No. 3 - September 2012 Contents German Businesses are well

German Businesses are well advised to keep Iraq in Mind 1 Editorial 3 advised to keep Iraq in Mind Further Stimulus for Economic Development – Investment of USD 100bn H.E. Martin Kobler, Special Representative of the United Nations Secretary-General in Infrastructure in the next five years 4 for Iraq, spoke with Helene Rang, NUMOV New German Ambassador in Iraq 5 International Monetary Fund to extend Stand-By Arrangement 5 Dynamic economic relations between the Republics of Iraq and Turkey 6 Partnership and cooperation between the European Union and the Republic of Iraq 7 Spotlight – Najaf: A holy province with great potential 8 Growing foreign commercial activity in the Republic of Iraq 9 German development cooperation with Iraq 10 Introducing a NUMOV member: IQ Martrade Group 11 Iraq’s mining industry open to new investors 14 Iraq ideal testing ground for insurance products in the MENA region 15 Iraqi-German academic cooperation 16 Iraq poised for strong economic growth over the next years 17 Demand for livestock farming and food processing 18 Iraq oil sector update 19 Rising Cement Demand increases Need for Local Production 20 New railway project linking Iraq to Turkey and Iran 21 Baghdad / Capital of Iraq Iraqi universities lure investors 21 News 22 HR: You were appointed UN Special tution building. On the other hand, framework Tenders 24 Representative for Iraq one year ago. What is conditions for industry, legislation, the oil and your impression of the country’s development gas law, what I term the unfinished constitution- Business enquiries 25 within this period? al agenda, this is still something we have to Members Recommending NUMOV 26 work on. Fairs 2012, 2013, Registering companies in Iraq, H.E. Martin Kobler: I was German Ambassador Public Holidays in Iraq and Germany 27 in Iraq from 2006-2007. Coming back five years HR: What are the main activities of the United NUMOV Services 28 later I have seen a lot of changes, but also a lot Nations Assistance Mission for Iraq (UNAMI), Application form for Membership 28 of stagnation. Many things have improved, for and how do you evaluate the progress in politi- Useful links 29 example, security, which is important for the cal terms and the humanitarian situation? Imprint 30 framework conditions for the industry and for Board of NUMOV 30 investors. However, other things have remained H.E. Martin Kobler: The activities of UNAMI are as they were. When I left in 2007, the oil and based on UN Security Council resolution 1770, gas law was almost ready to be passed by par- so we are operating within this framework. This Contact: Iraqi German Business liament, but five years later, no further progress means national reconciliation, the political prob- Dialogue c/o NUMOV has been made. The country is much more con- lems of disputed internal boundaries which are Jägerstr. 63 D solidated, violence and civil war has subsided, very important for industry because most of the D-10117 Berlin this year the American presence in Iraq was fully untapped oil fields lie within these regions, Phone: +49 (0)30 - 206410-0 withdrawn, the country has gained complete between the Kurdish and the Arab areas of Iraq. Fax: +49 (0)30 - 206410-10 E-mail: [email protected] sovereignty and visible progress has been The unfinished constitutional agenda. The con- Internet: www.numov.de made particularly in terms of security and insti- stitution, as it is leaves many things unfinished. continued on page 12 HERRENKNECHT AG | UTILITY TUNNELLING | TRAFFIC TUNNELLING ABU DHABI

ABU DHABI: SEWAGE SYSTEM WITH STRATEGY.

On the basis of the 2030 master plan, a gigantic new sewage network is being built in the desert metropolis of Abu Dhabi, which will connect new city and industrial areas. The “Strategic Tunnel Enhancement Program”, in short “STEP”, includes a main collector (deep tunnel sewer) with a length of 40 kilometers in three lots, as well as inflow link sewer and pump stations. Herrenknecht has delivered five tunnel boring machines (EPB Shields) for the project lot 2 and 3. They are designed to withstand high groundwater pressures of up to 8bar, and have been working successfully since April 2011. In April and May 2012, Impregilo’s tunnelling experts achieved breakthrough with the first 3 machines after daily top performances of up to 33 rings (Segment length: 1.400mm). The two other EPB Shields are underway at full speed. The concrete segments for the tunnel lining are delivered by a lining segment production plant, which was planned, equipped and put into operation with the help of Herrenknecht Formwork engineers. In the form of innovative rolling stock transport systems, MSD provides support for efficient jobsite logistics. The project is well underway with Herrenknecht technology and competent partners from the region. This means that Abu Dhabi will soon have plenty of purified water for the irrigation of the desert city. ABU DHABI | UAE

PROJECT DATA CONTRACTOR S-582, S-583, S-584, Impregilo S.p.A. S-649, S-654, 5x EPB Shields Diameter: 3x 6,310mm, 2x 6,950mm Installed power: 3x 945kW, 2x 1,200kW Tunnel lengths: 4,590m, 5,152m, 4,808m, 4,846m, 4,260m Geology: clay stone, gypsum, sands- tone/limestone

Herrenknecht AG D-77963 Schwanau Phone + 49 7824 302-0 Fax + 49 7824 3403 [email protected]

www.herrenknecht.com Editorial

Editorial

Dear Readers,

s we move into the third quarter of We also report on the many positive Finally, I would also like to take this A2012, we can see many positive developments in Iraqi partnerships, this opportunity to pass on a special developments taking place in Iraq, time looking at bilateral relations thanks to H.E. Martin Kobler, Special including progress in economic, political between Iraq and the EU and economic Representative of the United Nations and social areas. In this regard, it is my relations between Iraq and Turkey. As Secretary-General for Iraq, for providing pleasure to present this year’s third edi- always, a detailed account of key devel- us with an exclusive and informative tion of the IRAQI GERMAN BUSINESS opments in Iraq-German bilateral efforts interview. In the interview, Martin Kobler DIALOGUE. is featured, this time focussing on devel- provides us with a detailed insight into opment cooperation, academic coopera- the role of the UN in Iraq’s development In this issue, we take a look at some of tion, and also taking a look at bilateral and goes on to talk about the role that the key economic developments in Iraq, trade figures. Germany can play in helping shape reporting on the promising overall eco- Iraq’s future. nomic outlook. A detailed look at the The recent opening of the new building make-up of the Iraqi oil sector, a report of the Consulate General in Frankfurt by I hope you find this issue insightful and on Iraq’s potential as a future insurance H.E. Hoshyar Zebari, Foreign Minister of wish you pleasant reading. market, and opportunities in the Iraqi the Republic of Iraq, marked another healthcare sector are also provided. As highlight in German-Iraqi relations. With kind regards well as reports on an array of other key I would also like to hereby congratulate topics including mining and agriculture, H.E. Brita Wagener on her new appoint- this issue also offers a regional focus, ment as German Ambassador to the Dr. Hussain M.F. Alkhateeb this time introducing the reader to the Republic of Iraq, succeeding H.E. Ambassador of the Republic of Iraq province of Najaf. Christian Berger. to Germany www.investpromo.gov.iq

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 3 Further Stimulus for Economic Development – Investment of USD 100bn in Infrastructure in the next five years Further Stimulus for Economic Development – Investment of USD 100bn in Infrastructure in the next five years

by Peter Schmitz hile European countries are facing After a report from April 2012 by the foresees expenditures of USD 186bn Wincreasing economic challenges, Economic and Social Commission for and seems to be on course; it has the Republic of Iraq is expected to Western Asia (ESCWA) predicted a awarded a number of projects worth become the economic top-performer growth rate of 10.5% for this year, the USD 70.1bn until the middle of this year. related to GDP growth in its regional International Monetary Fund followed Although there was a slight decline in surroundings in the coming years. The this positive assessment and set its fore- the project volume, not only mega pro- country's economy is less interlinked cast to 11.1% for 2012 and 13.5% for jects are signs of the steady progress in with crisis-ridden countries, and the 2013. As the figures for the region’s Iraq’s reconstruction. Especially in positive expectations for its hydrocarbon boom country Qatar are expected to industry, a number of projects across the sector have fueled optimism, not only in even out at 7.0% this year, after extraor- country are cause for optimism, as they the short and middle term. dinary growth of more than 16% in 2010 stand for the diversification if the coun- and 2011, Iraq is likely to become the try’s economic basis and a positive out- The backbone for further development is fastest growing economy in the Gulf look for the local labour market. indeed the oil and gas sector, but Iraq region. needs to diversify its economic basis. The importance of social topics like pro- Within the next 25 years, Iraq is expect- This undoubted potential serves for a viding the population with job opportuni- ed to become the world’s leading oil positive long term outlook in economic ties, but also the improvement of basic producer and will not reach its peak terms. Iraq is among 11 countries that services like electricity, education, health production until at least 2036. The oil are estimated to be the top global growth care services or water and sewage facil- price in conjunction with rising produc- generators for the next 50 years. This ities is crucial for stability within Iraq and tion capacities within Iraq provide the term is used to identify economies with for the ongoing restructuring process. foundation of this development and a long-term potential and sound opportu- Although rising foreign investment and sound basis for further investment in nities for growth and investment, based local production are on the agenda, Iraq infrastructure, industry and economy. on domestic investment, social indica- remains dependent on importing goods tors, education, institutional framework and services meet not only the positive Improvements are urgently needed, and trade openness. expectations, but also the needs of its even in the hydrocarbons sector, as the population. ability to process and export oil and gas Confirming these estimations is indeed will be the precondition for future rev- an ambitious aim that necessitates com- Manufactured goods imports, imports of enues. Although there has been tremen- prehensive measures in several fields machinery and transport equipment are dous progress in the last few years, with- and further improvements in institutions increasing and necessary. Iraq will put in the next five years investments of and infrastructure. In this field, Iraq itself into the spotlight as a strong rec- USD 100bn are needed to develop seems to be on track. The five-year- ognized partner, if the latest economic this central sector and all kinds of infra- development-plan 2010-2014, which is developments keep converting into structure. the fundamental infrastructure program, steady growth and stability.

Selected Industry Projects in the Republic of Iraq

Project Sector Value Status Iraq MIM - Kubaisa Cement Plant Rehabilitation Industry | Cement USD 100,000,000 Ongoing

Nassr State Company for Mechanical Industries - Industry | Steel USD 25,000,000 Ongoing Steel Plants Rehabilitation

Southern Cement State Company - Industry | Cement USD 25,000,000 Ongoing Al Babil Cement Plant Rehabilitation

Diyala State Company for Electrical Industries - Industry | Other, Cables USD 40,000,000 Ongoing Transformers Plants Rehabilitation

JCC/ Iraq MCH - Baghdad Cement Factory Industry | Cement USD 40,000,000 Ongoing Iraq MIM - Khor Al Zubair Vegetable Oil Plant Industry | Food/Food Processing USD 60,000,000 Ongoing Iraq MIM - Babil Ductile Pipes Plant Industry | Mining & Metals USD 64,000,000 Ongoing SCGCI - Anbar Glass Plant Rehabilitation Industry | Glass USD 70,000,000 Ongoing source: Zawya.com

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 4 New German Ambassador in Iraq / International Monetary Fund to extend Stand-By Arrangement

New German Ambassador in Iraq

H.E. Brita Wagener has been appointed German Amba- ssador to the Republic of Iraq. In August 2012, she succeed- ed Christian Berger who has chaired the Embassy of the Federal Republic of Germany since 2010.

Previously, H.E. Brita Wagener has served as Consul General in Istanbul for three years. New German Ambassador to the Republic of Iraq During her career, starting by H.E. Brita Wagener and Ambassador of the Republic of Iraq to Germany Dr. Hussain M.F. Alkhateeb studying law in Bonn and Hamburg, she was active in several departments in the Federal Foreign Office in Berlin and Bonn and held various positions in German embassies in India (1988-91), Israel (1991-94) and Egypt (2003-06).

During a meeting with H.E. Dr. Hussain M. F. Alkhateeb, Ambassador of the Republic of Iraq to Germany, at the end of July 2012, H.E. Brita The IRAQI GERMAN BUSINESS Wagener reamphasised her aims to facilitate fruitful bilateral relations between Germany and Iraq and the new German Ambassador expressed DIALOGUE wishes all friends a her delight for her new role. Iraqi Foreign Minister H. E. Hoshyar Zebari offered his best wishes to the newly appointed Ambassador with respect happy Eid! to the deep-rooted German-Iraqi relations in diverse areas.

International Monetary Fund to extend Stand-By Arrangement

he International Monetary Fund growth, to establish employment oppor- T(IMF) has approved a seven month tunities and to improve living standards extension of Iraq’s Stand-By agreement for all Iraqis. (SBA) until February 2013. Furthermore, it focuses on restraining The agreement had been scheduled to growth of current spending and hereby expire in July 2012 but the new exten- freeing up resources for infrastructure sion will provide the Iraqi authorities with investment and social support while lim- the opportunity to implement new policy iting the size of the budget deficit. measures needed to complete the third and fourth reviews as set out in the SBA. Due to lower oil prices, the two-year It should also provide more time for dis- SBA was offered with a value of cussions on fiscal policies for 2012/2013 USD 3.58bn in February 2010 with the as well as measures to improve the first two programme reviews being country’s currency. completed in October 2010 and March H.E. Christine Lagarde, Managing Director of the 2011. Total resources available to Iraq International Monetary Fund IMF Managing Director H.E. Christine under the scheme amount to USD Lagarde welcomed the meeting with with Iraq. The IMF works closely with the 1.96bn. H.E. Nouri al-Maliki, Prime Minister of Iraqi government for rebuilding it’s eco- the Republic of Iraq, and stressed the nomic and creates a framework for Iraq’s In January 2013, an IMF mission is very successful partnership over the structural reform agenda. scheduled to meet with the authorities to past several years. The IMF supports discuss progress and next the steps. the policies that lead to more growth and The Stand-By Arrangement aims to fos- The new extension will increase the pro- are a central target in the engagement ter sustained and inclusive economic gram to three years.

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 5 Dynamic economic relations between the Republics of Iraq and Turkey Dynamic economic relations between the Republics of Iraq and Turkey by Tutku Güleryüz ince the recommencement of eco- Turkey & Iraq - Bilateral Trade Volume in USD billions Snomic relations between the YEAR EXPORTS IMPORTS VOLUME BALANCE Republics of Iraq and Turkey in the year 2003 829 112 941 716 2003, Iraq has become one of the most 2004 1.82 467 2.288 1.353 important trading partners for Turkey. 2005 2.75 458 3.208 2.291 Last year, Iraq was the second largest 2006 2.589 375 2.965 2.213 goods export market for Turkey, with a 2007 2.811 645 3.456 2.167 trading volume of USD 8.3bn, following 2008 3.912 1.32 5.233 2.591 exports to Germany. While reconstruc- 2009 5.126 952 6.078 4.174 tion projects of Iraq marked the begin- 2010 6.042 1.354 7.396 4.688 ning of the bilateral relations, the current 2011 8.3 2.5 10.7 5.8 areas of cooperation are dominated by Source: Ministry of Foreign Affairs of the Republic of Turkey the field of energy. In this connection the intense bilateral economic and trade foreign investment and development two neighboring countries benefit from relations with the Republic of Turkey. plans for Iraq. As mentioned before, in each other, because Iraq is one of the Already in 2010, Iraq became the fifth 2011 Iraq became the second largest richest countries in the world in terms of biggest market for Turkish contractors trading partner of Turkey, after Germany. hydrocarbon resources and Turkey is a with an amount of USD 2.4bn and many German companies could profit from this competent partner and for delivering the of the Turkish exported goods to Iraq status that Turkey has for foreign invest- resources to international markets. were materials belonging to Turkish ments in Iraq and the existing benefit companies’ construction projects in Iraq. could be capitalized upon, because the During the ongoing process of restruc- The main export categories were iron Iraqi market has an enormous potential turing Iraq, Turkish firms operate in and steel, cereals, electrical machinery for the German economy. German com- many areas including infrastructure pro- and equipment, vegetable and fruits and panies could cooperate with Turkish jects such as schools and hospitals as finished products from metals. The investors to establish or expand their well as in areas of social facilities, mili- movement of goods from Iraq to Turkey trade relations with Iraq. Especially tary installations, roads, bridges, dams still mainly compromises crude oil and German know-how in the field of tech- and various housing projects. Recently, fuel oil. nology and mechanical engineering, the Baghdad Investment Commission which is highly respected, would be an announced the plans of a Turkish com- Because of Iraq’s rich oil and natural gas advantage. The long-standing experi- pany to implement large residential pro- resources, especially in the field of ener- ences of Turkish contractors, who have jects in downtown Baghdad. Shaker Al- gy lies a huge potential for cooperation already consolidated their experience Zamily, Chairman of the Baghdad between Turkey and Iraq. Therefore, with transactions in Iraq and who are Investment Commission, received a H.E. Taner Yildiz, Miinister of Energy familiar with certain operation methods, delegation of Turkish contractors and and Natural Resources of the Republic can provide support for investors who gave them detailed explanations of the of Turkey, recently declared in a press newly enter the Iraqi market. investment requirements and mecha- conference, that Turkey has started to nisms. import 5 to 10 trucks of crude oil per day According to latest forecast, Iraq repre- from the Kurdistan region in northern sents the third biggest projects market in Between the years 2003 and 2009, Iraq, planning to increase the number of the Middle East after Saudi Arabia and Turkish contractors implemented a total trucks to between 100 and 200 per day. the UAE, with a value of USD 301bn of 495 projects worth USD 7.5bn in Iraq. Besides that, the Ministry of Energy of projects planned or under construction. The amount of work undertaken reached the Republic of Turkey has started tech- The Iraqi government assembled a USD 242m in 2003 and USD 1.3bn in nical work with Iraq’s central government National Development Plan (NDP), 2009. From 2003 to the end of 2011, the on shipping crude oil from southern Iraq which calls for investments amounting to total number of undertaken projects by via the Kirkuk-Ceyhan pipeline to USD 186bn between 2010 and 2014. Turkish firms in Iraq amounted to 636, Turkey’s Mediterranean coast, providing The NDP prioritises investment in oil, with a value of USD 12.5bn. The bilater- the basis for exports to other countries electricity, agriculture, transport and al trade volume exceeded USD 7bn in and regions. Regarding oil exports from communication. Considering the strong 2010 and further increased to USD Turkey new oil and gas pipelines will be relations between Turkey and Germany, 10.8bn in 2011.This is almost the double built within the next years. and the good experiences of Turkish value of the business volume Iraq and companies in Iraq, these figures seem to Turkey had prior to 1990, when Iraq was For Turkey’s ambitions in Iraq, Turkey is provide an interesting outlook for coop- among the top countries with the most considered a linking country for enabling eration for all parties involved.

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 6 Partnership and cooperation between the European Union and the Republic of Iraq Partnership and cooperation between the European Union and the Republic of Iraq

by Tutku Güleryüz

n 11th May 2012, H.E. With the programme, the capacity OCatherine Ashton, High of Iraqi institutions will be Representative for Foreign Affairs strengthened and the quality and Security Policy/Vice President of life of the population will be of the European Commission, and improved through provision of basic H.E. Hoshyar Zebari, Foreign services. A year later, the first bilat- Minister of the Republic of Iraq, eral project between the European signed an EU-Iraq Partnership and Commission and the Government Cooperation Agreement (PCA) in of Iraq was initiated. With an Brussels. The agreement consti- amount of EUR 10.6m, technical tutes a basis for facilitating ties and assistance to specific Iraqi institu- cooperation in a wide range of tions, in connection and as an addi- areas. Regular political dialogues tion to the assistance package of H.E. Hoshyar Zebari, Foreign Minister of the Republic of Iraq, and on bilateral, regional and global H.E. Catherine Ashton, EU High Representative for Foreign Affairs and 2008, was delivered. issues are provided within the PCA, Security Policy and Vice-President of the European Commission so that the partners can A Memorandum of Understanding work together whenever the shared The EU is a major trading partner for (MoU) on a "Strategic Energy intention for it is there. Catherine Ashton Iraq. The European Commission’s sup- Partnership" between the European highlighted that she was delighted port to basic services, as education, Union and the Republic of Iraq, which to sign an agreement which she was health, infrastructure and water, provides a political framework for convinced is good for Iraq, good for the accounts for almost half of the overall reinforcing energy relations between EU, and good for the long- term bilateral EU contribution to the reconstruction Iraq and the EU, was signed in relationship. of Iraq amounting to EUR 372m January 2010. Among the long-term since 2004. development plans is the Five-Year Above all, she named the agreement a National Development Plan (NDP) symbol of the EU’s desire to be a posi- The total bilateral trade volume between 2010-2014 which was initiated by the tive partner for Iraq in its democratic the EU and Iraq amounted to over EUR Government of Iraq. A series of 14 efforts. Benefits for Iraq’s economy can 13bn in 2011, while EU goods exports to sector-based analytical papers provide be gained from the agreement as it will Iraq amounted to EUR 3.88bn and the basis for the NDP and aim to accel- improve and clarify trade arrangements imports from Iraq totalled EUR 9.47bn. erate the achievement of the Millennium in order to promote vital investment A huge surplus in favour of Iraq due to Development Goals (MDGs). The NDP between Iraq and the EU and help oil imports, amounting to up to 99.7% of requires USD 200bn and is regarded as integrate Iraq into the international all EU imports from Iraq, is shown also one of the main references for Iraqi economy. by this trade. EU exports to Iraq are cooperation with the international com- mainly machinery and transport equip- munity. The framework for current cooperation ment (60%), chemicals (9.5%) and food in many areas, from health and and live animals (4.5%). Among the main challenges is the con- education to environment and energy, is tinuing lack of a sole interrelated strate- also set out in the treaty. Iraq’s main During the last years, the European gic policy framework, with a multiplicity economic challenges are investment Commission’s overall focus moved from of alternative policies and development in the energy field so that it reaches its reconstruction to capacity building. This programmes. This results in the lack of full potential, economic diversification, gradual move was also based on Iraq’s clear development policy leadership. including development of the agricultur- potential to utilise its own resources to al sector, creating a conducive environ- achieve the country’s development The lack of administrative capacity, ment to private sector development, targets. mainly due to a lack of qualified people, including Small and Medium Sized an ongoing movement of labour and the Enterprises (SMEs) and job generation In the years 2008-2010 there has been difficulties with mobilization of Iraq’s own with special focus on the young popula- an increased number of bilateral meet- resources also add to the challenge. Iraq tion in view of the fact that Iraq is one of ings between the EU and Iraq resulting needs to more effectively utilize its own the youngest countries in the region with in a series of long-term development resources and implement clear and more than 40% of the population below plans. In 2008 an assistance programme uniform policies within a suitable frame- the age of 15. amounting to EUR 72.6m was launched. work.

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 7 Spotlight – Najaf: A holy province with great potential Spotlight – Najaf: A holy province with great potential

by Linda Berger

he governorate of Najaf Najaf’s GDP and suffers Tis located on Iraq’s from foreign competition. southern border with Saudi- Nevertheless, a general Arabia and covers a total business-friendly local area of 28,824 sq. km, provincial council and which amounts to 6.6% of efforts by the Najaf Small Iraq’s total area, and has a Business Development population of approximately Centre, part of the NCC and 615,000 (4% of total). The established in 2009, to holy city of Najaf gave its enhance human resources name to the governorate. make investments and as Najaf City, 160 km south of such this goal feasible. Baghdad, is one of the holiest sites in Shia Islam, The industry sector of Najaf making religious tourism a traditionally specialises in vital sector of the local manufacturing of construc- economy. tion materials such as cement and glass, the raw Najaf’s prime geographical materials of which can be location linking the two found locally. Among the major cities of Bagdad and materials and minerals are Basra is one of its advan- The holy province of Najaf is located in Southern Iraq calcareous stone, cement tages. Moreover, the governorate of and building a power plant with a capac- clay, silicone, lime and mercury. Besides Najaf has one of the best track-records ity of 500 MW by an Iraqi company and construction and mining, a large oil refin- in Iraq when it comes to approving several housing and hotel projects. ery with a capacity of 30,000 barrels of investment projects. As of May 2012, oil per day is located in Najaf. more than 50% of 200 licensed invest- The most vital are the tourism and hous- Additionally, the governorate is actively ment projects totalling USD 8bn are ing sectors. Tourism and religious seeking foreign investments to rehabili- under construction. However, virtually tourism contributed 30% to the gross tate factories with favourable conditions. every economic sector needs more domestic product (GDP), the highest funding. To connect businesses, Najaf percentage of all sectors. The provincial The economic outlook for Iraq in gener- hosted its first international trade fair, the investment commission has awarded 51 al is positive. According to the latest IMF Najaf al-Ashraf International Fair, with licenses for hotels alone to accommo- figures, the Iraqi economy is estimated more than 100 European, Chinese and date the increasing number of visitors. A to grow by 11.1% in 2012 and 13.5% in Iraqi companies taking part in March USD 25m, five-star hotel with 10 floors the next year, up from 9.9% in 2011. 2012. The exhibitors’ profiles included and a revolving restaurant on the top is Moreover, the current account balance oil, construction, medical equipment, one such example. Regarding the dire is projected to stay in the surplus. cars and agriculture. lack of housing, the Najaf Investment Increasing oil revenues could finance Commission continues to approve a high the reconstruction and economy in all In order to meet current and future number of investment licences. This is parts of Iraq, including in the gover- demand, the governorate aspires to illustrated by the Al Ghadeer Village, a norate of Najaf, thus, tackling the prob- strengthen its economy and improve the British-Iraqi joint investment project lem of funding. living conditions and services provided worth USD 250m, for 3,000 affordable to its citizens. In the most recent housing units including many other Healthy economic growth in the next few Development Strategy for the Province buildings to this effect, which are cur- years driven by rising oil revenues will of Najaf 2008-2012, the Holy Najaf rently under construction. not only benefit the oil rich provinces of Provincial Council has put emphasis on Iraq but also the Holy province of Najaf. infrastructure, energy supply, housing Besides the government initiatives, the With the available funding and the and tourism. Numerous sub-goals have Najaf Chamber of Commerce (NCC) has relatively business friendly outlook been successfully competed, including outlined a further goal, in addition to regarding bureaucracy, the construction the opening of an international airport in meeting the needs of the consumer mar- and industrial sector, especially in the July 2008, increasing electricity produc- ket: an industrial sector geared to foreign mining of minerals and the manufactur- tion by rehabilitating a gas-fired power market needs. As of now, the industry ing of construction materials, can be station with an overall output of 180 MW sector only contributes about 14% to expected to grow.

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 8 Growing foreign commercial activity in the Republic of Iraq by Tutku Güleryüz

he past year showed a further Japan and South Korea head the list of sectors, there is an increasing move- Tincrease in foreign commercial activ- foreign investors providing engineering ment to enter into joint ventures for ity in Iraq. Despite challenges in the and technological services to oil and industry and manufacturing in the south- financial and banking sector, the number gas, and electricity projects. ern province. Housing and construction of corporate deals with foreign investors of commercial and governmental facili- in the Republic of Iraq grew. A remark- Another field with high foreign commer- ties dominate the deals in Baghdad. In able 40% increase from 2010 was cial activity is transportation. Inter- the Kurdish region, the foreign commer- recorded. A renewed rise already this national airlines are opening new routes cial activities have been more diverse. year, shows the enduring interest of and offices in Iraq helping the country to foreign investors to implement deals become less isolated. Also foreign con- In 2012, major sectors were still oil and in Iraq. struction companies have been espe- gas, electricity and housing, but there is cially active in Iraq, receiving contracts also a marked activity in transportation, In practical terms, there are 176 record- from government ministries to provide retail and hotel construction. Many of the ed deals so far for 2012, with an aver- project management oversight on large deals implemented this year indicate a age of just over 25 deals per month. A construction projects being implemented long-term presence of international com- total of 302 deals are expected, when by local companies. Turkey and the UAE panies in the Iraqi market. forecasting the figures for a 12 month however are widely active in smaller period, meaning a 2% increase from deals in construction 2011. Due to the central government’s and housing. and the Kurdistan Regional Government’s intentions for internation- In 2012, as well as in al oil companies to develop their respec- the recent years and as tive carbon resources, the multinational forecasted for the fol- enterprises operating in Iraq are heavily lowing years, the high- focused on oil, gas and electricity. Both est densities of deals governments continue to consult foreign are located in Basra, companies to maximise their electrical Baghdad and the output, with numerous American, northern Iraq. In Basra, European and Asian firms constructing besides the invariable new power plants and providing techno- trend to invest in the logical support to local companies. oil, gas, and electricity source: iraqi-businessnews.com

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 9 German development cooperation with Iraq German development cooperation with Iraq by Katharina Drost

n order to effectively promote the centre for drywall construction Idevelopment of Iraq’s society, with funds from the Public-Private- economy and infrastructure, the Partnership of the BMZ. Workers, country needs skilled workers, a architects and engineers are taught well developed vocational system theoretical and practical know-how. as well as a modernized employ- The private partner in the project is ment market. On an official visit to Knauf International GmbH. Knauf the Republic of Iraq in 2011, H.E. will closely cooperate with the Dirk Niebel, Federal Minister University of Baghdad in order to of Economic Cooperation and establish a drywall sector in the Development, underlined the building industry. importance of deepening bilateral H.E. Dirk Niebel, Federal Minister of Economic Cooperation and economic and scientific coopera- Development and H.E. Nuri Al-Maliki, Prime Minister of the Republic of Iraq In Iraq, oil remains a major energy tion. A project by the Deutsche in 2011 source. However, different projects Gesellschaft für Internationale Foundation of Technical Education to develop renewable energy have start- Zusammenarbeit (GIZ) on behalf of the (FTE), the project supports the enhance- ed with German support. Meanwhile, German Federal Ministry for Economic ment of basic education but also con- solar panels provide three clinics in Iraq Cooperation and Development (BMZ) centrates on the intensification of mod- with electricity to refrigerate important “qualifying Iraqi skilled workers and ern practical training. The cooperation of medication. In cities like Baghdad, executive management personnel“ German companies with vocational Fallujah or Basra, solar energy is used focused on the further training of techni- training centres in Iraq thereby offers a for streetlights. cal workers and management personnel. good opportunity to create a direct exchange between skilled workers and A German company is becoming The programme was organized through provide better access to the internation- increasingly involved in Iraq and has trilateral cooperation between Iraq, al market. sold around 13,000 solar lamps to Egypt and Germany. The target group of Baghdad and installed four solar-pow- the project were skilled workers from the A good example is the German ered water pumps, which play an impor- state’s vocational and technical educa- hotel management school in Erbil. tant role for the agricultural sector in tion system as well as representatives of Founded by Peter Pedersen, Managing Iraq. Regular blackouts of the electricity- the economy. Through 100 technical Director of Hanseatische Weiterbildungs- powered water pumps continually cause training sessions in Egypt, 1,500 teach- gemeinschaft Rostock HWBR, the harvest losses and force farmers to use ers, trainers, technicians, engineers and school cooperates with the development generators. managers were taught about different organisation AGEF and a consortium of disciplines in order to be qualified to nine German companies. These compa- Through solar energy powered pumps, teach in Iraq. The project effectively con- nies provide the kitchen equipment while harvest losses can be prevented in the tributed to the development of Iraq’s the school offers basic training for nine future. Other solar projects that involve economy and promoted an increase in months. Besides economic profit, this German participation are still in their the skilled workforce. school represents an ideal opportunity early stages, including discussions for cultural exchange between Iraqis and about building a factory for solar thermal Another project carried out by the GIZ, Germans. systems as well as an offer to build a which focuses on the qualification of solar power plant in Iraq with assistance skilled workers, is supported by the In the context of further economic from a German company. German Federal Foreign Office to the progress, the Deutsche Investitions- und sum of EUR 2.9m. In response to a Entwicklungsgesellschaft mbH (DEG) is While the use of solar energy is expen- request from the Iraqi government to another supporter of rebuilding Iraq, with sive, subsidies from the German govern- establish a vocational system according its first investment focused on expand- ment could make the technology cheap- to the German model and to sustain the ing the communication infrastructure. er and thus more lucrative for the Iraqi Iraqi education system, the project With USD 35m, the DEG has granted market, and become a long-term sus- focuses on a combination of technical Zain Iraq, a successful Iraqi mobile net- tainable investment for Iraq’s future. knowledge and management compe- work operator, a long-term loan. License tence, with the first project starting in the and tax earnings of around USD 400m All these different projects will continue car sector. The goal is to establish will be a source of income for the Iraqi to be implemented in the future exchange forums between vocational government. By the end of 2010, the and their successful realisation would schools and Iraqi or foreign companies. DEG had supported developing skilled mark an important milestone in Iraq’s Developed with Iraqis together with the workers in Iraq by building a training development.

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 10 Introducing a NUMOV member

Introducing a NUMOV member

Inspiring Global Solutions

Martrade Group Based in Düsseldorf, Germany with 30+ years of business experience, primarily in ocean shipping, port terminals and logiscs, Martrade Group offers to its customers reliable and efficient end-to-end logiscs soluons with focus on bulk, pipe and project cargo. Martrade Shipping operates on worldwide trading routes with focus on regular services from Black Sea as well as from Far East / SE Asia to Middle East and Indian sub-con- nent. Martrade Ports operates jointly with its JV partners port terminals in Odessa, Umm Qasr, Khor Al-Zubair, Haldia and Dhamra. Martrade Logiscs focuses its acvies on worldwide mul-modal forwarding of project and heavy-li cargo in core regions such as Eastern Europe, Middle East, Far East and India.

Martrade in Iraq Martrade Group started its logiscs acvies in Iraq in the early 70s focusing on transport and handling of cargo for oil & gas industry. In the past 5 years Martrade shipped over 450,000 freight tons of pipes and various oil field equipment for world leading producers such as Jindal Saw, Welspun, MAN Industries and Ratnamani Tubes to Iraq.

Martrade’s Port Operaons in Iraq Martrade’s subsidiary Marlog successfully operates terminals in two Iraqi ports – Umm Qasr and Khor Al Zubair. In South Port of Umm Qasr Marlog operates with its JV Partner Gazal Logiscs Services a mul-user container terminal at berth 5. In Port of Khor Al-Zubair Marlog has alrea- dy completed a rehabilitaon phase and established a modern terminal facility with dedicated equipment for an efficient and safe handling and storage of general and pipe cargo as well as containers acc. to HSE/OSHAS standards. Since the launch of full terminal operaons in Khor Al Zubair in November 2011 Marlog has already efficiently handled on its terminal facility 90,000 freight tons of pipe cargo (9 vessels) for such companies as Lukoil, SOC and SCOP as well as 225,000 freight tons of project cargo (17 vessels) for STX Heavy Industries. Marlog offers to its customers the following services: • Priority berthing & Berthing guarantees, shipping agency, stevedoring and tally services • Guaranteed high Service Levels confirmed by agreed KPI • Heavy-Li handling; Stuffing / Stripping / Cleaning of containers • Intermediate Storage on the terminal (78,000 sqm fenced heavy duty open storage area) and in covered warehouses (13,000 sqm)

Logiscs Services in Iraq Between November 2011 and March 2012 Martrade Logiscs successfully managed a 900 MW Emergency Diesel Power Plant project for STX Heavy Industries in Iraq. Total value of the project handled at berth 8 in Khor Al Zubair and transported to the inland jobsites has been U$ 1,500 million. The total project volume has been abt. 225,000 freight tons – 14,500 pieces of break bulk (incl. 196 units of power generator at 185 to 75 tons each) and stripped cargo loaded and transported on abt. 3,400 trucks to job sites in inland. During the enre project operaons Martrade ensured to STX a flawless Tax Levy processing and achieved an average customs clearance within less than 4 working day. The incident rao on total amo- unt of packages carried has been only 0.05%.

Logiscs Services offered by Martrade in Iraq • Customs clearance and Levy exempon processing for Tax & Duty exempon • Loading of trucks and on-carriage to the sites in the inner regions of Iraq • Secured & safe accommodaon and full-equipped office premises for client’s staff directly on the terminal area

IQ Martrade Holding und Managementges. mbH • Jan-Wellem-Platz 3 • 40212 Düsseldorf • Phone: +49 211 36700 41

Contact Persons: Europe: Ralf von Hafe rvhafe@martrade-logiscs.com +49 211 367 00 45, +964 780 7868451 Iraq: Frederik de Preter [email protected] +49 211 367 00 62, +964 780 8998265 Paul van Dyck pvandyck@martrade-logiscs.com +964 780 0000928 UAE: Insoo Kim iskim@martrade-logiscs.com +971 50 534 0526 German Businesses are well advised to keep Iraq in Mind continued from page 1 how the enormous wealth resulting from the untapped oil reserves is to be distrib- uted is very important. We have a task force within UNAMI aiming to support the Iraqis in pushing this agenda ahead.

HR: Iraq is rebuilding its country and its economy. Earlier this year, an Iraqi dele- gation visited Germany on invitation of the UN to discuss active citizenship building. How could German experience in rebuilding a country’s economy and political institutions help Iraq?

H.E. Martin Kobler: I think that there is one similarity where Germany could help Iraq. This is Germany’s experience as a federal state. After 2003 Iraq became a H.E. Martin Kobler, Special Representative of the United Nations Secretary-General for Iraq federal state divided into governorates. However, there is no experience in Iraq For example, Iraq is a federal country, the constitution. There may be different of how a federal state operates. Political and a second chamber, the so-called interpretations as to what this entails, but foundations have an important role to federation council, is foreseen in the the basic lines are very clear: Iraq is a play, to give Iraqis the opportunity to see constitution. However, this as well as a single, federal, independent and sover- how it works in Germany with the 16 parties law, electoral laws, minorities eign state. For German industry it is bundesländer and a centralised govern- law, and the oil and gas revenue sharing important to have investment security. ment. The other area where Germany law, which is one of the major stumbling The legal system needs to be imple- has experience is the transitional period. blocks for investment from the interna- mented in Iraq. In parallel, all political After reunification Germany faced a tional community, all still remain to issues have to be tackled. The UN actu- period of rebuilding similar to the transi- be implemented. All these things are ally has an office within parliament, and tional period which has faced Iraq in our mandate and we take this very as the only non-interfering body is able since 2003. seriously. to liaise with the committees at all times. It helps to draft laws, bringing in experts, HR: Iraq and Germany have a tradition- The next pillar is human rights. Iraq is an and these laws can then be immediately ally good partnership. How do you view emerging democracy and every election has to be better than the last one, then we might see progress in the country. The parliamentary system is very impor- tant. This kind of institution building, par- ticularly electoral democracy building is something we have experts working on together with government. On a sepa- rate note there is a UN Country team consisting of 20 agencies, funds and programs active in Iraq with the function of offering technical expertise to the country. The coordination of aid is much better than in any other comparable mis- sion in the world, it is exemplary in Iraq.

HR: In your opinion, how will the further constitutional development in Iraq and the new Iraqi government affect the sta- H.E. Martin Kobler, Special Representative of the United Nations Secretary-General for Iraq bility and the economic development in Iraq? injected into the constitutional bodies Germany’s position amongst the interna- and the council of representatives. My tional partners of the Republic of Iraq in H.E. Martin Kobler: Everybody in Iraq number one priority is the oil and gas political and economic terms? agrees that everything must be based on revenue sharing law. The question of continued on page 13

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 12 Deutsche Orient-Stiftung/German Orient-Foundation -Deutsches Orient-Institut/German Orient-Institute- gegründet / founded by NUMOV 1960 NEAR AND MIDDLE EAST NEW ECONOMIC HANDBOOK The NEAR AND MIDDLE EAST ECONOMIC HANDBOOK provides comprehensive economic information about the countries of the Near and Middle East. Publisher: NUMOV Nah- und Mittelost-Verein e.V. German Near and Middle East Association Deutsches Orient-Institut/German Orient-Institute Jägerstr. 63 D, D-10117 Berlin
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I hereby order______copies of the NEAR AND MIDDLE EAST ECONOMIC HANDBOOK at the price of 69 € plus 7 Euros postage and handling per copy (International Airmail plus 25 Euros postage). ● NUMOV-members receive one free copy of the NEAR AND MIDDLE EAST ECONOMIC HANDBOOK.

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continued from page 12 H.E. Martin Kobler: Germany has very tion of removing political obstacles and not many young politicians in Iraq. Thus, good standing in terms of industry. The improving infrastructure. investment and job provision, in particu- political influence of the European lar for the youth of Iraq, is crucial and in states, however, is limited. There is still HR: The five-year development plan this regard German companies can con- a very large American presence in the 2010-2014 is an ambitious program for tribute to the national development plan country. The added value of having a the future development of the country. by engaging and investing in vocational European embassy in Iraq is mainly to How can foreign, especially German, training. bring economic know-how to the coun- companies contribute to and participate try. in this strategy? HR: Some companies are still hesitant to engage in Iraq, although the country HR: The northern region of Kurdistan H.E. Martin Kobler: German and other is expected to experience sound has seen relatively sound and stable industries have a big role to play. The growth in several sectors. What advice developments within the last few years. country is still subject to social condi- would you give German entrepreneurs In which other provinces do you expect tions which are far from ideal: there is a when considering doing business in a similar development in the coming high unemployment rate particularly Iraq? years? among the youth. Investment is badly needed. H.E. Martin Kobler: Iraq is a country with H.E. Martin Kobler: The south of Iraq great potential. German industry and has extreme potential with over two It goes without saying that investment in companies are well advised to keep Iraq thirds of total oil production taking place the oil sector is paramount and there is in context. Especially in the oil sector, there (approximately 2.1 million barrels scope for development in all other sec- there seems to be a lack of German of oil per day which is equivalent to daily tors. 50% of the population in Iraq are investment. This is the single most impor- output of Kuwait). However, due to below the age of 18 and you really feel tant sector for investment n Iraq. different reasons the south of Iraq is still the vibrancy of such a young population. not very developed. It is not so much a However, political leaders and key eco- HR: Thank you very much for this question of money but rather it’s a ques- nomic figures tend to be older, there are interview.

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 13 Iraq’s mining industry open to new investors Iraq’s mining industry open to new investors

by Felix Litschauer

alking about Iraq’s natural resources least 1.8m tons by 2014. Concerning Mineral Amount (m tons) Region Tmeans concentrating on the coun- the rising demand and the big Phosphorite 10.000 Anbar try’s tremendous stock of mineral fuels, potential in limestone mining, the Limestone 8.000 various namely natural gas and petroleum. This Iraqi Ministry of Industry and Kaolin 1.200 Anbar seems to be hardly surprising due to the Minerals invites investors to build Quartz-sand 850 Anbar fact that the production of oil accounts new cement plants to utilize the Native sulphur 600 Nineva for more than 60% of total GDP. Taking abundant limestone reserves Gypsum 130 Kurdistan a closer look at the topic, several addi- across the country. What makes Ironstone 60 Anbar tional resources occur beside hydrocar- investment in Iraq’s cement indus- Salt 50 Muthana bons. The geology of Iraq provides vari- try so attractive, are the low pro- Glauberite 22 Salahuldin ous sources of metals and industrial duction costs, availability of raw Feldspar 2 Najaf minerals. In particular, the proven min- materials and the local market’s Proved mineral reserves of Iraq in 2010. eral reserves include a huge quantity of need. native sulphur, phosphorite, salt, gyp- Besides those primarily industrial goods, sum, limestone, quartz-sand and iron Iron and steel mining and treatment saw the Iraqi government plans to increase ore. Additionally, recent explorations an immense boom in the last two years. production of silver, diamonds and par- have showed considerable stocks of On the one hand, new mines for exploit- ticularly gold. Despite the huge gold-pro- precious metals such as gold and silver. ing iron ore are needed, on the other ducing potential, the country does not Notably, phosphate rock, which is essen- hand, the ore has to be converted into have any know-how in this sector. Thus, tial for modern agriculture, can be found steel. Thus, the State Company for Iron the government is offering cheap pro- in Iraq’s Western desert. The four and Steel negotiates the construction of duction licenses to attract foreign mining biggest deposits hold approximately new steel mills close to the mines. In companies. 5,750m tons, what is 9% of the world’s 2010 ArcelorMittal won a USD 130m total reserve. Thereby, Iraq is the sec- contract on a steel minimill at The Iraqi government slowly recognized ond biggest country after Morocco in Sulaimaniyah in the Kurdish region of that focusing on the extraction of crude terms of size of phosphate reserves. Iraq and will produce about 250,000 tons oil and gas is not a sufficient guarantee Therefore, the Ministry of Industry and of reinforced steel bars per year. for the future. Hence, several laws were Minerals of the Republic of Iraq is open adopted in order to attract foreign invest- to international companies cooperating In December 2012, the winner of the ments in the long-neglected mining sec- with local partners in constructing phos- contract for one of the biggest projects tor, which would make Iraq less depen- phate rock processing, concentrating will be announced: The construction of dent on the decreasing oil resources. and beneficiating plants in Al-Anbar an integrated steel complex near Basra The investment laws include custom Governorate to profit from its huge phos- at the cost of USD 3bn. The plant, which duties excemption, protection from con- phate resources. is supplied by its own 500 MW gas pow- fiscation, the right to transfer capital, ered plant, will most likely be built by a profits and wages abroad and a 10 year Crucial for further progress in the recon- currently unknown Turkish company, exception from all taxes and fees, struction of the country is independence starting in early 2013. As a result of its extended to 15 years if a project is from expensive cement imports. stable political environment, a big developed with a local partner. There is Currently, Iraq is one of the leading amount of reserves and technical advan- also the opportunity to lease project sites cement importers in the Middle East tages, the autonomous region of for 50 years with possibility of extension. despite vast limestone reserves. At the Kurdistan provides the best chances for In addition to political incentives, Iraq end of 2011, Iraq’s annual demand for investments in the iron and steel sector. features some unique advantages. cement was at about 20m tons versus a Through its strategic location in the domestic production of 5m tons. Facing Mining of sulphur takes place primarily Middle East the country provides not this issue, local and foreign companies in the state owned mines of Al-Mishraq, only a lucrative domestic but also a great are to exploit the limestone deposits, which were started in 1969. Presently, international market beyond its neigh- located all over the country, to facilitate the Ministry of Industry and Minerals is bouring countries. Iraq’s booming construction sector. In willing to lure new investors to expand 2010, Lafarge, the world’s biggest the exploiting site and construct new Taking a look at the massive need for cement company, made a 15-year leas- treatment plants, which is why, in April rebuilding and as a result of enormous ing deal with the government to rehabili- 2012, Devco International signed a USD local demand for raw materials and indus- tate a cement plant in the Karbala 78.5m deal to supply and install a sul- trial products, the Ministry of Industry and Governorate with the intention to phur purification system in Mishraq with Minerals is definitely right to characterise increasing the annual production to at production capacity of 1m tons a year. Iraq as “Virgin Land for Investment”.

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 14 Iraq ideal testing ground for insurance products in the MENA region Iraq ideal testing ground for insurance products in the MENA region by Tom Wells

he volume of insurance policies unfortunately for local insurers this is Iraq, however, could provide the perfect Tbeing written across the Middle East the direction the insurance market entry point for insurers looking to test the and North Africa (MENA) region is seems to be taking, moving towards water in the MENA region. In present increasing dramatically. As cover for large projects and providing large poli- day Iraq there is enough risk from the health and motor insurance becomes cies. Governments need to regulate the perspective of the insurers to make a obligatory, the growth in new policies market by ensuring the best possible comprehensive insurance policy effec- increased by an average of 19% in the conditions for consumers while shielding tively a must for prospective investors. GCC countries in the period 2006-2010. local businesses. And due to the sheer scale of infrastruc- This figure is approximately four ture development needed in the country, times higher than the world average. The MENA region provides insurers with even with a hefty insurance policy, This massive surge in new insurance a combination of considerable political potential returns on investment are still policies means that increasing numbers risk and immense project volume, with attractive enough to attract foreign of international insurance companies the total volume of planned infrastruc- investors. are beginning to move into the MENA ture projects believed to exceed USD 1tr market. in the GCC countries alone. But despite Iraq would be more attractive to foreign these seemingly perfect conditions for investors if the risk traditionally associ- However, while growth rates are project insurance to blossom, there is ated with large-scale projects could be extremely high, the penetration rate still still a certain level of pessimism present reduced. While insurance policies can remains relatively subdued. This reflects in the market. be costly, they can eliminate risk and the fact that many countries are effec- give investors the confidence they need tively starting from scratch with regards One explanation is that project man- to provide the financing for the array of to insurance cover; penetration rates are agers typically want the cheapest possi- much needed infrastructure projects in still comparatively low when compared ble insurance cover, with many unwilling Iraq. with the rest of the world. The UAE for to factor in the cost of insurance. The example wrote the most insurance pre- economic climate is also an important If a healthy project insurance sector miums in 2011 (USD 6.6bn) in the factor. Economic turbulence has in gen- takes hold in Iraq and comprehensive region, however, with a penetration rate eral reduced lending, meaning project project insurance becomes the norm, of just 1.8% there is still a long way to budgets are smaller than they otherwise this could help increase investment in go before the lowest penetration rate in would be. With investments tight, factor- infrastructure by providing potential Western Europe is equalled (7%, Italy). ing in project insurance may only be a investors with increased security and This means this sector still has plenty of secondary consideration. But it is per- reducing risk premium. With many insur- room to expand before saturation is haps surprising that the project insurance ers still uncertain as to whether their pro- reached. market has not grown proportionally to ject insurances products have a long- political and economic uncertainty. term future in the region, Iraq could be a With political unrest a feature of the crucial indicator for the project insurance region, comprehensive insurance cover While insurance packages can seem market in the MENA region. is becoming a sensible choice for expensive to potential investors they do businesses looking to invest in the have many advantages. Packages, par- region. For consumers, this means lower ticularly for large scale projects, usually prices and more choice due to more comprise several elements. Cover such BASRA INVESTMENT GUIDE competition, but for local insurers the as delayed start-up (DSU) can, for intense competition usually means example, protect investors against A new investment guide for reduced profits. Local insurance firms potential physical and financial loss need to respond by increasing com- caused if the project start date has to be investors has been published petiveness and providing services exclu- postponed. Insurers argue here that tak- in August 2012, focusing on sively tailored to the region, but the ing out a policy and thereby transferring business opportunities, taxes question remains as to what extent they risk to the insurer could reduce the cost and visa matters. are able to do this. Market depth of the of loan packages. With many of the port domestic insurance sector is deemed by infrastructure projects in the GCC com- some observers to be too shallow to ing to a standstill during the financial On request for members successfully write the policies for the crisis, the advantage of DSU insurance by E-Mail: [email protected] large-scale billion-plus projects. And is manifold.

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 15 Iraqi-German academic cooperation Iraqi-German academic cooperation

by Katharina Drost

earning the German language in Iraq’s professional qualification further vocational training for skilled Lgives Iraqi students excellent job system. workers and a new generation of quali- opportunities in Iraq and can fied graduates, who can help to recon- facilitate graduates to support the Numerous German companies estab- struct of Iraq. development of Iraq. By opening the lished in Iraq are in need of German- new Department of German Language speaking Iraqi employees. Also the inter- The development of the Iraqi education at Salahaddin University (SUH) in Erbil, cultural competence which the Iraqi stu- system is one aim for rebuilding the Iraqi region of Kurdistan, German- dents gain during a study visit in Iraq. In consequence of the 2009 Iraqi academic exchange gained new Germany make them able to connect “strategic academic partnership” by perspectives. Already in April 2011, the Iraqi and German businesses for further H.E. Frank-Walter Steinmeier, then new department was inaugurated by Dr. international investments. The new pro- German Federal Foreign Minister, and Dorothea Rüland, the Secretary gram stands for great hope for Iraq’s H.E. Nuri al-Maliki, Prime Minister of General of the German Academic economy and for cooperation with the Republic of Iraq, the German Exchange Program (DAAD), which sup- Germany. Federal Foreign Office provides a spe- ports the program in cooperation with cial budget to support cooperation the Herder Institute at Leipzig University, In addition, the German school of Erbil between Iraqi and German universities. the biggest department for German as a opened to provide education according Implementing a scholarship program for Foreign Language (GFL). to the German school system. In master and PhD students is one of the September 2010, a lot of emigrants of approaches of the DAAD. Since November 2011, 27 Iraqi students Germany return to Iraq in order to help started to study GFL as a new bachelor develop their country and looking for Another support program of the DAAD is programme at the Salahaddin University. good school education for their children. the cooperation between six different As part of this program graduates will Also Iraqi children who have never been German universities and their Iraqi also be educated and qualified in teach- in Germany get the opportunity to get partner universities. Discussions about ing the German language, which school education according to the cooperation between the Technical strengthens chances for a better educa- German model. University Freiberg and the Technical tion in Iraq. University Baghdad with a bilateral mas- Furthermore the German school in Erbil ter program in mechanical engineering A new special concept of an intensive focuses on providing a continuation of due to the high interest of knowledge German education, at the same time vocational trainings in Germany and about technologies for sustainable focuses on a very practical oriented edu- Europe after finishing school. A degree energy power in Iraq were held during cation and provides a well based at the German school qualifies the stu- the visit of an Iraqi delegation to education in the German language. dents to study at German or Iraqi univer- Freiberg/Saxony in July 2012. Similar Furthermore, the education concen- sities. The German school with its good talks took place between the Technical trates on the German cultural and liter- education system for young Iraqis there- University of Berlin (TU) and the ary aspect as well as spending one by lays the foundation stone for gaining University of Basra at the conference semester abroad in Leipzig. “Developing a Curriculum for It qualifies students not only Computer Science”. 13 rep- in mastering the language resentatives of Iraqi universi- but in gaining first-hand ties took part in the confer- experiences of the German ence to develop a uniform culture. Returning to curriculum for Iraq’s IT-facul- Iraq, the online platform ties. The exchange will be “Alumniportal Germany” continued at a second con- helps the students to ference in September 2012. exchange information among each other and to get in Cooperation between univer- contact with German com- sities is gaining more and panies in Iraq. The Alumni- more importance for the portal responds thereby to future of Iraq. The Iraqi the great interest of Iraq industry can benefit from the for cooperation with Ger- knowledge of the graduates man companies and for in its growing metal, climate, further German commitment Start-up Workshop in Baghdad and energy sector.

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 16 Iraq poised for strong economic growth over the next years he Republic of Iraq has developed in ment, the bilateral trade between panies, primarily in the infrastructure, Ta quite positive manner over the last Germany and the Republic of Iraq has construction, renewable energy, medical few years. Having already seen a real seen steady growth – a trend that has and transport sectors. Having seen GDP growth of about 9.9% in 2011, this continued during the first six months of a particular positive trend in the trend is likely to accelerate for the next 2012. Compared to the same period north of the country, it is very important five years according to recent estimates (January to June) in 2011, exports from to foster economic development in of the International Monetary Fund. In Germany to Iraq increased by about all Iraqi provinces alike to maintain line with real GDP growth, Iraq’s nomi- 20.34% while imports from Iraq even stability and long-term success. German nal gross domestic product is about to reached a growth rate of 41.03%. experiences and technology may reach USD 144bn in 2012 and therefore be a crucial component to assist Iraq almost tripled since 2007. In connection The Republic of Iraq will offer interesting on its development path for mutual with overall macroeconomic develop- business opportunities for German com- benefit.

Trade between Germany and Iraq from January to June 2011/2012 (EUR millions) German Exports to Iraq German Imports from Iraq 2011 2012 2011 2012 January 90,05 81,71 0,36 26,84 February 58,95 58,08 0,94 40,66 March 108,39 163,34 1,23 3,07 April 47,42 60,46 0,35 39,28 May 89,81 110,76 46,00 17,37 June 72,50 87,80 40,36 0,06 Change Change Total Total in % in % 467,00 562,00 20,00 90,00 127,00 41,00

Source: International Monetary Fund (IMF) Source: German Federal Statistical Office

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 17 Demand for livestock farming and food processing Demand for livestock farming and food processing by Linda Berger

ivestock holding has a long tradition German company Big Dutchman provid- In the general livestock sector, holding Lin Iraq and accounts for one third of ed fully automatic poultry farms and nec- grazing animals offers a huge potential. the agricultural sector. However, modern essary equipment for this company. As of now, it is virtually absent in Iraq farming methods have not yet arisen in but studies show that it would be feasi- Iraq. While goats and sheep are the High feed prices and lack of availability ble in the provinces of Kirkuk, Erbil, most prevalent livestock species found, proved to be the biggest challenges. Sulaymaniya and possibly in Salah eh- experts point to an increasing consump- However, the Iraqi Ministry of Agriculture Din in Northern Iraq. Moreover, such a tion of chicken by Iraqis, a regional trend is trying to respond to this situation. For technique would lead to the economisa- that is set to continue over the next few example, import requirements and sea- tion of feed, urgently needed in a coun- years. sonal import bans are imposed by the try that suffers from lack of feed avail- Iraqi government to protect the domes- ability. The method of grazing animals Although, Iraq heavily depends on food tic market. A new poultry initiative by the presents excellent business opportuni- imports, both the Iraqi and Kurdish gov- Ministry is aimed at subsidising import- ties for foreign companies experienced ernment have ambitious plans to ed feed products with a reported funding in this sector. German companies have improve food security and even gain level of USD 45m annually. Last but not been active in the food market since the food self-sufficiency in their respective least, the Ministry provides interest-free 1970s and export agricultural machines regions. This goal is all the more ambi- loans to poultry farmers. Due to Syrian and technical equipment and plants for tious, as the Iraqi population will imports being cheaper, more than 60% packaging and food processing. increase sharply to approximatly 40 mil- of the imported feed reached Iraq lion people in 2025 from 30 million today. through Syria and has now come to a The food processing sector in Iraq is still complete stand-still. relatively small in comparison to neigh- The challenges for poultry farming at the bouring countries. However, the con- moment are numerous. Following the The consumption of poultry is set to sumption of processed food will increase Iraqi invasion of Kuwait, Iraq tried to revi- increase in Iraq. Poultry consumption in the near-to-mid term future in Iraq due talize its poultry sector in 1998 through stood at only 4.5kg per capita in 2006. to a growing proportion of well-off and heavy subsidies and protectionism. After Conservative figures set the future con- young people. 2003, the lack of competition on the sumption as high as 20kg per capita. international market was undeniable. Such numbers appear feasible because Iraq represents a window of opportunity The situation was further aggravated of the return to a richer diet by Iraqis in for companies. The country is one of due to a breakdown of links between the line with growing food security, econo- the most significant emerging markets. different industry components, high feed mic growth and personal income gains. Moreover, the government of Iraq prices, lack of vaccination and electricity The food security analysis by the UN massively invests in the reconstruction and the disruption of the cold chain, World Food program attests to Iraq’s of the country in all economic sectors. important in the extreme Iraqi climate growing food security. Even maintaining Investments in all the components of conditions. Struggling domestic produc- the per capita consumption levels of the livestock and poultry industry are tion caused an increase in the import of 2010 will require an annual increase in needed. The government’s goal of food frozen chicken, which gained a market poultry supplies of around 13,000 metric self-sufficiency coupled with an increas- share of 80% in 2008. Today, Iraqi poul- tons. Therefore, poultry is one of the few ing demand for poultry in particular try farming meets around 25% of the food markets in Iraq with a viable volume presents interesting opportunities for domestic need. of potential consumers. investors.

While the most competitive countries Chicken meat production in and imports to Iraq such as Brazil and the USA have adopt- 2005–2010, in thousand metric tons ed integrated chicken farming, the Iraqi industry remains fragmented. The adap- tion of such a model could thus easily lead to increased production due to increased efficiency.

In January of this year, the Iraqi compa- ny Rasun, a subsidiary of Vano Group, announced a number of acquisitions and investments, making them the first fully- integrated poultry producer in Iraq. The Source: Food Agriculture Organisation (FAO)

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 18 Iraqi oil sector update Iraqi oil sector update

by Reem Al-Abali

well functioning oil sector forms the The State Oil Marketing Organization made up of Kuwait Energy, TPAO, Abasis of the Iraqi economy and sub- (SOMO) has announced that Iraq’s Dragon Oil, Lukoil, Inpex and Pakistan sequently many efforts are being made crude oil exports reached 3.08m barrels Petroleum. by the Iraqi government to improve infra- per day (bpd) in July 2012, its highest structure in the oil sector through a rate since 2003. With these numbers the One of the largest unresolved issues legislative package on the regulation Republic of Iraq has surpassed the remains the ownership of the country’s of hydrocarbons. According to H.E. Islamic Republic of Iran in oil production resources. A legislative package that Hussein al-Shahristani, Deputy for the first time since the late 1980s. was agreed upon in 2007 included a Minister of Energy of the Republic of The Republic of Iraq is now the second- draft hydrocarbon framework law that Iraq, the country has 143.1bn barrels of largest oil producer within the OPEC outlined a policy development frame- oil reserves, the world’s third-largest countries, after the Kingdom of Saudi work for future oil and gas exploration (2010). According to recent geological Arabia. and production in Iraq. Three compan- surveys and seismic data, this number ion laws completed the package by will increase in the near future to the In order to reach this level, Iraqi officials establishing terms and mechanisms for extent that Iraq will have the world’s opened an international bidding process revenue sharing, creating the Iraq largest oil reserves, with more than for service contracts and renegotiated a National Oil Company, and reorganising 350bn barrels. series of oil production agreements. In Iraq’s Ministry of Oil. However, due to a the last two years and as part of two bid- large opposition and discrepancies, the A hydrocarbons law would be crucial for ding rounds, Iraq concluded 11 service legislative package has not been imple- Iraqi efforts to rebuild after years of war contracts with international and national mented yet and the hydrocarbons law and would give investors a more solid oil companies, mostly in consortiums for has not been passed. legal framework. It would also lead to the additional development of existing the reorganisation of the oil sector and, brown fields and development of newly The absence of an accepted depending on the quality of the bill discovered and appraised oilfields. hydrocarbon framework presents itself, could lead Iraq toward a more Regarding the latter, a third round has a potential procedural obstacle to modern and technically sound strategy also recently been held. broad international investment in for oil development and revenue man- Iraq’s oil and natural gas sector. agement. A fourth bidding round for 12 potential Apart from this potential difficulty exploration blocks took place from the the projections for the Iraqi economy The parliamentary energy panel drafted 30th to 31st May 2012. Unlike the previ- could not be better. In 2012, the its own hydrocarbon law late last year. ous bidding rounds, non-explored fields Republic of Iraq is among the fastest Two competing drafts are now on the were also open to bidding. The acquired growing markets, thanks to oil revenues. table awaiting more discussions in par- concessions will apply to the exploration Further, Iraq places third in a ranking of liament and any resulting hydrocarbons and the production of the oil fields. At the countries with the highest expected law will require a careful consideration end of the bidding round, three contracts economic growth from 2010-2050 of the key players and their positions. were agreed upon by a consortium with 7.7%.

ANNUAL BASRAH CRUDE KIRKUK CRUDE TOTAL YEAR MONTH Quantity Amount Quantity Amount Quantity Amount Million Barrel Million Dollar Million Barrel Million Dollar Million Barrel Million Dollar JANUARY 53.1 5,813 12.2 1,31 65.3 7,123

FEBRUARY 47.5 5,348 10.9 1,247 58.4 6,595

MARCH 59.4 6,995 12.4 1,477 71.8 8,472

2012 APRIL 63.5 7,449 11.8 1,346 75.3 8,795

MAY 64.7 6,643 11.3 1,188 76.0 7,831

JUNE 62.5 5,613 9.5 874 72.0 6,487

JULY 68.7 6,691 9.3 886 78.0 7,577

Source: Ministry of Oil of the Republic of Iraq

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 19 Rising Cement Demand increases Need for Local Production

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Rising Cement Demand increases Need for Local Production

he growth in need for cement in Iraq are facing a high local demand as well. are now sought to follow in attracting Thas risen from 6% in 2008 to more The lack of local producers in the investments. Population growth induces than 20% in 2011. The industrial sector cement sector and old facilities has cre- a high request. The further development has faced a massive development in the ated a supply gap in Iraq and contributes of Iraq’s infrastructure and industrial sec- last years, cement is thereby getting a to the demand for new facilities. The tor will continue to increase in the com- high needed production means to area of the Kurdistan region has become ing years and provides an opportunity for rebuild infrastructure. Within the oil mar- an attractive investment place for many local and also for international producers ket, several large oil pipeline projects will cement producers. Other regions in Iraq to expand cement production in Iraq. be expanded and are in need of sul- phate-resistant cement. While the cement demand increases, supply side faces shortness and Iraq is reliant on imports. Imports from the MENA region have increased from 3.6m tonnes in 2005 to 11.7m tonnes in 2011. Imports of Iraq’s cement supply amount to more than 50%. Imports are mainly coming from Iran, Turkey, Jordan and Saudi Arabia, but also from the UAE, Lebanon, Pakistan and India to Iraq. Saudi Arabia ceases to be the key supplier for Iraq, as it focuses on securing the local construc- tion market and to prevent prices from rising. Other important delicery countries Cement Import from neighbouring countries to Iraq, Source: meed.com

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 20 New railway project linking Iraq to Turkey and Iran / Iraqi universities lure investors New railway project linking Iraq to Turkey and Iran he Iraq railway which will connect Baghdad-Aqaba railway line could boast March 2012, is set to be completed in TIraq with Turkey is nearing comple- as much as 6m tons of cargo annually, three years. The 1,020km railway line tion. An agreement has been reached according to a study by the Iraqi Ministry will have 32 stops and run from Basra in with a French company linking the Iraqi of Transport. Construction for the linkage the south through Baghdad to Mosul and railway to the Turkish network. The con- to Turkey has already been completed Duhok in the north. struction of international linkages is part within Iraq. of an extensive overhaul of the Iraqi rail- The Iraqi Republic Railways Company way system since conflicts have taken An agreement has been reached on the (IRR), which is publicly owned and their toll on the rail network. railway line between Iraq and Iran. The operated, is one of the oldest railway transnational line will link Basra with companies in the Middle East, with its The Turkish linkage is part of the Basra- Shalamcheh on the border with Iraq, first 123km of railway being opened in Berlin rail line, an update of the Berlin- thus connecting Tehran and Qom to 1914. Baghdad link built a century ago by Najaf and Karbala. At first, the railway Germany. H.E. Karim al-Nouri, Minister will only carry passengers. An agree- After independence in 1932, the railway of Transport of the Republic of Iraq, ment on the trade link will be discussed network underwent extensive expansion called this project “massive and very old in the future. Especially for long haul projects from the 1960s to the 1980s and it is as important as Egypt’s Suez routes between countries, trains are thanks to massive investment. As of Canal.” Indeed, Iraq’s geographical loca- more efficient than trucks. now, the Iraqi railway network is tion predestines it to turn into a hub for 2,400km long. In July 2012, the IRR moving cargo and passengers through In March this year, the Iraqi government launched a computer-based train control Europe and the Middle East to Asia. announced a USD 9bn transportation in another effort to modernise the whole Moreover, cargo can be transported project to connect the country’s main railway system in Iraq and make Iraq an from the Gulf port at Umm Qasr to cities via one railway. The project, hav- important location in the world-wide sup- Turkey, Syria and Jordan. A planned ing been in its final design stage in ply chain of train-based cargo. Iraqi universities lure investors raq is on the best way towards the goal attract investors for modernization of the The university of Tikrit already made a Iof creating a society equipped with sci- institutions to become more internation- deal with the company of Al-Izza, which ence and knowledge according to the ally competitive. To cite but one exam- gives Al-Izza the opportunity to use an Ministry of Higher Education and ple, the University of Kufa calls for area of 120 acres for agricultural invest- Scientific Research of the Republic of investors to facilitate its plans to build a ment over 25 years, while it seeks Iraq. On 24th August 2012 the Ministry’s teaching hospital, a sports stadium, investors for the establishment of an spokesman Qasim M. Jabbar nursery centres and a centre of plant tis- Olympic Stadium at the university cam- announced the establishment of 70 edu- sues, a zoo featuring a natural historic pus. cational institutions in universities all museum and a shopping mall located at over the country. the university campus. And this is just By welcoming investors in the educa- one example out of nearly 20 Iraqi tional sector to profit from the country’s An agreement features the construction universities desirous to enhance their booming construction industry, Iraq’s of 19 colleges, 33 departments, 17 sec- position. Ministry of Higher Education and tions and one institute for the academic Scientific Research takes a major year 2012/2013. Besides gaining technical and scientific step towards Iraq’s future. advantages, various universities are will- In addition, the Department of Con- ing to grant their lands to investors for struction and Projects of the Ministry any purpose. Taking a closer look at the INVESTMENT OPPORTUNITIES recently composed a paper with invest- non-educational sector, the universities ment opportunities in Iraq’s public uni- usually try to secure investors by offer- In August 2012 the Ministry of Higher versities. Those include the creation of ing cheap land for either agricultural use Education and Scientific Research scientific institutions, such as research or building construction. Currently, the composed a memorandum about the centres and internal departments, and Ministry is having negotiations with com- newest opportunities for investments the development of non-educational pro- peting companies about building up to in Iraq’s higher educational sector. jects such as residential complexes, 10,000 housing units on the land of industrial factories and agricultural University of Baghdad and it provides On request for members investment, as well. Concerning the edu- 200 acres for agricultural investment by E-Mail: [email protected] cational sector, universities mainly try to (dedicated to the College of Agriculture).

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 21 News

Firms shortlisted for oil company of Turkey (TPAO) as well as Scania buys Majority Dragon Oil successfully obtained the block in seawater plant deal the fourth round of bidding. Stake in Iraqi Distributor

Two companies have been shortlisted to win Kuwait Energy will hold a 40% working inter- Truck maker Scania has acquired a majority a critical project consultancy (PMC) deal est, while TPAO and Dragon Oil will both stake in its Iraqi distribution company. worth USD 10bn which will cover the con- have a 30% interest. The consortium has a Approximately 20,000 Scania vehicles are struction of a 120km pipeline and a giant sea- five year exploration phase in which to deter- operating in the country and the company water treatment facility. Of the ten firms who mine the oil prospects of block nine, which has confirmed its need to move quickly in bid for the initial deal, only the US’s CH2M covers 900km² n the Basra province. Should order to keep up with the fast pace of devel- Hill and Canada’s SNC Lavalin have made oil be discovered, they can then apply to the opment in Iraq. the cut. government to continue developing the block over a 20 year development period. Scania has also entered into an agreement The project will be known as the Common with the Iraqi Ministry of Oil and Minerals to Seawater Supply Facility (CSSF) and will assemble trucks for various government cus- supply water vital for the development of Communications Net- tomers in cooperation with the Ministry. It is Iraq’s oil fields. It is expected to pump 2.5 mil- also helping supply Iraq with skilled labour, lion b/d of treated seawater to the fields, with work for Iraqi Railway after it opened the Swedish Academy for a planned expansion of 12 million b/d to be Training in Erbil earlier in the year in cooper- injected into fields awarded on Iraq’s first and On July 18th 2012, Iraqi Republic Railroad ation with the Swedish International second oil licensing rounds. Commercial bids (IRR) launched Iraq’s new Computer-Based Development Cooperation Agency (Sida), the are expected to be received by 1st August Train Control (CBTC) and Digital Microwave United Nations Industrial Development and a decision will be made in September. Radio Communications Network (DMRCN). Organisation (UNIDO), the EF Education First and local authorities. The school would The new communications network allows dis- provide an important base of recruitment for Islamic Bank launches patchers to control movements throughout employers in the expanding sales and ser- the IRR network and is designed to ensure vice industries throughout the country. in Iraq all components of the CBTC and the DMRCN are well-integrated to transmit the appropri- Abu Dhabi Islamic Bank (ADIB) has launched ate voice and data information. The CBTC Zain Iraq’s Chief in Iraq after it received approval from Central network included the integration of an Bank of Iraq to operate in the country. The onboard locomotive system, a centralised Resigns bank will serve both corporate and private dispatch system and a digital track base. customers but will also eventually offer cor- Following delays in Zain Iraq’s stock market porate finance, investment banking and trea- The DMRCN included 33 microwave radio listing, which led to communication regula- sury products to the Iraqi market. transmission towers located from Umm Qasr tion fines, its Chief Executive (CEO) Emad in the south up until the Syrian border. The Makiya has resigned with immediate effect. The bank has also been granted approval to project also included significant training for confirm Iraqi oil export letters of credit issued 18 Iraqi engineers, who will now assume full The announcement follows a number of by multinational oil corporations, multination- operation of the system. changes to senior management for Iraq’s al commodities and oil traders and financial largest mobile operator, which is majority institutions that issue letters of credit on owned by Kuwait’s Mobile Telecommu- behalf of their clients. The ‘Basra Times nications Co. (Zain group). The Chairman of the Board, Mohammed Charchafchi, will take Square’ Project gets a over the position on an interim basis and will Ministry of Oil signs continue to be advised by Mr. Makiya in a Green Light supporting role. initial contract with The Basra Investment Commission (BIC) has Kuwait Consortium in recently granted an investment license for a Iraq plans Jordan USD 162m tourism project in central Basra. Iraq The project, which will cover a 31,000 square Export Oil Route The Iraqi Ministry of Oil and Tender metre site and is intended to run for 35 years, Committee has signed the initial exploration, would be an important development for the Due to civil war in Syria, Iraq’s Ministry of Oil development and production service contract province and will consist of a hotel, cultural has announced the possibility of exporting oil for block nine located in the Basra province halls, trade activities and garages. The through Jordan instead of it beleaguered with a Kuwait Energy-led consortium. In May license was granted to Dier Company for neighbour. Iraq had planned to build a 2.25 2012, Kuwait Energy along with the national Contracts. million barrel-a-day (b/d) crude oil pipeline as

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 22 News well as a 1.75 million b/d extra heavy crude rules for revenue-sharing between the cen- small city of Al-Taji, is the only company in pipeline that would have stretched from tral government and Iraq’s provinces. Iraq that specialises in steel construction Haditha in north western Iraq to Syria and and its business plays a significant role then on to the Mediterranean. The law has been delayed for years due to in the energy and oil industries of Iraq. The issues such as the sharing of revenues, the company’s modernisation is part of a wider However, as fighting continues in Syria, Iraq apportioning of powers, the Kurdish strategy agreed upon in May 2012 by the has focused its sights on developing an autonomous region and disputed territory. Iraqi Ministry of Industry and the export route through Jordan that would han- Organisation for Industrial Development of dle more than 1 million b/d. Plans have yet Kobler argued that such a law would provide the United States and hopes to foster to be approved and there are concerns that a foundation for further issues to be dis- increased industrial development and infra- exports through Aqaba would add further cussed. He also added that the selection of structure until 2030. costs due to smaller tanker sizes and the a new electoral commission and the creation need to travel through the Suez Canal. of an upper chamber in parliament were two further important priorities. Auction for Gas Explo- On the other hand, the Aqaba route is more attractive for access to expanding Asian mar- ration to be Repeated kets. Studies have already been completed Iraqi Economy boosted for the pipeline and projects for engineering, The Iraqi Ministry of Oil has announced procurement and construction could be by North Bank Numbers that they will repeat the auction for the tendered in the near future. fourth licensing round for oil and gas Capital formation is starting to take root in research in Iraq due to the favourable Iraq, which means good news for the grass economic conditions. The last auction, held roots economy. Iraq’s gross domestic prod- in May 2012, was unsuccessful due to a Turkey considering uct has been rapidly growing due to number of ministerial regulations and a Investment in Iraq increased oil production and buoyant oil miscalculation of prices on behalf of the prices. Ministry of Oil. A recent meeting between the Turkish Consul, Farouk Qaimagja, the Commercial Increased confidence in the Iraqi economy During this round, the Ministry will be Attaché of the Turkish Embassy and the and the banking system has led to a 45% increasing its flexibility and will give the com- Head of the Basra investment Commission increase in deposits at North Bank in the first panies who win the exploration rights more was used as an opportunity to discuss ways half of 2012. This is an important develop- concessions to encourage further investment of boosting economic trade and cooperation ment for small businesses in Iraq, with in this area of the economy. In the fourth between the two countries. capital more readily available to them in licensing round, only four from twelve oil and the light of the increase in deposits and gas offers were issued. The Turkish Consul reviewed ways in which reserves. Turkish companies could be attracted to invest in Iraq, especially in vital fields in As with all banks in Iraq, the further develop- Oil production overta- Basra. Concurrently, he announced plans to ment of risk assessment capabilities will be open a Turkish school in Basra and vital to increasing bank lending and invest- kes Iran announced that this would have a positive ment stability in Iraq. effect on local education and training capa- In July of this year, Iraq’s oil production was bilities. A Turkish company also presented its higher than Iran, the former second largest own plans for an aluminium project in the Turkish Company to supplier among the OPEC member states, region. according to the monthly oil report by OPEC. modernise Metal According to secondary sources, Iraq pro- duced 3.08m barrels a day in July 2012, the Iraqi Gas and Oil Law Factory highest level in the past decade. With a pro- duction of 2,96m barrels a day in June 2012, should be a UN Priority The state-owned steel moulding factory production increased by 115,000 barrels a Nassr us being modernised as part of a plan day during a one month period. says Special Envoy put forward by the Iraqi Ministry of Industry. In Iran on the other hand, production fell by The creation of the much-anticipated Oil and As part of the plan, foreign investment is 173,000 barrels a day to 2,82m barrels a day Gas Law should be made a UN priority being sought to press ahead with repair work in the same period. While Iranian oil produc- according to the special envoy, Martin Kobler. and a Turkish company has agreed to con- tion is expected to further decline, Iraqi oil The law would not only regulate Iraq’s lucra- struct a new production road for overhead production is set to continue its positive tive oil and gas sector but would also create components. Nassr, which is located in the trend.

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 23 Tenders

Tenders 10 new hospitals for (EUR 3.7m). The required water manage- ment experts will be trained all over the EU. 1. CARBON AND STEEL RINGS FOR Basra Water wastage is a crucial issue in Iraq TOWER PACKINGS QTY (7,000) ITEM CD: 12-Sep-2012 throughout the entire population despite the As reported by the news agency Shafaq country’s huge water shortage problem 2. VALVES AND ACTUATOR QTY (31) ITEM. News, the province of Basra plans to con- caused by poor water management of Iraq CD: 15-Sep-2012 struct 10 new specialised hospitals in the and neighbouring countries. Thus the agree- 3. HYDROGEN SULPHIDS GAS DETEC- next two years. Mansur Amin, the Head of ment emphasizes the importance of finding TORS QTY (36) ITEM the provincial Health and Environment a radical solution for the water shortage CD: 15-Sep-2012 Committee announced that the aim of this problem. enormous construction project is to improve 4. HEAT EXCHANGER FOR OIL REFINERY CD: 24-Sep-2012 health care in the region after residents com- plained of a lack of health centres, especial- Hilton to establish new 5. EXTERNAL LIGHTING MATERIALS ly in popular neighbourhoods in Basra. CD: 24-Sep-2012 Hotel in Erbil in 2016 6. NATURAL GAS CHROMATOGRAPH QTY The new specialised hospitals are to be built (2) ITEM in the city centre of Basra so that they can The Hilton Worldwide Group recently CD: 26-Sep-2012 be easily reached by residents. The training announced expansion plans in Northern Iraq of professional staff has already begun and by signing a management agreement with 7. SCHOOL FURNITURE CD: 8-Oct-2012 the provincial council covers all expenses for the Iraqi-based Mihtab Group to establish the the training. The new hospitals are an impor- first Hilton Hotels & Resorts property in Erbil, 8. IT SOFTWARE FOR INTEGRATED CRI- tant step towards easing the burden on exi- the flourishing capital of Iraqi Kurdistan. MINAL JUSTICE INFORMATION SYSTEM sting hospitals. CD: 27-Oct-2012 The 300-room-complex will be set in a pres- tigious residential and commercial area north Iraq plans Jordan Iraqi of the city, popular among new companies Reply to E-Mail: due to its combination of idylic, mountain Oil Production rises to scenery and its short distance from the cen- [email protected] or tre of Erbil. The attractive location of the dis- Fax: 0049 (0)30-20 64 10-10 3 Million Barrels a Day trict has also attracted a number of foreign □ I / We would like to receive further embassies to be built there in the coming two information to the following invest- Iraqi oil production continues its’ up-wards years. ment tenders: Nr. trend and recently reached a record 3 million This service is for Iraqi companies barrels-per-day (b/d), a rate that has not As the main financial and commercial city in and NUMOV members only. been seen in more than a decade. In July Northern Iraq, Erbil is directly gaining wealth 2012, Iraq produced almost 3.08 million b/d, from the fast growing Kurdistan economy, up 115,000 b/d from June 2012 and is now which covers all major branches, e.g. oil, Name, Company, Address, Phone, Fax, Email the second largest producer in the produc- trade and agriculture. Despite the growing ers’ group OPEC. tourism sector, Iraqi Kurdistan is not expect- ed to become a top tourism destination in the Services for NUMOV members: very near term; thus the regional market is Important information available on request: mostly driven by business and domestic EU to facilitate Iraqi stability.  International Commercial Arbitration Center - Najaf, General Information water management  International Commercial Arbitration Center - Najaf, Rules of Arbitration On 25th July 2012 H.E. Ali Youssef Abdel Year-on-Year Inflation  International Commercial Arbitration Nabi, Minister of Planning and Development, Center - Najaf, Internal System signed a cooperation agreement with the at 7% in July European Union to optimize water manage-  Najaf Investment Commission Guide ment in the country. According to the Central Statistics Department at the Ministry of Planning in Reply to: FAX 0049 (0)30 206410-10 We request that the indicated documents be With investment totals of EUR 20m the paper Iraq, the inflation was at 7%. One reason for sent to us: includes enhancing of capacities for integrat- this were rising fuel prices. Fruits, vegetables Our membership number: ed groundwater resources management and beverages became cheaper, process for (EUR 10m), development of a water supply housing went up. The core inflation, which Member / Address: monitoring system (EUR 7m), improvement does not take fuel prices into account, fell of public awareness on water related issues to 5.9%

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 24 Business enquiries

State Company for Petrochemical Basrah East Co. Ltd. Business enquiries Industries Contact: Manager Al-Fao General Engineering Company Contact: Sadeq Ebraheem Iraq Contact: Ammar Abdulrazzaq Issa General Manager Phone: +964 - 40 640691 Director General Basra - Iraq Email: [email protected] Phone: +964 - 7400651 - 7400652 Phone: +964 - 770903841 Internet: www.basraheast.com Republic Iraq Email: [email protected] The company is one of the well known Iraqi Email: [email protected] Internet: www.pchem-iq.com construction companies and suppliers that Internet: www.faoco.com The Basra petrochemical complex (pc-1) have gained a wonderful reputation for meet- The Company has the ability to design and was the first petrochemical facility built in ing high international standards, especially construct different types of projects such as, Iraq in 1977 and is still the only complete when it comes to quality control and safety housing complexes, industrial commercial petrochemical producing facility in Iraq. The standards. We have been engaged in and general buildings projects, bridges and complex consists of six major plants, various construction and rehabilitation pro- roads projects, water treatment, sewage Ethylene, Caustic/Chlorine, Vinyle Chlorine jects employing highly qualified Iraqi engi- plants and dams, electrical power stations, neers and technicians, as listed below: reha- grains silos, und cold and deep freeze stores Monomer (VCM), PVC plant, Low Density polyethylene, and High Density Polyethylene bilitation of degassing and gas compressor at different temperatures projects stations, rehabilitation of water injection sta- plant tions, construction of oil and gas pipeline Hamorabi State Company for networks, supply building materials includ- Construction Contracts Wassit State Company for Textile ing steel wares, hardwires, paints, pipe & Contact: Director General Industries pipefittings Phone: +974 - 7627361 Contact: Mohammed Al-Qassim Republic Iraq Manager Faruq Magazachi Group Email: [email protected] Wassit - Iraq Contact: Farouq Magazachi Internet: www.hamorabi.imariskan.gov.iq/ Phone: +974 - 8852387 The company is a large Iraqi company in Baghdad - Iraq Email: [email protected] construction and maintenance roads and Phone: +964 1 7185489 bridges, manufacturing concrete girders and Internet: www.wsctiiraq.com Fax: +964 1 7174027 producing construction materials, available The company was established at 1969 & it Email: [email protected] for joint ventures as a prime and sub- is consists of two factories. One for textile Internet: www.faruq.com contractor with private and public sector. contains 450 textile m/c with spinning & fin- The company refers to this climate control ishing equipments also with all engineering solution as refrigeration and air conditioning, Harshem Company & administration services .The other factory a profession we are well versed in: thus, a Contact: Kamal Gardi (knitting factory) contains many of knitting specialty of ours. However, being American General Manager m/c. for circular, texture & surface knitting & Swedish educated one learned to diversi- Erbil - Iraq from several European sources. The factory fy; so in time we added other activities into Phone: +964 - 750 4450764 produces all kinds of socks for children, men Email: [email protected] our group of companies. Automotives, semi- Internet: www.harshem.com & women stockings which are made from trailers, refrigerated vehicles, prefabricated Harshem Company specializes in custom, wool, polyester, acrylic & cotton yarns. Also buildings and cold stores facilities, medical new or refurbished, residential and light com- the factory produces different kinds of knit- appliances and their disposables, power mercial construction. We take pride in provid- ting clothes from acrylic yarn & all other wear generation, railroad rolling stock and acces- ing a complete range of services to clients. clothes for men, women & children. sories to name a few.

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Fairs 2012 / 2013 - Registering Companies in Iraq - Public Holidays

Fairs 2012 / 2013 Registering Companies Public Holidays

1. 1st – 10th Oct – Baghdad International in Iraq Fair 38th Session of the International Public Holidays in Iraq 2012 Exhibition for Consumer and Investment The Trade Law, No.30 (1984), the Goods Companies Laws, No.21 (1997), and Location: Baghdad International Fair Public Companies Law, No.22 (1997) 1 - Jan New Year’s Day Ground regulate all incorporation and trade 6 - Jan Army Day (except activities for Iraqi businesses. Follow 2. 15th – 18th Oct – Erbil International Fair the procedures below to register a Kurdistan) the 8th International Multi Sector Trade company in Iraq: Fair 4 - Feb Mouloud (Birth of the Location: Erbil, International Fair Ground 1. Determine what category the com- Prophet Muhammad) pany in question belongs to, accor- 3. 26th – 29th Nov – Iraq Agro Food ding to the Companies Law, No.21, 21 - Mar Nouruz International Exhibition for Agriculture, 1997. This law divides companies Food, Food Processing and Packaging into the list of Varieties of Legal 9 - Apr Liberation Day (only Location: Erbil, International Fair Ground Companies in Iraq. Kurdistan)

th th rd 4. 6 – 9 Dec – 3 Basra International 2. Fulfill all required registration 1 - May Labour Day Oil & Gas Conference and Exhibition procedures: Location: Basra International Fair Ground a. Register a trade name with the 14 - Jul Republic Day relevant trade chamber or the 5. 7th – 10th Mar - Erbil Autoshow 4th nter- union of trade chambers. 19 - Aug Eid al-Fitr (End of national Automobile, Automotive, b. Submit a contract signed by the Ramadan) Commercial Vehicles and Spare Parts founders of the company, stating Exhibition the name of the company, its 3 - Oct Iraqi Independence Day Location: Erbil, International Fair Ground activities, and its capital. (National Day) c. Deposit appropriate capital for 6. 10th – 13th Apr - Sulaymaniah Build Expo the company, in IQD, at an autho- 25 - Oct Eid Al-Adha (Feast of the 3rd International Construction and rized Iraqi bank and notify the Building Materials, Technologies, Companies Registrar. Sacrifice) Machineries and Infrastructure, d. Pay all fees required to register Furniture, Decoration and Housewares the company with the Companies 15 - Nov Islamic New Year Exhibition Registrar. Please see 24 - Nov Ashoura Location: Sulaymaniah Expo Center http://www.motiraq.org/ registration.aspx. e. For joint stock companies, submit the subscription certificate, sig- Reply to E-Mail: ned by the founders, and the Public Holidays in Germany 2012 [email protected] company's feasibility studies. f. Define the commercial and tech- or nical activities of the incorpora- 1 - Jan New Year’s Day Fax: 0049 (0)30-20 64 10-10 ting company to be included in 6 - Apr Good Friday the contract for incorporation. □ I / We would like to receive further g. Obtain approval of the Minister of 9 - Apr Easter Monday information to the following fairs: Interior for all foreign sharehol- Nr. ders. 1 - May Labour Day This service is for Iraqi companies and NUMOV members only. 17 - May Ascension Day 3. After the company is founded: a. Employ a legal advisor (attorney) 28 - May Whit Monday for the company from the Bar 3 - Oct Day of German Unity Name, Company, Address, Phone, Association. b. Employ a chartered accountant form the Chartered Accountants 25 - Dec Christmas Day and Auditors Association. 26 - Dec Boxing Day Fax, Email c. Appoint an Executive Manager.

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 27 NUMOV

NUMOV - SERVICES FOR THE CORPORATE MEMBERS OF OUR NON-PROFIT ORGANISATION: Information Invitations ♦ Market information on the region and on individual business ♦ To delegation trips to the Near and Middle East region sectors, general information regarding economic develop- ♦ To meetings with foreign delegations in Germany ment and economic support ♦ To regular country committee meetings and to meetings ♦ Up-to-date monthly information, including information for the exchange of experiences between German com- enquiries from the region, as well as current employment pany representatives in the region offers and applications ♦ To an annual meeting with all Ambassadors of the region ♦ HOTLINE - if the need arises, relevant information, ♦ To the annual General Meeting obtained from the Near and Middle East region ♦ To the annual German Near and Middle East Gala Event ♦ List of members Organisation in Germany and the Region of the Near and Middle East Consultation / Advisory Services ♦ Selection of specialists for projects ♦ Well-founded, individual counselling and up-to-date ♦ Providing contact opportunities and arranging exhibitions information and conferences ♦ Initiation of international contacts ♦ Lectures by high-ranking personalities ♦ Selection and evaluation of suitable cooperation ♦ Special one-day conferences / fairs / conventions partners ♦ Seminars, training, education ♦ Market entry, market build-up and risk assessment ♦ Advice on basic economic conditions as well as Cooperation on export and import promotion ♦ With all important foreign trade-oriented partner organisations, Chambers of Commerce, Associations, Representation of Interests Embassies, Consulates, the Ministry of Economics and ♦ At economic events and in negotiations with government Technology, the Com mission of the European Union and institutions in Germany and the region scientific institutions

APPLICATION FORM FOR MEMBERSHIP NUMOV / German Near and Middle East Association

I hereby apply for membership to the German Near and Middle East Association Company/Organisation: Address: Telephone No./Fax: Email: Internet: Legal form: Number of employees: Annual sales Date of establishment: Proprietor/Managing Director/Board Member: Principal contact: Position: Direct phone No: Address for invoice: Field of business activity: Near and Middle Eastern companies: We are particularly interested in the following services  Identifying potential clients and business partners  Establishing business contacts  Consulting on business development  Help with organising business events  Establishing contacts to competent authorities  Participating in or visiting trade fairs  Visiting business and industrial sites  Assistance at business meetings through interpreting and co-attendance  All services which are available European companies: We are particularly interested in the following countries  Afghanistan  Algeria  Azerbaijan  Bahrain  Cyprus  Egypt  Iran  Iraq  Israel  Jordan  Kazakhstan  Kuwait  Kyrgyzstan  Lebanon  Libya  Morocco  Oman  Pakistan  Palestinian Territories  Qatar  Saudi Arabia  Syria  Tajikistan  Tunisia  Turkey  Turkmenistan  Usbekistan  UAE / United Arab Emirates  Yemen  All countries of the Near and Middle East Membership fee per year: Euro *) *) You are kindly requested to classify your company under one of the following membership fees. Euro 1,000 for medium sized companies with up to 50 employees, Euro 1,900 for companies with up to 100 employees, Euro 2,600 for companies with more than 100 employees. A list of membership fee regulations is available on request. The German Near and Middle East Association is a non-profit-making organisation. Court of jurisdiction is Berlin, Germany.

Location, Date Signature(s) (Name)

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 28 Useful links Useful links Republic of Iraq Government of Iraq MINISTRIES Federal Republic of Germany www.cabinet.iq Ministry of Agriculture and Water Parliament of Iraq Resources EMBASSIES IN IRAQ www.parliament.iq www.moawr-krg.org German Embassy Baghdad Ministry of Sports and Youth, Minister of www.bagdad.diplo.de MINISTRIES Culture and Youth Federal Republic of Germany www.mosy-krg.org Ministry of Agriculture Government of the Federal Republic of www.moagr.org Ministry of Higher Education Germany www.mhe-krg.org Ministry of Communication www.bundesregierung.de http://www.moc.gov.iq Ministry of Electricity Parliament of the Federal Republic of www.krgelectric.org Ministry of Construction and Housing Germany www.moch.gov.iq Ministry of Finance and the Economy www.bundestag.de www.mof-krg.org Ministry of Culture www.mocul.gov.iq Ministry of Higher Education and MINISTRIES Scientific Research Ministry of Defense Federal Environment Ministry www.mod.mil.iq www.mhe-krg.org www.bmu.de Ministry of Displacement and Migration Ministry of Justice Federal Foreign Office www.momd.gov.iq www.mojkurdistan.com www.auswaertiges-amt.de Ministry of Education Ministry of Martyrs and Anfal Affairs Federal Ministry of Defense www.moedu.gov.iq www.momakrg.org www.bmvg.de Ministry of Municipalities and Tourism Federal Ministry of Economic Ministry of Electricity www.momt-krg.org www.moelc.gov.iq Cooperation and Development Ministry of Planning www.bmz.de Ministry of Finance www.mop-krg.org www.mof.gov.iq Federal Ministry of Economics and Ministry of Transport and Ministry of Foreign Affairs Technology Communications www.mofa.gov.iq www.bmwi.de www.moc-krg.com Ministry of Health Federal Ministry of Education and www.moh.gov.iq Research INVESTMENT COMMISSIONS IN IRAQ www.bmbf.de Ministry of Higher Education and National Investment Commission (NIC) Ministry of Family Affairs, Senior citizens, Scientific Research www.investpromo.gov.iq www.mohesr.gov.iq Women and Youth Anbar Provincial Investment Commission www.bmfsfj.de Ministry of Human Rights www.anbarinvest.net www.humanrights.gov.iq Federal Ministry of Finance Baghdad Provincial Investment www.bundesfinanzministerium.de Ministry of Industry and Minerals Commission www.industry.gov.iq Federal Ministry of Food, Agriculture www.baghdadic.gov.iq and Consumer Protection Ministry of Interior Basrah Provincial Investment www.bmelv.de www.moi.gov.iq Commission Federal Ministry of Health Ministry of Labour and Social Affairs www.investbasrah.com www.bmg.bund.de www.molsa.gov.iq Dahuk Provincial Investment Federal Ministry of Labour and Social Ministry of Municipality and Public Work Commission Affairs www.mmpw.gov.iq www.kurdistaninvestment.org www.bmas.de Ministry of Oil Diyala Provincial Investment Federal Ministry of the Interior www.oil.gov.iq Commission www.bmi.bund.de Ministry of Science and Technology www.investdiyala.com Federal Ministry of Justice www.most.gov.iq Erbil Provincial Investment Commission www.bmj.bund.de Ministry of Planning www.kurdistaninvestment.org www.mop.gov.iq Karbala Provincial Investment Federal Ministry of Transport, Building Ministry of Trade Commission and Urban Development www.mot.gov.iq www.krinves.com www.bmvbs.de Ministry of Transportation Muthanna Provincial Investment www.motrans.gov.iq Commission EMBASSY OF THE REPUBLIC OF IRAQ Ministry of Water Resources www.miciraq.org www.iraqiembassy-berlin.de www.mowr.gov.iq Najaf Provincial Investment Commission www.investnajaf.com NUMOV / Nah- und Mittelost-Verein KURDISTAN REGIONAL GOVERNMENT Sulaymaniyah Provincial Investment German Near and Middle East Association Kurdistan Regional Government Commission www.numov.de www.krg.org www.kurdistaninvestment.org Kurdistan Parliament Wassit Provincial Investment Commission IRAQI GERMAN BUSINESS DIALOGUE www.kurdistan-parliament.org www.wasitic.com www.iraqi-german-business-dialogue.com

IRAQI GERMAN BUSINESS DIALOGUE 3/2012 29 Imprint / Board Imprint Board of NUMOV

HONORARY CHAIRMAN Hubert Bock Hartmut Mehdorn IRAQI GERMAN Dr. Gerhard Schröder Managing Director CEO, Air Berlin PLC & Co. BUSINESS DIALOGUE© Former Chancellor of the Federal Misr Bank-Europe GmbH Luftverkehrs KG Republic of Germany Jürgen Chrobog Matthias Müller Chairman of the Board Published by: CEO Chairman of the Board BMW Stiftung Herbert Quandt Porsche AG NUMOV - Nah- und Mittelost-Verein e.V. Helene Rang Secretary of State (ret.) German Near and Middle East Association Proprietor Günther Mull Jägerstr. 63 D, 10117 Berlin, Germany Helene Rang & Partner Klaus Eberhardt Chairman of the Board Proprietor
DERMALOG Identification Systems (+49) 030 - 206410-0 CHAIRMAN Rheinmetall AG  (+49) 030 - 206410-10 Bernd Romanski Joachim Enenkel Marc Neumann Member of the Board Member of the Board Managing Director HOCHTIEF Solutions AG Bilfinger Berger SE Ferrostaal Industrienanlagen GmbH Publishing Director / Chief Editor: DEPUTY CHAIRMEN Dieter Ernst Dr. Thomas Rupprich Helene Rang Martin Bay Secretary of State (ret.) Managing Director IWC-innovation and water consult Head of Editorial Office: Deutsche Bahn International Bayerngas GmbH German Railway Group Peter Schmitz Jürgen Fitschen Jürgen Sander Burkhard Dahmen Co-Chairman Managing Director Chairman of the Board Deutsche Bank AG VEM motors GmbH 3rd Edition SMS Siemag AG Hans-Peter Floren September 2012 Maria-Elisabeth Schaeffler Dr. Martin Herrenknecht Member of the Board OMV AG Proprietor Four-monthly Chairman of the Board Ina-Holding Schaeffler KG Herrenknecht AG Michael Glos, MdB Editorial team: Former Federal German Minister of Paul Schockemöhle Samira Akrach, Reem Al-Abali, Dr. Norbert Kloppenburg Economics and Technology Proprietor, Paul Schockemöhle Member of the Board Pferdehaltung GmbH Linda Berger, Peter Dingens, Member of the Federal German KfW Bankengruppe Parliament Katharina Drost, Susen Hollmig, Werner Schoeltzke Dr. Klaus-Dieter von Horn, Emily Legge, Jens-Ove Stier Marc Hall Proprietor, ENTRACON Managing Director Chairman of the Board Felix Litschauer, Mirko Macke, Winterstein Kontor GmbH Wiener Stadtwerke Holding AG Prof. Dr. Rainer Schwarz Peter Schmitz, Sebastian Sons, CEO, Berlin Airports BOARD MEMBERS Tutku Güleryüz, Tom Wells, Joachim Hörster, MdB Member of the Federal German Karl Heinz Wittek, Edgar Zedler Ralf to Baben Erich Staake Member of the Board Parliament Chairman of the Board RWE Dea AG Duisburger Hafen AG Further assistance: Elke Hoff, MdB Martin Bachmann Member of the Federal German Janosch Böttcher, Vera Dobrovolskaja, Parliament Niko Warbanoff Member of the Board of Executive Chairman of the Board of Wanda Kubrinski Directors of Wintershall Holding AG Michael Ludwig Managing Directors DB International GmbH Dr. Christoph Beier Member of the Executive Board Layout / Technical services: Verbundnetz Gas AG Vice-Chairman of the Management Honorary Member Hui Pieng Lie, Nicole Scott Board GIZ GmbH, Deutsche Martin Marsmann of the Board 1998 - 2005 Gesellschaft für Internationale Printing: Brandenburgische Head of International Business Hans-Jürgen Wischnewski † Zusammenarbeit UniCredit Bank AG Federal Minister/Minister of State (ret.) Universitätsdruckerei und Verlagsgesellschaft mbH, Potsdam Advisory Board of NUMOV

For their support for this edition, Peter Dingens Dr. Hubert Lang Klaus Rollenhagen we would particularly like to thank: Ambassador (ret.) Ambassador (ret.) Managing Director (ret.) of Verband Federal Foreign Office Federal Foreign Office Beratender Ingenieure VBI Arnold Schwerlast GmbH & Co. KG Rudolf Dreßler Dr. Michael Lüders Dr. Gerhard Sabathil DB International Ambassador (ret.) Michael Lüders Nahostberatung Director East Asia, Australia, Pacific Deugro International Spedition GmbH & Federal Foreign Office Dep. Chairman of German European External Service Orient-Foundation Co. KG. Thomas Ellerbeck Andreas von Stechow Director Communications and Politics of Vodafone D2 GmbH Dr. Gunter Mulack Ambassador (ret.) Herrenknecht AG Ambassador (ret.) Federal Foreign Office HOCHTIEF Solutions AG Dr. Henryk Frystacki Director of the German Orient-Institute Siemens AG (ret.) Dr. Rainald Steck Lufthansa AG Bernd Mützelburg Ambassador (ret.) Wilfried H. Graf Ambassador (ret.) Federal Foreign Office IQ Martrade Group Arab Bank AG (ret.) Federal Foreign Office Folkmar W. O. Stoecker Dr. Gabriela Guellil Dr. Jürgen K. Nehls All published contributions are pro tected by Ambassador (ret.) Federal Foreign Office Giesecke & Devrient GmbH (ret.) Programme Director (NMO) copyright. Reproduction or duplication Dr. Jürgen Hellner International Training for Diplomats (including extracts) only permitted with the Dietmar Ossenberg at the Federal Foreign Office Ambassador (ret.) Head of ZDF Cairo Office explicit permission of the German Near and Federal Foreign Office Knut Witschel Middle East Association, Berlin. The pub- Michael Pfeiffer Dr. Herbert Honsowitz Managing Director & Head of lisher accepts no liability for the com - Managing Director Near & Middle East/Africa Ambassador (ret.) Germany Trade and Invest pleteness or factual accuracy of indi vidual Federal Foreign Office Deutsche Bank AG (ret.) contributions and any claims or damages Wolfgang Kenntemich Bernhard von der Planitz Karl Heinz Wittek potentially resulting from these. Editor in Chief (ret.) Ambassador (ret.) Counsellor (ret.) MDR Television Federal Foreign Office Federal Foreign Office

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