Predictably, Basra, Baghdad and the Kurdish region top the list in terms of deal density. In terms of number of deals, and deal value, these were the top three in 2010 and 2011, and will continue to be for the foreseeable future. The majority of FCA in Basra is in the oil and gas, and electricity sectors, although there has been an increasing trend in 2012 of MNCs entering into joint ventures for industry and manufacturing in the southern province.
The majority of deals in Baghdad have been in housing, and construction of commercial and governmental facilities. Meanwhile, FCA in the Kurdish region has been more diverse. Oil and gas, electricity and housing have been major sectors for FCA in 2012, but there has been marked activity in transportation, retail and hotel construction as well.
While a preliminary look at the data suggests the sheer number of FCA deals will not increase in 2012 at the same rate that they did in 2011, many of the deals that are being signed this year are suggestive of MNCs looking at a more long-term presence in the Iraqi market.
Jared Levy is Dunia's Senior Middle East analyst. He has extensive experience conducting field research in several MENA countries, and is currently based in Iraq.
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