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Oman-based Galfar Engineering is considering expansion into Iraq.

Vice chairman and MD Dr. P Mohammed Ali was reported by Muscat Daily as saying:

"Currently, we work out of Oman, India and Kuwait. We have plans to expand to countries such as Saudi Arabia and Iraq in the future. As we grow, our main aim will always be to focus on the critical activity of the business and to subcontract the rest to local contractors."

(Source: Construction Week Online)

By John Lee.

Asiacell’s share sale has been fully subscribed before its closing date, according to the IPO’s organizer.

Shwan Ibrahim Taha, chairman of Rabee Securities, confirmed to Bloomberg News:

"The offering is now comfortably covered with a good mix of retail and institutional demand from within Iraq as well as institutional and high net worth demand from abroad."

Asiacell Chief Executive Officer, Diar Ahmed, told the news agency:

"Such big success will encourage other big entities to follow suit and will help the Iraq Stock Exchange attract more institutional investors into Iraq."

The $1.3-billion fund-raising is the most for an IPO in the MENA region since Saudi Arabian Mining's share sale more than four years ago, according to data compiled by Bloomberg.

"Asiacell will force international skeptics to reconsider their views about the exchange and Iraqi equities, and potentially lead to increased investment," Geoffrey Batt, managing director of the $44 million Euphrates Iraq Fund, told Bloomberg.

Shares are due to start trading on the Iraq Stock Exchange on 3rd February.

(Source: Bloomberg)

By John Lee.

Reuters reports that Iraq has sweetened the terms for oil contract buyers and is becoming more competitive on pricing.

Oil Minister Abdul Kareem Luaibi [Elaibi], who met customers in Vienna last month on the sidelines of the OPEC meeting, told the news agency:

"We were keen that I personally meet all the companies that buy Iraqi crude oil and hear their complaints directly from them ... After considering these problems in detail, we decided to improve the contractual terms and conditions as well as enhance the competitiveness of Iraq's crude oil."

Buyers had expressed concerns over the higher prices and the variable quality of Iraqi oil.

Customers said one change the Iraqis have offered to make is to demurrage - money to be paid in the event of a cargo loading outside the agreed period - which buyers said was costing them a fortune.

"They heard loud and clear that the demurrage payment, or lack thereof and huge delays to what was agreed, was affecting business," said a source at one company which buys Iraqi crude.

The customer, though, was "not overwhelmed" by the offer and a second buyer, involved in an oilfield project in southern Iraq, plans to visit Baghdad to follow up with the Iraqi State Oil Marketing Organization (SOMO).

"So far, the changes are really not significant for us," said the second buyer. "We're still in discussions."

But Iraq also has another problem with the variable quality of the Basra Light and Kirkuk crude streams, due to the erratic flow of Kurdistan oil into the Kirkuk stream and the start-up of new fields in the south.

Changes in the crude's sulphur content and API gravity - a measure of its weight - affect its value and can cause processing problems for refineries configured for a certain gravity and sulphur level.

Iraq has managed to stablize the API of Basra Light at around 30 degrees, an Iraqi official said. A regular buyer of the grade confirmed the change.

Keeping the quality of Kirkuk stable will be more of a challenge after the Kurdistan Regional Government (KRG) halted shipments through the Baghdad-controlled Iraq-Turkey pipeline in December, due to the long-running feud over contracts and payments.

Luaibi told Reuters a subsea pipeline in the Gulf would be opened soon which would allow two offshore Single Point Moorings (SPMs) to load simultaneously, boosting capacity in the south to above 2.6 million bpd from about 2.3 million bpd now.

Iraq is also addressing concerns about high official selling prices for its Basra Light and Kirkuk crude oils, buyers say.

Despite the increasing supply, Basra Light has been more expensive for Asian buyers than a rival crude from Saudi Arabia, Arab Medium.

For February 2013, however, Iraq chose to raise its Basra Light price to Asia by 5 cents a barrel, while Saudi Arabia increased the prices of its Arab Light, Medium and Heavy crude to customers in the East by 15-30 cents.

"Most importantly, they recently have become more competitive with their prices compared to the usual following of the Saudi formulae," said a long-time buyer of Iraqi oil.

A second customer felt the Iraqis could do more. "A little bit but not enough. They need to get more realistic," the buyer said.

(Source: Reuters)

From Iran’s PressTV. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

An analyst says, Iraq is being pressured with terrorist bomb attacks by foreign imperial entities and Persian Gulf dictatorships to reverse their position on Syria.

In the background of this at least 40 people have been killed in a series of bomb attacks in Baghdad as Iraq.

This incident is one of several that has brought a new realization of intention to destabilize the country of Iraq since US troops were forced to withdraw completely after their invasion and several years of occupation of the country.

Press TV has interviewed Mr. Mohsen Saleh, professor at the Lebanese University, Beirut about this issue:

(Source: PressTV)

Iraq can enjoy new economic opportunities and receive a boost to its efforts to promote democracy and human rights in the country thanks to its first-ever framework agreement with the EU. That is the view of Italian Christian Democrat MEP Mario Mauro (pictured), who is responsible for steering the agreement through Parliament. He is recommending his fellow MEPs to approve the partnership and cooperation agreement at the vote on Thursday. European Parliament News spoke to him about how the EU can help Iraq.

How can this deal help Iraq on its path to democracy, rule of law and effective protection of human rights?

Clearly, Iraq is in trouble and the transition is far from finished. At this time we have to create concrete opportunities for their economy and society. Our intention is to strengthen the country's economic infrastructure and to guarantee development and peace.

At the same time we have to be very clear when talking about human rights violations, e.g. religious discrimination. There is a lot of tension between Sunnis and Shiites and there is also the particular case of Christians in the country. The dramatic situation in Syria is another element of instability because of the refugees coming to Iraq.

We are very well aware of all this. But it is also important to underline that we are producing new opportunities for Iraqi people through money and the economic relationship. I suppose that is the best way to support democracy in Iraq. Our position is simple: we offer economic opportunities in exchange for human rights improvements.

When could we expect major improvements in Iraq?

We are in the middle of a big discussion about the rule of law in Iraq. We have to support the dialogue and strengthen civil society in the country, ensuring that it is possible for parties to take part in the debate. I think it is very important at this moment to be open to all proposals and listen to what they have to say

We need to remember that in the past Europe needed a long transition too. After seventy years we have peace but every day we still ask for more clarity in our political project.

It's unrealistic to expect Iraqi people to be able to solve the situation in a few years. It's a long process during which we can build a very strong friendship. I think this should be our goal.

Do you think Iraq is making any progress towards democracy?

I think so. People are concerned about the future and not thinking so much about the war. But Iraq is a country where exceptional interests come into play. We have to remember that Saudi Arabia, Iran and probably Turkey are interested in destabilising the country. So we need to stay near our Iraqi friends and foster dialogue in the country.

(Source: European Parliament News)

Iraq is still considered Jordan's best market for exports ahead of Saudi Arabia, India and the United States, according to the Amman Chamber of Industry (ACI).

According to ACI statistical report, Jordanian exports to Iraq by the end of November of last year reached JD813 million, accounting by 22 per cent of the Chamber's exports.

Exports to KSA came second with JD379 million, followed by India with JD315 million then USA with JD286 million, while exports to Syria declined to JD69 million compared with the same period of 2011 with JD138 million.

Describing the Iraqi market as "vital", ACI First Deputy Chairman, Fathi Jaghbir (pictured), told Petra that both countries have commonalities in people and geography which gives the Jordanian product great opportunity to be marketed within the Iraqi market, along with its competitive quality.

He also hailed the meetings of the Jordan-Iraq higher committee and its resolutions, voicing hope it would help pave the way for the flow of goods between the two countries.

(Source: Petra)

By John Lee.

Informed sources in Basra claim that the provincial government intends to open a border crossing with Saudi Arabia with the aim of increasing exports.

Both NINA news agency and Aswat al-Iraq report that the crossing will be in the Ouja al-Batin area, northwest of Basra.

The crossing is expected to be opened later this year.

(Sources: NINA,Aswat al-Iraq)

By John Lee.

Azzaman reports that the Iraqi government has removed visa restrictions on pilgrims visiting  Muslim shrines during ‘holy’ occasions.

The move will make it possible for pilgrims to fly to the country and obtain their visas at the Iraqi airports instead of applying for it at the Iraqi embassies in their countries.

Muslim Shiites from across the world head for Iraq during Shiite holy days, especially to Karbala and Najaf (pictured), their most revered sites after Mecca and Medina in Saudi Arabia.

Iraqi authorities hope the removal of visa restrictions will increase the number of pilgrims substantially.

The measure only applies during holy occasions and days and not throughout the year.

Iraq is keen to develop a tourist industry based on its religious sites and richness in antiquities and Mesopotamian heritage.

(Source: Azzaman)

By Seerwan Jafar.

This article was originally published by Niqash. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Iraq’s 2013 budget amounts to US$118 billion. But the figures don’t add up. Doing the sums results in one conclusion: unless something is done differently, Iraq will face serious debt and development problems.

In late October, the Iraqi Cabinet, headed by Iraqi Prime Minister Nouri al-Maliki, approved the 2013 draft budget. The total amount approved was USD $118 billion, making for an US$18 billion increase on 2012’s budget and making the budget Iraq’s highest ever. The draft will eventually go to the Iraqi Parliament for ratification.

If one considers the state of Iraq – still plagued by power cuts, growing youth unemployment and almost totally dependent on oil revenues – then an increase is surely a positive thing. But will this upcoming budget do the trick?

If Iraq is to become a more developed nation, is this increase enough and is it sustainable? And if it’s not, then what would the Iraqi budget be ideally?

A look at the facts and the figures around this issue may help to work out an answer to those questions. Iraq is near to completely reliant on oil revenues. Oil exports account for 95 percent of government revenues and are equal to 70 percent of the country’s gross domestic product.

By John Lee.

Starwood Hotels & Resorts Worldwide announced it has signed an agreement with BCD Co. to introduce its destination sensation brand, Aloft Hotels, to Iraq's emerging commercial hub. The opening of the new Aloft Erbil in 2015 will mark the launch of the Aloft brand into Iraq.

Created to shake up the traditional mid-market hotel sector, Aloft is redefining the category by delivering urban-influenced, modern and vibrant design and a social guest experience at an affordable price point. Earlier this year, Starwood marked a milestone with the signing of Sheraton Erbil will which signify the re-entry of Starwood in Iraq after 20 years.

"Together with BCD, we are excited to grow Starwood's presence in this emerging market as we bring Aloft Hotels to Iraq," said Roeland Vos, President, Starwood Hotels & Resorts, Europe, Africa and Middle East. "Aloft Erbil marks our second collaboration with BCD and we look forward to introducing Aloft's vibrant, stylish yet affordable concept to the country."

Aloft Erbil will be a part of BCD's mixed-use complex which will also include a Sheraton hotel.

On the signing of Aloft Erbil, Mr. Saad Aldoski, Partner, BCD Co. commented:

"We are excited to sign our second hotel with Starwood and we look forward to developing this relationship further to contribute to the growing development of the tourism industry in the Kurdistan area and Iraq as a whole. Erbil is considered as one of the top emerging markets in the Middle East and we believe Aloft Erbil, with its modern style and great value, will create a new benchmark in the city."