Breaking into Iraq's Marketplace

[BIG WAVE]

The U.S. Department of Commerce has published a report, Breaking into Iraq's Marketplace, February 2006, that provides strategies on Iraqi business and investment.

Improvements in Iraq

The report considers Iraq to be "well positioned for trade and investment," citing Iraq's "significant" rise in real incomes and gross domestic product, as well as Iraq's decreasing unemployment rate.

Accomplishments in Iraq's reconstruction and free market reforms support Iraq's appeal for trade and investment. Over 3,400 projects have been started, 2,200 completed and more than 1,100 projects remain underway with the support of U.S. funds. A recent poll, according to the report, found that 65 percent of Iraqis expect an improved life by the end of 2006. Free market reforms implemented by the Coalition Provisional Authority and the Government of Iraq "continue to lay a good foundation for foreign investors."

Iraq's Private Sector

One method of entering the Iraqi marketplace, the report recommends, is working directly with Iraq's private sector in order to maximize opportunities for "long-term growth and return on investment."

Additionally, the Department of Commerce suggests targeting the northern Kurdistan region "as a gateway for investment in Iraq."

Other Strategies

The report also suggests that U.S. companies offer industry externships, establish demonstration projects, work with ministries and pursue reconstruction contracts.

Further Information

The U.S. Department of Commerce has published the full report online.

[Sporter]

the Department of Commerce suggests targeting the northern Kurdistan region "as a gateway for investment in Iraq."

I'm sure that the Kurds want to get away from a 1460 to 1 rate!.:lmao: :lmao: The CBI holds the key to foreign investment it will happen once it happens, not a moment sooner.

[BIG WAVE]

just read, oil investors are waiting on the "INVESTMENT CODE", If you look it up it dates back to 2003 and is required for international purposes. Will look for the article as soon as I can.

...Bw

[BIG WAVE]

Sabotage and storms have demolished Iraqi hopes of lifting oil exports from their lowest level since the US led invasion and highlighted the scale of the challenge facing a new government and oil minister.

Foreign oil firms biding time: Oil multinationals are waiting until a new investment code is in place before pumping cash into Iraq. International oil firms are eyeing its giant and largely underdeveloped oilfields.

http://peakoil.com/modules.php?name=News&file=article&sid=11290

September 21, 2003
The reforms will significantly advance efforts to build a free and open market economy in Iraq, promote Iraq’s future economic growth, accelerate Iraq’s re-entry into the international economy and reintegration with other countries, and the development of domestic Iraqi institutions that are based on international standards and international best practices.


The specific measures concern Iraq’s foreign direct investment code, its banking sector, and its tax and tariff regimes. Key features include the following:

Foreign direct investment

Allows up to 100% foreign ownership in all sectors except natural resources (real property cannot be owned by foreigners but can be leased up to forty years)
Permits direct ownership, joint ventures, branches
Provides for national treatment of all foreign firms
Permits full and immediate remittance of profits, dividends, interest, and royalties
Imposes no local product requirements or other such limitations
There will be no clearing committee for foreign investments


International bank entry

Permits foreign banks to enter Iraq as branches, subsidiaries, representative offices, or through joint ventures with local banks
Permits six foreign banks to purchase up to 100% of local banks within the next five years. After five years there will be no limitation on foreign bank entry.
There will be a “fast track entry” process for the first two of these six banks – prompt and substantial lending will be a significant criterion in early entry determinations.
There will be a $25 million capital requirement for foreign majority-owned subsidiaries, through there is no restriction on where that capital may be invested. There are no specific capital requirements for branches.
Permits an unlimited number of foreign banks to purchase up to 50% of local banks
Provides for national treatment of all foreign banks
Allows foreign banks to accept deposits immediately
http://www.arabbankers.org/shared/content/story.jsp?_event=view&_id=445502_c_sU127360_s_i167232

[BIG WAVE]

Kurdish officials are inviting foreign oil companies to explore untapped reserves in their northern region, angering Arab countrymen and raising concern about chaos in Iraq's oil industry. Kurds, their self-ruled federation firmly enshrined in Iraq's constitution, believe they are reclaiming their right to control northern oil fields
http://www.noozz.com/Iraq/Media/Images/oilwell.gif
http://www.noozz.com/Iraq/Index.aspx

[MunnyBaggs]

Thanks, BW, once again for your hard work. You done good yet once again.