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By Thomas W Donovan, attorney at the Iraq Law Alliance.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Foreign "experts" like to depict Iraq's oil industry as a cesspit of corruption, turmoil and factional politics. In fact, however, Iraq has made real progress, and is aiming for more. But it is true that serious legal, political and technical challenges must be met if the sector's ambitious plans are to become reality.

Remember that the events of the last decade, beginning with the US-UK invasion of March 2003, have presented Iraq with far more social, economic, military, legal, political and infrastructure challenges than any of its Opec neighbours have faced.

Getting oil production up to the current level of about 3 million barrels per day (bpd) is an accomplishment in itself. Baghdad says production is at a 20-year high; the US says Iraq has now surpassed Iran in daily production.

The Iraqi government plans to keep pumping, and is bringing in major international oil companies. The government has now held four petroleum licensing rounds: in the first three, private companies bid to take over certain producing oil and gasfields from the old state monopoly company; the fourth was for exploration rights in promising areas not yet producing.

Dubai's DAMAC Properties has signed a memorandum of understanding with the Iraqi Minister for Construction and Housing on the final day of Cityscape Global 2012.

The region’s largest private luxury developer already has two plots of land in Baghdad that was previously bought from the private sector and is currently developing designs with the projects to be announced shortly.

The agreement will see DAMAC Properties provide expertise and insight for a number of residential and commercial projects in Baghdad and the surrounding region. The MoU is the result of many months of negotiations, culminating in high-level talks, which were concluded during the exhibition.

DAMAC Properties has also opened a branch office in Baghdad, further enforcing its commitment to developing in the country.

Mohammad Al Darraji, Iraqi Minister of Construction and Housing, met with DAMAC Properties Chairman Hussain Sajwani at the DAMAC Properties stand at Cityscape Global and signed an agreement which will allow DAMAC Properties to further expand its operations in Iraq.

Speaking earlier to delegates at the Cityscape conference, Mr. Al Darraji said:

“Iraq has seen significant changes to regulations and the governing of economic activities. The new laws promote fresh investment and this transition will promote the rapid restructuring of our economy.”

Mr. Sajwani added:

“DAMAC Properties is delighted to be invited to work with the Iraqi government on these forthcoming projects. This is a significant agreement which will allow us to take the DAMAC Properties commitment of luxury and quality to a new territory.”

DAMAC Properties currently has 65 buildings currently at various stages of construction in Dubai, Abu Dhabi, Qatar, Egypt, Lebanon, the Kingdom of Saudi Arabia and Jordan. The company has already completed 37 buildings throughout the Middle East and North Africa, with the latest project, Marina Bay in Abu Dhabi receiving its handover certificate only last month.

“DAMAC Properties is continually looking for the right opportunities to bring the luxury living brand to other parts of the world,” said Mr. Sajwani. “We are doing due diligence on a number of projects in different countries and if we believe the circumstances are right and our brand can add value to a particular country, we will seriously consider it, as we aim to become one of the leading luxury developers not just in the Middle East but the world.”

The Iraqi government has been showcasing various projects during Cityscape Global 2012 and discussing a number of private-public partnerships with potential investors. During a speech to the conference Al Darraji said that US$ 10.4 billion worth of construction and infrastructure projects are expected to be approved next year and that the ministry has 65 projects worth US$ 3 billion with 60,000 units already under construction.

(Source: DAMAC)

By Shwan Zulal.

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.

How will I support myself in my old age? People ask this question all around the world. One Kurdish writer argues that a universal pension scheme could be a catalyst for a more dynamic private sector and economic growth in Iraq.

No matter where they live, one of the questions in the back of many people's minds is: how will I support myself and my family when I am no longer able to work? Whether that is because of old age or illness, it’s a common concern.

In Iraq and in the semi-autonomous region of Iraqi Kurdistan, people ask the same question. And given the recent unstable history of the country, people are understandably anxious about the future.

Most Iraqi businesses in the private sector do not have any kind of pension scheme. And while there are various benefit programmes, these tend to be vague and certainly don’t instil any sense of security. Which is why this fear has driven many people to do whatever it takes to become eligible for the generous government pension schemes for state employees.

On average, working in the private sector will see employees paid higher salaries but often there are more demands are made on staff members in this sphere, where productivity is measured more closely. But a government employee who retires after an average of 20 years in a state job may get paid more in the long run.

Additionally every year, scores of graduates enter the Iraqi job market and they most often expect to be employed by the government. The system dates back to Iraq under Saddam Hussein when there were few other employers than the government. Speak to any young person in Iraq and you’ll hear the same message: why should I do a hard day’s work when I can get a low level, public sector job and do as little as possible for a guaranteed salary and a pension? Public servants also get other perks – they may qualify for housing grants and interest free loans from the government, including loans that allow them to get married.

Baghdad will host Iraq's most anticipated energy event thus far on the 12/12/2012. Founded and hosted by Iraq Energy Institute (IEI), the Iraq Energy Forum (IEF) represents a unique gathering, distinguished by its exclusive line-up of senior Iraqi government officials and decisions makers, ambassadors, IOCs, industry leaders and cross-sector world renowned industry experts.

The event will be more than a conference and a networking opportunity, it will be a medium to influence and shape the Iraqi energy industry in the next phase of its evolution, as stakeholders will have the opportunity to directly engage with regulators, policy and decision makers, exchange views, as well as first hand and early insight into the investment and development plans and project announcements.

The Forum will duly commence on the 12th of December, with day one focusing on upstream-downstream challenges and opportunities, in addition to capacity building within Iraq. Day two of the event will focus power generation needs and projects, infrastructure challenges and investments opportunities, in addition to sustainability and resource-diversification.

Day one of the Iraq Energy Forum will be preceded by three simultaneous full day master-classes on the 11th of December. The master-classes will follow the theme of the Forum, with Master-Class 1 on Petroleum Development Policies & Field Operations which will cover all aspects of upstream sector in Iraq. Master-Class 2 on IPP & EPC Contracts will address IPP programmes, and tendering & contracting processes, conducive to preparing successful bids. Master-Class 3 will revolve around capacity building and improved on-going training and development.

The Master-Classes will provide participants with unparalleled insight into technical and procedural aspects of the industry in Iraq that would facilitate commercial success in a growing and evolving energy sector, that holding generous untapped potential. Mr Luay al-Khatteeb, Founder & CEO of Iraq Energy Institute has said this year on Bloomberg: “projected global demand will need two more of Saudi Arabia by 2035, and the only candidate right now that we can think of to fill the gap, and boost security of energy supply prospects is Iraq”.

Iraq's oil production reached a record high of over 3 mbpd in 2012 and the government is committed to ambitious plans of at least tripling production before the decade's end. Further, vast amount of gas reserves in Iraq remain underutilise, and Iraq's urgent power needs are well publicised.

Infrastructure de-bottlenecking, development and rehabilitation projects are paramount in dealing with the challenges ahead, therefore ample opportunities to capitalise and get involved in the next wave of investments will be on offer and should not to be missed. According to Prof. Ali Al Sayigh, Director General of the World Renewable Energy Congress and Chairman of the Board of Iraq Energy Institute: “ the energy industry in Iraq has made great strides so far, but it is time to introduce sustainability as building block for future developments and plans, since the Iraqi energy sector is not only vital to the Iraqi economy, but global energy markets at large”.

The Iraq Energy Forum has strong state support, with several confirmed ministers and heads of the decisions making committees in Iraq, which will provide further insight into government policies and directions, helping investors plan their strategies and investments for Iraq with optimal efficiency. The Forum benefits from enviable Ambassadorial participation, and the event will also close with an Ambassadorial Reception, which provides further networking opportunities.

“Project Iraq 2012” expected to lay solid foundations for the region’s bustling construction sector

For the fifth consecutive year, “Project Iraq” – the International Exhibition for Construction and Environmental Technology, Materials and Equipment – will be held at Erbil International Fair Ground (EIF), bringing together local, regional and international companies and decision-makers in the construction sector.

Organized by IFP Iraq – member of International Fairs & Promotions (IFP) Group, Project Iraq is the largest specialized exhibition in Iraq and one of the fastest growing shows in the entire Middle East. In last year’s edition, the show brought together 393 local, regional and international companies from 20 countries, scoring a 30% growth in the number of participants.

Project Iraq’s ongoing success is widely influenced by the country’s dynamic construction market which is fueled by reconstruction and development projects across all economic sectors, including infrastructure, housing, hospitality, education and others. In 2010, Iraq’s construction industry was valued at US$ 5.6 billion with an annual growth forecast of 6.18% until 2014. Today, the busy pipeline of current and underway projects is triggering a massive demand in terms of building material, technology, and qualified human resources.

Consequently, “Project Iraq 2012” is the ideal platform for engineers, energy experts, field specialists, investors and entrepreneurs, buyers, and distributors to gather, share innovations and seize valuable business opportunities. Expanding over 11,000 sqm, the show is expected to draw a professional crowd of more than 23,000 visitors, giving them the exclusive opportunity to learn more about the latest industry trends from more than 400 international exhibitors; to network with key decision-makers and other professional trade visitors from both the public and private sectors; explore new business opportunities, joint ventures, and much more.

Supported by a wide pool of international official bodies from Belgium, China, Egypt, Germany, Greece, Iran, Italy, Syria and Turkey, and local governmental bodies including the Ministries of Consternation & Housing and the Ministries of Electricity, “Project Iraq 2012”has attracted international participants from the four corners of the world namely from Belgium, China, Egypt, Finland, France, Germany, Greece, India, Iraq, Iran, Italy, Jordan, the Kingdom of Saudi Arabia, Kuwait, Lebanon, Spain, Syria, Thailand, Turkey, the United Arab Emirates and the United Kingdom.

Exhibits at the show will include the latest innovations covering all construction aspects such as building material, stones and stone products, heating, ventilation and air conditioning (HVAC) systems, machinery and vehicles, sanitary products, wood products, metal products amongst other; and aimed at helping visitors improve their company productivity, upgrade their projects’ quality, grow their business and deliver faster.

Adding value and depth to every visitor’s experience, Project Iraq is held concurrently with “Energy Iraq 2012” -the 2^nd International Exhibition for Electricity, Alternative Energy, Lighting and HVAC - the only international exhibition in Iraq and the neighboring countries exclusively dedicated to electricity, alternative energy, lighting and HVAC.

Don’t miss Project Iraq 2012 from 17 to 20 September 2012, atErbil International Fair Ground (EIF) from 14:00 till 20:00 daily. To pre-register your visit, log on to www.project-iraq.com.

Iraq continues to grow its oil production at a good pace. Having recently breached the three million barrels of oil in a day mark, it is now averaging over a month 2.6m b/d, the most in three decades, according to Falah Alamri, the head of the State Oil Marketing Organisation.

With Iran's oil production having stalled recently, potentially due to oil sanctions or lack of investment, Iraq has now overtaken it to become the second-largest oil exporter in the Organization of the Petroleum Exporting Countries, making $8bn per month in revenue from oil exports on an average price this year of more than $100 per barrel.

Iraq still has a long way to go to catch up with Saudi Arabia, which, as the OPEC country with the highest production, produces around 10m b/d. Saudi Arabia claims to have one fifth of the world's oil reserves.

Hadi Abbas, secretary for the Parliamentary Finance Committee, said that they are expecting that higher oil revenues will lead to the Iraqi government approving a bigger budget for next year.

Sources: Reuters; Euphrates

Reuters

By John Lee.

Vodafone and Zain have jointly announced a Partner Market agreement that will significantly expand Vodafone’s Partner Market presence in the Middle East and provide Zain customers with greater support in Vodafone’s global footprint.

Under the non-equity partnership agreement, Vodafone will work with Zain companies in Saudi Arabia, Bahrain, Kuwait, Jordan and Iraq to provide customers with high quality communications services.

The move will enhance both Zain and Vodafone’s ability to meet growing demand among multinational businesses for sophisticated voice and data communications solutions as well as advanced roaming services within the Middle East.

This will complement Vodafone’s own regional operations in Egypt and Qatar and increase the number of countries in which Vodafone has Partner Market agreements to more than 50.

Zain will have access to Vodafone’s devices and services in its home markets and become the preferred partner of Vodafone in respect of the agreed areas of cooperation. Vodafone and Zain will work together to provide customers with enhanced network coverage, harmonised roaming rates across multiple countries with greater cost efficiencies and Zain will be able to use the Vodafone brand.

Vodafone's multinational customers served by Vodafone Global Enterprise will benefit by being able to add the Zain countries to their existing contracts for international managed services, while continuing to be serviced via a single point of contact. Zain will similarly benefit from Vodafone's footprint.

By John Lee.

Zain has confirmed rumours that it is close to sealing a deal with Vodafone that would allow the global telecoms group to expand access to networks across countries including Saudi Arabia, Iraq and Bahrain.

According to the report from Reuters, Zain has said that it is "at an advanced stage in negotiations towards reaching a strategic partnership agreement with Vodafone".

Vodafone, the world's biggest mobile operator by sales, has been seeking new agreements with local operators to spread its coverage while avoiding expensive buyouts or heavy investments.

Zain said it would provide more details on the partnership in the next few months.

(Source: Reuters)

By John Lee.

Vodafone, the world’s second-largest mobile-phone company, is said to be nearing an agreement with Zain to expand access to networks across countries including Saudi Arabia, Iraq and Bahrain.

According to a report from Bloomberg, the deal would let UK-based Vodafone lower roaming fees and share handset- purchasing costs.

Vodafone is seeking to tap a market where wireless calling and data usage is soaring. Annual smartphone shipments in the Middle East and Africa are set to climb to 152 million devices, or 21.7 percent of the population, by 2015, from 36.7 million in 2011, according to London-based research firm Ovum.

(Source: Bloomberg)

By John Lee.

An MP and member of the Parliamentary Oil and Energy Committee has hit out at Saudi Arabia for its "hostile policy" towards Iraq.

Udai Awad, of the Ahrar bloc within the Sadrist Trend, told AIN:

"The reason for the dispute with Saudi Arabia is the attempt by KSA [Kingdom of Saudi Arabia] to seize the Iraqi oil pipeline passing through Saudi territories. The pipeline was constructed by Iraqi funds and it was established according to political agreements with the Kingdom but after the fall of the former regime we were surprised that KSA seeks to control on this pipe."

He went of to accuse Saudi Arabia of, "attempting to practice terrorism against Iraq and fight against Iraq politically, economically and socially for sectarian reasons".

According to a Government source, the oil pipeline built by Iraq to the Saudi port of Yanbu cost $2 billon and has a capacity of 1.6 million barrels per day.

(Source: AIN)