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Iraqi Delegation Meets Arab Leaders

By John Lee.

During its participation in the 24th Arab Summit held in Doha, the Iraqi delegation headed by His Excellency the Vice President Dr. Khudair al Khuzaie, with Foreign Minister Hoshyar Zebari and their accompanying delegation, met a number of Arab kings, presidents and leaders.

The delegation met Emir of Qatar Hamad bin Khalifa al-Thani, His Majesty King Abdullah Bin al Hussein of Jordan, the Emir of Kuwait Sabah Al-Ahmad Al-Jaber Al-Sabah and the Algerian Prime Minister Mr. Abdul Melik al Sallal, and discussed bilateral relations and ways to develop them for the interests of their countries.

At the request of the Turkish Foreign Minister Ahmed Davutoglu, the Iraqi delegation met him and both sides expressed willingness to resolve disagreements and to turn the pages of the past.

During the bilateral meetings , the delegation discussed issues of Iraq's relations with the Arab countries, exchanging views on the 24th Arab Summit, the Doha Declaration, proposals and initiatives presented by a number of Arab countries to promote cooperation, Arab solidarity in addition to discussing ways of activating work mechanisms of the Arab League.

(Source: MoFA)

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Zebari Delivers Arab Summit Presidency to Qatar

Foreign Minister Hoshyar Zebari headed the Arab League Council at the ministerial level on Sunday. In the opening session minister Zebari gave a speech in which he stressed the achievements of the Iraq's presidency to the 23rd Arab Summit, indicating the Iraq's positions towards the issues of the Arab region, particularly the Palestinian issue and the Syrian crisis.

The Minister said in his speech that Iraq supports the legitimate aspirations of the Syrian people, condemned the acts of violence and murders, called for stopping the bloodshed and stick to a political and peaceful solution, support the national dialogue, and reject all forms of foreign interference.

Regarding the representation of the Syrian opposition in the Arab League, Iraq reserved to give the seat of any Arab country, including Syria, because it contradicts with the AL Charter.

Minister Zebari touched upon Iraq's achievements during chairing the Summit in terms of Arab and international initiatives and conferences hosted by Baghdad throughout the past year. Minister Zebari, handed over Sheikh Hamad Bin Jassim Al Thani, the Qatari Prime Minister and Foreign Minister, the presidency of the Summit.

Sheikh Hamad Bin Jassim gave the speech of the presidency of Qatar and thanked the Iraqi presidency, which was distinct. The AL Secretary-General thanked the Government and people of Iraq for their achievements, stressing that Baghdad returned to holding conferences and meetings of Arabs in Iraq.

The Council discussed several issues including the Palestinian issue, the Syrian crisis, the development and reform of the Arab League as well as economic development issues in the Comoros Islands, Somalia, Sudan and elsewhere.

The meeting was attended by Labeed Abbawi, Undersecretary of Foreign Ministry, Ambassador Dhia Al Dabbas, Head of Arab Department, Ambassador Qais Al Azzawi, Permanent Representative of Iraq to the AL, Ambassador Jawad Al Hindawi, Iraq's Ambassador in Doha.

(Source: MOFA)

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Filipinos can now Work in Iraq

By John Lee.

Overseas Filipino workers (OFWs) can be deployed again to Iraq and Yemen.

Philippines Labour Secretary Rosalinda Baldoz said the Philippine Overseas Employment Administration (POEA) governing board has approved a resolution allowing deployment to the two Arab countries, reports Peninsula Qatar.

(Source: Peninsula Qatar)

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Zebari Chairs Follow-Up Meeting on Baghdad Summit

Foreign Minister Hoshyar Zebari has chaired the Ministerial Meeting of the Follow-up Commission on the implementation of decisions and commitments to Baghdad Summit in Cairo.

The Commission includes its Troika of the Summit; Libya, Iraq, and Qatar, and Troika of the Ministerial Council; Kuwait, Lebanon, and Egypt. The meeting was present by Secretary General of the Arab League, Nabil Al Araby, and foreign ministers of Lebanon, Adnan Mansour, Kuwait, Sheikh Sabah Al Khalid Al Hamad Al Sabah, and from Egypt, Mohamed Kamel Amr.

The Secretary General praised the Iraqi Presidency for the summit, and said it implemented all decisions of the Baghdad Summit. He also asked Minister Zebari to mention the conferences proposed by Iraq, such as: the First Arab Conference for the Development of the Culture of Legal and National Awareness, that will be held on 10 to 12 of the current month, and the Conference of Experts to Activate the Bylaw of the Arab Parliament, scheduled for the period from 19 to 20 of the current month as well, and (Baghdad, the Capital of Arab Culture Festival) on 23/3/2013.

The meeting approved the recommendations and the final report.

(Source: MOFA)

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Iraq Stock Sale Sign of Investor Confidence

By Karin Laub, The Associated Press. Used with permission by Iraq Business News.

An Iraqi telecom company raised nearly $1.3 billion Sunday on Baghdad's small stock exchange in one of the region's biggest share offers in years — a sign of investor confidence in the fledgling private sector despite violence that still plagues the country.

In a reminder of Iraq's volatility, several suicide attackers on foot and in two explosives-laden cars assaulted a provincial police headquarters in northern Iraq, killing at least 15 people and wounding 90. Rescue workers led away dazed survivors, including veiled women climbing over debris, and pulled several mangled and scorched bodies from the rubble.

The level of violence has dropped sharply since the worst sectarian fighting in 2006-2007, yet bombings and shootings still kill dozens of people every month. Investors say the continued security risks, along with concerns about official red tape and corruption, have restricted the growth of Iraq's private sector.

Iraq sits on vast oil reserves, and foreign investment has focused heavily on the government-controlled energy sector.

So it was good news for the Iraq economy when nearly two-thirds of the money raised by the telecom company came from foreign buyers.

"Iraq is a very difficult place to do business in," said Shwan Taha, head of Rabee Securities, the brokerage firm that organized Sunday's share float of Asiacell, one of Iraq's three main mobile phone service providers. "Iraq came out of a long dictatorship. We had 30 years of war and sanctions. We missed a lot of trains, not only one."

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Qatar Airways Expands Network In Iraq

Qatar Airways has introduced its latest gateway in the Republic of Iraq with the launch of scheduled flights to the central city of Najaf.

Following its move into Iraq six months ago with the start of flights to both the capital Baghdad and Erbil, the Doha-based airline has inaugurated new services to its third city in the country.

On the back of passenger demand to Iraq, Qatar Airways viewed expansion as being vital, fuelled by the country’s reconstruction drive.

The arrival of Qatar Airways’ flight QR 742 at Al Najaf International Airport was welcomed by a traditional water salute followed by a reception presided by local officials. Fathi Al Shehab, Qatar Airways Senior Vice President GCC, Levant, Iran and Indian Subcontinent, led an official delegation on the flight from the airline’s head office in the Qatari capital Doha.

With three Iraqi routes now in its stable, Qatar Airways takes its frequency across Baghdad, Erbil and Najaf up 50 per cent to 12 services each week.

Najaf, to be operated four-times-a-week, becomes destination number 124 in the airline’s global network spanning cities across Europe, Middle East, Africa, Asia Pacific, North America and South America.

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Asiacell IPO "to be a Sell-Out"

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)

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Record Growth at Erbil International Airport

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.

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Outlook for the MENA Region 2013

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.

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"Rocky Road Ahead" for Asiacell IPO

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)

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