Custom Search

The head of Invest AD, the Abu Dhabi-based investment firm, sees growth in Iraq and Qatar.

Gulf News reports that performance by the firm's Iraq fund has been particularly strong.

"This year, with political change in the Middle East, performance has been varied, with a large dispersion of returns across the region," executive director Mohammad Al Hashemi said.

"Mena [Middle East and North Africa] markets are down about 11 per cent this year.

"But in Iraq we see a completely different story. Our Iraq fund is up about 27 per cent since October 2010."

(Source: Gulf News)

A Scottish manufacturer of prefabricated buildings has embarked on a major push into the Middle East as it targets construction projects in countries such as Libya and Iraq.

Powerwall, which runs a ten-acre production site in Wishaw and employs about 80 staff, is also locked in talks with potential partners in a string of markets, including Egypt and Syria.

The firm’s fabricated structural frames, reaching up to 22 storeys, can be used in housing developments, schools and hospitals and are said to offer major time and cost savings over traditional building techniques. Its concerted push east comes on the back of two deals in the region.

The company, which began developing its modular building technology in the early 1990s, has just formed a partnership with a Saudi group to form Powerwall Arabia.

It will manufacture and market products under a licensing arrangement in Saudi Arabia and Qatar.

Powerwall has also entered into a partnering agreement with the Al Badie Group in Abu Dhabi to market its building system in a number of “key locations” in the Middle East.

Global sales director Joe Pacitti said the region in general was in a growth phase, with older infrastructure in need of upgrading or replacement. “The whole of the Middle East is looking to increase investment in quality housing, hospital, schools, hotels and the like,” he said.

Powerwall’s global sales director told Scotland on Sunday earlier this year he was confident the firm could build up between £50 million and £100m of international business over the next five to ten years.

Powerwall’s “volumetric” building system is also said to have attracted interest from oil and gas explorers operating in remote regions.

In addition to its main plant near Glasgow, the company has a facility in Udine, in Italy, and employs up to 40 sub-contractors. It turns over some £15m, but is projecting growth of 60 per cent-plus in the next couple of years as the number of licensees multiplies.

(Source: Powerwall)

Asiacell has selected HSBC and Morgan Stanley to manage its initial public offering (IPO) on the Iraqi bourse, according to Bloomberg.

Chief Executive Officer Diar Ahmed told the news agency that the company will offer 25 percent of its shares, but did not specify when.

The company, which is an affiliate of Qatar Telecom, is in talks with Iraqi authorities to complete the listing procedures and set a timeframe, he said.

According to regulations, it should also convert from a limited liability company to a shareholding company before listing on the stock exchange.

Along with its two competitors, Zain and Korek Telecom, it was due to trade 25 percent of its shares on the Iraq Stock Exchange by the end of August, according to the terms of its licence.

Reports were unclear as to whether the three companies will be fined for missing the deadline.

Reuters reports that Zain has also begun the process of changing to a shareholding company, and  has appointed BNP Paribas, Citigroup and National Bank of Kuwait to manage its IPO, while Korek Telecom has yet to invite banks to pitch.

Iraq has 23 million mobile-phone subscribers, according to the Communications and Media Commission.

(Source: Reuters, Bloomberg)

The Qatari petroleum company, Woqod, has revealed a plan to invest in the oil sector through the construction of oil warehouses for logistic support to oil companies in Basra.

The representative of the company, Mr. Khaleel Hassan, said during his meeting with the deputy chairman of Basra Investment Commission that his company has several similar projects all over the world and that they hope to expand their investments to include the south of Iraq.

He added that the project requires an area of land near the oil ports of Basra and that the first phase includes the construction of warehouses to store and transfer energy while the second phase will include fuel and gas projects.

The deputy chairman of BIC, Eng. Haider Ali Fadhil, said that BIC is always seeking to attract Gulf oil companies in order to provide logistic support for Iraqi oil companies; he also said that such projects provide job opportunities for local labour.

(Source: Basra Investment Commission)

A top Iranian environment official said on Monday that Tehran and Baghdad will jointly invest $1.2 billion [1.4 trillion Iraqi dinars] in a project to reduce the number of sand dunes in a bid to cut the number of sandstorms.

"In order to reduce gravel levels we have signed an agreement with a foreign company worth $1.2 billion to cover a million hectares (2.47 million acres) of Iraqi soil in the next five years," the official IRNA news agency quoted the head of Iran's Environmental Protection Organisation as saying.

According to the report from AFP, the name of the foreign firm was not given.

"This initiative began with 500 hectares and in our negotiations (with Iraq) it was decided to either use fossil materials (petroleum products) or biological ones to stabilise the dunes," Mohammad Javad Mohammadi-Zadeh added.

Some have blamed sandstorms on Iraq which has been hit by desertification and deforestation because of dam construction and declining agriculture.

In mid-April, 20 of Iran's 31 provinces had to close schools and government offices, and flights to and from some western cities were cancelled because of sandstorms mostly originating in neighbouring Iraq.

The problem of sandstorms from Iraq has been blamed on two decades of on-off wars, with officials there saying the number of palm trees has fallen by two thirds from around 36 million to just 12 million.

In September 2010, Iran, Iraq, Syria, Qatar and Turkey signed an accord in Tehran aimed at tackling the sandstorms problem over the next five years.

(Source: AFP)

With most Middle East stock markets having been dragged down by the turmoil unleashed by the Arab spring and a sputtering global economy, some adventurous fund managers have started exploring opportunities in the tiny Iraqi market, according to a report from Bloomberg.

The Iraqi Stock Exchange, or ISX, says its main market index has surged some 65% so far this year, making it one of the world's best-performing markets. Though many doubt the accuracy of the ISX's main index, fund managers who follow the country agree that Iraqi share prices have risen about 15% in 2011—still outperforming most global peers.

Investors have been attracted by the relative political stability following the formation of Prime Minister Nouri al-Maliki's coalition government last year, as well as the promise of higher oil revenues and the reconstruction of the economy. The International Monetary Fund estimates that Iraq's economy will grow at 9.6% this year and likely expand by 12.6% in 2012.

"Foreign buying has picked up in the past 18 months or so with inflows estimated at about $130 million in this period," said Shwan Ibrahim Taha, chief executive of Rabee Securities, whose weekly stock market reports are published by Iraq Business News.

"The fact that it is one of the best performing markets this year, with further potential upside as the economy develops, is definitely whetting investor appetite," he said.

The Iraqi bourse's gains this year compare well to the performance of other indices in the region. Saudi Arabia, the Middle East's biggest market, is down some 7% so far this year. Egypt, the most open market in the region, has dropped 38% in the wake of the January revolution that toppled former President Hosni Mubarak.

Last week Erbil hosted for the fourth time the Project Iraq construction trade exhibition, together with the Elenex Iraq energy and electricity show. This year's construction fair was the largest so far, attracting exhibitors from 20 countries and thousands of visitors.

Project Iraq 2011, the 4th International Trade Exhibition for Construction & Environmental Technology for Iraq, was held concurrently with Elenex Iraq 2011, the first exhibition entirely dedicated to energy, taking place at the Erbil International Fairground from 19-22 September.

At the opening of the exhibitions, the Kurdistan Regional Government (KRG) ministers for Housing and Reconstruction and for Electricity welcomed all the participants. Minister Kamaran Ahmed Abdullah and Minister Yasin Sheikh Abu Bakir Mawati said that they were delighted that the trade shows are betting bigger every year, attracting visitors from all over Iraq.

The speakers at a press conference to launch the trade show included Engineer Nahro A. Assadi, deputy Minister, Ministry of construction & Housing, Mr. Hama Amen Hawramy, Advisor of the Minister of Electricity, Mr. Aziz Abdo, Director General of Trading in the Ministry of Trade and Industry , Mr. Fady Jreissati, representing IFP Iraq, The conference was attended by a number of government representatives, diplomats and business leaders, and enjoyed strong media coverage.

Mr. Jreissati gave an overview of the exhibitions and their importance, praising government efforts towards economic development and accelerated growth all over Iraq and in the Kurdistan region particularly. He expressed his gratitude to the representatives of the Kurdistan Regional Government, in particular the Ministries of Electricity and Construction and Housing, for their support to the company's events, and commended the management of Erbil International Fairground, proudly underlining its cooperation with IFP Iraq.

Aberdeen City Council has announced a new initiative to encourage North-east companies to explore business opportunities in Iraq.

Upper Quartile, an Edinburgh-based economic development consultancy, will manage the programme, which will target the oil and gas sector, academic institutions and other contractors.

Seminars will be held over the coming months to inform firms of the economic, political and security issues they need to consider before developing a presence in Iraq. Companies will be invited to attend meetings with Upper Quartile’s experts and get the chance to meet key officials from Scotland and Iraq.

Iraq produces two million barrels of oil per day and aims to increase to 12 million within seven years to propel them to second place among the world’s oil-producing nations. Capital spending in oil-field services in 2011 is estimated to be five times that of Saudi Arabia, Bahrain, the United Arab Emirates, Oman, Qatar and Kuwait combined.

In 2010, foreign firms and investors reported over $42 billion in investments, service contracts and commercial activities across Iraq – up almost 50% on 2009. The top sector was new housing, which accounted for 33% of all foreign commercial activity in 2010, followed by transportation infrastructure, electricity and industry, and oil and gas production. Contracts on offer are expected to push the oil services market to $8 billion by 2014.

Aberdeen City Council Enterprise, Planning and Infrastructure director Gordon McIntosh said: “Aberdeen-based companies have a long history of innovation in the oil and gas business and of developing oil and gas production abroad. Their unrivalled experience, therefore, coupled with committed investment can play an important part in rebuilding an economy, whilst also offering profitable business opportunities in the medium and long term.”

Gavin Jones, co-founder and managing director of Upper Quartile, said: “Iraq possesses vast hydrocarbon reserves, but it lacks the infrastructure and expertise to support large-scale commercial extraction and export. It is therefore an ideal time for established Scottish companies to use their skills to help unlock the country’s enormous potential.”

Iraq’s business marketplace remains in post-conflict phase, characterised by few entrants and risk aversion, but companies which can build relationships with senior Iraqis can expect significant rewards.

Iraq has 16 oil sector companies. Oil exports account for 96% of the country’s economy and in the first seven months of this year Iraq earned more than $48bn in revenue.

Production is set to increase substantially over the next few years. In the short term, however, infrastructure is unable to support this growth and Iraq needs to invest in its export terminals, ports, ageing pipelines, storage capacity, and water and power supplies.

For further information on Aberdeen City Council’s new initiative visit http://www.aberdeencity.gov.uk/iti

Hilton Worldwide is set to open its first hotel in Erbil, the flourishing capital city of Iraqi Kurdistan, under a management agreement with New York based real estate developer The Claremont Group. Comprising of 200 serviced apartments, DoubleTree Suites by Hilton Erbil is expected to open at the end of 2013.

The new hotel will be strategically located on Erbil's central thoroughfare, close to the recently expanded Erbil International Airport and the Ainkawa district, one of the city's main retail and entertainment centres.

Rob Palleschi, global head, DoubleTree by Hilton brand said, "I'm delighted to be bringing our brand to such an important city in the Middle East. DoubleTree by Hilton has built its success on providing high standards of service and quality facilities in gateway cities, which makes it the ideal choice for Erbil's thriving community."

Tailored for the needs of long-staying guests, the hotel will feature a business centre, health club, swimming pool, eight meeting rooms, two restaurants and a lobby lounge and bar. Around 200 jobs will be created at the hotel and the company's focus will be on employing people locally.

"Erbil's commercial status is increasing year on year and the city has a growing reputation as an up and coming tourist destination. We have every confidence that the DoubleTree Suites by Hilton Erbil will prove popular with the growing number of business and leisure travellers,' commented Rudi Jagersbacher, area president, Middle East & Africa, Hilton Worldwide

National Geographic recently listed Kurdistan, Iraq, amongst their Top 20 best trips describing it as 'an oasis of peace and stability with ancient cities, snowcapped mountains and bustling bazaars' and the New York Times travel section also listed Kurdistan in their 41 places to visit for 2011 saying 'the biggest lure is the opportunity for authentic cultural encounters'.

Stephen Lari, Principal of The Claremont Group, said 'There is so much potential in Kurdistan and particularly the city of Erbil. We've seen travel to the region grow considerably over the past couple of years. If that trend is going to continue then further infrastructure is required to support the industry. Hotels are key to that, and with Hilton Worldwide we know we have the right brand and management partner to make this hotel an integral part of the travel industry in the region'.

He added: "We'd like to commend the leadership of the Kurdistan Regional Government for fostering the secure and pro-investment environment that has been the catalyst for the region's steady growth and prosperity. By making the first major American-sponsored investment in the region's hospitality sector, we are firm believers in the Kurdistan success story"

Hilton Worldwide currently operates 53 properties across the Middle East and Africa and has 36 hotels in the development pipeline. So far this year the company has signed a total of 14 new hotels into the pipeline across the UAE, Saudi Arabia, Qatar and now Iraq.

(Source: Hilton Worldwide)

Iraq's three main mobile phone companies - Zain Iraq, Asiacell and Korek - appear unlikely to meet a month-end deadline to list on the local stock exchange, raising the chances of them being penalised, according to Reuters.

The companies are required by Iraqi law to launch initial public offerings on the Iraq Stock Exchange (ISX) by 31st August as part of the 15-year, $1.25 billion operating licences they secured in 2007.

None of the three limited companies has yet become a shareholding firm, a key requirement and the first main step towards going public on the local bourse.

"They must meet the requirement to be a shareholders' company before anything," ISX Chief Executive Taha Abdulsalam told Reuters. "After that, we will talk about listing."

He said that after becoming shareholding companies, the firms would need approval from the ISX board and Iraq's securities commission in order to be listed; the ISX board decision could take 24 hours, while the securities commission may take up to a week to give their consent. It would then take 2-3 weeks before the companies would be ready to trade.

He concluded that it was impossible for the companies to list on the bourse by the end of August.

"We still insist that they have to reach the licence conditions within the deadline of 31 August," CMC Commissioner Ahmed Alomary told Reuters. "Otherwise they will receive penalties."

Zain Iraq is a unit of Kuwait's Zain, while Asiacell is an affiliate of Qatar Telecom (Qtel), and Korek is part-owned by France Telecom SA and Kuwait's Agility.

There are now around 23 million mobile phone subscribers in the country, according to the Communications and Media Commission (CMC), which regulates telecommunications in Iraq.

(Source: Reuters)