The fourth of the new routes into Iraq by low cost airline flydubai was completed today with the inaugural flight to Najaf.

It began its three-times weekly service to Najaf today when the inaugural flight, FZ221, departed Dubai Terminal 2 at 0700hrs, and landed in Najaf International Airport at 0840hrs local time. The return flight, FZ222, departed at 0940hrs, arriving in Dubai at 1250hrs. The flight marks the second new Iraqi destination for flydubai this month, following the start of flights to the capital, Baghdad, 10 days ago.

Ghaith Al Ghaith, flydubai’s CEO, said:

“The new service reflects our strategy to link Dubai with underserved airports, making it more convenient for inbound and outbound passengers. At a time when a number of international airlines are looking at opportunities in Iraq, flydubai is leading the way with direct flights to four cities across the country in just 18 months. I am also pleased to report that our first flight today was sold out, which highlights the demand for travel to Najaf.”

Najaf Refinery achieved a 30% rise in overall production in 2011 compared to a year earlier, the Director of the Najaf refinery said this week.

Leith al-Gharrawi told AKnews that the refinery produced about 7.174 million barrels of petroleum, up from about 5 million barrels in 2010.

The production of kerosene was also 30% higher at 111 million liters, versus 85.6 million liters in 2010.

The refinery also produced 196.128 million liters of diesel in 2011, up 28% from 153.634 liters in 2010.

‘Black oil’ output was up 35% from about 220 million liters in 2010 to about 295 million liters in 2011.

These increases could raise the petrodollar income of Najaf province.

(Sources: AKnews, Aswat al-Iraq)

Najaf’s government has allocated 15 billion IQD ($13 million USD) to develop Najaf International Airport, according to AKnews.

The governor of Najaf, Adnan al-Zarafi told AKnews that the development plans will include updating equipment, expanding the apron and improving mechanisms for dealing with more traffic.

A new committee has been formed by the Council to study a 700-page proposal made by a foreign company.

The General Authority for Antiquities warned against expansion of some facilities at the expense of sites of ancient city of Najaf, especially Hira city.

The head of the authority, Qais Hussein Rashid said:

“The official parties and educated people in Najaf will not allow the expansion of the airport at the expense of the archaeological sites. As for the sites that are located near residential neighborhoods, we will find financial allocations needed to surround them with a fence to be protected.“

(Source: AKnews)

AKnews reports that Chinese company Huawei has won the contract to extend landline phone services to Najaf province,

Mohammed Ayed al-Moussawi, chairman of the provincial council’s services commission, said the service will be world-class and the project will cost $40 million [48 billion Iraqi dinars].

The Ministry of Communications announced in January that two million landlines would be extended north during next March after the import of sophisticated next generation network (NGN) ground switches. NGN technology enables multiple uses of a network’s hardware, allowing for internet alongside telephone calls.

“The network will provide citizens with the best telephone services, which also include Internet services, cable television, and fax,” said al-Moussawi.

The northern neighborhoods at the center of Najaf have been suffering a shortage of landline telephone services since the eighties, exacerbated by the 2003 war.

The Iraqi Communications Ministry also announced it plans to reduce phone bills by 80%; citizens had reduced use of landline phones because of the high cost of calls.

(Source: AKnews)

There is a case of ‘serious fraud’ in a project intended for Najaf City, the Capital of Islamic Culture in 2012, an Iraqi MP has warned.

Hussein Sharifi, a member of Tourism and Archeology Committee in parliament, told AKnews the case involved is the construction of a three-floor building for which 100 billion Iraqi dinars (US$85 million) has been allocated while the project requires only  4 billion IQD (US$3.4 million).

‘We do not oppose the project but at the same time we will not allow for corruption and exploiting the project,’ Sharifi said.

The government announced on Wednesday that it is ready to host visitors in Najaf, the capital of Islamic culture for 2012 beginning in March.

(Source: AKnews)

[Picture: Imam Ali Mosque, Najaf]

Levels of violence rose in Iraq over the past week. Conditions are still quieter than July and June but they have been gradually worsening over the course of September. Last week saw a series of brutal attacks, mainly in the central region, affecting Baghdad and the provinces of Anbar and Babil. Mosul in the north of the country also experienced a series of bombings and shootings. Two kidnap incidents have also been reported in the country over the past 24 hours, following a lull in abductions recorded since the middle of August. AKE’s quarterly kidnap brief will be issued at the beginning of October. If you would like to sign up to receive a copy please enter your details here.

North
Shelling of the border areas by the Turkish and Iranian military continues in Kurdistan, with at least one civilian injured during operations last week. However, much of the region continues to function largely unaffected and Kurdistan should still be regarded as a stable investment climate. The neighbouring province of Ta’mim which holds the frequently hostile city of Kirkuk was relatively quiet. Instead, the more populous city of Mosul in nearby Ninawa province experienced the lion’s share of the region’s hostilities.

Weekly Attacks in Iraq - the last 6 months

Centre
A rise in the number of suicide attacks in the centre of the country has stoked concerns that radical Islamists are regrouping and increasing their efforts against civilians and the Iraqi security forces. A warning was issued by al-Qaeda in Iraq during Ramadan that it was ready to initiate many suicide bombings and the latest spree would indicate that it is making good on its promise.  The country has seen an average of one suicide attack per week in 2011, with at least 500 people killed and hundreds more injured by the tactic this year.

As previously outlined in Iraq Business News, gunmen attacked a minibus travelling from the predominantly Shi’ah city of Karbala to a Shi’ah shrine in Syria on 12 September. It was carrying a group of Shi’ah pilgrims when it was stopped, close to the junction town of Nukhayb in the sparsely populated but predominantly Sunni district of Rutbah. At least 22 of the male passengers were led away and then shot dead. Security measures have been heightened in the central provinces in the aftermath of the attack but the implemented procedures are not exhaustive and further attacks should be expected.

Shi’ah religious worshippers may be targeted over the coming days as many will be commemorating the anniversary of the death of Imam Sadiq, a revered holy figure. As previously reported, religious pilgrimages remain an attractive target for terrorists. The date falls on 25 Shawwal (23 September) and could see a rise in attacks on civilians gathered around mosques or travelling to shrines such as Karbala or Najaf. As well as the Nukhayb killings there has been at least one attack believed to have been targeting Shi’ah pilgrims over the past week. Caution is therefore recommended.

South
The southern provinces remained very quiet last week with no major incidents reported. Personnel still need to remain on guard, but conditions remain far more stable than the central provinces. Sporadic terrorist attacks may still occur, but the currently stable security environment bodes well for the numerous businesses looking to work in the region.

John Drake is a senior risk consultant with AKE, a British private security firm working in Iraq from before 2003. Further details on the company can be found here while AKE’s intelligence and political risk website Global IntAKE can be accessed here.

You can obtain a free trial of AKE’s intelligence reports here.
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The current world focus is on Libya, with AKE now ranking Tripoli as being much more hostile a working environment than Baghdad. However, conditions are still fluid and unstable in Iraq, and levels of violence have crept up in the country for the third consecutive week. Dozens of people were killed and hundreds injured in nationwide attacks last week, making it the worst reported since mid-June. Many of the casualties were caught up in a spate of bombings that swept the country on 15 August, outlined in last week’s report.

Kurdistan Operations

In Kurdistan the Turkish military responded to a recent terrorist attack by the PKK by launching a series of assaults and air raids against suspected terrorist locations in the Qandil Mountains. There have been at least seven civilian fatalities reported and localised agricultural damage, but the reporting climate remains poor. The majority of personnel in Kurdistan will remain unaffectedfrom a safety perspective, with the operations remaining limited to isolated mountainous areas. However, there may be sporadic demonstrations in some urban areas in response to the ongoing operations.

Weekly Attacks in Iraq - the last 6 months

Shootings

A rise in the number of small arms attacks in Ninawa and Ta’mim provinces left several people dead and injured last week. Personnel should note that the recent lull in targeted shootings may now be at an end. More assassinations, particularly against ministry employees and members of the security forces should be anticipated as a result.

Central Violence

While Diyala province saw the largest number of attacks last week, it was Wassit province which suffered the most casualties, with a double bombing on 15 August in central Kut killing many. In the days following the attack security measures were raised in the province, particularly around government buildings and trading areas in Kut where the authorities are anticipating further possible terrorist attacks. Conditions are still relatively quiet in Baghdad, but the situation has still gradually worsened over the course of Ramadan and the number of attacks could rise further in September.

Southern Activity

Conditions worsened slightly in the southern region over the past week, with Najaf province still reeling from the double suicide bombing on 15 August. US military patrols continue to be targeted in roadside blasts while militants continue to target military bases with indirect fire (rockets and mortars). An Iraqi naval officer was also reportedly kidnapped from the Basrah area on 22 August. Kidnap for ransom remains a major problem in Iraq, although the frequency of abductions has declined in the south over the past two years. AKE produces a free quarterly kidnap brief which you can sign up for here.

Weekly Attacks in Southern Iraq - 2010 to Present

In general, personnel and companies interested in working in the south of Iraq for the long term should bear in mind that conditions have worsened – albeit only slightly and gradually, since the beginning of 2010 in the region. The accompanying graph shows that the weekly number of attacks continues to fluctuate, but that overall the number of incidents has been slowly picking up over the past year and three quarters.

John Drake is a senior risk consultant with AKE, a British private security firm working in Iraq from before 2003. Further details on the company can be found here while you can obtain a free trial of AKE’s intelligence reports here.

AKE will be exhibiting at Offshore Europe in Aberdeen between 6 – 8 September. Please visit us at stand 5C110 and sign up for our updates here.

Najaf Investment Commission announced on Tuesday that it has granted two investment licenses worth a total of $56 million.

According to AKnews, one is to build a residential complex in Manathira district, and the other is to build a tourist hotel in Najaf city.

Wafi al-Bahhash, the head of the commission, told AKnews that the residential complex will be built 17 Km south of Najaf and includes 795 residential houses that will be worth $51 million.

“The complex also includes service and entertainment facilities, and the license was granted to Dar Engineering Company,” he said.

“The second license was granted to an Iraqi investor to build a four story tourist hotel that will cost $5 million.”

(Source: AKnews)