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Citigroup Opens in Iraq as Corbat Scales Back Some Markets
By Stefania Bianchi - Jun 26, 2013 9:07 AM CT
Citigroup Inc. (C), the U.S. lender scaling back in some emerging markets, said it’s seeking to benefit from an estimated $1 trillion of infrastructure spending in Iraq as the country rebuilds roads and bridges after the war.
The third-largest U.S. lender by assets this week received approval to open a representative office in Baghdad and will also consider more such offices and branches in the country, Mayank Malik, Chief Executive Officer for Jordan, Iraq, Syria and the Palestinian territories, said in an telephone interview.
Iraq is the New York-based bank’s first country opening for six years and comes as Chief Executive Officer Michael Corbat seeks to sell or scale back consumer operations in nations such as Turkey, Pakistan and Uruguay, reversing an expansion strategy into faster-growing economies by former CEO Vikram Pandit.
“Iraq is a giant that’s waking up and the opportunities are immense,” Malik said from Amman, Jordan. “The most significant opportunities are twofold - oil revenue generation and infrastructure creation. We estimate this to be $1 trillion initiative over time.”
Iraq, holder of the world’s fifth-largest proven oil deposits, is boosting budget spending by 18 percent this year to $118 billion. The International Monetary Fund forecasts the economy will grow 9 percent this year, the fastest pace after Libya of 18 countries in the Middle East and North Africa.
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By Stefania Bianchi - Jun 26, 2013 9:07 AM CT
Citigroup Inc. (C), the U.S. lender scaling back in some emerging markets, said it’s seeking to benefit from an estimated $1 trillion of infrastructure spending in Iraq as the country rebuilds roads and bridges after the war.
The third-largest U.S. lender by assets this week received approval to open a representative office in Baghdad and will also consider more such offices and branches in the country, Mayank Malik, Chief Executive Officer for Jordan, Iraq, Syria and the Palestinian territories, said in an telephone interview.
Iraq is the New York-based bank’s first country opening for six years and comes as Chief Executive Officer Michael Corbat seeks to sell or scale back consumer operations in nations such as Turkey, Pakistan and Uruguay, reversing an expansion strategy into faster-growing economies by former CEO Vikram Pandit.
“Iraq is a giant that’s waking up and the opportunities are immense,” Malik said from Amman, Jordan. “The most significant opportunities are twofold - oil revenue generation and infrastructure creation. We estimate this to be $1 trillion initiative over time.”
Iraq, holder of the world’s fifth-largest proven oil deposits, is boosting budget spending by 18 percent this year to $118 billion. The International Monetary Fund forecasts the economy will grow 9 percent this year, the fastest pace after Libya of 18 countries in the Middle East and North Africa.
[You must be registered and logged in to see this link.]
