Blog in Middle East Matters – Deloitte – 2019
In this blog, i tried to go beyond those internal natural resources aspects that would create the potential of the Iraqi market, to reflect on other possible external and international drivers of that potential!
As one of the Middle East countries with affirmed US$80 billion in infrastructure projects for the reconstruction and rehabilitation of the liberated areas, in addition to the potential to earning US$5 trillion in oil revenues between 2013-2035 to become the world’s second largest oil exporter, Iraq has a lot to offer. If we were to also add the competitive corporate and individual tax rates, favorable capital and investment requirements to running a business, as well as an annual high GDP, Iraq compellingly becomes a promising and attractive market to invest in by international economic forces and players. Nevertheless, this is not the complete story; various other external factors place the spotlight on the Iraqi market and drive its potential.
There have been numerous commitments made by several international stakeholders to finance the reconstruction of Iraq, such as the US$400 million fund recently approved by the World Bank for the rehabilitation and reconstruction of Mosul, and the newly liberated areas in Iraq. This is following an initial sum of US$350 million approved in 2015 for an ongoing emergency operation development project.
Those in-country aspects such as the massive available natural resources and the recent geopolitical and security developments that drove launching the reconstruction phase of Iraq do not solely trigger the potential. The global economy changes and the rise of new international economic forces in our nowadays world would undoubtedly play its role in leveraging the future of our regional economy.
One good example would be the Belt and Road Initiative (BRI), which was unveiled to re-born by the Chinese leader Mr. Xi Jinping in September and October 2013. This initiative to substantially expand and re-active, the ancient Silk Road, the most famous trade road in the old world, tended to be the largest infrastructure project in the history with as large as USD 900 billion in planned investment.
It is fortunately fated that the Middle East countries are amongst those of the belt’s countries that are expected to be remarkably impacted by the coming planned investments in infrastructure, roads, trade channels and the reform of the regulatory environments and regulations to be ready enough to integrate.
Are you able to sense the potential now?
Regardless of the type of investor, whether an international services provider, trader, manufacturer, constructional contractor, targeting several classes of lucrative bidding opportunities, or even an entrepreneur, everyone stands to win from investing in Iraq.