The Vice-chairman of Iraq’s National Investment Commission sadly stated that in the present year investments by foreign companies in Iraq is likely to drop. The reason for this drop in foreign investment is due to rising political tensions and the continuing of the regional wars in the different parts of the country. Due to this reason the even the rich Arabian Gulf neighbours are hesitating to invest in Iraq.
In a meeting Salar Ameen told Zawya Dow Jones that in the present year the foreign investments in Iraq is likely to reach $35 billion which is a drop as compared to last year’s investment of $37 billion. Ameen also said that the countries like Saudi Arabia and Qatar which are known for their oil business are interested to do business in Iraq but are hesitating only due to continuing tensions in Iraq.
The prospect of foreign investment in Iraq is good as Ameen added that there many Saudi Arabian companies that are interested in the agriculture sector also but sadly no agreement has been signed yet. Similar dilemma is with some Qatari investors who have shown interest in the energy sectors and are planning to build a petrochemical plant.
Ameen stated that in the first nine months of 2012 foreign investment of $30 billion. Most part of this investment is from oil companies followed by the companies from property sector. He also shared the news that Iraq has already signed agreements worth $7 billion with two private UAE companies, Bloom Properties and Al Maabar International investment for building residential cities and apartments in the cities of Baghdad and Karbala which are scheduled to begin next year
The signing of these big residential projects are important for Iraq as during the two decades of regional wars have damaged the country’s infrastructure to massive extent. According to NIC Iraq presently needs 3.5 million residential units. The need for residential units is at present become lower as last month an agreement was signed with Emaar Properties which is a Dubai-based company to develop the residential, commercial and tourism projects in Iraq.
Source [Gulf Times]