Iraq, The Reconstruction Progresses
|May 26, 2012||Filled under Other News|
3 million barrels per day: the current price are nearly two billion dollars a week. In Iraq oil production has now recovered the levels prior to the US occupation and, with new investments undertaken by multinational companies in the sector, expected to reach 6 million in 2015. The country then, in terms of public finances, begins to resemble other Gulf States.
The budget of the State closes with a positive balance, growing imports, is now taking off the building, further major projects in the field of infrastructure and oil downstream activities (petrochemical, energy). The Government has also begun to address the agricultural territory with vast irrigated areas (formerly fertile Mesopotamian) through the restoration of irrigation systems and the purchase of machinery and tractors.
Countries who are seizing new opportunities full dynamism of the Iraqi economy are currently Iran and Turkey, the first provider of a nation that needs everything. But there are also great opportunities for Italy, especially for companies that can provide technology and know-how for phase two: the initiation of new activities in non-oil sector and reconstruction of part of the country’s production system, which are in the forefront of a hard core of State-owned enterprises that the Government in Baghdad has decided not to privatise but thanks to funds from the Ministry of economy can invest now.
Are dozens of companies, some with several factories, which under Saddam Hussein’s regime could live with a strong protectionism. Entered into crisis with the opening of frontiers, by reason of imports, are looking forward to relaunch itself. A growing number of private enterprises, smaller but intending to seize the opportunity of the moment and to extend their activities. Capital, in this case, come from a wealthy class with the American occupation and now, the trading activities of turnovers to complement activities of production. All seek partners capable of delivering the latest technologies.
In which sectors? Apart from the supply chain services for the oil industry, the most dynamic are those connected with the building boom. The country has begun to address the problem, drama, housing. There are Governorates where crowds are indexes of 3-4 people per room with spikes that reach levels twice. Hence the launch of numerous residential projects for thousands of apartments on the outskirts of major cities.
The Government’s development plan provides over the next three to four years to finalise 2.5 million new housing, in addition to building (or restoring) of dozens of schools and hospitals. Just yesterday the South Korean Hanwha Group announced to have finalized a contract from well 7 billion dollars for the construction of 100 homes in the new town of Bismayah. There are numerous projects for the revival of religious and tourist locations like Najaf, Karbala or destination of millions of visitors coming from Iran and neighbouring countries. With the construction of new hotels (some of very high standard) and funding from, in this case, also from Gulf countries. Opens a vast space for the on-site production of materials (cement, ceramics, bricks) components (profiles, frames) and construction-related facilities that are currently imported.
How and where can move Italian companies interested in assessing the market for the supply of technologies for eventual partnership agreements with local companies (management contracts, acquisition of company branches) or greenfield investments in numerous industrial parks localizable made available at various locations in the country? The situation has stabilized in the autonomous region of Kurdistan, where they can operate safely more than acceptable, with many shipyards, a strong dynamism of small private enterprises, abundant liquidity available. Using the additional possibility to lean, logistically, neighbouring Turkey.
But also in the rest of the country is undergoing a gradual “devolution” to local Governorates. In the South and in Basra, the main port and economic heart of the country, you can operate in good condition. The point of reference for those who want to work with companies and local operators, alongside Chamber of Commerce is the Nic (national investment Commission), which acts as a one-stop shop. The work of the Commission, both at central level in different Governorates is supported by Unido (United nations development organisation) who made a first list of mainly private companies and new investment projects in the governorates of Basra, Al Anbar and Nayaf and Damascus.
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