An economic forum will be held in Dubai in two months time in the hope of fostering economic development in the Kurdistan Region and attractiong more investors to the booming regional economy.

Shilan Khanaqa, Kurdistan Region’s representative to the United Arab Emirates told AKnews that the two-day conference will be held under the auspices of the Dubai Emirate and Dubai Chamber of Commerce and Industry.

No exact date was mentioned, but officials from Kurdistan, including ministers for tourism, and trade and industry, heads of investment boards and chambers of commerce, as well as a considerable number of Kurdish businessmen are expected to attend.

The conference will spotlight the high security and stability in Kurdistan to attract more investors, Khanaqaa added.

(Source: AKnews)

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.”

In an initiative to support developing Iraqi business segments, Emirates has announced a 75 per-cent additional capacity increase between Dubai and Baghdad, growing its services to seven flights per week.

Starting from 2nd February 2012, EK941 will depart daily from Dubai at 07:55am touching down at Baghdad International Airport at 09:40am the same day. At 11:35am, return flight EK942 will depart Baghdad arriving in Dubai at 14:55pm the same day.

“Since launching flights to the Iraqi capital three months ago our operations have gone from strength to strength, on both the passenger and cargo side. There is a significant demand for travel in and out of Baghdad and this new daily service offers a significant boost to this strategically important route for Emirates,” Ahmed Khoory, Emirates’ Senior Vice President, Gulf, Middle East and Iran said.

Emirates’ additional flights are a key element in supporting Iraq’s rebuilding efforts. In particular the UAE has a significant interest in promoting trade and investment with Iraq, as highlighted by the latest trade figures released by the Iraqi Embassy.

According to the Iraqi Embassy, the volume of investments of UAE companies in Iraq reached US $3 billion by the end of 2010 and is expected to rise to US $6 billion in the coming years.

“We thank the Government of Iraq for their trust and will work hand in hand with the Iraqi Civil Aviation Authority to continue supporting the country’s booming business sectors’,” Khoory added.

Emirates SkyCargo will continue to play a critical role in transporting important commodities into Iraq including, foodstuffs, medical products, spare parts and telecommunication equipment.

The extra flights will increase existing capacity by 75% per week in both directions, making it easier for both business and leisure travellers in Baghdad to connect to Emirates’ network of global destinations. Popular destinations will include; the GCC, Levant, India, China, US and the UK via Dubai.

The service will continue to be operated by an Airbus 330-200 in a three class configuration, offering 12 seats in First Class, 42 seats in Business Class and 183 seats in Economy Class.

In addition to Baghdad’s flight, Emirates currently operates a four weekly service to Basra in Iraq and has offices located in both Basra and Baghdad.

Emirates’ first flight to Baghdad landed on November 13th 2011.

flydubai, Dubai’s pioneering low cost airline, added to its expanding network yesterday with the start of flights to Baghdad.

flydubai’s inaugural flight, FZ215, took off from Dubai Terminal 2 at 1355hrs yesterday, landing at Baghdad International Airport at 1545hrs. In addition to Erbil and Sulaimaniyah, the four-times weekly flight to Baghdad increases flydubai’s presence in Iraq to three cities. Flights to Najaf, flydubai’s fourth Iraqi point, will start on Sunday January 29.

flydubai’s CEO, Ghaith Al Ghaith, said:

“I would like to take this opportunity to extend my gratitude to the Iraqi authorities. Thanks to their strong support, flydubai now serves three major cities in Iraq, with another, Najaf, to follow later this month. Our new route will provide travellers between Baghdad and Dubai a quality, affordable option that will help to boost business and trade, and reinforce existing ties between the two countries.”

Industry analyst Saj Ahmed commented:

“As the fastest growing low cost airline in the world, flydubai is augmenting its growth direct to the heart of Iraq through services to Baghdad. Coupled with soon-to-commence services to the holy city of Najaf, serving the Iraqi capital ensures greater Iraqi-UAE business and trade links and the added incentive for customers to use low cost carriers will further stimulate leisure as well as corporate travel demand. This is a great coup for flydubai as they continue their unmatched expansion and we’re going to see them continue to increase flights and frequencies to the country, despite the recent political duress seen in Iraq.“

According to Iraqi Government figures, UAE and Iraq trade is currently worth US$6.5 billion, up from US$5 billion in 2009 and predicted to rise to US$7 billion in 2012. The commercial exchange between the UAE and Iraq includes all industrial, agricultural, food and service products, with around 24 Emirati companies currently operating in Iraq in the investment, housing and food processing sectors.

The Iraqi capital city Baghdad has undergone major reconstruction in recent years and is developing key industries such as energy, construction, retail and agriculture with the help of foreign investment and expertise. As a consequence, business travel is expected to be the main revenue generator for flydubai’s new Baghdad route.

Al Arabiya reports that the United Arab Emirates will scrap $5.8 billion in debts owed by Iraq.

Emirati foreign minister, Sheikh Abdullah bin Zayed al-Nahayan, said on Monday at a news conference hosted jointly with Iraqi foreign minister Hoshyar Zebari (pictured):

“An agreement will be signed soon to lay out the legal framework for waiving old Iraqi debt of $5.8 billion.”

Zebari thanked the UAE for cancelling the debts, which he said was “a very heavy burden” on Iraq.

“The relations between the two states did not stop [in the past 10 years], but today we started the official framework of co-operation,” Zebari said.

The debt date backs to the 1980s when Iraq had borrowed money from Gulf states for assistance with Iraq’s long-running war with Iran.

The move follows a similar one in 2008, when the UAE wrote off almost $7 billion worth of Iraqi debt left over from the era of Saddam Hussein.

Trade between Iraq and the UAE exceeded $4.5 billion last year.

(Source: Al Arabiya)

Piling Tech, a subsidiary of the UAE-based business conglomerate Tech Group, said that it has won its first oil sector contract in Iraq, valued at $10 million.

Under the terms of the agreement, Piling Tech will be involved in the installation of piles, foundations and wells for the West Qurna-2 oil field in southern Iraq.

Tech Group chief executive officer Ali Ghaleb Jaber (pictured) commented:

“The West Qurna-2 deal is a milestone development for Piling Tech on two counts: First, it is our first foray into the oil and gas sector of Iraq; and second, the deal signifies Piling Tech’s growing business footprints across various redevelopment projects in Iraq.”

Piling Tech set up its office in Iraq in 2009 and has been involved in a host of redevelopment projects across the country including piling works for the Sports City, bridges, water desalination plants and buildings in Basra and Baghdad, Al Khaleej Times reports.

“We look at the Lukoil contract as a stepping stone into oilfield development sector in Iraq as Piling Tech is expecting to conclude more deals which are in the active pipeline,” Jaber said, adding that “the volume of work with Lukoil is also expected to increase further as more contracts are awarded in West Qurna-2 oilfield.”

He said the increasing volumes of business for Piling Tech in Iraq was a direct reflection of the company’s reputation in the region as a leader and specialist in piling and foundation works with modern technology at its disposal and ability to complete works on schedule in a timely and cost-efficient manner.

“Thanks to the technical expertise of our companies and credentials of the group as a leader in the construction sector, we have always maintained a steady growth in winning contracts across the UAE as well as the region despite the economic fluctuations. Our growing presence in Iraq is a testimony to our strategic approach to business expansion to chase opportunities with full awareness of risk and rewards,” the chief executive added.

Elaborating on the oilfield contract, Piling Tech general manager Dr Abdul Khalik M. Sultan said that the current contract with Lukoil for five well clusters from 2 to 8 was a beginning and is the first phase of the project.

“Along with the clusters we will work on in West Qurna-2, we have also been awarded part of Cluster 10 as additional work. These clusters we have been awarded is part of Phase I of the project which has just begun and Phase II contracts are expected to be awarded by the end of 2012, and we do anticipate our volume of business to increase further as this happens,” Dr Sultan said.

West Qurna-2 is a green field under development and once the wells are commissioned is expected to pump 1.8 million barrels per day.

“We do intend to participate in more projects in West Qurna-2 and firm up our role in the oil and gas sector in Iraq. Our aim is to grow and reinforce the reputation as Piling Tech as a trustworthy partner in the lucrative oil and gas sector of the country,” Dr Sultan said.

(Source: Al Khaleej Times)

Flydubai has added two additional Iraqi destinations to its network with flights to Baghdad and Najaf due to start in the New Year.

The new routes bring flydubai’s network to 48 destinations across 27 countries in the Gulf, Middle East, Africa, Indian Sub-Continent, Asia and the fringes of Europe.

Flydubai launched services to Iraq in 2010, serving Erbil and Sulaimaniyah, providing a huge impetus to travel between the UAE and Iraq, while promoting trade ties between the two countries. The new routes mean flydubai now offers 14 flights a week to Iraq.

Flights to the two destinations will start in the New Year, allowing travellers from the UAE to take advantage of low-cost fares to two of Iraq’s commercial hubs.

The four-times weekly flights to Baghdad will begin on January 17, with the three times a week service to Najaf commencing on January 29.

Flydubai CEO Gaith Al Gaith said:

“The UAE is currently one of Iraq’s top trading partners with non-oil trade between the two countries growing 32.6 per cent to Dh26.4 billion, compared to 2008. Our flights to Arbil and Sulaimaniyah encouraged business travel and we aim to mirror that success by connecting two of Iraq’s main commercial and business centres to the UAE. In addition to cultural authenticity, Iraq has a wealth of investment opportunities across sectors such as oil and gas, agriculture and we hope the routes will stimulate UAE-based and international business to explore these opportunities.“

Flights to Baghdad will operate four times a week on Tuesdays, Thursdays, Fridays and Saturdays from January 17. One way fares from Dubai to Baghdad start at Dh1,230, with fares from Baghdad to Dubai starting at $315.

Basra Council has signed the contract for the construction of 12,000 housing units in the Shatt al-Arab district.

The local government allocated 1,600 acres to the project, which is expected to be started within the month and completed within two years.

It is to be carried out by a UAE-based company named Kika (?).

The project includes the construction of infrastructure including water distribution networks and electricity.

(Source: Basra Investment Commission)