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By John Lee.

Asiacell's $1.35 billion share sale will be fully subscribed, bookrunner Rabee Securities has told Reuters.

Shwan Ibrahim Taha, chairman Rabee Securities, said:

"I knew there would be interest, I just didn't know how much - I can say that we will easily cover it. We will be fully subscribed ... We are opening up a lot of accounts and we are not refusing anyone. Very roughly, it is half Iraqi and half international."

The company is due to list on the Iraqi stock market (ISX) on 3rd February following a month-long book-building process, aiming to sell 67.5 billion shares for at least 22 Iraqi dinars ($0.02) per share.

But, warning that the offering represented a huge amount of shares to be sold in the space of a month, chairman of the ISX board of governors Layth Sulaiman said "I am optimistic that 50 percent of the shares offered will be covered".

The ISX website said buy orders must total at least 75 percent of the shares offered, with the exchange to announce the size of the order book on Jan. 31. If orders are below this benchmark, the sale will be cancelled and the process will start again.

Qatar's Qtel is expected to account for much of the demand, likely using the share sale to raise its stake from 53.9 percent to at least 60 percent, as previously agreed in a $1.5 billion deal in June that increased its holding from 30 percent. Farouk Group Holding is thought to be main seller.

(Source: Reuters)

In 2012, 947,600 passengers used Erbil's new International Airport, a 53% increase on the previous year, whilst cargo tonnage also increased dramatically, with a 54% increase to 27,849 tonnes per annum.

The 2012 passenger count brings the total number of passengers departing Erbil International Airport since the new terminal opened in September, 2010, to 1.7 million.

The increase in passenger and cargo numbers will help cement Erbil International Airport as one of the fastest growing in the Middle East and underlines the wisdom of the KRG's fifth cabinet and its then Prime Minister, Nichevan Barzani's decision to commission the new airport in 2004.

With an average of 13 flights a day, serving of 2,590 passengers daily , and 17 cargo flights a week, bringing in 550 tonnes of cargo, the airport has once again seen record growth in 2012 and is a solid reflection of what is happening with the economy in Kurdistan and Northern Iraq, with demand for travel growing and the demand for cargo imports growing.

The +53% increase in passenger numbers to 947,600 puts EIA, four years, and 56 % ahead of its own master plan. The independently produced plan had anticipated 608,400 passengers in 2012.

The most popular routes remain Istanbul and Dubai, with Turkish and Atlas leading the way on routes to the north, whilst Iraqi Airways continues to operate the most flights into Erbil with an average of around 95 a month. New routes in 2012 have included Emirates to Dubai, Qatar Airways to Doha, Air Arabia to Sharjah, Mahan Air to Tehran . Flights to and from Erbil now connect to 15 countries and 23 different cities.

The UK's Middle East Association invites you to register for what promises to be an engaging and interactive event led by a panel of experts who will outline some of the challenges, risks and also potential causes for optimism for the year ahead in the Middle East and North Africa.

Following two years of major political upheaval across the MENA region, this forum aims to explore what 2013 may hold in store and discuss which issues and individuals are likely to define the agenda for the upcoming year. This briefing aims to highlight in particular which issues are most likely to impact international business and draw attention to issues and trends which may not been fully discussed in the media.

From the conflict in Syria and its potential to destabilise the region, to Iran’s stance on the international stage and the lack of tangible progress on addressing the key drivers of unrest there is no shortage of potential flash-points that could presage instability in many MENA countries.

However, the uprisings have arguably brought with them a new-found sense of optimism and hope for democratic change though; with Libya, for instance continuing to make progress in overcoming the legacy of civil war and the Gaddafi era. Despite the current turbulence, Egyptians also remain hopeful that the coming year may see increasing political stability. There are also many countries in the MENA region which have avoided the political turbulence seen elsewhere in the region with countries such as Qatar predicting strong economic growth and significant opportunities for business in 2013.

This event, which includes a networking event following the presentations and Q&A, will be chaired by the MEA’s Director General Matthew Smith with the following confirmed speakers:

• Alia Moubayed, Senior Economist at Barclays Capital
• Jon Marks, Chairman of Cross Border Information
• Jane Kinninmont, Senior Research Fellow, MENA, at Chatham House
• Justin Davies, Managing Director at C2M Solutions
• Siddik Bakir, Energy Analyst IHS World Markets Energy

To make the very most of this event and to explore topics of concern and interest in more detail, we invite attendees to submit a question that they would like to see addressed in the application form attached.

If you would like to receive further information regarding this event or register a question for the panelists separately please contact Jonathan Terry at: [email protected]. Please send your registration forms to [email protected] or sign up online at www.the-mea.co.uk

This event is FREE to members. The rate for non-members is £50 (excluding VAT)

You can download further details here.

By John Lee.

Doubts have been expressed regarding Asiacell's ability to raise the record $1.27 billion planned in its forthcoming IPO (initial public offering).

According to a report from International Financing Review, observers are said there is a strong possibility the deal may not go through.

"The thing about these three Iraqi mobile companies is that they were required to IPO, but none of them want to IPO," said one ECM banker covering the region.

All three firms, Zain Iraq, Asiacell and Korek, failed to meet the original deadline of an IPO by August 2011 and fines were automatically triggered.

"The regulators are in a difficult situation. They can’t just cancel the licences and take all those phones offline," the banker said.

There were suggestions that there is not a strong enough investor base in Iraq to absorb a US$1.27bn deal, and there are question marks over the infrastructure capabilities of the Baghdad bourse.

And if local reports are to be believed, the transaction was mistakenly launched on a public holiday – anyone wanting to put in orders would have found the Iraq Stock Exchange closed for the day.

HSBC and Morgan Stanley were announced as managing the offer along with the Iraqi firm Rabee Securities, but Morgan Stanley withdrew last year after it became clear the deal’s distribution focus was to be almost entirely domestic. It remains an adviser to Asiacell's parent company, Qatar’s Qtel.

HSBC stayed, but when the intention to float was announced late last year it was no longer on the syndicate list and Rabee Securities was listed as sole bookrunner. A source close to the deal said HSBC also exited because of issues around local distribution.

Melak Iraq is advising the company.

(Source: International Financing Review)

By Madeleine White, former teacher and educational writer and Head of Marketing, Whizz Education.

This month’s announcement of closer collaboration between Europe and Iraq, coupled with last month’s WISE 2012 summit in Qatar, provides a great starting point for exploring the role of the Middle East in driving global collaboration and knowledge-share in Education.

It is clear that oil wealth, coupled with the desire to build a knowledge economy, offers a powerful incentive for recycling natural resources into knowledge. For example, the Educate A Child project was launched at WISE as a global initiative, aiming to make high-quality education accessible to all.  Might Kurdistan’s difficult history provide equally fertile ground for facilitating a global paradigm shift in education? The enforced isolation of a generation might indeed help leapfrog ‘received wisdom’ in order to serve immediate regional needs.

Leading the Way...

• Plans for major engineering and infrastructure projects (i.e. around Water and Agriculture) have highlighted a significant skills gap. Kurdistan is therefore matching the outputs of the education and training system by 15% per annum to meet the needs of the labour market. This kind of initiative can be used as a model to be shared with other countries.

• There is a genuine desire for support and promotion of education in the international community in order to further develop social equity and economic opportunities.  With the help of the Dubai Financial Market for example, Kurdistan will be launching Iraq’s second stock market in the next six months.

... with a little help from some friends

• Development Banks see themselves as knowledge banks as well as funding sources. They are able to use a vast amount of expertise, research and ideas to apply the strategies that they consider to be of the greatest use. This is relevant because EU support, for example, is channeled via the World Bank. World Bank projects that have contributed to Iraq’s reconstruction efforts include the construction of 66 new schools, the rehabilitation of 133 schools and the financing of more than 82 million textbooks.

• NGO involvement is also important. Last August saw UNICEF sending a delegation to meet with the Kurdish region Minister of Education in order to discuss the development of schools in the region. With goals of an  80% literacy rate within 5 years laid out and confirmed by the Regional Government, there is certainly a challenge to be met. Leveraging international expertise will therefore be of great value.

Between August 2006 to February 2012, an estimated $426 million, US dollars, capital private investment has been made in the Education sector in Kurdistan. One thing is clear, it is not easy turning oil and gas profits into knowledge  – but Iraqi Kurdistan does seem to be committed to making his happen.

Madeleine White is Head of Marketing for Whizz Education.  A former teacher and mother of 3 she is passionate about education, communication and CSR and has written extensively around her experiences.

Since starting in 2004, Whizz Education’s mission has been to raise standards in Maths. Maths-Whizz is used by thousands of 5-13 year olds in 8 countries, with major growth coming from the USA, the Middle East and Russia. By mid-2013, Maths-Whizz is expected to have launched and rolled out into 10 markets. To support this model of sustained, positive growth, Maths-Whizz is supported by Whizz Education offices in London, Seattle and Dubai. Additional support is provided through authorised international partners.Whizz Education is looking forward to other international market entries in 2013 and always welcomes strong partner approaches to support further international expansion.

By John Lee.

The Iraq Stock Exchange says that Iraqi telecom operator Asiacell will start publicly trading its shares as of 3rd February.

Associated Press also report that it will be the first stock float since the reign of Saddam Hussein.

An Initial Public Offering (IPO) of 25 percent of the company's shares will take place from 3rd January to 2nd February, and that the share price must be determined by 25th December.

Asiacell is an affiliate to Qatar Telecommunications.

(Source: Associated Press)

By John Lee.

OptaSense, which is owned by QinetiQ, has secured a key pipeline security contract in Iraq. The contract is to help provide protection to a new 180km pipeline corridor, owned and run by the State Company for Oil Project Iraq (SCOP).

OptaSense will be providing the technology to allow vital operational and security data to help operate, protect and secure the pipeline along both sides of a 60 meters wide pipeline corridor. When complete the pipeline corridor will be protected by over 20,000 virtual microphones making it one of the most monitored assets in the region.

This means any activity in and around the pipeline corridor will be ‘heard’ whether these be footsteps, digging or vehicles. The OptaSense acoustic alert data will be used to inform and guide the correct response to maintain pipeline integrity.

The project, due to be completed in March 2013, will complement work already taking place in Oman, Qatar and elsewhere in Iraq. The project will be managed from OptaSense regional HQ in Dubai.

Magnus McEwen-King, MD for OptaSense said:

"This contract is a significant step for OptaSense in the Middle East and builds on our investment in a regional HQ in Dubai. OptaSense will, for the first time, be providing a secure corridor, between which multiple pipelines will be built.

"We already have a proven track record of providing pipeline security elsewhere in the Middle East and around the world, and we are pleased to be undertaking another major project in the region. This cutting edge technology will provide a cost-effective means of protecting vital Iraqi infrastructure.

"We are rapidly establishing ourselves in the Middle East, and working in Iraq is important for OptaSense and shows the growing economic confidence in the country as a whole."

(Source: OptaSence)

WesternZagros Resources has announced the promotion of Michael Mossman to Senior Vice President Engineering and Operations.

Simon Hatfield, WesternZagros's Chief Executive Officer, commented:

"Michael's wealth of operational and management experience makes him an ideal person to lead our Kurdistan operations. His promotion strengthens our organization and I am sure he will continue to contribute to our future growth."

Michael Mossman joined WesternZagros as Vice President Operations in June 2012 to lead the Company's planning, evaluation and execution of its joint venture drilling programs. He will now also assume the broader responsibilities for the engineering group.

Mr. Mossman's extensive experience encompasses senior operational, technology development and executive management roles across exploration and development projects, having spent 35 years with BP on numerous prolific and challenging international projects.

His most recent position with BP was VP Operations and Country Manager for BP Algeria. His career with BP started in the North Sea and was followed by positions in Qatar, UK, Colombia, Kuwait, Abu Dhabi and Algeria. Mr. Mossman holds a Bachelor of Science in Mechanical Engineering from Bristol University and a Masters of Science (Distinction) in Petroleum Engineering from Imperial College.

Michael Mossman stated:

"It is a very exciting time to be part of the great team at WesternZagros. We have an active program ahead of us as we face the challenge of delivering the aggressive exploration and appraisal plan of the next two years."

(Source: WesternZagros)

By John Lee.

Egyptian investment bank EFG Hermes is planning to expand into Turkey, Iraq and Libya, according to a report from Reuters.

The company also plans to grow its asset management arm by 50 percent after the completion of its joint venture with Qatar's QInvest.

QInvest will hold 60 per cent and EFG's holding company will own 40 per cent of the venture, which will be branded EFG Hermes.

Kashif Siddiqui, managing director and head of asset management at EFG Hermes, who will be co-CEO of the joint venture, said the JV aims to increase its assets under management from $3.4 billion now to about $5 billion within a couple of years.

The deal will create the biggest investment bank across the Middle East and North Africa (MENA) region and also pull in brokerage and asset management operations.

QInvest will inject $250 million into the venture.

(Source: Reuters)

By John Lee.

Lucky Cement, which claims to be the largest manufacturer of cement in Pakistan, has entered into a joint venture for a cement grinding plant in Iraq, according the The News.

"The contract for the supply of plant and machinery for this project has been signed and the project team, as well as civil contractors, have been mobilised at the project site," the company told the Karachi Stock Exchange.

The company may also export cement to nearby countries such as Qatar and other GCC countries.

(Source: The News)

(Picture: Lucky Cement plant in Pakistan)