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Read in the promising future of the Iraqi economy?
By: management of the Centre
Date: Monday 20/02/2012 22:16
Iraq seeks and continuously to revive the economic resources and reduce its dependence on oil as a source of basic to this country, and through the promotion of investment projects
And attract foreign investors, the government is seeking Despite the political challenges that hinder their achievements because of some conflicts party that arise from time to time to facilitate some of the procedures with respect to the investment law, which he describes some of the stakeholders gesture positive which will contribute to and attracting capital, especially that Iraq is one of the most important countries in the region and has important economic factors. He said Iraqi Prime Minister Nuri al-Maliki said his government is willing to modify their laws to suit the investment with the movement of the ongoing reconstruction of the country. Al-Maliki said during a visit to the Baghdad International Fair in its 38 th with the participation of 19 countries and about 500 companies that Iraq will continue to support corporate and business investment and will amend its laws in line with the movement of construction taking place in the country. "" We are serious in providing the legal environment guarantor for companies and business people to continue the process of reconstruction and brought to work. "and urged the Prime Minister to" accelerate the pace of reconstruction, "stressing that" Iraq has great wealth and he can believe in a higher level of service and well-being of its citizens. "and toured Maliki in the wings of the Arab and American and European. and held this exhibition with the participation of 19 countries, notably wing chief of the United States, Japan, Korea, Spain, France, Belarus, Serbia, Turkey and the Czech Republic and the Netherlands, Syria, Jordan and Iran.
And is also expected to increase interest in the foreign stock exchange, the emerging Iraqi after jumping the main index of more than 30 percent, said foreign investors who have registered net purchases in the local bourse and bought shares worth $ 150 million that this political unrest and security concerns did not significantly affect their appetite in the Iraqi Stock Exchange .
Sharif said Salem, a portfolio manager at Abu Dhabi Investment Company, which invested $ 18 million in the Iraqi Stock Exchange since November November 2010 he was still interested in the Iraqi market, and that his view will not change because of what is happening now. He added that the company is counting on investment of more money. The total number of shares traded for the year Previous 492 billion worth of $ 753 million compared with 255 billion shares worth $ 377 million in 2010, according to stock exchange data. Foreign investors bought 82.7 billion shares worth $ 150 million and sold 7.18 billion shares worth $ 41.7 million. Said Paul Bartle partner in Northern Gulf Partners, which manages the fund Iraq 1 partners to invest the company's "Iraq will become the fastest growing economy in the world during the next decade and expect to be reflected in the listed companies in the country." "It undoubtedly will continue to record net foreign purchases in Iraq in 2012. Where can investors find that leading economic growth and wealth of resources at the post-war .." According to Reuters.
Although the Iraqi stock market is very small compared to regional and global Bbursat other has proved to be more robust in the face of the global economic slowdown as it was one of the few stock markets that offer enormous opportunities for growth. The Iraqi Stock Exchange index closed at 136.03 points in the last trading session in 2011, up 34.7 percent from its level in the last trading session in 2010 of 100.98 points.
For his part, said Nabil Habayeb Director of GE in the Middle East and North Africa, Turkey stuck to his company, which started operations in Iraq since the forty years to continue their activities, saying, "We confirm our interest in Iraq and the projects and the people of Iraq." Habayeb also announced the opening of offices in Baghdad, Basra and Erbil, to follow up its work in Iraq. The General Electric provider for more than 90 percent of the electricity for the province of Kurdistan in northern Iraq. Engines are also used in the operation of the company's aircraft fleet of Iraqi Airways.
On the other hand Iraqi government is seeking to reduce the budget deficit in the coming years through some of the procedures and future plans, this was confirmed by Finance Minister Rafie al-Issawi earlier while attending the World Economic Forum at the Dead Sea, and Issawi said that Iraq is seeking to reduce the budget deficit by two-thirds in three years by increasing oil production and promote the participation of the private sector in the economy which is dominated by the state. He said he expected decline in the deficit to five trillion dinars from the expected level for this year at 16.6 trillion dinars (14.2 billion dollars). He said, "There will also be spending unverified will eventually bridge the budget deficit and the deficit therefore not a concern." The minister did not elaborate on the size of the projected deficit as a percentage of gross domestic product to official figures, but the 2011 budget set at 82.6 billion dollars and expected deficit of about 17 percent of revenue. Issawi said he hoped to accelerate economic growth slightly to about five percent this year and nine percent in the next three years as Iraq begins to end the legacy of the adoption of economic activity on the state and contrary to a slowdown in the economies of the region-year. He added that spending will increase by eight trillion dinars in 2012 as a result additional spending to raise wages and train security forces and the purchase of F-16 military aircraft and rising import bill commodities. But he added that the increased spending would be offset by expected growth in revenues to about 95 trillion dinars with the increase in oil production and where privatization will reduce the pressure on public finances of the government. He said al-Issawi, "The main challenge today is destroyed and infrastructure that you need for more capital spending and this means opening the door to the private sector." He said the government plans to accelerate the pace of privatization of state-owned industries and that it now offers free land to investors to encourage investment.
He said, "We are convinced that part of the solution in the hands of the private sector." He said the main challenge facing the Iraqi economy still is to reduce dependence on oil to stimulate growth. "The limited diversification in the economy's dependence on oil. This restricts the growth and investment." Issawi said that current oil prices that exceed government estimates help secure the financial position of the government. Safe. "According to Reuters.
Iraq currently produces about 2.7 million barrels per day and seeks to enhance the production capacity to 12 million barrels per day by 2017. Based on the 2011 budget to an average oil price of $ 85 a barrel and the size of exports 2.2 million barrels per day of crude while the Budget 2012 expects to export 2.6 million barrels per day in the same average price expected for this year. The budget deficit is a challenge to Iraq's ability to rebuild. Has announced the country's mega-projects to build hundreds of thousands of new homes and promote the production of electricity that the country suffers from frequently interrupted by the war and sanctions over the past twenty years. And deprived Iraq of violence and corruption of the investments during the years of conflict that began after the US-led invasion of the country in 2003 to topple Saddam's regime while going slowly rebuilding process.
New measures
Besides, it seemed the CBI application of new measures over the sales of the dollar, according to a senior official said at the bank, which led to a significant reduction in the rates of selling currency. The decision comes amid suspicions of Iraqi officials about attempts to Iranian and Syrian traders buy the currency this difficult because of the sanctions imposed on both Iran and Syria, the depreciation of local currency in these two neighboring countries of Iraq. The deputy governor of the Central Bank of Iraq the appearance of favor, "we started on the first of the month of February a new organizational application instructions states that the bank knows who wants to get on the dollar for his clients who had asked him to buy the currency." "The bank's customers to prove they have personal accounts in which money and have a base of actual information in the bank in addition to fixed income." Saleh explained that the reason behind these actions goes back to that "a lot of buyers hiding behind other people, ie, that of not buying a real person." According to AFP.
The refusal in favor of this resolution linking the consequences of sanctions on Iran, Syria, said that "regional factors are important and workers especially Syria and Iran, because there is overlap between the trade of these countries as well as Turkey and Saudi Arabia, the Gulf." He said Iraq has witnessed in the recent "gift in the demand for the dollar." "When we saw that there is extra demand amid the complexities of regional, we want to check more in the nature of sales and customers." These measures have caused a significant decrease in the rates of dollar selling in the auction, hosted by the Central Bank of Iraq every week between Sunday and Thursday. Saleh said he was "on the first day we started the implementation of these measures we sold three million dollars only," after the sale of these rates of currency during the last three months, "about 200 million dollars in one day."
Figures published on the site of the Iraqi Central Bank, which has, according to the benefit of the dollar reserves of about $ 60 billion. It is noteworthy that the rate of dollar sales in 2010 was only about 100 million dollars a day. And interpreted for the significant reduction in the rates of recent sales of the dollar by saying that "customers may fear for their privacy of banking." The Iraqi official stressed that "no U.S. pressure never us, and our friends the Americans never nothing to do with the subject (new measures)." Iran faces financial penalties and Syria, which could moved it to the search for hard currency, which may be one of Iraq's main sources.
On the other hand the chief executive of the Iraqi Stock Exchange doubled the market value of the Stock Exchange doubled to become the eight billion dollars as soon as the inclusion of the three mobile phone companies operating in the country. And licensing requirements are imposed on three companies listing in the local bourse. The three companies are Asiacell - of the Qatar Telecom (Qtel) - Telecom and Cork - partly owned by France Telecom and Agility - and Zain Iraq of Kuwait's Zain. Did not turn any of the three companies after a joint-stock company which is a key requirement and a first step towards a public offering in the Iraqi Stock Exchange
The chief executive of the Iraqi Stock Exchange, Taha Ahmed Abdul Salam said the current market value amounting to four billion dollars could double to double as mobile phone companies to be able to list its shares in the coming months. He said earlier while attending a conference on the stock exchange, which was held in Erbil in northern Iraq that if companies entered the market in the telecommunications sector was the IPO also correctly predicted and positive, it is expected to double this figure to lesbian, if not more. Earlier in the official ruled out in the media and communications to conduct any operations of an initial public offering until mid-year.
Iraq was not in the mobile phone industry in the era of former President Saddam Hussein, but the sector has grown rapidly since the US-led invasion in 2003. The Iraqi market is one of the few markets in the region is witnessing a growth in subscriber numbers rose in double digits. There are currently about 23 million subscribers in mobile phone services in Iraq, according to data from the media and communications that govern the sector in the country. According to Reuters.
Abdel-Salam said that the current market value of which amounts to four billion dollars already increased from three billion dollars in 2010 because of the demands of the Central Bank to local banks to increase its capital. The banking sector is the largest sectors in the Iraqi Stock Exchange, which also includes companies in industry, insurance, hotels and agriculture. And turned the Iraqi Stock Exchange from manual trading to electronic trading in 2009 and the total trading hours two hours a day five days a week. The Iraqi Stock Exchange began its work in 2004 and comprises 86 companies listed on an area for private investment outside the oil industry in a country still dominated by state-owned enterprises.
Source - e-mail center
20/02/12
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