Fortune favours the brave in Iraq
Thursday, Mar 14, 2013
Iraq might be unsafe and treacherous, its infrastructure rotting and many of its politicians corrupted. But for an adventurous young man like Karam Saridar, the parlous state of the country a decade after the US-led invasion is the opportunity of a lifetime.
A few years after earning a master's degree at Bath University in the UK, the 26-year-old Iraqi with a thin beard and a perfect British accent, took over part of his father's business, selling mobile telephones and air conditioners to Iraqis.
The family had started off supplying LG air conditioners to both the American occupying forces and the emerging government. It then turned to satisfying the thirst of a fast-growing consumer market, buoyed by a considerable rise in public salaries.
"We had 100 per cent yearly growth in the air conditioning business for seven years until 2010, and demand would have been much higher if it weren't for electricity shortages," says Mr Saridar. "I started the mobile business in August 2012, and I'm expecting sales to increase 15 times this year. Everywhere in Iraq there's a business opportunity."
Mr Saridar is part of a small but growing community of businessmen who see Iraq's desperate needs and the lure of oil-generated cash as a unique opening. Oil production is set to increase to 4.5m barrels a day by the end of the decade.
The "new money", as Iraqis refer to this business class, grew on the back of two main original sources, says Ibrahim Baghdadi, head of the Iraqi National Business Council, who estimates that there are several new Iraqi billionaires. Some businessmen catered to American troops, building their camps and providing services. But for the most part, he says, they imported food products and sold them to the government in a country that depends on imports for 80 per cent of its food needs.
"Iraq is a huge consumer country," says al Abbas al-Tamimi, whose businesses include a security firm that rents armoured cars and armed guards for $3,000-$5,000 a day, mostly to foreign oil companies operating in the south. "As long as there's oil, there's business. But a lot of the business is hit and run."
There are still no signs of an economic boom in Baghdad, in contrast to the bustle in the semi-autonomous Kurdish northern region, which has been much safer than the rest of Iraq. And there are plenty of barriers to doing business.
The state is the dominant player in the economy and the biggest employer; electricity shortages are severe and contribute to the paralysis of the manufacturing sector; there are several new private banks but they are reluctant to lend.
Importantly, it helps to have the right political connections to do business or to know how to smooth your way through a Byzantine bureaucracy - Iraq ranks 169 from a total of 176 countries in Transparency International's global corruption perceptions index.
But while these barriers keep many foreign companies away, (beyond the oil and gas sector) Iraqis are not deterred. Over the past three years, as security has improved, new opportunities have opened up through government infrastructure contracts, with a few businessmen also investing their own funds in projects that range from housing developments to cement production.
Several large property projects are being launched in the centre and south of the country, and construction is accelerating in the holy cities of Najaf and Karbala, which receive millions of Shia pilgrims a year. One of the new construction moguls is Namir al-Akabi. His construction company Alico, started in 2003, built tent camps and provided catering services for American forces, and now works with foreign companies in southern Iraq. It is also one of the partners building Baghdad Gate, a massive residential and commercial centre in the capital.
Although starting a business in Iraq requires 45 signatures and a building licence no less than 199 signatures, the government makes very expensive land available for projects that win approval.
After the toppling of Saddam Hussein, Ayad Yahya, an elderly businessman whose family had vast real estate and agricultural land holdings, was one of the main investors in a Baghdad soft drinks company, once the licensed Pepsi bottler. He helped transform it from a joint public-private ownership to a purely private company.
He also started al-Bilad Islamic Bank, where he and his wife Hanea al-Khafagy, share a cluttered office, and expanded it to 14 branches.
One of his current projects is turning a money-losing factory for men's headscarves into a hotel and mall in Karbala. His bank, meanwhile, is a partner in the Ghadir village development in Najaf, a $248m investment in housing on land given by the government on condition that units are sold below market price and with priority given to state employees.
"This is the best economy in the Arab world," says Mr Yahya. But he is upfront about the problems too. Corruption in Iraq is like "an insect" that is "eating people", he says.
For all the financial attraction of Iraq, however, the greatest frustration for many businesspeople is that their country is not safe enough to bring back their families and raise their children.
Instead they base themselves in nearby countries - many of them in Jordan - and travel back and forth. "Iraq is being milked," laments one young businessman. "People work there and take their money out."
[You must be registered and logged in to see this link.]
Thursday, Mar 14, 2013
Iraq might be unsafe and treacherous, its infrastructure rotting and many of its politicians corrupted. But for an adventurous young man like Karam Saridar, the parlous state of the country a decade after the US-led invasion is the opportunity of a lifetime.
A few years after earning a master's degree at Bath University in the UK, the 26-year-old Iraqi with a thin beard and a perfect British accent, took over part of his father's business, selling mobile telephones and air conditioners to Iraqis.
The family had started off supplying LG air conditioners to both the American occupying forces and the emerging government. It then turned to satisfying the thirst of a fast-growing consumer market, buoyed by a considerable rise in public salaries.
"We had 100 per cent yearly growth in the air conditioning business for seven years until 2010, and demand would have been much higher if it weren't for electricity shortages," says Mr Saridar. "I started the mobile business in August 2012, and I'm expecting sales to increase 15 times this year. Everywhere in Iraq there's a business opportunity."
Mr Saridar is part of a small but growing community of businessmen who see Iraq's desperate needs and the lure of oil-generated cash as a unique opening. Oil production is set to increase to 4.5m barrels a day by the end of the decade.
The "new money", as Iraqis refer to this business class, grew on the back of two main original sources, says Ibrahim Baghdadi, head of the Iraqi National Business Council, who estimates that there are several new Iraqi billionaires. Some businessmen catered to American troops, building their camps and providing services. But for the most part, he says, they imported food products and sold them to the government in a country that depends on imports for 80 per cent of its food needs.
"Iraq is a huge consumer country," says al Abbas al-Tamimi, whose businesses include a security firm that rents armoured cars and armed guards for $3,000-$5,000 a day, mostly to foreign oil companies operating in the south. "As long as there's oil, there's business. But a lot of the business is hit and run."
There are still no signs of an economic boom in Baghdad, in contrast to the bustle in the semi-autonomous Kurdish northern region, which has been much safer than the rest of Iraq. And there are plenty of barriers to doing business.
The state is the dominant player in the economy and the biggest employer; electricity shortages are severe and contribute to the paralysis of the manufacturing sector; there are several new private banks but they are reluctant to lend.
Importantly, it helps to have the right political connections to do business or to know how to smooth your way through a Byzantine bureaucracy - Iraq ranks 169 from a total of 176 countries in Transparency International's global corruption perceptions index.
But while these barriers keep many foreign companies away, (beyond the oil and gas sector) Iraqis are not deterred. Over the past three years, as security has improved, new opportunities have opened up through government infrastructure contracts, with a few businessmen also investing their own funds in projects that range from housing developments to cement production.
Several large property projects are being launched in the centre and south of the country, and construction is accelerating in the holy cities of Najaf and Karbala, which receive millions of Shia pilgrims a year. One of the new construction moguls is Namir al-Akabi. His construction company Alico, started in 2003, built tent camps and provided catering services for American forces, and now works with foreign companies in southern Iraq. It is also one of the partners building Baghdad Gate, a massive residential and commercial centre in the capital.
Although starting a business in Iraq requires 45 signatures and a building licence no less than 199 signatures, the government makes very expensive land available for projects that win approval.
After the toppling of Saddam Hussein, Ayad Yahya, an elderly businessman whose family had vast real estate and agricultural land holdings, was one of the main investors in a Baghdad soft drinks company, once the licensed Pepsi bottler. He helped transform it from a joint public-private ownership to a purely private company.
He also started al-Bilad Islamic Bank, where he and his wife Hanea al-Khafagy, share a cluttered office, and expanded it to 14 branches.
One of his current projects is turning a money-losing factory for men's headscarves into a hotel and mall in Karbala. His bank, meanwhile, is a partner in the Ghadir village development in Najaf, a $248m investment in housing on land given by the government on condition that units are sold below market price and with priority given to state employees.
"This is the best economy in the Arab world," says Mr Yahya. But he is upfront about the problems too. Corruption in Iraq is like "an insect" that is "eating people", he says.
For all the financial attraction of Iraq, however, the greatest frustration for many businesspeople is that their country is not safe enough to bring back their families and raise their children.
Instead they base themselves in nearby countries - many of them in Jordan - and travel back and forth. "Iraq is being milked," laments one young businessman. "People work there and take their money out."
[You must be registered and logged in to see this link.]
Today at 5:47 am by Rocky
» The National University holds its second international scientific conference with the participation
Today at 5:46 am by Rocky
» Parliamentary proposals to extend the legislative term of the House of Representatives to resolve th
Today at 5:45 am by Rocky
» Hanoun: We are working on preparing a six-year strategy to combat corruption based on technology
Today at 5:44 am by Rocky
» The Ministerial Council for the Economy decides to stop the import of 6 crops due to their abundance
Today at 5:42 am by Rocky
» Minister of Industry: He turned to Chinese companies to supply Iraq with spongy iron ores
Today at 5:42 am by Rocky
» A foreign report reveals the existence of an undeclared Iraqi-British agreement regarding asylum see
Today at 5:41 am by Rocky
» “Fares Issa” visits the Ministry of Finance and Economy in the Kurdistan Region
Today at 5:39 am by Rocky
» Nechirvan Barzani: We want to address all problems with Iran and begin a new phase of relations
Today at 5:38 am by Rocky
» The position of Speaker of Parliament.. Representatives confirm: “There is no amendment to the bylaw
Today at 5:36 am by Rocky
» Demands to put an end to foreign workers
Today at 5:34 am by Rocky
» Iranian official: We do not have frozen funds in Iraq
Today at 5:33 am by Rocky
» Entering 31 countries in the world without a visa.. A look at the Iraqi passport during 2024
Today at 5:32 am by Rocky
» An Iranian plan to export goods to Iraq worth $3 billion
Today at 5:31 am by Rocky
» The Board of Commissioners decides to suspend the technical and financial procedures for the Kurdist
Today at 5:29 am by Rocky
» Baghdad Governorate approves the two paths of the development road
Today at 5:28 am by Rocky
» Mawazine publishes the full decisions of the Council of Ministers at its session today
Today at 5:26 am by Rocky
» Asaib: The Sunnis are accustomed to having an external actor leading them
Today at 5:25 am by Rocky
» The Iranian ambassador in Baghdad: The Sudanese government enjoys the support of the Shiite and Sunn
Today at 5:24 am by Rocky
» Politician: Representatives of Taqadum “hurt” Al-Halbousi and their party
Today at 5:23 am by Rocky
» “Deficit” is the password.. Parliamentary Finance decodes the budget delay
Today at 5:22 am by Rocky
» Al-Sudani: The tourism sector will be a substitute resource for oil in the coming years
Today at 5:20 am by Rocky
» Finance confirms the Iraqi government's desire to benefit from the expertise of French companies
Today at 5:19 am by Rocky
» utube 5/4/24 MM&C Iraq Dinar- IQD Update - No Float of Exchange Rate - Budget -2024 - Schedules -
Yesterday at 6:10 pm by Rocky
» utube MM&C 5/7/24 Iraq Dinar- IQD Update - Regional Trade - A Progession of Reforms - A Global Bac
Yesterday at 6:09 pm by Rocky
» After a break of more than 9 years.. the resumption of a government trade meeting between Iraq and A
Yesterday at 9:06 am by Rocky
» A deputy in finance expects the Council of Ministers to approve the budget schedules in today’s sess
Yesterday at 9:02 am by Rocky
» A deputy resolves the controversy over the “transfer supplement” in two ministries
Yesterday at 9:01 am by Rocky
» Al-Halbousi’s “vacant” seat.. Will the coordination framework end the “Taqaddum” dream of an allianc
Yesterday at 8:59 am by Rocky
» The Federal Government issues a state order to stop the Commission’s work procedures regarding the K
Yesterday at 8:57 am by Rocky
» Including the freedom to choose the bank and withdraw the salary for “free”... “My Account” features
Yesterday at 8:55 am by Rocky
» The Central Bank sells more than $250 million during its daily auction
Yesterday at 8:51 am by Rocky
» Al-Sudani receives a delegation from the Union of Arab Banks
Yesterday at 8:44 am by Rocky
» Iraq and the United States of America hold trade meetings in Washington
Yesterday at 8:43 am by Rocky
» In pictures... The activities of the Union of Arab Banks conference in Baghdad, “Day Two”
Yesterday at 8:42 am by Rocky
» The Director General of Ports announces the completion of berths (3) and (4) in Al-Faw Grand Port
Yesterday at 8:40 am by Rocky
» The Council of Ministers holds its regular session headed by Al-Sudani
Yesterday at 8:38 am by Rocky
» Parliament publishes the agenda of its session for next Thursday
Yesterday at 8:37 am by Rocky
» A government measure to reduce "money laundering" using the buying and selling of real estate in Ira
Yesterday at 8:35 am by Rocky
» Iraq proposes establishing a specialized council to combat corruption in Arab countries
Yesterday at 8:32 am by Rocky
» Al-Mawarid intends to establish infrastructure and investment projects for the water sector in Iraq
Yesterday at 8:30 am by Rocky
» The Federal Court issues a decision regarding postponing the election of the Speaker of the House of
Yesterday at 8:28 am by Rocky
» A government meeting to discuss financing and implementation mechanisms for the Development Road Pro
Yesterday at 6:12 am by Rocky
» Al-Sudani: Iraqi banks are on the right track with financial transfers
Yesterday at 6:11 am by Rocky
» Al-Khazali: The Turkish side is still imposing its conditions on Iraq
Yesterday at 6:08 am by Rocky
» Rights: We refuse to amend the bylaws of Parliament under political influence and desires
Yesterday at 6:07 am by Rocky
» Nechirvan Barzani: We want to address all problems with Iran and begin a new phase of relations
Yesterday at 6:05 am by Rocky
» Today, Iraq and Iran signed the minutes of a joint meeting related to trade
Yesterday at 6:03 am by Rocky
» KPMG International begins auditing the revenues of telephone companies operating in Iraq
Yesterday at 6:02 am by Rocky
» Oil: The seventh batch of equipment for the gas manufacturing project in the Nasiriyah and Gharraf f
Yesterday at 6:01 am by Rocky
» Al-Sudani assures the French ambassador of Iraq’s openness to “fruitful” partnerships
Yesterday at 6:00 am by Rocky
» Government move to install gold screening devices at 4 airports
Yesterday at 5:59 am by Rocky
» Sudanese Advisor: The oil sector is witnessing a rapid renaissance
Yesterday at 5:58 am by Rocky
» Opening offices specialized in employing people with disabilities
Yesterday at 5:57 am by Rocky
» Infrastructure and investment projects for the water sector in Iraq
Yesterday at 5:56 am by Rocky
» Adopting the electronic system in the next census
Yesterday at 5:55 am by Rocky
» Al-Sudani chairs the first meeting to restructure the government apparatus
Yesterday at 5:54 am by Rocky
» Business Council: Efforts to open a branch of the Chinese Bank in Iraq
Yesterday at 5:53 am by Rocky
» Iraqi diplomacy is balanced openness
Yesterday at 5:52 am by Rocky
» The head of the Integrity Commission told Al-Sabah: We are the people’s eyes on the government and s
Yesterday at 5:51 am by Rocky
» Baghdad Provincial Council: The capital is facing a new urban and service phase
Yesterday at 5:49 am by Rocky
» Customs, security and economic aspects
Yesterday at 5:48 am by Rocky
» Central Governor: We face “increasing challenges” in complying with international laws
Yesterday at 5:48 am by Rocky
» Payment of end-of-service benefits to employees referred to retirement for the month of May
Yesterday at 5:46 am by Rocky
» Billions “evaporated”.. What is the truth about closing the “theft of the century” file in Diyala?
Yesterday at 5:45 am by Rocky
» The Minister of Labor approves the extinguishment of debts owed by transgressors from the families o
Yesterday at 5:43 am by Rocky
» How did Washington comment on Nechirvan Barzani's visit to Tehran?
Yesterday at 5:42 am by Rocky
» The honeymoon is over and the salary crisis continues. Baghdad and Erbil exchange accusations, but s
Yesterday at 5:41 am by Rocky
» Why has Iraq not submitted a file to stop burning gas over the past years?
Yesterday at 5:39 am by Rocky
» A slight increase in the exchange rate...more than 146 thousand per 100 dollars
Yesterday at 5:38 am by Rocky
» Do Iraq's debts pose a threat to the economy? Parliament answers
Yesterday at 5:37 am by Rocky
» Agriculture explains the mechanism of implementing the calendar program and its economic gains
Yesterday at 5:36 am by Rocky
» President Masoud Barzani meets an Iraqi parliamentary delegation
Yesterday at 5:34 am by Rocky
» Parliamentary criticism of the government’s delay in sending the budget schedules despite the approa
Yesterday at 5:33 am by Rocky
» A report reveals the existence of an undeclared “Iraqi-British” agreement regarding asylum seekers
Yesterday at 5:32 am by Rocky
» Alternative energy... advanced stages of the largest solar energy station in Iraq
Yesterday at 5:31 am by Rocky
» Its delay raised concerns... it is likely that the 2024 budget schedules will be approved today
Yesterday at 5:30 am by Rocky
» The industry reveals the reasons why Russian companies stopped reconstructing 7 factories in Anbar
Yesterday at 5:29 am by Rocky
» Billions evaporated.. What is the truth about closing the theft of the century file in Diyala?
Yesterday at 5:28 am by Rocky
» Nouri Al-Maliki to the Saudi Ambassador: Iraq is open to all countries of the world
Yesterday at 5:26 am by Rocky
» An Iraqi generation that “does not fear” America and Iran.. Nadim Al-Jabri explains his expectations
Yesterday at 5:25 am by Rocky
» After 9 years.. the third session of the Trade and Investment Framework Agreement between Iraq and A
Yesterday at 5:22 am by Rocky
» “These are our goals.” The Turkish President talks about his visit to Iraq last month
Yesterday at 5:21 am by Rocky
» Romanowski: The Iraqi judiciary is independent and the Federal Court seeks to consolidate democracy
Yesterday at 5:19 am by Rocky
» Deputy: The presidency of Parliament will remain vacant until the end of the current session
Yesterday at 5:17 am by Rocky
» Political: The Iraqi economy is threatened by American hegemony because of the coordination administ
Yesterday at 5:16 am by Rocky
» Politician: Salem Al-Issawi will not become Speaker of Parliament
Yesterday at 5:15 am by Rocky
» Planning reveals the mechanism for examining gold in local markets
Yesterday at 5:14 am by Rocky
» Including railway connectivity and water shares... Iraq and Iran are discussing a number of common i
Yesterday at 5:12 am by Rocky
» Oil is preparing to export gas oil after achieving self-sufficiency
Yesterday at 5:11 am by Rocky
» Trade is preparing to hold a number of specialized exhibitions in Baghdad and the provinces
Yesterday at 5:09 am by Rocky
» Erdogan: Our goal is to raise the volume of trade with Iraq to more than 20 billion dollars
Yesterday at 5:08 am by Rocky
» Al-Sudani confirms Iraq's openness to fruitful partnerships with French companies
Yesterday at 5:07 am by Rocky
» Determining the launch date for the activities of the 48th session of the Baghdad International Fair
Yesterday at 5:06 am by Rocky
» Al-Sudani receives a delegation from the Union of Arab Banks
Yesterday at 5:05 am by Rocky
» utube 5/3/24 MM&C Iraq Dinar Update - Expectation - Implementation - Activation - New Exchange Rat
Mon May 06, 2024 8:30 am by Rocky
» “Services” asks the Central Bank about billions of foreign banks in Iraq
Mon May 06, 2024 8:27 am by Rocky
» Central Bank: Iraqi banks still face challenges in complying with international laws and standards
Mon May 06, 2024 8:24 am by Rocky
» Parliamentary bloc: The Central Bank offers hard currency to “mafias” on a golden platter.. The Suda
Mon May 06, 2024 8:20 am by Rocky