Violence, corruption and the lack of infrastructure are seen top three risks to the businesses in Iraq, according to the findings of a survey made public on Sunday.
The Economist Intelligence Unit (EIU) in its survey revealed that the top three risks to business were judged to be violence (67 percent), corruption (44 percent), and the lack of infrastructure (35 percent). The next three were bureaucracy, lack of contract protection, and credit risk.
However, the survey finds that investor perceptions of Iraq are slowly improving, despite the country’s many problems. Preliminary results from the survey of 300 executives — all of whom have direct input into their company’s decisions on doing business in the Middle East — show that the security situation remains the major deterrent to business.
Almost two-third or 64 percent said it is still too dangerous to do business in Iraq at the present time. But more than half of those surveyed said their view of Iraq has become more positive over the past two years .
Moreover, most respondents expect the security situation for foreign executives and employees to improve over the next two years, with 46 percent saying it would improve somewhat and 9 percent saying it would improve significantly, despite the drawdown of Western troops. Just 10 percent expected it to worsen.
(Source: Arab News)