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BAGHDAD: Giga Group of the UAE has signed a $1 billion initial contract with local officials in Iraq's Basra province to build 12,000 houses, authorities said yesterday.
The Dubai-based company will build the homes over 1,600 acres of land on the outskirts of Basra, 420km southeast of Baghdad, head of Basra Provincial Council Sabah Al Bazouni said during the signing ceremony.
"It is an initial agreement. The land has been allocated to the company so they could start quickly," Al Bazouni said.
The deal has been divided into four smaller contracts each worth around $250m in order to avoid bureaucratic procedures of seeking the approval from the central government in Baghdad, Al Bazouni said.
Iraq faces an acute shortage of houses after years of wars and sanctions. It needs between two to three million new homes for its growing population.
While oil companies are helping develop the country's petroleum industry, other sectors like energy production, electricity and construction are lagging behind and require more foreign investment to help Iraq rebuild.
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The Dubai-based company will build the homes over 1,600 acres of land on the outskirts of Basra, 420km southeast of Baghdad, head of Basra Provincial Council Sabah Al Bazouni said during the signing ceremony.
"It is an initial agreement. The land has been allocated to the company so they could start quickly," Al Bazouni said.
The deal has been divided into four smaller contracts each worth around $250m in order to avoid bureaucratic procedures of seeking the approval from the central government in Baghdad, Al Bazouni said.
Iraq faces an acute shortage of houses after years of wars and sanctions. It needs between two to three million new homes for its growing population.
While oil companies are helping develop the country's petroleum industry, other sectors like energy production, electricity and construction are lagging behind and require more foreign investment to help Iraq rebuild.
[You must be registered and logged in to see this link.]
