The plan is not limited to the privatization of government companies A new study: activating the economic sectors will generate better money than oil
2018/07/17 3:35 pm
A recent study said: "The Government of Iraq is committed to implementing a stable macroeconomic framework driven by significant growth potential in the oil and gas sector, as well as non-oil industries.
As a leader in emerging markets, Iraq offers unlimited investment opportunities and requires more than $30 billion in foreign direct investment per year, according to Frost & Sullivan's latest study, Unexploited Opportunities in Iraq: A Path to Prosperity.
After three years of combat, the end of the Iraq war encourages investment in the country's reconstruction and economic viability.
According to the study, investment in Iraq provides an attractive law for greater protection for foreign investors, and investment in the country is expected to achieve the highest rates of cash returns.
In 2018, governments from more than 76 countries, international organizations and investors pledged $30 billion in loans to invest in Iraq and rebuild the country.
Apart from FDI, the initial opportunities areas for global companies also include technology development and improved manufacturing in all industries.
Most industries operate on older technology systems that prevent access to the latest technology. "As a national development plan, Iraq aims to strengthen its economy through privatization, and to develop its own economy," said Ali Mir Mohammad, senior consultant and business development manager at Frost & Sullivan. Oil and gas as well as minerals throughout the year."
"The plan is not limited to the privatization of state-owned enterprises only, but also support small and medium enterprises and tax exemptions and financial incentives"
In general, the flow of foreign direct investment is expected to help the Iraqi government achieve its goal over the next five years.
Mineral oil, natural gas and phosphate deposits are among the most important natural resources in Iraq, which require huge investment opportunities along the value chain.
Large amounts of mineral reserves remain untapped. This, if exploited, offers enormous opportunities for drilling and mining.
Opportunities are therefore high for mining companies, equipment suppliers and investors.
Expansion opportunities are likely to be available to private investors, particularly in sectors that are in dire need of reconstruction and development such as banking, metals, renewable energy, telecommunications, landfills and e-commerce Recycling, water, sanitation, food and tourism.
"With the possibility of greater security stability, Iraq has registered more than 212 projects ready for investment in more than 10 sectors," Mohammed said.
He pointed out that "these sectors, after oil is, industry, health, education, energy and agriculture."
To attract foreign investors, the Iraqi government provided a list of guarantees and privileges, including tax holidays for 10 years extendable to 15 years.
The right of ownership and seizure of investment projects and the right to deal with the Iraqi stock exchange and the leasing of agricultural land.
Iraq has a population of about 40 million, emerging as one of the most important consumer markets in the Middle East, which rely primarily on imports for the sale of crude oil.
The latest study, entitled "Unexploited opportunities ... the road to prosperity," highlights the potential Growth in the following markets, investment in cereals, food, beverages, medicine, beauty, skin care, furniture, household appliances, footwear, textiles, clothing, medical devices, consumer electronics and plastic products.