Iraq in 2050: the economy is running $ 2 trillion and the population crossing the 50 million barrier

Iraq in 2050: the economy is running $ 2 trillion and the population crossing the 50 million barrier



Details Created on: Mon, July 29 / July 2013 06:44









International banks managers predicted a boom in the Iraqi economy in the next two decades, especially in the banking sector.



A number of them said in interviews published by Agence France-Presse, said that the economy of Iraq will b $ 2 trillion at a time when many of the population up to 50 million people, by 2050.



And showing international banks, including "Citibank" and "Standard Chartered" desire to find a foothold in Iraq, but that this desire is often hit by several negative factors in the country witness عراكا the political and security tensions sustained.



With tens of millions of potential customers who have only a few of them bank accounts, it has become Iraq represents an ambitious target of banking institutions, particularly that the Iraqis are now looking to more banking services that are available to them.



However, the long-standing laws, and the majority of banks controlled by the government, and weak infrastructure in this sector, in addition to a huge number of other obstacles Kaerak the ongoing political and deteriorating security situation, make the banking activity in the country is not guaranteed results.



Says a Western diplomat told AFP that "it is very likely that Iraq is a rich market for the banking business."



He returned to talk about the Iraqi market during the past few weeks after starting the major banks, including "Citibank" and "Chartered Stnadrd" of moving in an attempt to consolidate its presence in Iraq.



Says the "owner مايانك", Director of the bank, "Citibank" in Jordan and Iraq, told AFP, "We look at Iraq as larger goal following," adding, "We see in Iraq giant is preparing for advancement."



"We consider ourselves among the top candidates, and we want to have the priority."



The bank will "Citibank" in the beginning, to serve existing customers, who are working within the energy companies operating in the oil-rich fields.



But in the long term, the multinational bank will seek to move to the commercial banking business and service, although no timetable has not put in place until now.



He holds "Citibank" great hopes for Iraq, which the bank economists predict that Iraq has a population of 50 million people's economy, worth about $ 2 trillion by the year 2050.



The latter figure represents 15 times the current capacity of the economy, and roughly equivalent to the size of India's economy.



With the development of the sector, to become full banking services are required, since the Iraqis are currently limited opportunities in obtaining loans, insurance, credit cards, mortgages and other services.



The owner shows optimism about the potential of the banking sector in Iraq, waving fundamental obstacles to the development of this sector.



At a time in which it decided "Citibank" to open an office in Iraq last month, the bank "HSBC" announced later that he was withdrawing from the bank, "Dar es Salaam" local who owns 70% of its shares.



The spokesman said, "HSBC" at this stage "we can not offer more details about the process of change and timing."



But diplomats and analysts pointed to a number of difficulties including the lack of modern systems to give Iraqis confidence in the banking process.



Even Iraqis who have bank accounts, they are not able to use an ATM or bank services via the Internet or even the ability to access their accounts from different branches of the same bank.



And some credit cards issued, but there are no places accept to deal with it.



A Western diplomat says that the conditions are not ripe to engage in individual banking services.



Often local businesses complain that banks are unwilling to lend, or it demanding assurances expensive and unacceptable.



And the withdrawal of the World Bank estimates that the Iraqi bank credit amounted to less than 10% of GDP in 2010.



For comparison this figure was about 55 percent in the rest of the Middle East.



He says Thamer Ghadbaan, chief adviser to Prime Minister Nuri al-Maliki "We must avoid the accumulation of cash within the government banks, but rather use the money to lend even be a part of the system of the private sector."



Huffy adds that required "better technology, as well as reductions in processing times, leaves and staffing levels. There is also a need to change the attitude toward customers."



He explained that the bank's employees do not provide them with the service but the situation on the contrary, he said, adding "they must attract customers and not push them out."



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