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Iraq Business
12 hours ago
- Business
- Iraq Business
Iraq to become "a Massive Success Story"
By Padraig O'Hannelly. Iraq is experiencing unprecedented stability and security, creating significant opportunities for international businesses, according to Abir Burhan, Company Director of Al-Burhan Group (ABG), speaking at the Iraq Britain Business Council (IBBC) Spring Conference in London. Burhan outlined how the operating environment has transformed dramatically over the past year, with the Iraqi government actively inviting international investment and reducing hostility towards foreign businesses. " We've been through the worst of it, and we finally see that Iraq is becoming really stable and secure, " he told delegates. ABG has positioned itself as a facilitator for international companies entering the Iraqi market, partnering with established firms including Menzies Aviation and Air BP to operate ground fuelling services at Iraqi airports. The company has achieved international operational standards with no reported incidents, demonstrating the viability of high-quality service delivery in the country. " We allow companies to operate in a safe environment, to actually do their job, rather than worrying about the hurdles of dealing with the Iraqi infrastructure, " Burhan explained. The group has made substantial investments in Iraq's infrastructure over the past two years, including: A 300-room hotel development near Baghdad airport Construction of 1,200 affordable housing units in Wasit province Establishment of an operations centre to support international business activities Burhan noted that ABG's security division has experienced reduced demand over the past year, which he views as a positive indicator of improving conditions. " We don't mind our security company not being busy, because we know that there are big advantages for businesses as well, " he said. The Operations Director expressed optimism about Iraq's economic prospects, predicting the country will become " a massive success story " within the next five to ten years. He emphasised the current government's commitment to attracting international investment and the noticeable improvement in security conditions. Burhan acknowledged the pivotal role of the Iraq Britain Business Council in facilitating international business opportunities in Iraq over the past decade, describing their work as instrumental in bringing projects to fruition despite various challenges. The comments reflect growing confidence in Iraq's business environment as the country continues to rebuild and modernise its economy following years of instability.
Iraq Business
3 days ago
- Business
- Iraq Business
Iraq announces Major Banking Sector Overhaul
By Padraig O'Hannelly. Iraq is embarking on a comprehensive restructuring of its banking sector with the assistance of leading international consultancy firms, according to Dr Salih Salman, Advisor to the Iraqi Prime Minister, speaking at the Iraq Britain Business Council (IBBC) Spring Conference in London on Tuesday. The Iraqi government has appointed Ernst & Young to restructure six of the country's seven state-owned banks, including the Industrial Bank, Real Estate Bank, Rafidain Bank, and Rasheed Bank. The Trade Bank of Iraq (TBI) has separately engaged K2i and KPMG to help restructure its internal and external operations to meet international standards. Dr Salman revealed that Rafidain Bank, Iraq's largest state-owned institution, will be reincarnated as the First Rafidain Bank with government participation reduced to less than 24 per cent. The remaining shares will be offered to private banks and international investors. The restructuring plan is expected to be finalised and approved by the Iraqi government by the end of the year. The private banking sector is also undergoing reform following a contract signed between the Central Bank of Iraq (CBI) and Oliver Wyman. This two-to-three-year project will result in recommendations for private banks to either exit the sector, comply with international standards, or merge with other institutions. Iraq has made significant progress in electronic payment systems adoption, with financial inclusion rising from less than 10 percent in 2018-2019 to approximately 40 percent currently. The number of debit and credit cards has reached 60,000-70,000, whilst bank accounts have grown to 22-23 million. From June 2025, all government payments will be made electronically, with cash payments prohibited across government institutions. The Iraqi government has launched awareness campaigns to encourage public adoption of electronic payment systems, moving away from the traditional cash-based culture. The government has also introduced the Riyada programme, operated in partnership with the Central Bank of Iraq, to provide financing and training for small and medium enterprises. The initiative offers a registration platform where participants can access training and potential financing opportunities. Dr Salman emphasised that Iraq remains open to foreign investment and international consultancy services across all sectors, including legal, financial, accounting, auditing, and compliance services. The reforms aim to integrate Iraqi banks into the global financial system after decades of isolation due to sanctions and frozen assets. Since November 2022, all bank transfers in Iraq have been processed through a Central Bank platform in cooperation with the Federal Reserve of the United States, marking Iraq's re-entry into global financial systems. The country now works with approximately 30 overseas banks, though challenges remain in opening international banking relationships. The comprehensive banking reforms represent a significant shift towards international standards and greater private sector participation in Iraq's financial sector. (Picture credit: IBBC)
Iraq Business
5 days ago
- Business
- Iraq Business
Rasmi Al Jabri Award presented to Ismail Shakir
By Padraig O'Hannelly. The Iraq Britain Business Council (IBBC) has awarded this year's Rasmi Al Jabri Annual Award for Excellence to to Ismail Shakir, founder of Al Busttan Group, a close friend of Rasmi and a founding figure of IBBC in Iraq. Al Busttan provides a full range of supporting services designed specifically for the oil and gas industry in Iraq, from life support, security and maintenance, to construction and drilling. Baroness Nicholson presented the 'Infinity Medallion' to Ms Hasan at the IBBC's Spring Conference in London's Mansion house on Tuesday, in the presence of Rasmi Al Jabri's nephew. The award was established in honour of Rasmi al Jabri, who died in 2020, and who worked tirelessly for many years to support Iraqi businesses and foster Anglo-Iraqi relations as an IBBC Board Member, Deputy Chairman and Member Representative in Iraq. Open to all Iraqi-owned enterprises operating in Iraq, the award recognises excellence in performance and governance, and in the promotion of business partnerships between Iraqi and British companies. Previous winners of the award have included Al Burhan Group, Sardar Group, AAA Holding Group and Al Hadeel Al Hasan Law (HHL). The medallion was designed by Charles Walker of Zaha Hadid Architects (ZHA).
Iraq Business
30-04-2025
- Business
- Iraq Business
100 Days of Trump: What it means for Iraq
By Padraig O'Hannelly. As Donald Trump completes his first 100 days in as US President, what effect have his policies had on the Iraqi economy? Firstly, it's worth noting that the main implications of Trump's policies for Iraq have been the indirect results of decisions not directly targeted at Iraq. Increased tariffs and the resultant drop in oil prices, the slashing of foreign aid across the board, and Trump's 'maximum pressure' policy towards Iran have been the three biggest consequences for Iraq since the change of regime in Washington on 20th January. Tariffs and Oil Prices While the United States applied an additional duty rate of 39 percent to imports from Iraq from 5th April, as part of its wider 'reciprocal tariffs' (sic) policy, the new rate does not apply to US imports of oil, which account for almost all of Iraq's exports to the US. However, Trump's approach to tariffs in general, combined with his unpredictable nature, has led to fears of a significant slow-down in international trade, and undermined the confidence of investors and consumers worldwide. As a result, the price of Brent crude has fallen from around $75 at the start of the month to $65 today; in mid-2024 it was as high as $85. These drops imply reduced oil revenue for Iraq. Iraq's National Development Plan 2024-2028 , launched last summer, but withheld from the public until late December, assumes a price of $74 this year, for example. (Source: National Development Plan 2024-2028) But as our Expert Blogger Ahmed Tabaqchali notes, Iraq has the capacity to support its spending plans by selling government debt, and this in turn can help develop the country's bond market, contributing to the evolution of the capital markets in Iraq. So while reduced oil revenue is a negative for Iraq, many expect short-to-medium-term development to continue as planned. Foreign Aid By some estimates, more than half of the humanitarian plans in Iraq were funded by the United States, so it should be no surprise that Trump's freezing of foreign aid and shutting down of the United States Agency for International Development (USAID) would have a major impact on a wide range of valuable initiatives throughout the country. According to the Washington-based Enabling Peace in Iraq Center (EPIC) , " in fiscal year 2023, U.S. assistance to Iraq amounted to $592.7 million. " It says the halt in funding and the stop-work order for USAID has already disrupted lifesaving programs in Iraq. Our Tenders page on Iraq Business News has seen only a small drop in activity, as many international NGOs have been able to continue with their work, but many programs have been cancelled or scaled back. Sanctions on Iran The removal of Iraq's waiver from US sanctions on Iranian energy imports has created immediate economic strain, but it has also accelerated efforts to reduce dependence on Iran. The sudden change of policy risks widespread blackouts, particularly during the extremely hot summer months, but it should also be noted that Iran was already expected to have difficulty supplying Iraq this summer, as it struggles to meet domestic energy demand. To mitigate the effects of this decision, Iraq has prioritised alternative supply projects, including a gas deal with Turkmenistan, increased electricity imports from Turkiye, and the creation of a floating platform for LNG imports. Iraq also plans to have completely stopped the flaring of associated gas by early-2028. While the cancellation of the waiver will undoubtedly cause hardship over the coming months, the import of gas and electricity from Iran was always regarded as a temporary solution, and pulling forward projects to replace Iranian supply could be considered a worthwhile investment. Trump withdrew the US from the Joint Comprehensive Plan of Action (JCPOA) in 2018. Discussions continue regarding a possible new deal between US and Iran, and the final shape of any such deal will have implications for Iraq's economy and politics. Iraqi dinar Finally, for the benefit of those who've bought Iraqi dinars (IQD) in the hope of stratospheric upward revaluations, it should be mentioned that has, of course, not happened. There has been a noticeable increase in interest in this " dinar RV " theory since Trump was elected in November, but not a shred of evidence to support the idea, and no indication from the President that he has any interest in the topic. In an entirely unscientific online survey we ran in January, more than half of respondents said they expected the Iraqi dinar to revalue by at least 1,000x in the first 100 days of Trump's term, as if this was something that the President could magically bring about, even if he wanted to. Doubtless the adherents to this theory will find a way to explain why it has not happened as they hoped, consider it a 'delay', and focus on some future timeframe when their faith will be rewarded. © Iraq Business News
