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Qatar Airways has in the span of just two weeks expanded passenger services to Iraq with the launch of its second destination in the country – to the capital Baghdad.

The Doha-based airline is operating four-flights-a-week non-stop on the Baghdad route. Located on the banks of the Tigris River, Iraq’s capital is one of the Arab world’s largest cities.

The move comes just two weeks after Qatar Airways launched flights, also four-times-a-week, to the northern Iraqi city of Erbil.

Cargo traffic bound for Iraq will see a boost when Qatar Airways launches a dedicated weekly freighter service to Erbil, effective July 5.

Both the Erbil and Baghdad passenger services are being operated with an Airbus A320 in a two-class configuration of 12 seats in Business Class and 132 in Economy.

Qatar Airways Senior Vice-President GCC, Levant, Iran, Iraq and Indian Sub continent Fathi Al Shehab was onboard inaugural flight QR442 to Baghdad, which arrived at the city’s international airport to a traditional water salute welcome followed by an airport ceremony attended by local officials and media.

The addition of Baghdad takes Qatar Airways’ global network to 116 destinations worldwide. Qatar Airways’ passengers flying to Iraq from destinations across the Gulf, Europe, Indian subcontinent, Asia Pacific and The Americas can seamlessly connect via the airline’s Doha hub.

Qatar Airways Chief Executive Officer Akbar Al Baker said: “Baghdad had long been on our list of destinations which we identified as being a key part of growing our Middle East network.

“During Iraq’s current period of reform and development, with industries resurging and many new companies expanding operations to Iraq, we felt this was the time to move into the country.

“With our new passenger flights to both Baghdad and Erbil, together with our new dedicated freighter service to Erbil starting next month, Qatar Airways is offering excellent capacity to and from the country.”

Added Al Baker: “With growing business ties between Iraq and the rest of the world, it is a natural next step for the airline to expand further within the region, providing opportunities for greater economic, cultural and educational exchanges through this greater air access.”

Addressing local airport officials and media upon arrival in Baghdad, Al Shehab said: “Baghdad is a route which will help facilitate easy movement for those travelling from around the world on business to the country, with excellent connectivity via Doha.

“In addition, we are offering Iraqis living abroad with a more convenient way to return to Baghdad and neighbouring towns and cities. We provide our passengers with an exceptional award-winning onboard product and great connections to reach their families and homes.

“We have been working closely with the travel trade and corporations in Iraq and indeed across our international network to promote our new Iraq services.

“Qatar Airways has enjoyed a busy year so far with Baghdad becoming the airline’s sixth new route start-up since January.”

Reuters reports that Qatar Telecom (Qtel) is to double its stake in Asiacell, Iraq's second biggest mobile operator, to 60 percent for $1.47 billion.

Qtel will initially increase its stake to 53.9 percent from 30 percent, with a further increase pending Iraqi government and regulatory approval.

Qtel did not identify the sellers of the stake, but in January sources told Reuters the operator was planning to buy private equity firm MerchantBridge's 19 percent holding in the company. Bloomberg reports that Eric le Blan, acting chief executive officer of MerchantBridge, declined to comment by phone on Tuesday.

“The Iraqi market is about to enter a period of rapid broadband and data growth and Asiacell is well-positioned to meet the demands of the population for high quality, reliable and affordable voice and data services,” Qtel chairman Sheikh Abdullah Al-Thani said in the statement. “We continue to work hard on preparing for Asiacell’s landmark IPO planned for later this year.”

Iraq's mobile operators have yet to launch 3G services, while fixed line broadband infrastructure is in its infancy.

Asiacell has a 38 percent share of Iraq's mobile subscribers, according to rival Zain's 2011 annual report. Zain's Iraqi unit is the market leader with 53 percent of subscribers, while France Telecom affiliate Korek has 9 percent.

(Sources: Reuters, Bloomberg)

Oryx Engineering Solutions (OES) is pleased to announce the official inauguration of the 1st of its kind fully integrated end-to-end engineering solutions service center, based in the heart of Ras Laffan in State of Qatar.

The Centre was officially inaugurated, on behalf of H.E. Dr. Mohammed Bin Saleh Al-Sada, the Minister of Energy & Industry and Chairman of Qatar Petroleum by Mr. Abdulaziz Jassim Al-Muftah, the Director of Ras Laffan Industrial City which is a department of Qatar Petroleum. The inauguration was attended by more than 200 senior government officials and decision makers from International Oil & Gas companies and Qatari energy companies.

The fully privately owned facility which covers an area of 14,000m2 is now able to support the rapidly changing, evolving and demanding needs of the Middle East and Africa’s energy sectors including oil and gas, power and water, petrochemical, industrial and marine.

To further validate Oryx Engineering Solution`s compelling and unique value proposition, three Joint Venture partnerships were also announced during the ceremony:

ABB Oryx Motors & Generators Service LLC (ABB Oryx M&G), a joint venture between Oryx and ABB, the leading power and automation technology group. ABB Oryx M&G will provide a full suite of motor and generator services to customers with operations in the oil, gas, water and energy sectors in Qatar and the surrounding Gulf and sub-Sahara African regions.

AESSEAL Oryx LLC: The fourth largest manufacturer of mechanical seals in the world AESSEAL has joined forces with Oryx to repair, refurbish, serve, supply and support all the engineering needs of mechanical and dry gas seals.

Transcar Projects Qatar LLC: The globally renowned project and logistics solution provider Transcar Projects which has played an instrumental role in the core logistics delivery component of the Pearl GTL project, has entered a joint venture partnership with Oryx to offer door-to-door services beyond logistics and project freight forwarding across MEA. The partnership allows Oryx to offer its clients a full 360° service from managing some of the most daunting transportation requirements for heavy oil and gas components and equipment and equally.

This new progressively customized facility – which has a built up area close to 10,500m2 of workshops, offices and training facilities – is fully equipped with all the advanced machinery needed to service a wide range of sophisticated engineering services.

The OESC’s location within Ras Laffan Industrial City will do much to reduce the number of valuable service contracts currently leaving Qatar by making it possible for the needs of the many companies working in the country’s expanding energy and water sectors to be met by locally-based services provided by Oryx Engineering Services and its strong Joint Venture partners.

Speaking at the ceremony. The Director of Ras Laffan Industrial City, Abdulaziz Jassim Al-Muftah, said” Ras Laffan Industrial City is pleased to see a Qatari private sector company making such significant investment and commitment to the Industrial services sector of Qatar, to support the various industries based in Ras Laffan and Qatar. We welcome them to the Ras Laffan Industrial City Family.

Speaking at the ceremony, Oryx’ Chairman and Managing Director, Abdulla Ahmed Mannai, said: “This journey has taken 7 years, I am delighted to see that the facility and the lineup of our experts and team has been received so positively by all of the industry experts who joined us at the ceremony. OES is the one stop solution for almost all engineering needs of RLIC, Qatar and greater MEA”

“We are extremely pleased with the strong and solid lineup of partnerships we have developed with ABB, AESSEAL and Transcar and equally so with the fact that we have created an environment that is all geared for productivity and excellence.”

Speaking for ABB Gus Abboud, Region Division Manager, ABB Discrete Automation and Motion, Middle East and Africa, ABB, mentioned “Oryx is a local company with an enviable reputation – throughout the Gulf region – for the quality of our services and the way we do business. We are a customer-focused organization, committed to delivering world-class services that major on value creation. We also have a strong commitment to sustainability and to the best interests of the wider Qatari community.”

“We are determined that, through the quality of our services and the convenience of our location, we will be able to contribute in supporting the development of business in the State of Qatar. The faster turnaround times we will offer will be attractive to companies operating in and near the Ras Laffan Industrial City, and our proximity to the region’s many off-shore operations will reduce the risks associated with transportation. Motors and generators are at the heart of everyday life and without them, many businesses would grind to a halt, therefore servicing this vital equipment is key to keeping the wheels of industry turning and keeping the lights on.”

Dean Rossiter, the Managing Director for Transcar highlighted the fact that “given the growing and rapidly expanding domestic and regional needs for agile and reliable logistics and project management services, we were in search for a local partner that brings global expertise for service to the region, the most important differentiator at Oryx is the mind-set and the precision, attention to the detail that is instrumental in our industry. We have found in Oryx a truly reliable partner and indeed a great complimentary value proposition for our vision of a joint presence within the energy industry.”’

AESSEAL the 4th largest manufacturer of mechanical seals in the world has also entered into a joint venture partnership with Oryx. David Elliot the Regional Director of AESSEAL in Qatar added: “I have been to almost all of our partner, engineering services centers in Australia and South Africa and around the world, I can admit that hardly any facility in many of these countries can match the line–up of human and technological capital that has been amalgamated under one roof at Oryx.”

Abdulla Mannai the Founder and Managing Director of Oryx Engineering Solutions concluded that “the journey has only begun and we are pleased to serve our customers and clients, doing so with passion, determination, foresight for the sector and being mindful that the well-being of our staff and team members within the facility is of paramount importance to the quality of our work. The journey for Qatar, Oryx Engineering Solutions and the opportunities in the energy sector in MEA has just begun.”

The full scope of the joint venture includes the repair, servicing, commissioning, installation and maintenance of all brands of electrical motors and generators, including those manufactured and distributed by ABB, all mechanical seals, project forwarding and logistics services for major transportation needs in the energy sector. The work will be carried out either at the new Oryx Engineering Solutions dedicated facility at the heart of Ras Laffan Industrial City or remotely on site at the customers’ operational locations. The on-site field services will cover the commissioning and installation of motors and generators and mechanical seals together with preventive maintenance backed by ABB’s Life Expectancy Analysis Program (LEAP) and AESSEAL. The off-site services offered will include preventative maintenance and the repair, refurbishment and upgrading of all brands of motors and generators.

The overall service provided by ABB Oryx M&G and AESSEAL Oryx will extend to the sale and delivery of spare parts and maintenance kits for the 10,000-plus ABB electrical motors and generators that have been installed by companies operating within the State of Qatar and other countries in the Middle East and sub-Saharan Africa.

Qatar Airways has extended its Middle East footprint to Iraq with Wednesday’s launch of scheduled flights to the northern city of Erbil.

Qatar Airways inaugural flight QR 446 from Doha to Erbil arrives in the northern Iraqi city to a traditional water salute welcome today.

The Doha-based airline is operating four-flights-a-week non-stop on the route – the first of two new Iraqi services being launched within two weeks. Effective June 7, Qatar Airways will start flights to the capital Baghdad, also operating four-times-a-week.

Both the Erbil and Baghdad services are being operated with an Airbus A320 in a two-class configuration of 12 seats in Business Class and 132 in Economy.

Qatar Airways Senior Vice-President GCC, Levant, Iran, Iraq and Indian Sub continent Fathi Al Shehab was onboard inaugural flight QR 446 which arrived at Erbil International Airport to a traditional water salute welcome followed by an airport ceremony attended by local officials.

Erbil takes Qatar Airways’ global network to 115 destinations worldwide.

Qatar Airways Chief Executive Officer Akbar Al Baker said: “Iraq has long been underserved due to the political and economic difficulties the country has faced over the years, but Iraq is undergoing reform, opening up to rapid infrastructure improvements and improved air access in an area for so long depleted by sufficient number of flights."

In a post from March of last year, I noted that Iraqi bank stocks did not seem particularly attractive on a valuation basis. PE’s were high and growth was unspectacular.

This is no longer the case for the entire sector. While share prices have gone pretty much nowhere, 2011 was a stellar year for earnings growth at many of the banks. On a PE/growth basis, some of them are now quite cheap.

The chart shows PE/growth based on the PE’s reported in Rabee Securities’ weekly report for May 18, 2012 and 2011 net profit growth. In computing the growth rates, I have adjusted 2010 earnings upward by the 2010-2011 percentage changes in average equity.

This adjustment raises the 2010 figures to what they would have been had the banks been as well capitalized in 2010 as they were in 2011, assuming no change in return on equity. In cases where average equity grew faster than earnings, adjusted earnings growth will be negative even when the unadjusted number is positive. This was the case for BIBI, BMFI, and BUND, for example. In these cases, PE/growth is not a meaningful metric.

Also included, for the sake of comparison, are the majority shareholders of BBOB, BDSI, and BMNS—Burgan Bank (BURG), HSBC, and Qatar National Bank (QNBK), respectively. (Note that the growth rate used for the Burgan Bank calculation is based on profit before provisioning rather than net profit.)

PE/growth for all of the Iraqi banks in the chart was well below 0.50. (A value of 1.00 would make them fully valued by this criterion.) In two cases, the ratio is less than 0.15—BDSI (0.07) and BMNS (0.11). These names can’t get much cheaper than this.

Myanmar and Iraq are among the highlights of Qatar Airways' announcement of launch dates for new routes in the Middle East, Africa and Asia with capacity hikes being introduced to a number of other international destinations from the carrier's Doha hub.

Speaking at Arabian Travel Market (ATM), the Middle East's premier travel trade event taking place in Dubai this week, Qatar Airways Chief Executive Officer Akbar Al Baker unveiled the expansion plans covering a wide network of markets across the carrier's global network.

Scheduled flights to Iraq will begin on May 23 with Erbil in the north, followed two weeks later by services to the capital Baghdad on June 7. Each route will be served with four-flights-a-week non-stop from Doha.

"Today's announcement reflects the importance Qatar Airways places on expanding its portfolio of destinations and frequency on existing routes to provide passengers with more choice, more flexibility and more travel options," said Al Baker, addressing a packed press conference at the Dubai Convention and Exhibition Centre.

Qatar National Bank (QNB) Group announced that it has obtained the approval of the Central Bank of Iraq to increase its stake in Mansour Bank in Iraq from 23% to 51%.

As a result of this stake increase, QNB Group will augment its representation on the Mansour Bank’s Board of Directors in proportion to its ownership.

In accordance with the memorandum of understanding, signed between the two banks, QNB Group will effectively manage Mansour Bank and provide it with needed technical and logistical support. This will enhance Mansour Bank’s abilities to offer a wide range of advanced products and services in the Iraqi market, benefiting from the support from QNB Group’s international network.

Mansour Bank began its operations in the second half of 2006, initially providing services through its head office in Baghdad, thereafter increasing its presence to seven branches and one office, covering a number of provinces in Iraq and employing 186 staff.

QNB Group provides specialized services through its subsidiaries and wholly-owned companies, including QNB International Holdings, which is headquartered in Luxembourg, QNB Capital, registered in the Qatar Financial Centre, QNB Banque Privée (Suisse) the full service private banking subsidiary of the QNB Group in Geneva Switzerland; and QNB Financial Services, which offers best-in-class financial brokerage services to retail and institutional clients allowing access to local, regional and international markets.

QNB Group has achieved strong financial results for the first quarter of 2012 with a net profit of QR2.0 billion, up by 17.4% compared to the same period last year. Total assets increased by 28.2% since 31 March 2011 to reach QR311.1 billion, the highest ever achieved by the Group.

In line with QNB Group’s international expansion plans, the Group has recently acquired a 49% stake in the Bank of Commerce & Development, one of Libya’s leading private sector banks. The Group is currently present in more than 24 countries around the world through branches, subsidiaries and associates. The Group, which employs nearly 7,000 staff, provides an array of banking services to a global standard through 335 branches & offices with an ATM network of more than 650 machines.

As a result of QNB Group’s continuous strong performance, the Bank was recently named one of the World’s 50 Safest Banks and one of the Safest Banks in the Middle East, according to the latest update published by Global Finance in April 2012. QNB Group is rated the number 1 brand in the MENA region, with a world ranking of 114, of the world's top 500 banking brands, from 189 in 2011.

Iran's Mehr news agency reports that Iraq will soon sign a deal with Iran to start importing 25 million cubic meters (mcm) of natural gas per day in 2013.

The Iranian gas will be used to power four Iraqi electricity plants.

The giant South Pars gas field (pictured) in the Persian Gulf is shared by Iran and Qatar. The Iranian share has about 14 trillion cubic meters of gas, or about eight percent of the total world reserves, and more than 18 billion barrels of liquefied natural gas resources.

(Source: Tehran Times)

(Photo credit: Alireza824)

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Headlines:

• VP Hashemi Leaves Kurdistan for Qatar, KSA Visits: His return could signal of KRG strength and defiance.
• Potential Violence Looming after Attempted Hit: Reminder that Arab street can target Kurds too.

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• April ? - proposed date for National Reconciliation Conference
• April 20 - Rewritten contract terms expected for 4th Oil and Gas Auction

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Iraq's Minister for Housing and Construction, Mohammed Sahib al-Darraji, spoke to Gavin Jones for Iraq Business News:

The Ministry of Housing and Construction is responsible for building over 2 million houses between now and 2015, as well as several thousand kilometres of highway and several dozen schools, hospitals and various other infrastructure projects; it's a massive task and as the Minister of Construction told me yesterday “we cannot do this by ourselves - we need international companies to get involved”.

One example of this is Danish engineering consultancy COWI, which is about to sign a contract to design and build a 500 km highway from Baghdad to the Turkish border, connecting Basra to Baghdad to Turkey, and making one of the first significant steps in reconnecting the Silk Road.

Consulting firm Mackenzie & Mackenzie was appointed last year and has started a Public Private Partnership. One of the first steps will be a privatisation programme for the state-owned assets of the Ministry of Industry and the Ministry of Construction, with the Ministry of Construction determined to be in the lead for setting up international joint-ventures with the 9 state-owned companies they have – the first one scheduled to be sold this year.