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Industrial Spatial Development Vision for Muthanna

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Copyright © United Nations Human Settlements Programme in Iraq (UN-HABITAT) 2018 All rights reserved United Nations Human Settlements Programme (UN-HABITAT) www.unhabitat.org DISCLAIMER The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the secretariat of the United Nations concerning the legal status of any county, territory, city or area or its authorities, or concerning the delimitation of its frontiers or boundaries regarding its economic system or degree of development. Excerpts may be reproduced without authorization, on condition that the source is indicated. Views expressed in this publication do not necessarily reflect those of the United Nations Human Settlements Programme, the United Nations and its member states. ACKNOWLEDGEMENTS UN-Habitat Iraq thanks the European Union for its support and interest in the governorates’ industrial visions and the implementation of the New Urban Agenda in Iraq. This report was developed under the Local Area Development Programme (LADP-EU) by Samir Aita, Raniah Kamal, with contributions from Anna Soave, Ameer Hussain, Bozhan Hawizy and Sara Mahmood. The UN-Habitat team would like to express its deep gratitude to the following officials in Muthanna Governorate: Qabel Hemmood Abbas, Ali Abid Naji, Ahmed Chasib Ethayb, Murtadha Zahi Khattar, Mahmood Hadi Radhi, Fallh Hasan Abbood Al Haltmi, Falih Abed Farman, Ehsaa kareem Hwedi, Kareem Mohammed Ali Obaid, Amjed Shakir Razzaq. Finally, UN-Habitat acknowledges the firm support of the Iraqi Ministry of Planning, namely H.E. Dr Maher Johan, Deputy Minister; Dr Mohammed Muhsin Al Sayed, Director General of Local and Regional Development; and Dr Sawsan Jabbar Ibraheem, Head of Local Planning Department. Graphic design: Bozhan Hawizy Cover page: Gas Field, Muthanna © Middle East Economic News TABLE OF CONTENT ACRONYMS .......................................................................................................................... 5 EXECUTIVE SUMMARY ................................................................................................................... 6 1. UN-HABITAT AND THE INDUSTRIAL VISION IN IRAQ ............................................................ 1 1.1. Consultation process ..................................................................................................... 3 1.2. Approach to drafting a spatial industrial development vision ....................................... 3 1.3. Sustainable Development Goals ..................................................................................... 5 2. THE INDUSTRIAL SECTOR IN IRAQ ......................................................................................... 6 2.1. A brief historic overview ................................................................................................ 6 2.2. The Iraqi industry today ................................................................................................. 8 2.3. Institutional setup .......................................................................................................... 9 2.4. The Iraqi public industrial sectors ................................................................................ 10 2.5. The Iraqi private and SMEs industrial sectors .............................................................. 22 2.6. Iraq imports and exports .............................................................................................. 24 3. THE SPATIAL DEVELOPMENT OF THE INDUSTRY IN IRAQ .................................................. 26 3.1. Iraq overview ................................................................................................................ 26 3.2. Elements for Iraq spatial industrial development ........................................................ 29 4. THE SPATIAL INDUSTRIAL DEVELOPMENT OF MUTHANNA ............................................... 33 4.1. The Context of the Governorate .................................................................................. 33 4.2. The socio-economic situation in Muthanna ................................................................. 37 4.3. The industrial development of Muthanna ................................................................... 38 5. SUITABILITY MAPS ............................................................................................................... 45 5.1. Petrochemical Suitability Map: .................................................................................... 46 5.2. Agro-industries Suitability Map .................................................................................... 47 5.3. Construction Material Industry Suitability Map ........................................................... 47 5.4. Solar system Activity Map ............................................................................................ 48 5.5. Tourism Activity Suitability Map .................................................................................. 48 6. MAJOR RECOMMENDATIONS ............................................................................................. 49 6.1. Iraq opportunities ......................................................................................................... 49 BIBLIOGRAPHY ............................................................................................................................. 50 ACRONYMS BOO Build-Operate-Own BOT Build-Operate-Transfer CSO Central Statistical Organization FDI Foreign Direct Investment EU European Union GDP Gross Domestic Product GoI Government of Iraq ICT Information & Communication Technologies ILO International Labour Organization IS the so-called “Islamic State” KRG Kurdish Regional Government LADP Local Area Development Programme MENA Middle East and North Africa MoD Ministry of Defense MoIM Ministry of Industry and Minerals MoO Ministry of Oil MoP Ministry of Planning MoT Ministry of Trade MSMEs micro, small and medium enterprises NIC National Investment Commission PIC Provincial Investment Commissions PMAC Prime Minister’s Advisory Council R&D Research and Development SDG Sustainable Development Goals SMEs small and medium-sized enterprises SOE state-owned enterprise SWOT Strength Weakness, Opportunities, Threat UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Programme UN-Habitat United Nations for Human settlement UNIDO United Nations Industrial Development Organisation EXECUTIVE SUMMARY The Local Area Development Programme (LADP), funded by the European Union (EU) and implemented by UNDP in partnership with UN-Habitat in close coordination with the Ministries of Planning (MOP) of the Federal and Kurdistan Region governments and Governorate-level authorities, was designed to address the main issues that hinder planning at the local level, the implementation of plans and related delivery of service to citizens of Iraq. The overall objective has been to contribute to the stability and socio-economic . While industrial development in any region relates to a group of external country-wide variables, such as political and economic conditions, emerging strategies are influenced by context-related geographical and human factors, in addition to an analysis of: (a) Spatial potentials and opportunities, such as the availability of natural resources (agricultural, soil, mineral, water, solar etc); the clustering/ agglomeration of productive activities in certain areas; absorbing the labour force surplus in a particular industrial activity or utilising excess energy; supporting the introduction of greener technology in particular production processes (e.g. in the production of construction materials); strengthening the relationship between industry and research and development (R&D) centres; the exploitation of climate diversity; proximity with major development corridors and transportation infrastructure, among others; and (b) Spatial limitations and obstacles, such as the disparity of distribution of economic projects; untapped geographical and natural resources; unresolved geographical constraints; under-investment in basic infrastructure and utilities (particularly power); political volatility, insecurity of certain areas and unresolved tribal issues; insufficient investments in research and innovations in greener technologies; under-investments in more efficient mobility of people and goods, among others. LADP│Industrial Spatial Development Vision for Iraq │Muthanna Figure 1 Industries in Iraq © Janoob Press 1. UN-HABITAT AND THE INDUSTRIAL VISION IN IRAQ In selected pilot governorates of Diyala, Wassit, and Muthanna, the European Union is supporting the spatial assessment of local comparative advantages for industrial development and growth, as a pilot towards the development of an approach that can be replicated in other governorates of Iraq. This activity is being undertaken by UN-Habitat under the umbrella of the three-year Local Area Development Programme (LADP) funded by the European Union and implemented in partnership with the United Nations Development Programme (UNDP), in close coordination with the Iraq Ministry of Planning and local authorities. The Programme aims at strengthening good governance in Iraq by improving delivery of public services, through improved planning and implementation processes at governorate level, reflected in budgetary allocation processes at the Federal level. Based on this, the programme is expected
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