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DUBAI (Zawya Dow Jones[You must be registered and logged in to see this image.])--In a show of confidence in Iraq's economic prospects, U.S. banking giant Citi ( C ) said it plans to open a representative office in Baghdad after getting approval from the country's regulator, making it the first American bank to have a physical presence on the ground there.
Citi said it obtained preliminary approval from Iraq's central bank to establish a Baghdad office. Until now, Citi served its Iraqi clients through its office in Jordan's capital Amman. The lender is looking to open two more representative offices in Erbil and Basra at a later stage.
For Citi, Iraq represents the first new country it has expanded into since 2007.
"Our economists have forecast that by the year 2050, the Iraqi economy should be in the neighborhood of $2 trillion with a 50 million population -- that's an economy which is compelling," said Dennis Flannery, who will be heading up the new office. He joined Citi in 2011 from the U.S. embassy in Baghdad.
Citi is mostly active in Iraq through cash management and trade finance to multi-national companies, including several major oil groups. But the bank is also looking to play a role in financing the rebuilding of Iraq's infrastructure, part of which was ravaged following the U.S.-led invasion[You must be registered and logged in to see this image.] of the country in 2003.
"We expect prosperity coming to Iraq and we hope that as prosperity comes to the country some of the political and security[You must be registered and logged in to see this image.] issues might be abated," Mr. Flannery said.
Citi isn't the only foreign bank operating in Iraq. Regional lenders from the Persian Gulf, Lebanon and Turkey have built a presence there in recent years. Standard Chartered is planning to open three branches while J.P. Morgan is also active there.
HSBC, which owns a majority stake in a domestic lender, said earlier this year that it is considering exiting the country altogether as it reviews its global operations.
Elsewhere in the Middle East, Citi has a presence in the United Arab Emirates, Bahrain, Qatar, Kuwait, Egypt and Lebanon. [You must be registered and logged in to see this link.]
Citi said it obtained preliminary approval from Iraq's central bank to establish a Baghdad office. Until now, Citi served its Iraqi clients through its office in Jordan's capital Amman. The lender is looking to open two more representative offices in Erbil and Basra at a later stage.
For Citi, Iraq represents the first new country it has expanded into since 2007.
"Our economists have forecast that by the year 2050, the Iraqi economy should be in the neighborhood of $2 trillion with a 50 million population -- that's an economy which is compelling," said Dennis Flannery, who will be heading up the new office. He joined Citi in 2011 from the U.S. embassy in Baghdad.
Citi is mostly active in Iraq through cash management and trade finance to multi-national companies, including several major oil groups. But the bank is also looking to play a role in financing the rebuilding of Iraq's infrastructure, part of which was ravaged following the U.S.-led invasion[You must be registered and logged in to see this image.] of the country in 2003.
"We expect prosperity coming to Iraq and we hope that as prosperity comes to the country some of the political and security[You must be registered and logged in to see this image.] issues might be abated," Mr. Flannery said.
Citi isn't the only foreign bank operating in Iraq. Regional lenders from the Persian Gulf, Lebanon and Turkey have built a presence there in recent years. Standard Chartered is planning to open three branches while J.P. Morgan is also active there.
HSBC, which owns a majority stake in a domestic lender, said earlier this year that it is considering exiting the country altogether as it reviews its global operations.
Elsewhere in the Middle East, Citi has a presence in the United Arab Emirates, Bahrain, Qatar, Kuwait, Egypt and Lebanon. [You must be registered and logged in to see this link.]
