abccphotogallery
ABCC highlights opportunities in Iraq
The latest Export Club organised by the Arab-British Chamber of Commerce took place on 15 July and attracted a capacity audience to hear details of the latest investment and business opportunities in the emerging economy of Iraq.
Iraq remains a challenging market but with considerable improvement in the recent security situation more companies are beginning to explore the potentially huge possibilities in this large oil rich Arab economy.
Trade between the UK and Iraq remains low although it increased in 2008, with the UK exporting goods worth £156 million, up from £133m in 2007. The country clearly offers immense scope for new business.
Iraq represents major opportunity for UK business. The country needs more international investment to generate jobs and economic growth – which will be key to setting Iraq on the path towards long term prosperity. British exporters will now be able to trade with Iraq with Export Credit Guarantee Department (ECGD) support.
Iraq enjoys many attractive features not least of which is its immense natural resources including its huge oil and gas wealth, much of this remaining untapped and suffering from under investment over many decades.
The country’s skilled population of over 28 million people is one of Iraq’s most important assets and is an added attraction for foreign investors looking to enter the market, the Export Club heard.
On behalf of the ABCC Secretary General & CEO, Dr Afnan Al Shuaiby and himself, Sir Roger Tomkys, ABCC chairman, chairing to seminar, welcomed everyone to the Export Club.
Opening the proceedings, Dr Kamal Field Al-Basri, Commercial Attache with the Iraq Embassy, updated the audience with the latest statistics on Iraq’s performance, stressing that growth was expected to be 5% this year and describing the falling inflation and unemployment as signs of improved security and stability.
The commercial attaché said that Iraq urgently needed foreign investors and partners to boost its oil production which now stood at 2.5 million b/d when the government’s target was for 6mn b/d.
The country’s large agricultural sector also needed investors, particularly to improve the irrigation system.
A keynote address was delivered by H E Mr Christopher Prentice, British Ambassador in Baghdad, who has spent two years in the country, who examined what is of interest to firms seeking to invest in the country.
Normal business operations were now becoming increasingly possible in the country and the government in Baghdad was working more effectively to establish the right environment where business could take place, he said. While firms needed to be realistic about the remaining difficulties, they should not be deterred by news stories about the security situation, the ambassador stressed.
Iraq was continuing to introduce reforms to attract investors, including the reform of the law relating to property ownership and land leases for new projects, Mr Prentice said. He also indicated that the procedure for the issuing of business visas to Iraq was under going reform to make it easier for business representatives to enter the country.
He also pointed to the new links that the UK was building between academics in various fields in Iraq through the initiative of the British Council.
Michael Hodges, from HSBC, spoke of the developments in the banking and financial sector in the country, pointing to the recent decision of the UK’s Export Credit Guarantee Department’s decision to go back on cover for Iraq. This was good news for UK exporters and is a clear sign of the significant improvements in the stability of the country.
Dr Mostafa Al-Bazergan, Chairman of the Iraqi British Business & Investment Council, gave a detailed overview of the important oil and gas sector, which still dominates the country’s economy and the opportunities for foreign investors in the sector were immense.
Dr Bazergan said that the sector needed $45 billion in investment to upgrade its performance. The clear message from Iraq was now to encourage foreign investors to in the oil and gas sector; the discussion concerned exactly what form this involvement should take.
He explained how the industry was being reorganised and how the new much debated hydrocarbons law was awaiting enactment.
The Export Club was sponsored by security specialist AEGIS, whose Director, Brigadier James Ellery, gave a robust assessment of the positive benefits of doing business in Iraq despite the challenges. He believed the country had the potential to become one of the economic engines of the Middle East.
The Arab-British Exports Clubs are designed to introduce the latest developments in specific Arab markets to ABCC members and UK companies more widely.
The events also give attendees a unique opportunity to discuss and network with diplomats, experts and decision makers in the relaxed atmosphere of the reception that follows the formal presentations.
