthrough, establishing the principle that oil from wells drilled in Kurdistan under agreement between foreign oil companies and KRG can be exported through the main Iraqi pipeline which connects Kirkuk with the Turkish port of Cyhan. At a minimum the KRG will receive 17 percent of the revenues guaranteed under the federal constitution. KRG considers the event a great victory in their struggle to maintain control over the natural resources of their region.

Iraq's OPEC Quota

Iraq is a founding member of the Organization of Petroleum Exporting Countries (OPEC); indeed, the cartel was launched in Baghdad in September, 1960. Like all other members of the cartel, Iraq was subject to the quota system, which establishes a ceiling on production for each member. However, after Iraq's invasion of Kuwait in 1990 and the subsequent U.N. Security Council sanctions which put a ceiling on Iraq's crude production limited to meeting the basic food and medicine needs of the Iraq population, Iraq was temporarily excluded from the quota system. After the sanctions on Iraq are lifted, the issue of quota will rise again. However, since the quota reflects the size of the proven reserves, Iraq may be allotted a large quota if its proven reserves justify it. While this issue does not appear to be of present concern to Iraqi officials, it could be of concern to other members of OPEC, because the larger the Iraqi share of the OPEC's approved quota, the smaller the shares of others. Al-Shahristani stated rather candidly that some members of OPEC "hope that [Iraq's success] doesn't happen soon." [24]

Conclusion

Iraq has the potential of becoming one of the world's leading producers of oil and gas. In terms of proven reserves, Iraq is behind Saudi Arabia and Iran, but it could easily overtake Iran and could equal, if not exceed, Saudi Arabia. For Iraq to reach its full potential a number of things must happen:

a. Security must be established. Foreign oil companies are not likely to invest funds of millions of dollars required for drilling and extraction if the lives of their professional personnel is at great risk [a small risk in this business is inevitable. Witness Nigeria-Niger Delta.] Security is also essential for the transport and protection of equipment.

b. Iraq should reach a consensus on its oil law. Oil investors will be reluctant to sign service agreements with the central government while at the same time they have to deal with provincial potentates. The conflict between the central government and KRG should be resolved.

c. The licensing rounds should be simplified and made more palatable to potential investors. Fortunately for Iraq, however, the recent spike in oil prices may soften the stand of the potential bidders as the potential for profits would accelerate.

*Dr. Nimrod Raphaeli is Senior Analyst (emeritus) at MEMRI.

[1] The Times, London, May 20, 2008.

[2] MEES (Middle East Economic Survey) (MEES, 23 February, 2009.

[3] The Iraq Study Group Report, James A. Baker III and Lee H. Hamilton, Co-Chairs. New York, Vintage Book, 2006.

[4] www.annabaa.org/nbanews/70/559.htm.

[5] Interview with al-Sharq al-Awsat, March 25, 2009.

[6] MEED, Vol. 53 No. 17, 24-30 April 2009.

[7] Al-Zaman, Iraq, May 27, 2009.

[8] Al-Manara, Iraq, May 29, 2009.

[9] The Iraqi Study Group Report, op.cit. pp. 23 and 84.

[10] Al-Sabah, May 2, 2009.

[11] Al-Sharq Al-Awsat, May 26, 2009. Al-Maliki’s views against consensus democracy were first published in the Iraqi government daily Al-Sabah, May 13, 2009.

[12] Al-Mada, Iraq, May 30, 2009.

[13] Al-Mada, Iraq, May 8, 2009.

[14] From a statement by al-Shahrisani at the 4th OPEC International Seminar, held in Vienna on 18-19 March 2009,

http://www.mees.com/postedarticles/oped/v52n14-5OD01.htm.

[15] MEES, 20 October, 2008.

[16] www.Iraqoilreport.com/the-biz/Iraq-hikes-signing-bonus-as-bid.

[17] MEES, 4 May, 2009.

[18] Al-Quds Al-Arabi, August 21, 2008.

[19] www.annabaa.org/nmanews/70/559.htm ; Al-Jazirah, Saudi Arabia, June 20, 2008.

[20] MEES, 20 April, 2009.

[21] www.rtarabic.com/prg_panorama/28068?print?version=1 of April 16, 2009.

[22] Al-Rafidayn, Iraq, May 13, 2009.

[23] Al-Mada, Iraq, June 2, 2009.

[24] Interview with BusinessWeek, March 19, 2009.

Iraq and the European Union Partnership and Cooperation Agreement (PCA)

2009-08-02T10:04:00.006+02:00

The EU is moving steadily towards enhancement of its relationship with Iraq, in all spheres. Given Iraq’s important role in the region and potential as a trading partner, we clearly see the mutual benefits of developing ties between the EU and Iraq. The EU is committed to working with Iraq and international partners in order to bring about a secure, stable, unified, democratic and prosperous Iraq.

A major step forward is the EU-Iraq Partnership and Cooperation Agreement , currently under negotiations (launched in November 2006). This will be the first ever contractual agreement between the EU and Iraq and will facilitate further cooperation between the two partners in the medium to long-term, as well as support Iraq’s integration into the international economy. The draft Agreement also includes regular political dialogue. The last round was held on 25-27 May 2009 in Brussels. Good progress was made on most outstanding issues, leaving only a few of them open. The European Commission hopes to finalise negotiations this year.

As regards the political developments in Iraq, the Governorate CouncilElections in January 2009 marked the start of an important cycle of elections and referenda in the months ahead, with the recent vote on 25 July in the Iraqi Kurdistan Region and culminating in national legislative elections expected to be held in January 2010. It is our hope that continued active political involvement of the Iraqi people will help consolidate both the democratic process and national reconciliation. In January 2009 the European Commission deployed two electoral experts to Baghdad to monitor the Provincial Elections process and has recently done the same for the Regional Elections in the Iraqi Kurdistan Region (parliamentary and presidential). The EU will seek to provide further support to elections in Iraq.

The Commission is also continuing to provide financial support to Iraq (see the latest State of Play). Since 2003, we have provided more than € 900 million in reconstruction and humanitarian assistance. The focus in the future will be on helping Iraq to better use its own resources, through capacity building activities. EC has played a crucial role in supporting Iraqi political process (€83.8m since 2004, mostly implemented through the UN), rule of law (€14 mio) and elections (in 2005 and to prepare the upcoming elections - €20m). We have also watched with concern the situation of refugees from Iraq and internally displaced persons within Iraq. So far total EC support to the refugee crisis has amounted to more than €140 million.

The EU is further seeking to facilitate Iraq’s own reform process and reintegration into the international community by supporting the International Compact with Iraq (ICI) and the Iraq’s neighbours process.

What's new in 2009

17/07/2009 - Iraq: capacity building programme 2009-2010

30/06/2009 - Iraq: Kurdistan Regional Elections – Commission deploys electoral experts

30/06/2009 - EU HR Javier SOLANA welcomes the extension of the EU Integrated Rule of Law Mission for Iraq - EUJUST LEX

15/06/2009 - Council Conclusions on Iraq

15/06/2009 - Declaration by the Presidency on behalf of the European Union on the continuation of mass executions in Iraq

25/05/2009 - EU-Iraq Partnership and Cooperation Agreement: a step closer to completion

15/05/2009 - Commission provides a further €20 million in humanitarian aid for vulnerable Iraqis

08/05/2009 - Southern Corridor Summit - Declaration

08/05/2009 - Statement of President Barroso following the Southern Corridor Summit, Southern corridor summit, Prague, 8 May 2009

07/05/2009 - The Southern Corridor: EU and partner countries commit to move forward

Union for the Mediterranean: State of Play, July 2009

2009-08-01T18:26:00.004+02:00

Brussels, 10 July 2009

The Union for the Mediterranean (UpM), created at the Paris Summit of Euro-Mediterranean Heads of State and Government on 13 July 2008, is the framework of multilateral relations between the EU and the Mediterranean non-EU countries (1). It complements bilateral relations, which will continue to develop under the European Neighbourhood Policy (ENP) and the pre-accession framework.

The UfM builds on the acquis and reinforces the achievements the Barcelona Process, launched in 1995. While the Barcelona Declaration, its goals and its cooperation areas (Political Dialogue, Economic Cooperation and Free Trade, and Human, Social and Cultural Dialogue) remain valid, the UpM gives a new impulse to the Barcelona Process in three very important ways:

-by upgrading the political level of the relationship between the EU and its Mediterranean partners;

-by reinforcing co-ownership of our multilateral relations with a system of co-presidencies (one from the EU and one from the Mediterranean side), by the setting up of a Secretariat, and by setting up a Joint Permanent Committee;

-by making these relations more concrete and visible through additional regional and sub-regional projects, relevant for the citizens of the region.

During 2008, the co-presidencies were France and the CZ Republic, on the EU side, and Egypt, on the Southern Mediterranean side.

The European Commission fully supports the UpM and is already working towards achieving the objectives of the priority projects.

PRIORITY PROJECTS

Projects are in the core of the UpM. They should have a visible impact on the life of citizens in the whole region by promoting growth, employment, regional cohesion and socio-economic integration and by supporting the creation of infrastructure for interconnections.

At the Paris Summit six projects priorities were identified:

-De-pollution of the Mediterranean

The Mediterranean is much more than a symbol or an icon for the region and it provides employment and pleasure for its people. However, its environmental quality has suffered serious degradation in recent times. The de-pollution of the Mediterranean, including coastal and protected marine areas, particularly in the water and waste sector, will therefore be of major benefit for the lives and livelihoods of its people. Activities will build on the Building on the Horizon 2020 programme, launched in 2008.

-Maritime and Land Highways

The Mediterranean joins its people and is also a highway for commerce. Easy and safe access and flow of goods and people, on land and sea, is essential for maintaining relations and enhancing regional trade. The development of motorways of the sea, including the connection of ports, throughout the entire Mediterranean basin as well as the establishment of an efficient and integrated Euro-Mediterranean Transport Network, will increase the flow and freedom of the movement of people and goods. Attention will also be devoted to maritime security and safety, in a perspective of global integration in the Mediterranean region.

-Civil Protection

The global landscape is littered with examples of the devastation caused by man-made and natural disasters. The effects of climate change are evident for all. The Mediterranean region is particularly vulnerable and exposed to such disasters. A joint civil protection scheme on prevention, preparation and response to disasters, linking the region more closely to the EU Civil Protection Mechanism, should, therefore, be one of the main priorities for the region.

-Alternative Energies & Mediterranean Solar Plan

The recent activities on energy markets, in terms of both supply and demand, confirm the need to focus on alternative energy sources. Market deployment as well as research and development of all alternative sources of energy are then a major priority in efforts towards assuring sustainable development in this area. The creation of a Mediterranean Solar Plan is one of the key priorities identified in Paris.

-Higher Education and Research - Euro-Mediterranean University

A Euro-Mediterranean University can contribute to the understanding among people and encourage cooperation in higher education. Through a cooperation network of partner institutions and existing universities from the Euro-Med region, the Euro-Mediterranean University in Portoroz (Slovenia) will develop postgraduate and research programmes and thus contribute to the establishment of the Euro-Mediterranean Higher Education, Science and Research Area.

-Supporting Business

With a view to develop Mediterranean business, an initiative to support m icro, small and medium-sized enterprises by assessing their needs, defining policy solutions and providing them with technical assistance and financial instruments will be launched.

A YEAR LATER

STRUCTURE AND FUNCTIONING

As a follow up to the Paris Summit, Foreign Affairs Ministers agreed on 3-4 November 2008 in Marseille the structure and functioning of the UpM and its Secretariat, based on a proposal by the European Commission, and on the location of the new Secretariat in Barcelona .

Upgrading the level, qualit y and intensity of the dialogue

A Summit of Heads of States or Government will be held every second year after the first Summit of 13 July in Paris. Foreign Ministers would meet between summits, review progress and prepare the upcoming summit. The existing dialogues under the Barcelona Process like the Euro-Med Senior Officials' meetings and the experts' meetings would be preserved and reinforced, where necessary.

Co-Presidency

The UpM has a co-Presidency from the EU and one from a Mediterranean partner, which runs for 2 years. This would apply to summits, annual Foreign Ministers' meetings as well as sectoral Ministerial meetings, senior officials and Joint Permanent Committee meetings. Currently the EU co-presidency is jointly held by Sweden and France and the Mediterranean by Egypt.

Project-oriented Secretariat

The Secretariat would make proposals for joint initiatives to be decided by the political bodies and would ensure the follow-up of project related decisions of the Summit. The tasks of the Secretariat would include the gathering of project initiatives for instance from civil society, private sector or national or regional authorities, their examination and proposal to the Senior Officials (the clearing house). Once projects are approved by the Summit (Heads of State or Government), the Secretariat is responsible for the follow-up by promoting the project and searching for partners for implementation.

The Secretariat will be led by A Secretary General and 5 Deputy Secretary Generals, both from the EU and the South region.

The Commission is in the process of identifying the financial needs and possibilities related to the running of the Secretariat.

Senior Official Meetings (SoM)

High-ranking officials of all the partner countries (43) and the Commission take part in the meetings. The SoM is tasked with the preparation of Euromed Ministerial meetings including projects to be endorsed, in particular those of Foreign Ministers; to take stock of and evaluate the progress of the UfM in all its components and submit the annual work programme to Ministers of Foreign Affairs.

They meet regularly and analyse the progress made towards the fulfilment of the Union for the Mediterranean objectives. The SoM also provides incentives for new initiatives.

The SoM is assisted by a Joint Permanent Committee.

Joint Permanent Committee

The JPC would assist the co-presidencies in their duties and functions and to ensure the increased co-ownership of the decision making process by intensification of dialogue. The Committee will comprise specifically appointed representatives from all Member States' and Mediterranean Partners' missions in Brussels on the other hand, would serve as a kind of standing committee. They would be responsible for preparing the meetings of the Senior Officials, assisting the co-presidencies in the preparations for the Summits and Ministers' meetings, and last but not least, could also serve as rapid reaction mechanism in case of a crisis situation requiring consultation of Euro-Mediterranean partners.

Funding

Funding will need to be mobilized to implement the ambitious projects identified. The Commission envisages financial resources could come from:

*the private sector
*bilateral cooperation from EU Member States,
*contributions from Mediterranean partners,
*international financial institutions or regional banks,
*Community budget for the Mediterranean, such as the ENP South regional programmes, the Neighbourhood Investment Facility and the Cross-Border Cooperation instrument, all of them within the European Neighbourhood Policy Instrument (ENPI).

Ministers in Marseille also adopted a considerably enhanced work programme for 2009, which includes, among other areas:

*prevention, preparedness and response to natural and man-made disasters;
*maritime safety and security;
*energy cooperation and renewable sources with the Mediterranean Solar Plant as key project;
*integrated Euro-Mediterranean transport system and connections with trans-European transport network;
*water strategy and environment with a target to achieve the de-pollution of the Mediterranean by 2020;
*establishment of a Euro-Mediterranean Free Trade Area;
*development of the social dimension of the partnership: health, research, education, intercultural dialogue, migration, and gender equality;
*identification of areas of common ground to strengthen democracy and political pluralism through expansion of participation in political life and respect for all human rights and fundamental freedoms.

MEETINGS

The crisis in Gaza at the end of 2009 resulted in a suspension of the UpM meetings during some months.

A Senior Officials meeting took place on 23 April in Brussels where the Arab partners stated the suspensions of activities but agreed to attend meetings on an ad hoc basis

At the invitation of Minister Moratinos, the group drafting the Statutes of the Secretariat met on 25 May and 16 June in Barcelona, meetings in which all Arab partners participated.

A Senior Officials meeting on civil protection took place on 16 and 17 June in Marseille where it was agreed actions to build the Euro-Mediterranean Area for Civil Protection by progressively integrating the Southern partners into the European Civil Protection Mechanism.

Euro-Mediterranean Ministers met on 25 June in Paris to discuss sustainable development issues such as transport, water, energy and urban development (all Southern partners participated, except Syria, Libya and Turkey).

On 7 July, Senior Officials and Ministers of Finances and Economy met in Brussels.

PROJECTS

Despite the political blockage, the Commission has kept busy implementing the activities regarded as priorities in the Paris and has since then provided or earmarked almost €90 million to achieve its goals. To this amount we need to add the contribution of more than €50 million from the European Investment Bank and from the funds of the European Neighbourhood Facility.

Since July 2008, the European Commission is financing or just about to launch 2 :

Environment ( €22 million for 2009-2010)

The Mediterranean Environment Reporting system and activities and projects within the Horizon 2020 programme, aiming at the de-pollution of the Mediterranean by 2020.

Promotion of water policies and practices in the Mediterranean region

Renewable energies

Studies to identify the effective strategy to develop and implement the Mediterranean Solar Plant and how to support renewable energy in the Mediterranean region. Following the studies, the Commission expects to launch the Solar Plant programme before the end of the year.

Feasibility study for a concentrated solar power plant in Tunisia (€1 million from the Neighbourhood Investment Facility).

A 200 MW wind farm in the Gulf of El Zayt, Egypt (€1 million from the Neighbourhood Investment Facility).

Transport

Mediterranean Motorways of the Sea and Integrated Mediterranean Maritime Policy (€7.5 million).

Mediterranean Maritime Security via the SAFEMED programme (€4.5).

Support to the implementation of a regional Transport Action Plan, including the development of a Euro-Mediterranean Transport Network and associated infrastructure (€6 million).

Civil protection (€5 million since July 2008)

Development and reinforcement of the civil protection in the region by building and strengthening the reaction capacity. Activities are carried out by a consortium led by Italy and with the participation of Egypt, France and UN; Balkans countries and Turkey also participate.

Education and Research

a contribution of €1 million to the Euromed University in Portoroz (Slovenia) to facilitate the participating of students and academics from the Mediterranean countries.

Business

The "Invest in Med" initiative which supports investments in the region (€9 million).

1 : All EU Member States together with Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the occupied Palestinian Territories, Syria, Tunisia and Turkey, as well as the other Mediterranean coastal states (Albania, Croatia, Bosnia-Herzegovina, Montenegro and Monaco) and Mauritania. The Arab League and Libya have observer status.

Iraq invites firms to second oil bid meeting

2009-08-01T04:17:00.003+02:00

Published: 27 July 2009 12:33 GMT, Author:Perry Williams, MEED

Iraq's Oil Ministry will hold a roadshow for its second oil licensing round in Istanbul on 25 August in an attempt to reverse the disappointing results of the first bid round held in June.

The ministry's Petroleum Contracts & Licensing Directorate says it has invited 45 qualified oil companies to attend the meeting.

The directorate is offering licences covering 10 oil and gas fields which have yet to be developed.

The fields include the highly prized Majnoon field in Basra Province and West Qurna phase 2, which holds about six billion barrels of oil.

The remaining fields include Halfaya, East Baghdad, Gharraf, Qavara, Najmah, Badrah and Merjan/Kifl/West Kifl.

Iraq is also offering an Eastern Block comprising the Gilabat, Khashm al-Ahmr, Nau Doman and Qumar fields.

The government previously said it will sign contracts by the end of 2009 and that the fields are capable of producing up to 2.5 million barrels a day (b/d) of oil by 2013.

In June's licensing round, Iraq's Oil Ministry awarded just one licence to an energy major as companies baulked at Baghdad's tough terms and conditions.

Kuwait/Iraq : UN approves Kuwaiti compensation claims

2009-07-31T07:11:00.002+02:00

Published: 30 July 2009 11:03 GMT

The UN's Compensation Commission (UNCC) has approved and awarded 10 Kuwaiti claims for damages against Iraq worth a total $430m.

The claims are for damages and losses suffered during Iraq's 1990 invasion of Kuwait.

"This latest round of payments brings the overall amount of compensation made available to date by the commission to nearly $28bn," the UNCC said in a statement on 30 July.

Kuwait's compensation claims have become a subject of much debate in recent weeks, as Iraq is seeking to either slow or halt entirely the reparations it pays to its neighbours, of which the oil-rich emirate is the main recipient.

Following the 1990 invasion and subsequent liberation of Kuwait by a coalition of countries led by the US, the UN decided that Iraq should pay $50bn in reparation for the damage caused to its infrastructure and economy.

Baghdad had been making payments by passing on 30 per cent of the country's oil revenues. However, was cut to 5 per cent after the US-led invasion deposed Saddam Hussein in 2003.

Iraq's Prime Minister Nouri al-Maliki says the country should not be punished for a war propagated by the deposed dictator, and that the country needs retain its oil revenues to rebuild its shattered infrastructure. Kuwait, however, opposes the proposal.

Irak, Climat des affaires et des investissements

2009-07-28T14:59:00.004+02:00

Irak, Climat des affaires et des investissements.

1) Pas d’exemption des lois irakiennes

Les contrats avec le gouvernement américains et les autres pays alliés étaient exemptés de l’application des lois irakiennes jusqu’au 1^er Janvier 2009. Depuis le Status of Forces Agreement (SOFA) a levé cette immunité, ce qui signifie que désormais les entreprises et personnes étrangères sont sujettes à l’application des lois civiles et criminelles en Iraq mais aussi doit observer les obligations légales et règlementaires incluant les procédures du droit d’établissement et d’exit, la loi sur l’imposition, les procédures d’enregistrement y compris pour les véhicules, les permis de conduire et les armes. De plus, toutes les entreprises et personnes étrangères engagées dans des activités commerciales doivent obtenir une licence du gouvernement irakien.

2) Création d’un bureau de représentation commerciale

La méthode la plus simple pour établir une présence commerciale en Irak, en particulier pour les compagnies étrangères cherchant des contrats avec le gouvernement Irakien, est de s’enregistrer comme un «Bureau de représentation commerciale». Cette forme permet aux sociétés étrangères de développer des activités commerciales en Irak et à pouvoir négocier des contrats avec des ministères iraquiens. La procédure d'enregistrement comme un bureau de représentation est simple, nécessite de remplir une demande, nommer un "directeur et le paiement d'une somme modique. En Iraq, la plupart des ministères n'ont pas besoin d'autres licences pour conclure un contrat. Si une société étrangère obtient un contrat avec le gouvernement, elle peut alors transformer son bureau de représentation commerciale en filiale.

3) Création d’une filiale

La loi "CPA Order 93", qui est actuellement intégrée à la loi irakienne actuelle, permet à des entreprises non-irakiennes de se créer et opérer par le biais d'une filiale. L’enregistrement d'une filiale a été au cours des dernières années le moyen le plus rapide à mettre en place pour les entreprises non-irakiennes pour pouvoir engager des activités commerciales en Irak (par opposition au bureau de représentation commerciale qui peut se livrer uniquement à des activités de développement des entreprises). Bon nombre de sociétés opérant en Iraq sont mises en place comme des filiales. Les entreprises étrangères qui souhaitent établir une société distincte pour faire des affaires en Irak, plutôt que d'une filiale peuvent opter pour les formes classiques d’intégration y compris les sociétés à responsabilité limitée, sociétés anonyme, sociétés à responsabilité commune, l'entreprise à propriétaire unique, l’entreprise à commandite simple. Choisir la meilleure entité dépend du degré de responsabilité que les investisseurs veulent protégés, le nombre d'investisseurs, de leur pourcentage de participation, et si les investisseurs publics et privés seront impliqués. Les formes de société les plus populaires pour les sociétés étrangères sont les sociétés à responsabilité limitée et les sociétés anonymes.

4) Paiment des impots

Les règles fiscales sont désuètes et contiennent de nombreuses ambiguïtés. En général, les Irakiens et de non-Irakiens résidant en Irak doivent payer l'impôt sur le revenu qui provient d'Irak. L'impôt sur le revenu Irakien définit le revenu imposable comme revenu net provenant d'activités commerciales ou d'activités ayant un caractère commercial. Les revenus des sociétés à responsabilité limitée et des sociétés par actions est taxé à un taux fixe de 15%. Les entreprises étrangères doivent demander des conseils précis sur la façon dont leur entreprise seront traitées en vertu de la législation fiscale Irakienne et la manière de le déclarer et s’en acquitter.

5) Obtention d’une autorisation d’investissement (licence)

Pendant le régime de Saddam Hussein, la loi décourageait les investissements étrangers. Seuls les Irakiens pouvaient constituer des sociétés en Irak et les entreprises étrangères qui ont ouvert des bureaux en Irak ont fait face à des règles strictes concernant leurs activités commerciales. En Octobre 2006, le gouvernement Irakien a promulgué la loi sur l'investissement national, qui contient des mesures incitatives pour les entreprises étrangères, y compris une exonération d'impôts et des taxes et la garantie que le capital des investisseurs étrangers seront traités de la même manière que les investisseurs en capital nationaux. En vertu de la loi, les sociétés doivent demander un projet de licence d'investissement spécifique de la part de la commission nationale de l’investissement (NOC) or régionale pour pouvoir se prévaloir des incitations. En plus d’une exonération totale du paiement de l'impôt, les projets sous licence sont garantis de la possibilité de rapatriement de la totalité des bénéfices de l'investissement, le droit d'employer des travailleurs étrangers, et une période d’exonération de trois ans sur les droits d'importation pour les équipements requis pour le projet. Le Gouvernement régional du Kurdistan a adopté sa propre loi sur les investissements qui contient quelques différences.

6) Droit de propriété des étrangers

La plupart des pays du Moyen-Orient et Afrique du Nord limite le droit d’accession à la propriété des étrangers. Le gouvernement Irakien a maintenu en place ces interdictions traditionnelles, mais permet des baux à long terme pour les entreprises qui obtiennent une licence d'investissement, mais aucun droit de propriété de biens immobiliers. D'autre part, le Gouvernement régional du Kurdistan, à travers son droit d'investissement régional permet l'appropriation de biens immobiliers dans les trois provinces du Nord qui composent la région du Kurdistan. Le gouvernement central Irakien est en train d'examiner une exception à cette règlementation et le Premier ministre Maliki, ainsi que le Président de la Commission nationale d'investissement, M. Sami al-Araji, ont exprimé leur soutien à un changement de la loi pour autoriser le droit de propriété dans le reste de l'Irak.

7) Droit d’établissement et de sortie (exit)

L'obtention de l'autorisation d'entrée en Irak est presque automatique pour les contractants du gouvernement des États-Unis avant l’accord sur le « statut des forces » (status of Forces Agreement). La suppression de l'immunité des contractants a rendu obligatoire l’obtention d’un visa d’entrée pour toutes les sociétés. Les visas doivent être obtenus auprès de l'ambassade Irakienne avant d’entreprendre un voyage en Irak. La procédure d’obtention du visa est assez lourde et peut parfois prendre des semaines voire des mois. L’obtention d'une lettre d'approbation des officiels Irakien du commerce, tels que l'attaché commercial, la Commission nationale d'investissement, la Commission de l'investissement régional du Kurdistan irakien et d'autres bureaux de représentation peut considérablement accélérer la procédure. En outre, toute entreprise étrangère qui reçoit une licence d'investissement doit recevoir la garantie d'entrée et de sortie pour ses employés.

8) Force exécutoire des contrats

Le système juridique Irakien est vieux de plusieurs siècles de traditions établies de longue date. Pourtant, elle s'est détériorée fortement sous Saddam Hussein et, davantage, au cours du récent conflit. Alors que l'assistance de la coalition des États-Unis et d'autres pays a introduit des concepts modernes, il est cependant nécessaire d’œuvrer davantage pour intégrer les normes internationales pour la réglementation des affaires et le règlement des différends. Dans la mesure du possible, les entreprises étrangères devraient inclure l'arbitrage et les clauses arbitrales dans leurs contrats afin de tirer avantage des lois sur le règlement des différends. Toutefois, les entreprises doivent également garder à l'esprit que l'Irak n'est pas encore signataire de la Convention de New York, le principal traité qui assure l'exécution des actes judiciaires et des sentences arbitrales.

Extrait de « IRAQ BUSINESS INITIATIVE », de la CHAMBRE DE COMMERCE DES ÉTATS-UNIS D'AMÉRIQUE, par David Tafuri, Esquire qui assiste les investisseurs en droit des affaires, litiges et les questions de politique publique.