Kamis, September 18, 2008

The improvement of security conditions in Iraq encourages foreign investment

The Iraqi economic community believed that the investment in Iraq will increase in the coming period, in the light of international companies started to study the possibility of investment in various sectors.

It is striking in this context a plan revealed by the Iraqi Oil Ministry for the construction of an airstrip for the helicopters at its headquarters to facilitate the arrival of delegations and international companies, which will start work soon in the development and rehabilitation of the oil sector.

And what enhances the expectations of these communities , the improvement in the security situation which gave the Iraqi government a greater opportunity to persuade companies to contribute in construction and reconstruction campaign, which Iraqi officials believe it needs to be developed from scratch.

A source in the Iraqi «National Board for Investment» stated that it agreed with local and international companies on implementing many projects in Iraq and granted the necessary permits, and the discussions are continuous with the German company's branch of «Mercedes-Benz» for cars and trucks in Egypt to build a branch in the province of Diwaniyah to produce Small buses. Also negotiations continue with the British - Dutch «Shell» oil company and «British Petrleom» to build oil refinery and ethylene production of urea and other petrochemicals.

The source noted that the company is currently negotiating with «Wood - McKenzie» Global Advisory to open branches in Baghdad, Basra and the Kurdistan region, and that the British company «Avinias Capital» expressed their willingness during the meeting, which gathered them with the President of construction body « Wasit international airport » (200 km south Baghdad). And the British «Crest Petroleum» Company has expressed its interest in constructing a gas city in Basra, according to the latest global designs, and is expected to invest burning gas to generate 1,280 megawatts of electricity.
The «National Board for Investment» had received six offers from international companies to generate electricity in different parts of Iraq and the Iraqi government has to buy the production and sells it at a subsidized price for citizens.

The head of the National Authority for Investment , Mr. Ahmed Redha said that the volume of investments made by the Board which is newly founded (in December of 2007) amounted to 74 billion dollars, distributed among the various infrastructure in Iraq such as factories and refineries and the development of airports and marine facilities, through local and foreign investors equally.

He noted that among the advantages of the investment law for foreign investors, tax exemptions, which extends nearly 15 years if the foreign investor has an Iraqi partner, which would trigger domestic capital and labors will gain broad experience.

(Iraq Directory)


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