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Seminar held on Investing in Iraq

Global Arab Network - David Morgan

Monday, 15 June 2009 11:36

The Arab-British Chamber of Commerce hosted a seminar on the theme of “opportunities, risks and rewards” in Iraq on 21 May organised by the Iraqi-British Business & Investment Council (IBBIC).

With news of real progress in the security situation within the country and business at last beginning to operate in something approaching normal conditions, the event attracted considerable interest and saw a packed auditorium.
Delegates heard the latest developments regarding the reconstruction efforts taking place in Iraq and in particular the more than $60 billion in investment needed to improve the country’s infrastructure.

Dr Mostafa Al-Bazergan, IBBIC Chairman and Founder, chairing the seminar, stated that the intention of the seminar was to highlight the renewed efforts to engage in the rebuilding of Iraq: 2008 had been the year of establishing security, while 2009 was now the year of opportunity and the start of prosperity for the country.

He urged companies still hesitating about doing business in Iraq to consider the bright prospects that were now unfolding in the market. Dr Al-Bazergan pointed to the progress that has already been made in areas such as the adoption of modern regulations for the banking system and the initiatives taken to attract foreign investors.

Oil and gas remains the country’s largest sector and although it continues to grow, Iraq needs billions of dollars investment over the next six years to upgrade it.
The sector offered enormous opportunities especially in the area of exploration.
The country had potentially the world’s largest reserves according to latest studies, but there was certainly exceptional potential for growth of both oil and gas.

It was expected that the new draft oil law, which would be crucial for the future development of the sector, would receive the approval of the Iraqi Parliament by the end of the year, Dr Al-Bazergan estimated.

Dr Carol Nekhle, an oil specialist at the Surrey Energy Economics Centre, spoke about the options available to Iraq as it seeks to modernise its oil sector: it could go it alone, adopt full privatisation or go for a partnership model between public and private sector.
She said that a variation of the latter model applied in most oil producing countries throughout the world and was the most practical option available to Iraq at the present time. It would enable the country to accelerate the pace of development in co-operation with private sector investors.

She explained that the main issue was to get the detail of the contracts right, but time was being wasted with the failure so far to adopt a new hydrocarbons law.

Speaking about the current business law in Iraq, Bob Palmer and Hussain Kubba, from CMS Cameron McKenna looked at some of the legal challenges that foreign investors face. They explained that Iraq’s law was based on a civil code which differed from the English common law system based on precedent. The constitution adopted in 2005 was the supreme law in the country.

Many key business laws had been enacted since 2003, including the company law and investment law, the speakers explained. The law was clear on important issues such as the options for establishing a company presence, the setting up of branches and the use of agents.
Other speakers at the seminar included Graham Thomas, from AEGIS, who explained the security factors that companies needed to consider. He sought to dispel some of the myths about the dangers of doing business in Iraq and said that the situation was becoming far more secure and firms needed to treat the risks as manageable.

William Wakeham, from AAIB, a specialist in post-conflict insurance, explained the insurance packages that were now available to companies working in Iraq.

The seminar concluded with a panel discussion on the role of women in the business sector of Iraq which marked the relaunch of the Iraqi British Business Women Forum. During this session, Aseel Al Daghistani (IBBWF) looked at what needed to be done to enable Iraqi women to become more active in the private sector, such as providing better access to credit and loans and improving their business skills.
The seminar was the first in a series of quarterly events to be planned by IBBIC.

* This report first appeared in ‘Arab-British Business’, 10 June 2009, the bulletin of the Arab-British Chamber of Commerce. - Photo: IBBIC

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