Prime minister of Iraq Nuri al-Maliki broadcasted Iraq as the hot spot for investments. In spite of poor infrastructure, unorganized labor forces, inadequate security and some other issues, Iraq managed to organize its biggest trade fair in last 20 years. This will clinch some investors towards Iraq – as expected by the PM.
A prominent rise into the investment is anticipated which will rebuild the battered economy of Iraq as the official have claimed. "If you want to attract capital, if you want to attract firms, you've got to make it positive," complained one Western diplomat. He also added, "You've got to provide the incentives to invest here, and there are already so many disincentives."
An array of problems has been identified by the World Bank in the matter of investment. Limited access to the resources, poor infrastructure, unskilled labor forces, and isolation from the global trading and global business world – are the big problems for Iraq and should be overcome quickly to expand the country’s growth at a desired level.
"In addition to securing and stabilizing the country, these key challenges must be addressed in order for Iraq to truly fulfill its economic potential,” as mentioned by World Bank.
Potential of Iraq in terms of Economy
According to the surveys of World Bank, Iraq has three major problems to overcome immediately and they are: electrical supply, political instability and corruption. Iraqi firms are losing their sales at around 22 percent due to these weaknesses.
Iraqi officials are saying to keep patience as they think that the market driven Iraqi economy will bring robust change in country’s economy. Sami al-Araji said, "People are impatient; they want you to almost create miracles… and I fully sympathize with them." He claimed that he hoped this doubtful reform would erase "all these different chains that have handcuffed".
Spending Power Increment
Iraq has the right kind of potential to manage all the difficulties and thrive as a blooming economic power. Few industries have started to show some good prospects, which include electricity, transportation, housing or real estate, agriculture, healthcare and a few other sectors.
Iraqi government’s power of expenditure is increasing. Investments are showing as rising oil production is a big hope for Iraq in coming days and one of the important parts of Iraqi economy. An iRaqi diplomat said, "As long as oil continues to flow and the money keeps coming into the budget, there is no incentive whatsoever for anything to happen."
Source: [Mail & Guardian]