No. 3 September 2011 Contents Iraq’s massive economic potential Iraq’s massive economic potential for Germany for Germany Visit by H.E. Hussain Al Shahristani 1 Editorial 3 Visit by H.E. Hussain Al Shahristani
Personalities 3 by Tom Wells Iraq takes over billions from United Nations development fund 4
German diplomat is new UN Special Representative for Iraq 5
Agricultural sector in Iraq 6
New centralized hydrogeological resource database for Iraq 7
Trade between the Federal Republic of Germany and the Republic of Iraq January May 2011 8
Iraq faces electricity solutions 9
Young Diplomats from Iraq visited NUMOV 9
Major Hotel Brands to Open Hotels in Iraq’s Northern Provinces by 2014 10
Iraq about to boost crude oil production 12
Education in Iraq – preconditions and opportunities 14
Najaf Commercial Arbitration Center opened 16
Rapid developments for Iraqi financial sector 17
Augmenting investments to make Basra province more stable 18
Iraq to hold 4th energy bid round 19
Iraq imposes Certificate of Conformity for importers 21
News 22 H.E. Dr. Philipp Rösler, German Federal Minister of Economics and Technology and H.E. Hussain Al-Shahristani, Deputy Prime Minister for Energy of the Republic of Iraq Business enquiries 24 ontinuing the trend of ever improving Iraqi This year marked the 59th edition of the Tenders 25 CGerman bilateral relations H.E. Hussain Pugwash conference, which has been taking Fairs 2011, Al Shahristani, Deputy Prime Minister for place since 1957. It was sponsored by and took Registering Companies in Iraq, Public Holidays in Iraq and Germany 27 Energy of the Republic of Iraq, completed an place at the German Federal Foreign Office in
NUMOV Services 28 official state visit to Berlin in July this year. Berlin and brought together influential individu Central to H.E. Al Shahristani’s visit was his als from science and world affairs. The aim of Application form for Membership 28 attendance of the ‘Pugwash Conference’ taking the conference is to strive towards nuclear dis Useful links 29 place in the German capital from 1st 4th July. armament in all countries and to reduce the Imprint 30 During his official visit to Berlin, H.E. Al threat of war. An opening keynote speech was Board of NUMOV 30 Shahristani was also invited to meet H.E. Dr. delivered by H.E. Dr. Guido Westerwelle, Philipp Rösler, German Federal Minister of German Federal Foreign Minister, in which he Economics and Technology. Additionally, H.E. touched on important issues of global security. Contact: Iraqi German Business Al Shahristani took part in bilateral discussions On the final day of the conference, H.E. Dialogue c/o NUMOV with Dr. Christoph Heusgen, Foreign Policy Al Shahristani also contributed to the proceed Jägerstr. 63 D and Security Advisor to German Federal ings, holding a speech on the topic of the devel D 10117 Berlin Chancellor H.E. Dr. Angela Merkel. H.E. Al opments of energy policy in Iraq. Phone: +49 (0)30 206410 0 Shahristani was accompanied to all meetings Fax: +49 (0)30 206410 10 th E mail: [email protected] by H.E. Dr. Hussain M. F. Alkhateeb, Iraqi On the 4 of July, H.E. Dr. Guido Westerwelle Internet: www.numov.de Ambassador to the Federal Republic of Germany. met H.E. Al Shahristani in the presence of
continued on page 11
Editorial / Personalities
Editorial
Dear Readers, The IRAQI GERMAN In order to enhance the bilateral communication between our two nations, it is my pleasure to present you the latest edition of the IRAQI BUSINESS DIALOGUE wishes GERMAN BUSINESS DIALOGUE. all friends a happy Eid! Due to the development Iraq passed through for the last years, I am delighted to witness approaching stability, not only in the economy, Personalities but also in judiciary and in the education system of our country. In this way for instance the Iraqi Government now controls the UN Kadhim O. Jabir Al Ghrebawi ist the new Development Fund for Iraq, which was managed by the International Commercial Attaché at the Embassy of the Advisory and Monitoring Board since 2003. Republic of Iraq to Germany in Berlin. Previously he held the position of The strong partnership between Germany and Iraq is highlighted at Commercial Counselor at the Embassy of several points. H.E. Hussain Al Shahristani, Deputy Prime Minister Iraq in Bulgaria. He acted as Director of the for Energy of the Republic of Iraq, completed his official visit to Berlin Economic Relations between Iraq and Asian in July 2011, where he took part in bilateral discussions and met countries from 2004 2008 and between Iraq H.E. Dr. Philipp Rösler, German Federal Minister of Economics and and East European countries from 2003 2004. He was also working Technology. He also attended a conference, holding a speech on the as Director in Charge of the Oil for Food Programme between Iraq developments of energy policy in Iraq, which remains one of the most and the United Nations (1998 2003). During his career, which he important topics for our country. started with an academic degree in business administration and Russian language from the University of Baghdad, Mr. Al Ghrebawi Bilateral exchanges are also taking place in the academic field. In gained experiences in the fields of international economic relations, this way, young Iraqi Diplomats, who were staying in Germany to gain economic and trade agreements, export development and business experiences in cooperating with the international community and management as well as with the economic organizations of the United improving their diplomatic skills, visited the German Near and Middle Nations. He represented the Ministry of Trade of Iraq on meetings of East Association (NUMOV). At this point I want to congratulate the the joint commissions with other countries. German diplomat, Martin Kobler, for being the new UN Special Representative for Iraq and the head of the United Nations Assistance Rolf Ulrich is the new Consul General of the Mission to the country. Federal Republic of Germany in Erbil, Iraq. The lawyer began his career as an Attaché In this issue, the IRAQI GERMAN BUSINESS DIALOGUE deals with in the Foreign Service in 1981 and was a wide range of topics enabling the reader to gain insight in the latest active at the German Embassy to Egypt in development in Iraq, with reports on the agricultural, financial and oil Cairo 1983 – 1986. He served for 2 years sector, amongst others. as the Permanent Representative of Germany at OECD in Paris. This was fol Finally, I hope you find the latest issue insightful and wish you lowed by a 5 year consultancy at the German Federal Foreign a pleasant reading. Office’s NATO department. He was also active at the German Consulate General to New York in Legal and Consular Affairs, work With kind regards, ing in Africa from 1996 – 2008. He held several positions in German embassies in Namibia, Nigeria and Côte d'Ivoire, followed by another Dr. Hussain M. F. Alkhateeb 2 years at the Foreign Office in Berlin. Ambassador of the Republic of Iraq to Germany IRAQI GERMAN BUSINESS DIALOGUE 3/2011 3 Iraq takes over billions from United Nations development fund Iraq takes over billions from United Nations development fund
by Ivo Lisitzki
he Iraqi government has now officially its mandate and handed over responsi the early 1990s. The council also men Tbeen granted control over the United bility to the Iraqi Committee of Financial tioned that the transition arrangements Nations Security Council development Experts (COFE). The transfer of authori remain consistent with the constitution fund which was established after ty denotes a big step in strengthening and with international best practices in Saddam Hussein’s regime was over Iraq’s independence and international respect to transparency, accountability turned in 2003 to facilitate the payment standing, which comes six months and integrity. of revenues for its humanitarian needs before the scheduled withdrawal of and economic reconstruction. The 47,000 troops, by returning control of the Looking ahead, the IAMB commented Development Fund for Iraq (DFI), includ country's oil and natural gas revenue to that during its time monitoring the DFI ing proceeds of gas and oil sales, the Iraqi government. “much has been achieved and many replaced the United Nations Security challenges remain.” IAMB recommenda Council’s Oil for food programme that A statement issued by the United tions for the future for the COFE to help allowed the former sanction bound Iraqi Nations Security Council welcomed the build on this solid basis include codify government to use monitored oil sales Government of Iraq’s full assumption of ing the COFE’s role in law and achiev revenues for humanitarian purchases. the DFI and that the development fund ing Extractive Industry Transparency has been handed over from the IAMB to Initiative (EITI) compliant status, among Since 2003, the Development Fund for the Committee of Financial Experts others. Additionally, the IAMB noted that Iraq (DFI) has been managed by the (COFE), which will exercise authority in order to safeguard the benefits of International Advisory and Monitoring under terms approved by Iraq’s Council Iraq’s oil revenues for its people the Board (IAMB), whose role was to over of Ministers, who also welcomed the COFE must remain “vigilant and proac see operations of the IDF. The IAMB’s assumption of full autonomy over the tive to maintain the momentum of mandate was to audit the control and funds proceeds. reforms going forward” and finally reporting of oil export revenues and wished the committee every success in review how these revenues were being The council will ensure that a major part the crucial role it will play in Iraq’s future. used by the Iraqi spending ministries. In of the fund is used in the interests of the According to PricewaterhouseCoopers’ the eight year period, over USD 250bn Iraqi people. A share of about five percent latest publication all frozen funds, other of Iraq’s oil revenues have flowed of oil revenues has to be used for repa financial assets and economic resources through the fund. The IAMB has, as of ration payments to Kuwait, in succession in foreign countries shall also be trans 30th June 2011, now officially concluded of the first Gulf war, which took place in ferred to the Iraqi Development Fund.
Draft Statement of Cash Receipts and Disbursements
2010 2009 From Inception to For the year ended 31 December USD ‘000 USD ‘000 30 June 2010 USD ‘000
Cash Receipts
Export sales of petroleum and petroleum products 48,824,737 37,016,434 250,959,025
Proceeds from frozen assets in foreign countries 523 47,817 1,601,008
United Nation Oil for Food Program 656,000 121 11,073,407
Interest received 25,898 128,569 2,059,002
Other receipts 288,594 457,292 4,777,069
Total cash receipts 49,795,752 37,650,233 270,466,511
Cash Disbursements
Transfers to the Ministry of Finance 41,000,000 23,000,000 183,603,435
Letters of Credit to the benefit of Iraqi Ministries 11,223,074 13,448,572 67,680,020
Contracts administered by U.S. Agencies 2,025 852 7,859,315
Iraqi external debt repayments 100,000 1,614,526
Other disbursements 3,543 1,418,407 2,156,469
Total cash disbursements 52,228,642 37,967,831 262,913,765
Source: Pricewaterhouse Coopers
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 4 German diplomat is new UN Special Representative for Iraq n 5th August 2011, Martin Afghanistan since 2010 and OKobler, former UN Deputy served Germany’s Ministry of Special Representative for Foreign Affaires for more than 25 Afghanistan was appointed by years, gaining experience in H.E. Ban Ki moon, UN Secretary regional affairs of the Middle East General, as new Special Repre as Ambassador to Iraq and Egypt. sentative for Iraq and head of Developing policies for conflict the United Nations Assistance areas belongs to his vast Mission to the country (UNAMI). experience. Kobler replaces Ad Melkert of the Netherlands, who has served as H.E. Guido Westerwelle, German the Secretary General’s Special Federal Foreign Minister, wel Representative for Iraq since comed the new appointment of 2009. Martin Kobler and congratulated him. Further, he thanked Kobler UNAMI was arranged in August for his excellent job as UN 2003 by UN Security Council res Deputy Special Representative olution 1500 (2003). Several coor Martin Kobler, new UN Special Representative for Iraq and for Afghanistan. Since August dination and support activities, H.E. Ban Ki-moon, UN Secretary General 2004, full diplomatic ties between headed by the Special Representative, Special Representative is responsible Germany and Iraq were re established. have to be carried out in cooperation for the coordination of activities of all 16 Already since 2003, Germany support with the Iraqi Government. These are, UN organizations, programmes and ed Iraq with approximately EUR 400m for example, accomplishment of political funds in cooperation with Iraq. At the for bilateral projects and EU or UN pro and economical reforms, resolution of moment, UNAMI has about 1,000 work grammes. The main focus is on building diverse conflicts, return of refugees and ers in Iraq. Martin Kobler has served up a constitutional state with a focus on national reconciliation. Additionally, the as Deputy Special Representative for several fields.
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 5 Agricultural sector in Iraq Agricultural sector in Iraq by Tom Wells
raq’s agricultural sector is second only rapidly over the coming years, with pro rate is to be reduced – then this sector Ito oil revenues concerning its contribu duction expected to triple and revenues must certainly be seen as a top priority. tion to gross domestic product (GDP) to increase to USD 200bn by 2015, but If the government is going to achieve and job opportunities. This makes it a this positive forecast must be offset this, it must address areas in which it crucial part of Iraq’s economic make up against the still considerable military and can improve efficiency and productivity. and is vital if Iraq’s efforts to rebuild the security costs which the country is con Experts have identified two areas, country are to be successful. But unfor fronted with. The predominant view is amongst others, which the Government tunately, the agriculture sector in Iraq is that the agricultural sector must be of Iraq can certainly improve upon. an industry in decline. revived to combat the challenges which may hinder growth, and some of the fig Firstly, the Ministry of Planning needs to A once booming source of revenue for ures speak for themselves: in 2000, the improve the speed at which data and the country, the agricultural sector, is agricultural sector contributed 7.5% to statistics are made available – good, now waning and in dire solid statistics are a critical need of external assistance. component of modern day Once upon a time, Iraq was public policy decision self sufficient regarding agri making – because at the culture and even held the moment, the turnaround position of number one time is simply not quick exporter of dates in the enough. Secondly, on farm world, but according to a productivity: according to UN/World Bank need figures, Iraqi farmers have assessment report dating only produced half as much from 2003, the agricultural wheat over the last forty sector witnessed a steep years on a per hectare basis decline from the 1980s to when compared with their 2003 – a far cry from the counterparts in Syria, glory days of the 1950s. It Turkey, Afghanistan and was not until the war with Iran. One of the reasons this Iran, however, that the is attributed to is the need industry really began to fall for an improved quality apart. Many efforts are of seed. A possible solution being made by organisa to this could be a member tions such as USAID from Source: USAID Inma Agribusiness Program ship to the OECD Seed the American side, for Schemes, which could help example – to try and rebuild this indus GDP and employed 25% of the total Iraq procure a greater range of certified try, but many critics believe these efforts workforce; this level of GDP contribution seed varieties. are falling short of what is required to get is now on life support, reaching less than agriculture in Iraq back on its feet. 1% in 2010. Two suggestions which Additionally, experts are also advising have been offered explicitly are: the for that more resources be allocated to aid The rebuilding of this sector is seen by mation of targeted international working the development of better local seed industry experts as having the potential groups to develop a sustainable eco varieties, and that the Iraqi Ministry of to decrease unemployment through job nomic strategy for Iraq; and more fund Agriculture should consider rethinking creation in the agricultural sector, and allocation to agricultural projects – cur and revamping its process for seed reg even reduce poverty and violence in the rently, there are very few funds allocat istration. Promisingly, however, Iraq is country. Commonly cited are poverty ed to agricultural projects and the exist set to become a net wheat exporter by and high unemployment rates as some ing projects are for the most part small 2015, according to latest reports. By the of the main challenges currently facing scale. end of this year, Iraq’s total wheat pro the government of Iraq, and it is believed duction should reach between 2.25 and that if these challenges are left unad Traditionally, the agricultural sector has 2.5 million metric tonnes. National dressed, oil sales – the main contributor been the largest employment sector in demand stands at 4.5 million tonnes – to Iraqi revenues – may be hindered. Iraq, and if the Government of Iraq is to this is the target to be reached by 2015 create an estimated three million jobs in line with government plans. If the gov However, the backbone of Iraqi industry, over the next three years – a figure ernment plans are achieved, it will the oil industry, is in fact set to grow deemed necessary if the unemployment continued on page 8
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 6 New centralized hydrogeological resource database for Iraq
t a high level national seminar on 3rd The new interactive web portal is con Commission in his address argued for AJuly 2011 in Baghdad which brought sidered as a central inventory of all the Iraq’s government to embrace a modern together representatives of the Iraqi country’s hydrological data that can be ized and collaborative system for the Government, academia and the interna used by experts to collect, update and management of groundwater resources, tional community, a new National analyze information on groundwater on to engage the international community Hydrogeological Resources Assessment a continual basis. At the moment, and in and to finance joint projects that address Network and Database for Iraq known as contrary to the well analyzed water situ priority issues such as water. geoFIA, was launched recently. Iraq’s ation of the Rivers Euphrates and Tigris From the goeFIA User Guide: government thereby confirmed its com (Iraq’s primary water sources), knowl mitment to counteract the ongoing water edge of groundwater is understood to be crisis in the country, acknowledging the too incomplete, outdated and too frag importance of a stable and safe supply mented to provide a basis for strategic of groundwater and aiming at a general water planning. ly more sustainable use of the country’s resources. The event was co hosted by The recently held gathering in Baghdad the Advisory Commission of Iraqi Prime actually marked the completion of the Minister H.E. Nouri al Maliki and the first phase of the nationwide initiative United Nations Educational, Scientific (launched by the UNESCO in 2010), and Cultural Organization (UNESCO), whose funding was provided by the the latter also leading this multi million European Union (675,000 USD), at the dollar initiative with the aim to reduce same time ushering in the two year uncertainties regarding Iraq’s groundwa phase two of the project intending to pin ter resources and to underpin more point and map exactly Iraq’s groundwa effective water planning by the Iraqi ter locations. Mr. Thamer Al Ghadhban, government. Chairman of the Prime Minister Advisory
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 7 Agricultural sector in Iraq
continued from page 6 So far, 28 oases have been completed in Iraq and the certainly be a positive step towards ministry has a further plan to self sufficiency for the Iraqi agricultural plant some 20 million trees in sector. a bid to combat the growing desertification issue. Experts The Ministry of Agriculture in Iraq is are blaming the drastically certainly trying to respond to the agricul diminishing water levels as tural sector crisis. For example, work neighbouring countries take has begun on a way to deal with the more and more water. From increasing desertification in the country: 2000 2011, the water flow green oases are being created in vari speed of the Euphrates, for Wheat harvest in Northern Iraq ous parts of the country, each planted example, dropped from 950 with palm trees. The oases will then be cubic metres per second (m3/s) to just then the agricultural sector will not only cultivated for agricultural use and irrigat 230 m3/s. While individual suggestions continue its current decline, but the ed using wells. The total implementation may play a role in helping the Iraqi agri social problems already mentioned cost of the project is said to be as much cultural sector to recover, the real chal could worsen, and oil revenues could be as USD 4m. The Ministry of Agriculture lenges which Iraq must overcome are indirectly hindered. is in fact currently working on seven more wide reaching. large oases, each spanning an area of Fresh thinking, new schemes, and 50 200 hectares. Five are to be located Unemployment, poverty and social increased investment are needed to in Iraq’s largest province, Anbar; unrest must be effectively countered to boost this faltering sector, and a real Nineveh and Basra will each be allocat aid the country’s recovery, and the long term sustainable economic strate ed one oasis. This creative solution boosting of the agricultural sector could gy must be put into place, a strategy that comes in the face of Iraq’s once produc assist this. If the Government of Iraq includes the agricultural sector as a key tive farmland becoming more arid; min becomes too complacent and continues part of the country’s economic cross istry estimates fear that 40 50% of land to rely only on petro dollars and oil rev section and that allocates an appropri which was usable in the 1970s is now enues without paying due attention to ate level of funds to stimulate growth simply desert wasteland. fund allocation in the agricultural sector, and job creation.
Trade between the Federal Republic of Germany and the Republic of Iraq January - May 2011
January February March April May Export Import Export Import Export Import Export Import Export Import in thousand € in thousand € in thousand € in thousand € in thousand € Agricultural products and hunt 19 5 23 98 99 Petroleum and natural gas 46868 Stone and earth industry, mining sector 0 0 0 Food and foodstuffs 622 79 711 477 405 424 Beverages 44 12 72 86 47 Tobacco products 1573 3314 3233 1344 3205 Textiles 32 22 219 112 229 Clothing 152 173 0 226 0 349 0 290 Leather and leather goods 27 11 35 9 18 40 Wood and wood- cork- and wickerwork 28 56 6 9 36 Paper and card products 18 37 20 27 136 Coke products and petroleum products 486 15 102 330 579 402 242 Chemical products 1534 2334 2301 0 1121 1576 1 Pharmaceutical products 714 0 1266 0 2921 0 4202 0 3030 0 Rubber and plastic goods 582 830 1007 1003 992 Glas and ceramic goods, stones and soil 202 845 2295 849 479 Metal 2673 1863 707 1284 2459 Metal goods 948 1262 2615 770 1038 Data processing equipment 3728 1 3672 1 4331 1 4957 0 4254 2 Electric equipment 4349 4 5402 14431 2979 4638 Machines 16174 13037 26961 6643 0 17502 Motor vehicles and vehicle components 6783 4470 3704 5316 25 11353 25 Further vehicles 14 138 8 4 6221 Furniture 186 80 80 77 27 Other goods 49164 193 19283 879 42414 594 15367 245 31500 100 Total 90052 303 58949 880 108390 1174 47422 270 89817 46996 Source: Federal Statistical Office of Germany
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 8 Iraq faces electricity solutions / Young Diplomats from Iraq visited NUMOV Iraq faces electricity solutions
by Sophie Awreja Vender
lthough some progress has already connecting grid is currently getting opti ty plants will mostly be gas powered, in Abeen achieved, Iraq is still facing mized to reach a capacity of 1,250 order to operate self sufficiently due to electricity shortages throughout the megawatts next summer. Especially the the countries own gas resources. The country. Between 1979 and 1990 Iraq city of Baghdad is struggling with limited regional government of Baghdad stated reached a living standard on a par with power supply, which as its peak amounts that the problem of energy shortages will the European level because of the oil to just four hours of electricity per day. be sorted out within the next four years. boom, before the country was heavily Therefore it is planned to auction the destroyed during the first Gulf war in Economic experts mention, however, licences for the construction of future 1991. Swathes of the country’s infra that the power plants are not the prima power plants. Several auctions for pro structure were razed to the ground; ry challenge. More urgent is the replace jects in southern Iraq are to be held soon especially the electricity sector was ment and adjustment of the transmission in order to find the best provider for gravely affected. The post war econom lines and the power transformation sub cooperation. The current projects are ic sanctions cut off the supply of needed stations which are simply suffering from scheduled on long and mid term basis. spare parts, machine care and foreign wear out failure. International organisa investments. After the regime of Saddam tions calculated that the expansion of the The county’s biggest plant, built by the Hussein was overturned the situation in power network over and above a tech Turkish company Calik Enerji, is current the electricity sector did not improve as nological obsolescence will need an ly under construction and is expected to fast as expected. Still, government investment of USD 35bn over a period have a capacity of 1250 megawatts. For officials are quite confident of solving the of ten years. rapid results the government decided to current deficits in energy supply by buy 50 so called mini plants from a 2014. Over the last few years, the US govern South Korean company with a capacity ment has supported the development in of 100 megawatts each. The American The generating plants are currently the Iraqi electricity sector with USD company Caterpillar also presented dif unable to meet more than 40% of 7.4bn. The government of Iraq in coop ferent mini plant portfolios but could not demand, which is up to 14,000 eration with other donor countries invest beat the low cost competitors from South megawatt in summer. The Iraqi power ed another USD 10bn still, the progress Korea. In the Region of Kurdistan a new plants deliver up to 7,500 megawatts, has remained less than expected. gas power plant will be connected to grid another 700 are imported from Iran and in July 2011 as well as two hydroelectric Turkey. Lately a new contract was However the Iraqi government has to power plants at the dams of Dukan and signed in order to increase the electrici keep on track to meet the populations Derbandikhan. Together they will meet ty export from Iran to Iraq in 2012. The demand in the future. The new electrici one third of the region’s demands. Young Diplomats from Iraq visited NUMOV n Tuesday 31st The Executive Oof May, the Seminar for Diplo German Near and mats from Iraq is Middle East Asso designed for diplo ciation (NUMOV) mats in the early and the German years of their career. Orient Institute (DOI) The course aims to held a reception in equip young Iraqi Berlin for a group of diplomats for coop young Iraqi diplo eration with the mats. international com munity, thus con The group was tributing to the long Participants of the young Iraqi diplomats in front of the NUMOV office headed by H.E. Dr. term stabilization of Peter Schmidt, former German As a partner for German foreign policy, Iraq. Participants have the opportunity to Ambassador in Tunis, Tunisia, and Iraq’s integration into the international make professional contacts, acquire Programme Director of the International community and thus the strengthening important background knowledge and Training for Diplomats from Bosnia and of its diplomatic service is a mutually improve their diplomatic and manage Herzegovina. vital development. ment skills.
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 9 Major Hotel Brands to Open Hotels in Iraq’s Northern Provinces by 2014 Major Hotel Brands to Open Hotels in Iraq’s Northern Provinces by 2014 by Matthias Canzler raq has enjoyed substan try, particularly in Baghdad. Itial economic development The main focus of the in recent years, especially recently announced propos driven by improvements in al is on archaeological its security situation. Insofar, and eco tourism, which is the country already provides expected to increase tourist multiple business opportuni numbers. According to the ties which are most likely to Investment Board of further develop over the the Kurdistan Regional coming years. Especially, Government 46 projects the region of Kurdistan have been licensed in the demonstrated increasing entire Iraqi tourism sector stability, as well as political between 1st August 2010 and social development, and 31st July 2011, while 27 providing the basis for major of them have been set up in construction and infrastruc Marriott International hotel project in Erbil the Kurdistan region. As a ture projects, including a new interna Kurdistan Region recently announced result of Kurdistan’s long history, the tional airport in Erbil. Since 2003, more plans to build about 2,500 new hotels by region offers several possibilities to visit than 11,000 local and international com 2015 as tourism numbers are expected museums, statues and historical sights, panies have invested about USD 17bn to grow further. Up to date, about USD especially in Erbil and Suleimaniah. in northern Iraq. 388m have already been spent on the Besides cultural tourism, Kurdistan is renovation of existing and the initiation able to attract international and regional Recently, major international hotel of new projects in the sector. visitors with its fascinating landscape. brands announced plans to open their One project in this area is the Safeen first hotels in the region of Kurdistan, Up to now, mostly international business Master Plan, located at Mount Safeen which reflects the ongoing stabilisation people have visited the region to explore 50km from Erbil, which includes several and economic development of the business opportunities in Iraq’s oil rich hotels and outdoor activities. region. Best Western will start building region. Insofar, prospects for the lately its first hotel close to the recently built planned hotels are quite positive, since The regional government is therefore new international airport in September the political situation is expected to fur keen to balance tourism projects and tra 2011. The Best Western Premier is ther improve over the coming years. ditional agriculture which is still strong in scheduled to open in early 2014 and will Additionally, the Ministry of Tourism of the region. provide 160 rooms for business people the Republic of Iraq, recently announced as well as tourists. plans to expand Iraq’s tourism sector, In the context of the efforts to increase which is currently dominated by religious tourism numbers in northern Iraq, the Additionally, Marriott International tourism. national airline of the United Arab agreed on a joint venture with Empire Emirates, Etihad, recently released Iraq to run two upscale Marriott Hotels The number of tourists who visited plans to increase its number of flights in Erbil, which are also planned to open Kurdistan steeply increased in the peri from Abu Dhabi to Erbil from two to four in 2014. It will provide residence for od from 2007 to 2010. Within this con services per week. Other airlines are domestic and international guests with text, further travel agencies have been also increasing or plan to increase their about 200 rooms. These hotel projects established, focusing on pilgrims as well numbers of flights to Iraq. will be part of larger real estate project as tourists interested in any kind of in the Kurdistan region worth about adventure, or visiting historical sights. Further infrastructure improvements in USD 1bn. Beside major hotel projects which are to Iraq’s northern provinces as well as be realised, especially the retail sector ongoing stabilisation will build a sustain Furthermore, Intercontinental Hotels will benefit from additional international able basis for additional foreign and Group also announced its plans to start visitors. domestic investments, and are likely to research in northern Iraq in order to contribute to increasing tourism numbers evaluate business opportunities. The Thus, the Ministry of Trade of the in Iraq. Although property prices have Rotana Group, which is based in Dubai, Republic of Iraq has invited tenders for substantially increased within the last has already opened a hotel in Erbil. All the renovation and new construction of few years, there are currently no signs in all, the Tourism Ministery of the several shopping malls all over the coun of a bubble in the sector.
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 10 Iraq’s massive economic potential for Germany continued from page 1 H.E. Dr. Hussain M. F. in Iraq. The crux of Germany’s Alkhateeb as part of efforts has been to support Germany’s efforts to imple Iraq’s efforts to install a sys ment the EU led import ban tem based on the rule of law on Iraq cultural assets. The within the country. Through meeting saw H.E. Dr. Guido financial support, the can Westerwelle officially return celling of debts, and coopera an ancient gold artefact to Iraq tion in the form of projects dating back to the third millen and vocational training, and nium BC. Three Babylonian humanitarian aid, Germany cuneiform tablets were also hopes to help Iraq succeed in returned to Iraq this May. its democratic efforts to recon cile its society. The official state visit by H.E. Al Shahristani is the latest f.l.t.r.: H.E. Dr. Hussain M. F. Alkhateeb, Ambassador of the Republic of Iraq to Germany; Iraqi German relations have in a series of bilateral H.E. Hussain Al-Shahristani, Deputy Prime Minister for Energy of the Republic of Iraq; certainly reached new heights exchanges between Iraq and H.E. Dr. Guido Westerwelle, German Federal Foreign Minister since the formation of the new Germany, following on from German Zebari met with H.E. Dr. Guido government in Iraq in 2010. A string of Federal Foreign Minister H.E. Dr. Guido Westerwelle and issues such as eco official visits, which included open and Westerwelle’s visit to Iraq in December nomic and cultural bilateral relations, beneficial bilateral dialogues, as well as 2010. H.E. Dr. Guido Westerwelle visit and Iraq’s efforts to move towards a financial support and rebuilding projects ed shortly after the formation of the new democratic future were discussed. Both have helped form a solid basis for mutu government in Iraq and extended an parties expressed the desire for further ally beneficial economic relations. offer of close political and economic economic cooperation and reflected on However, many challenges remain to be cooperation. The goals outlined for the the some milestones visit were: to send a “signal of support” already achieved, such to Iraq for the continuation of the demo as the implementation of cratic process and use the economic a new constitution in Iraq opportunities Iraq offers German busi and the promising Iraqi nesses, while at the same time support German trade figures. ing Iraq in its own development. H.E. Dr. Guido Westerwelle’s visit not only These state visits and marked the first official visit to Iraq by a bilateral dialogues are German official since the March 2010 paving the way for ensur local elections, but also highlighted ing a secure future for Germany’s commitment to meaningful Iraqi German economic cooperation with Iraq. ties and this is reflected H.E. Dr. Hussain M. F. Alkhateeb, Ambassador of the Republic of Iraq to Germany particularly well in the and H.E. Hussain Al-Shahristani, Deputy Prime Minister for Energy of the After having received H.E. Dr. Guido trade figures: in 2010, Republic of Iraq Westerwelle during his 2010 visit to Iraq, German exports to Iraq rose by 59% overcome, such as political stability, and H.E. Hoshyar Zebari, Iraqi Foreign amounting to a total of EUR 926m; total much needed investment to rebuild Iraqi Minister, repaid the visit in May of this Iraqi exports to Germany almost doubled infrastructure. Despite these challenges year by completing a state visit to from EUR 86m to EUR 160m. German Iraq is confronted with, there are many Germany. During his visit, H.E. Hoshyar exports to Iraq have already surpassed promising signs of a country beginning the landmark EUR a new chapter, and the bilateral relations 1bn mark in 2011. with Germany provides an excellent The figures illustrate example of this. Germany must the massive econom continue to support Iraq in its mission to ic potential Iraq rep rebuild the country and the government’s resents for Germany, efforts to continue the democratic and the crucial role process. Encouraging German busi German businesses nesses and investors to become more could play in rebuild involved in Iraq must also been seen as ing Iraq. a priority, not only to support the local economy, but to boost German business Since 2003, Germany presence in Iraq and help them capi has supported the talise on the massive economic oppor Round Table at the Embassy with the guest of honour H.E. Hussain Al-Shahristani, reforms taking place tunity on offer. Deputy Prime Minister for Energy of the Republic of Iraq
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 11 Iraq about to boost crude oil production Iraq about to boost crude oil production
by Ivo Lisitzki
t present, Iraqi crude oil production But the increase strategy does not rated the country highly concerning oil. Ais showing a significant rise. In June only concern Iraq’s oil exports. The Iraq is strengthening its position among 2011, the oil export amounted to 68,2m Conference also provides boosting its the leading OPEC states based on its bpd at a price of USD 105.176 per bar revenues, because the objective sought high reserves in combination with the rel. Iraq is cooperating in a network with of producing 12 million barrels of crude increasing production and new expan 28 international oil companies. oil per day does not necessarily mean sion projects. that Iraq will produce such a large quan After a decade of an average level pro tity of crude oil. The enhanced level of A further step are the currently ongoing duction, the development was inter quantities in crude oil production con negotiations with Iraq’s neighbouring rupted in 2003, which is strongly recov tains the possibility to continually change countries Syria and Iran about a cooper ering in the last years. As one of the the highest level of revenues, due to ation in order to build further pipelines world’s richest countries with regards to market changes during the forthcoming which will deliver Iranian gas to Europe. oil reserves, the Iraqi government is years. The three lateral pipeline will be con planning big steps for the future. structed in the next 3 5 years and will be One of the international companies that able to transfer 110m cubic meters per H.E. Hussain Al Shahristani, Deputy signed a contract with the Iraqi govern day to meet Europe’s demands. Prime Minister for Energy of the ment started its work in July 2011. The Republic of Iraq, published as part of the China National Petroleum Corp operat Economical cooperation with its sur 3rd Iraqi Ambassadors Conference, held ing at Al Ahdab oil field reached a pro rounding countries is strengthening in Baghdad, that the Republic of Iraq is duction of 60,000 bpd this month and will Iraq’s rise up throughout the region and planning to produce 12 million barrels of increase up to 120,000 bpd by the end guarantees stability that will continuous crude oil per day by the year 2017. He of the year. Other international compa ly attract foreign investors. also mentioned that contracts with three nies will also intensify their cooperation leading international oil and energy com in the coming months. In the last month If the progressive development contin panies have already been signed. The the developments of Iraq were one of ues, Iraq will be able to upgrade its posi contracts are for the development of the major topics at a gathering of OPEC tion as the no. 3 oil exporter in the world Iraq’s northern, southern and central oil leaders in Vienna and an oil industry and will play a major role in the world’s fields. meeting in London, where observers increasing energy demand.
Oil Production in Thousand barrels per day 2000 - 2010
Change 2010 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010 share over 2009 of total
Iran 3855 3892 3709 4183 4248 4234 4289 4322 4327 4199 4245 0.9% 5.2%
Iraq 2614 2523 2116 1344 2030 1833 1999 2143 2428 2442 2460 0.6% 3.1%
Kuwait 2206 2148 1995 2329 2475 2618 2690 2636 2782 2489 2508 0.6% 3.1%
Oman 959 960 904 824 786 778 742 715 754 813 865 5.9% 1.0%
Qatar 757 754 764 879 992 1028 1110 1197 1378 1345 1569 13.5% 1.7%
Saudi 9491 9209 8928 10164 10638 11114 10853 10449 10846 9893 10007 0.7% 12.0% Arabia
Syria 548 581 548 527 495 450 435 415 398 375 385 2.7% 0.5%
United Arab 2620 2551 2390 2695 2847 2983 3149 3053 3088 2750 2849 3.5% 3.3% Emirates
Yemen 450 455 457 448 420 416 380 345 304 287 264 -0.79% 0.3%
Other 48 47 48 48 48 34 32 35 33 37 38 0.6% Middle East
Source: BP Statistical Renew of World Energy June 2011
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 12
Education in Iraq – Precondition and Opportunity Education in Iraq – Precondition and Opportunity by Tutku Güleryüz
n the middle of the 20th century, Iraq stone of rebuilding the country. The edu planning to build a training centre in Iwas a role model concerning education cational system has to be improved, Baghdad; Siemens and ThyssenKrupp, for the whole region. Other countries starting with poor school conditions, lack educating railway workers, additionally were geared to the Iraqi educational sys of teachers and teacher training. A good the Ministry of Health in Iraq has tem, and Iraqi teachers and educational education system is indispensable for commissioned Siemens Healthcare to scientists were sought after in neigh regenerating the Iraqi economy and the equip about 100 hospitals with modern bouring countries. Today Iraq depends country’s rehabilitation. imaging systems (the recently signed on a lot of help and support of foreign contract has a volume of EUR 50m); countries in order to recover from war For this reason, The European Union German Railway (Deutsche Bahn), damage and restore its education and the Government of Iraq launched a advising the structural change of the system to its former level. programme to improve the future of rail transport; and AGEF (Working Group young Iraqis. Implemented over 3 years, of Experts on migration and develop The present educational system of Iraq the programme will ameliorate education ment cooperation), training car mechan is based on the British school system. standards in 1,700 schools through ics, electricians, judges and administra After the 1958 revolution and due to ris improved teacher training. This will: ben tive staff. Especially in the engineering ing oil revenues which followed, the efit about 800,000 pupils in 10 Iraqi sciences German teaching is highly country experienced great economic and provinces directly; work with Iraqi busi demanded. social changes, also in the development nesses to improve the curriculum in 160 of education. Modern universities were Iraqi vocational colleges; help 130,000 A German primary school has opened in first established in the late 1950s and a young people acquire the skills they 2010 in Erbil and offers besides the lot more during the 1960s. The Iraqi con need for the labour market and secure German school system, the German stitution in 1970 guaranteed a right to a jobs; and improve the quality of sport language and the reference to the free education at all levels to all citizens, and physical education in schools. It European culture. Arabs and foreigners. By means of the forms a part of a wider EUR 21m EU campaign against illiteracy, which was funded package of support for education Additionally, the school has its own launched in the late 1970s and ended in in Iraq. Kindergarten and a pre school class. the 1980s, the country was virtually free The school’s long term aim is to offer all from illiteracy in 1985. Gender equality Germany is engaging in the important German graduations in this school on also existed and during this period, field of teacher training. Inwent / GIZ, the Iraqi ground. Following this example, Iraq’s educational system was consid training subsidiary of the Federal another German school is to be estab ered one of the best in the Middle East; Ministry for Economic Cooperation and lished in Baghdad. The idea is from a Iraq was a leading country in the region, Development, started in 2005, to train German Iraqi businessman who wants concerning economic, social and educa heads of Iraqi schools and vocational to educate his own son as well in that tional terms. education planners in ministries in school. Interested families applied Egypt, Jordan and Germany. It is about already for the German school, which Following the two wars in the 1980s and nothing less than the restructuring of the also includes a Kindergarten and shall 1990, Iraq suffered from a drastic eco system of vocational education in itself. be a part of the “German House nomic decline. Since the education fund Effective and highly estimated options in Baghdad”. With a graduation from the ing was cut in the 1990s, school atten doing this are training programmes of German schools, the pupils should be dance also decreased drastically. the German dual system. They provide able to study and to pursue a career in Especially displaced populations, people the trainees the opportunity to work in an Germany. in rural areas and women and girls, per establishment and to learn at the same ceived these changes. time, so that it is easier for them to start In the academic field, the Technical working life. The German Federal University Dortmund provides, together In 2003, illiteracy rates increased to Government has granted Iraq since with three other German universities (TU 60%. Not only the changes for educa 2003 salvages amounting to approxi Berlin, FAU Nuremberg Erlangen, TU tion, but also the security situation and mately EUR 400m. Hereof numerous Bergakademie Freiberg), development the economic slowdown, following from projects in trainings and advanced train aids with the aim of establishing a lower education budgets in Iraq, were ings were supported, including for judi German Iraqi University in Iraq. There is reasons for this. In 2009, nearly one ciary, building democratic institutions even an own Bachelor programme of quarter of Iraqi adults could not read or and human rights. Urban and Regional Planning which is write. The country needed and needs to important for the rebuilding of the war be rehabilitated and developed once Currently, in Iraq, cooperating German ravaged country. In the beginning, the again. Education is a central corner companies are amongst others Daimler, continued on page 15
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 14 continued from page 14 neers in Iraq, particularly in the southern centre and to develop an IT curriculum. students will study in Germany. region of the country. In addition, the The oil sector is playing a key role, also Additionally, a German Iraqi exchange German Academic Exchange Service regarding education. As mentioned, the programme “Iraq Horizons 2015: Sow (DAAD) has signed a Memorandum of sector is in strong need of well trained today, harvest tomorrow” provides young Understanding (MoU), in cooperation engineers. The oil reserves are estimat Iraqis an opportunity to participate in a with several Iraqi universities. The pro ed at 115 billion barrels. In 2010, oil pro 6 week traineeship at a German compa gramme is labelled "Higher Education duction amounted to an estimated 1.9 ny. The Iraq Horizons Project targets Partnerships with Iraq". million bpd. The Iraqi Oil Ministry has highly qualified Iraqi university graduates stated that the revenue of oil sales in with degrees in areas that are important The Baghdad Erbil Erlangen Project 2009 was USD 41bn. Thereby the oil for the economy. (BEEP) is an initiative from the Friedrich sector accounts for 85% of the state rev Alexander University in Erlangen enue and over 60% of the GDP. It is At best, participants will be able to Nuremberg, also sponsored by the expected that in the coming years the oil demonstrate professional experience in DAAD, with the purpose to promote the production could be further increased, fields such as oil and gas, energy sup intensive, long term cooperative partner because the Iraqi oil sector has been ply, civil engineering, wastewater engi ship between the University of Erlangen opened for foreign corporations. neering, medical engineering, informa Nuremberg and the universities of tion and communication technology, Baghdad, Mustansiriya (Baghdad) and An important precondition for further security, financing or banking. This is Salahaddin (Erbil). development is professional staff, and welcomed by the Iraqis because of their Iraq has one of the biggest latent human appreciation of the German work ethics The project of the Technical University capitals in the region. But – investment and abilities in engineering. of Berlin in cooperation with several Iraqi in the educational infrastructure such as universities is to collect and evaluate schools and universities is strongly The College of Engineering at the information on the state of IT training at needed, and expected to come, to help University of Basra is also focusing on Iraqi universities, to train technical per Iraq recover its reputation from past increasing the number of qualified engi sonnel for the operation of a computer years.
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 15 Najaf Commercial Arbitration Center opened Najaf Commercial Arbitration Center opened by Tutku Güleryüz
he first Centre for International TCommercial Arbitration in Iraq opened in Najaf 12th March 2011 to pro vide support to local and international judiciary in solving disputes concerning trade and investment contracts through arbitration between companies.
The International Commercial Arbitration Centre Najaf (ICACN) is under the Najaf Chamber of Commerce and has got the support of other international arbitration centres. It took 5 years of work by lead ers of the business and legal community of Najaf to sign the Memorandum of Understanding (MoU) with the French Federation of International Arbitration. Opening ceremony of the Najaf Commercial Arbitration Center
The Centre strives to clarify conflicts centres and obtaining financial General Secretariat of the centre. It is arising from national and international losses completely independent from the Najaf trade and investment contracts including Chamber and is specialised in the man the reduction of the resulting costs for • to develop legislation and arbitra agement of the arbitration process, Iraqi companies and affected people, tion rules that govern and regulate beginning with receiving the arbitration who would otherwise approach foreign commercial and investment con requests from companies and individu arbitration centres. Concerning this mat tracts in Iraq als up to taking necessary arbitration ter efforts also would be lessened and actions concerning time and place procedures to resolve disputes would • to publish a periodic journal, that is according to the will of the parties of the not take as much time anymore. specialized in international com dispute. mercial arbitration Furthermore, the progress of the Iraqi The rules of international commercial justice system is supported and devel The Centre can provide consultancy in arbitration guarantee integrity, trans oped by the arbitration centre and future several fields with their experts in law, parency and justice to the parties of the global investments and commercial engineering, construction and business conflict. Under these rules, ICACN is affairs also benefit from it, because and feasibility studies for the establish working in addition to regard domestic before the centre was established, con ment of projects and investments. Their legislation and laws in Iraq and Arab tractual security was not assured and Board of Trustees has a specific author countries. Besides this, the Centre can laws were not sufficient enough to pro ity which is defined under the basic code open doors for future global investments mote international trade and invest of the centre and consists of a president and commercial affairs, so that Iraqi ments. Hence, the Centre builds founda and 6 members who are elected by the commercial foundations could be equal tions for the progress of Iraqi commerce, General Workforce for 4 years. The to similar global ones. Also for this rea economy and judiciary. General Workforce consists of associate son Iraqi engineers, technicians and members according to regulations that jurists were sent for training on the com Intended goals are: control their roles. mercial arbitration outside Iraq.
• to be an innovator in the section of The Arbitration Board is composed of 1 The Director of Najaf Chamber of international arbitration in and out chairperson and 4 selected and experi Commerce, Zuhair Mohammed Rudha side Iraq, through cooperation and enced members, known for their integri Sharba, said that it is very important to coordination with international ty and justice and are elected for 2 years have an arbitration centre for the vast arbitration centres (renewable once) from the list of arbitra commercial and economic development tors of international subsidiaries. The in Iraq and that matters that will cause • to attract businesspersons and already mentioned experts and consul disputes should be settled as fast as companies to solve their conflicts tants in several fields form the Expert possible. He added that the opening of at the Najaf arbitration centre, Comittee. The executive management of such a centre will encourage invest instead of contacting foreign the centre is represented by The ments in Iraq.
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 16 Rapid developments for Iraqi financial sector Rapid developments for Iraqi financial sector by Tom Wells he Iraq Stock hensive plan to the TExchange (ISX) has Council of Represen developed at a swift tatives for approval. A pace since its establish short term solution ment in 2004 and con which may be pursued tinues to do so. In 2004, by the bank is to issue there were just 15 com banknotes of a larger panies listed on the ISX denomination, as cur and trading only took rently the 25,000 Dinar place three days a banknote is the highest week, today, however, denomination available. the number of registered This would simplify companies is up to 85 major transactions, as and the ISX opens five many Iraqis commonly Source: Rabee Securities Brokerage days a week. Average deal in cash and it is daily trade is up to very impractical to carry around USD 3m com large amounts of cash pared to a USD 1m daily for major purchases. average for 2010; the This inconvenience peak number of foreign even leads some Iraqis buys on the ISX was to deal in US Dollars for reached in April this year major transactions, at USD 22m. Now, the something the govern ISX is set to witness ment is keen to put an another first, namely the end to. Longer term, merger of two private experts believe a rede banks. Mosul Bank for nomination is required, Development & Invest Source: ISX Annual Report 2010 for example dropping ment and Union Bank of Iraq have, dur Currently, 15 of 21 listed private banks the last three zeros off current values i.e. ing a general assembly meeting held on in Iraq fall short of the ID 100bn cut off ID 25,000 would become simply ID 25. 25th May 2011, agreed on a merger point thereby prohibiting them from which will see the two entities become trading on the ISX. Many see this change as imminent as one. The merger does, however, await the Iraqi economy is predicted to expand the approval of the Central Bank of Iraq However, if more banks pursue mergers rapidly of the coming years, mainly due and the Companies Registrar before it is similar to this, more private banks will be to increases in oil production. If such a allowed to proceed. This process could able to meet the ID 100bn requirement reform were to be implemented it could take some time as it is a first for the ISX and feature on the ISX; this could signif also make government accounting more and very new for all involved, but if icantly increase the total trade volume efficient. authorised, it could mark a significant on the ISX. Following the example of step forward for the ISX. The combined Mosul Bank and Union Bank, Ashur The signs that the Iraqi financial sector equity the new entity will have is estimat Bank has also recently announced its is beginning to move in the right direc ed at ID 135bn (USD 115.8m). desire to participate in the merger with tion are certainly growing, but, as ever, the two banks. This would make it a many challenges remain. Macroeco This figure is extremely significant as the three way merger and put the total com nomic stability must be a priority if Iraq Central Bank of Iraq, as of June this bined capitalisation of the three banks at is to build a solid basis for future eco year, has increased the minimum equity ID 140bn (USD 120m). Another respon nomic growth, and a currency reform required to be featured on the ISX to ID sibility of the Central Bank of Iraq is could contribute towards this, in part by 100bn. If this merger does indeed pro currency management. Currently, the simplifying and better facilitating large ceed smoothly, then it will see the new Dinar poses some difficulties for the bank transactions and improving govern bank, to be named Bank of Mosul, fea financial sector as large transactions are ment accounting. The consolidation of ture on the ISX, and pave the way for inefficient. private banks in order to gain entry to the more mergers of this kind. The banking ISX could also increase total ISX trade sector accounts for around 80% of trade Accordingly the Central Bank of Iraq is volume, and the Mosul Bank merger will volumes on the ISX, thus the signifi considering reforming and restructuring be a key indicator as to whether more cance of the merger is clear to see. the Dinar, but is yet to submit a compre banks pursue this option.
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 17 Augmenting investments to make Basra province more stable Augmenting investments to make Basra province more stable by Benedikt van den Woldenberg he south Iraqi province of Basra has comprising about 100,000 living units Texperienced a vastly growing econo are to be built and the decision of anoth my. There are, however, several key er 100,000 is planned. However, more challenges to be met within the next investment is needed to rebuild Iraq years which will play a defining role in its completely. In addition, the plan is to stability and both the political and eco diversify economy by fostering the coop nomic situation. eration between public and private sec tors. Above all, economic experts and The first and foremost is of the develop German diplomats stated that ongoing ment of the oil and gas sector and direct New oil pier under construction at Basra port investments in the province will be ly linked to it the modernisation of the power plant with a capacity of 500 MW beneficial for its stability. Experiences required infrastructure as a second will be built. The water infrastructure from the Kurdistan region proove this point. The region hosts about 40% of needs, however, further investment and relation and emphasise its call for an Iraq’s oil, enormous gas fields and is renovation in order to meet the needs of augmentation of investment in Iraq’s Iraq’s gateway to the Gulf and further to Iraq’s second largest city. second largest city and its hinterland. the world as all of Iraq’s ports are locat The challenges presented above are ed in Basra province. Since licensing for Thirdly, housing has become another indirectly or directly influential to the the Iraqi oil and gas fields was strength major challenge to both Iraq in general political stability and security. Moreover, ened during the past years and the oil and the Basra province. Overall, there security and stability in Iraq’s second and gas production and its export is the are more than 400,000 apartments largest city would have a positive influ main pillar of Iraqi economy, the impor needed in Iraq, over 20,000 of them in ence on the situation in all of Iraq. tance of Basra province and its ports Basra. This demand corresponds partic Investments into the province are need rose as it is both the main export and ularly to low income housing. The gov ed and desired. import gateway. The rebuilding of this ernment has, however, already called for sector has almost led to a return to pre tenders for the building of one million BASRA GOVERNORATE war oil production level and is very apartments in order to meet the require promising as in terms of the gas produc ments. Several foreign companies BASRA tion, new projects were announced. already considered investing into Basra’s housing and additional tourist Therefore the Basra ports are handling projects. Some of these projects are an increasing number of ships and is to already under construction. Meeting the be expanded and modernised under the demand for living space is also a crucial project name “Grand Faw Port” while the point in order to overcome the chal port at Umm Qasr is also subject to lenges for Basra. Across the board, Education upgrading. Included within these pro Iraq’s economy has witnessed robust jects there will be a new container termi growth during the past years. This is nal which will be able to handle “post mainly due to the increase of stability in Panamax” vessels and a new bulk liquid the country. The country has to date chemical port in order to enhance the attracted USD 45.6bn of foreign invest Health capacities facilitated to transport petro ment this year. This figure is already leum products by sea. Furthermore, a USD 3bn above the investment of the new oil pier is already under construc whole year 2010. Albeit much of the pro tion. Improvements of existing infrastruc jects are being financed by regional Infrastructure ture and the building of new one are the countries; international investment is a second aspect. This is, as mentioned major key to the improvement of Iraqi before, directly linked to the first one of economy and the life conditions for its the development of the oil and gas sec citizens. Therefore, the main branches tor. The Basra airport, for instance, is where investment is attracted are the facing a major expansion and a renova housing sector, infrastructure, services, tion and is about to be integrated inter telecommunications and cement supply. nationally. In addition, railways and high Particularly the housing projects are ways are being modernised and a new attended by the government: a deal
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 18 Iraq to hold 4th energy bid round raq qualified 41 companies for the 4th tender protocol. The auction has already firms which are already actively engaged Ienergy auction. This round was been delayed due to company docu in the Kurdistan region are not allowed announced to take place in late January mentation related matters. Furthermore, to participate. 2012. Content of the bid round will be there is a yet unsolved controversy 12 new exploration blocs, which are whether a new hydrocarbon law needs The 4th bid round of licences will include expected to contain 29 trillion cubic feet to be implemented before the auction. the provinces of Najaf, Karbala, of gas and 10bn barrels of oil. On 11th Among the firms that qualified are glob Samawa, Diwaniya and Anbar, which September this year the qualified com al players such as BP, Exxon Mobil and were not included in the previous rounds. panies will be invited to Amman and on ENI but as well state run companies like Last year, three natural gas fields in the following day they will receive a Turkish Petroleum Corporation and the Anbar, Siba and Basra were subject to package of data including the initial Indian Oil & Natural Gas Corp. However, the 3rd energy bid round since 2003.
3rd energy bid round on 20th October 2010 in Baghdad
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 19
Iraq imposes Certificate of Conformity for importers Iraq imposes Certificate of Conformity for importers by Jakob Pupke raq has taken a huge step towards use such as cosmetics, toys, electrical tem has to be modernized and updated. Ialigning its market laws with interna appliances and textiles. For instance, Furthermore, the boarder police need tional standards: On the 17th July 2011 the Iraqi government wants to prevent better training and more manpower to a requirement of a Certificate of expired food from finding its way onto suppress the smuggling which will Conformity (CoC) came into effect. This the market, a problem that has led to dis inevitably come along with the new reg certificate has to be yielded by the content and frustration among Iraqi citi ulation. To receive a CoC for a product, importer. It shall guarantee that the zens in the past. Moreover the CoC has importers must turn to an accredited cer imported good complies with certain been implemented in order to enhance tification company, such as Bureau quality standards including safety regu the local economy’s competitive posi Veritas and SGS in Germany. These lations, quality criteria or ingredients of tion. Many producers of, for example, companies check the compliance of a foodstuff. By implementing it, Iraq is try vegetable oil, tires and fabrics, have product with the respective standard that ing to tackle a serious problem with its been suffering from unregulated import. is required for its import to Iraq. The consumer markets which have been costs of the procedure depend on the flooded by products of poor quality since Certainly, importers have to adjust to the value of goods. Every single delivery the beginning of the Iraq war in 2003. In chances resulting from the requirement with its own bill and freight documents the aftermath of the invasion and the of the CoC. However, for German com needs approval by a certification compa collapse of the economy, Iraq’s desper panies, the procedure that has to be ny. The CoC will cover 89 categories of ate need for consumer products of all gone through and the proofs that are to products. A list can be viewed on the kinds has been taken advantage of. be provided are nothing new. The new webpage of SGS. In any case, experts Accordingly, the country had become a regulation is rather a means of combat assume that after a short period of time dumping ground for low quality products ing racketeers for whom the CoC is a consuming and expensive adaptation, from all over the world. This issue pre serious obstacle. However, there is still the CoC will bring great benefits to Iraq dominantly affected the ultimate con a lot to improve in order to provide ade as well as trustworthy importers, as sumer. That is why the new certificate quate conditions in which the CoC can shown by other countries of the region particularly concerns goods of everyday work properly. The customs’ computer sys that have already implemented it.
EXHIBITION STAND
at the international fair PROJECT IRAQ
4 th international trade exibition for construction, building materials, equipment & environmental technology from 19th - 22nd September 2011, in Erbil, Iraq
The IRAQI GERMAN BUSINESS DIALOGUE, under the umbrella of NUMOV, the German Near and Middle East Association, will be exhibiting at the international trade fair PROJECT IRAQ from 19th – 22nd September 2011 in Erbil, Iraq.
Our main aim is to promote economic relations between German and Iraqi companies and attending the fair and visiting the IRAQI GERMAN BUSINESS DIALOGUE exhibition stand will allow you or your company to gain an insight intohow we support and promote this, and also find out more about the potential of Iraqi-German business opportunities.
We look forward to welcoming you or your company at our exhibition stand and hope to see you at our exhibition stand.
Reply to the IRAQI GERMAN BUSINESS DIALOGUE: Fax: +49 (0)30 - 20 64 10-10 Email: [email protected] I/We will visit the IRAQI GERMAN BUSINESS DIALOGUE exhibition stand at PROJECT IRAQ, from 19th – 22nd September 2011 in Erbil, Iraq.
Name, Company, Address, Phone, Fax, Email,
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 21 News
USD 850m housing Sulaimaniyah needs 3 The ministry of agriculture announced, that Iraq probably will become a wheat projects for Karbala new hospitals exporter in 2015.
A lot of developers submitted their In Sulaimaniyah there is currently only expressions of interest. Finally, two one maternity hospital for approximately Increase of the invest- Turkish companies, a Chinese company 1 million people. During the first six ment budget and a Canadian company will realize the months of 2011 about 7,458 babies were housing projects for Karbala, which lies born, which equates to a baby every 35 Iraq aims to boost its investment budget 108 km south of the capital Baghdad. minutes. for 2012 to USD 51bn due to the fact The Karbala Investment Commission, that the planned investment budget can which carried the laying of the corner Actually, the hospital caters for 201 not cover the financing of already exis stone, announced that the USD 850m patients, but in fact this figure is exceed ting projects. The Finance Ministry has projects consist of 11,000 housing ed. The hospital is also concerned about made a submission to the cabinet, units and infrastructure requirements. the figures of miscarriages: 1,118 during because the increase of the investment Electricity, sewerage networks and hos the first six months this year compared budget has to be approved by Iraq’s pitals will be included in the project as with 876 on the same period last year. cabinet and parliament. In 2011, USD well as police stations and markets. Sulaimaniyah needs at least three more 25.7bn were approved for investment. maternity hospitals to deal with these Iraq intends to increase the investment kinds of complications and with the budget by 4 5 percent each year to Stadia for Najaf and increase in births. finance already existing projects and to Basra create new ones. Iraq’s national cooper- Two new sports facilities are to be built USD 300m housing in Najaf and Basra. The stadia are ation programmes expected to cost EUR 84m in Najaf and projects for Basra EUR 86m in Basra. The Ministry of Youth implemented by UN and Sport announced that each stadium The Basra Investment Commission will have a capacity for 30,000 visitors Organizations (BIC) was proposed for an USD 300m and that the project has the aim to sup housing project. The World Bank will port sports in Iraq. For this reason the The Iraqi government has reached an fund the project, which will realize 500 stadia in Najaf and Basra are supposed agreement with the UN Organization for residential apartments, restaurants, mar to be only a part of a bigger project. Children Affairs (UNICIF), the UN kets and two hotels in Basra. In addition, Since 2009, the Basra Sports City, a Development Program (UNDP) and the a 4 metre high air conditioned glass gar major sports complex including two UN Housing Fund, on implementing den, offices, a park, a theatre and car stadia, has been under construction. In Iraq’s national cooperation programmes. parking facilities for more than 7,000 2013 this project will host the 2013 Gulf The plans are to be implemented by cars are planned. Cup of Nations. those organizations during the years 2011 2014 and are representing the USD 45bn worth of Iraq, Syria and Iran United Nation’s support for different vital fields in Iraq’s national development new investments sign gas agreement plans and goals, especially in fields of education, water, electricity and health Iraq could attract new investments of Iraq, Syria and Iran have signed a con services. The work needed to achieve USD 45bn by mid year 2011 and new tract for the construction of a 5,000km these goals will cost over USD 600m in investments for the year are set to pipeline. The pipeline will transfer Iranian the next 4 years. double, due to the fact that last year gas from the gas fields located in South alone the new investments amounted to Pars to Iraq, Syria, Lebanon and the USD 42bn. Mediterranean Sea. The construction is Iraq probably net grain expected to take three to five years and exporter in 2015 The major investments flowed from Iraq will get 20 million cubic metres of Middle East countries, but also came natural gas per day for the next 5 to 10 The wheat production of Iraq will amount from other countries. The applications to years. The National Iranian Gas to an estimated 1.8 million metric tons do business in Iraq increased from 1,369 Company (NIGC) announced that the this year. 40 percent of the national last year to 2,251, Iraq’s commercial gas fields in South Pars hold 16 trillion demand of about 4.5 million is already attaché office in Washington announced. cubic metres of recoverable gas covered. The total harvest is expected There is, however, much more space for reserves and those are expected to last to reach 2.25 million to 2.5 million tons investments, which will help to develop for 80 years. this year and 3 million tons next year. and modernize the country.
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 22 News
New electric power The hospital will comprise a 120 bed investors to the country. Three flights are main building and support buildings carried out weekly from Vienna to plants in Kurdistan including a hotel, staff accommodation Baghdad with an Airbus A320. and a supermarket. The main building The Turkish ‘Shar’ Company has signed will be three stories high and accommo a contract with Kurdistan’s Electricity dates 56 single rooms, four six bed and Government opens Minister, Yassin Sheikh Abu Bakr, to 20 VIP rooms. Furthermore, three oper Islamic bank build and connect electrical power lines ating rooms, an emergency department, between the provinces of Sulaimaniyah an imaging department, specialist outpa Under the supervision of Ministry of and Arbil. According to a Ministry state tient clinics, an intensive care and a Finance, the Government of Iraq will ment the total costs are about USD 18m. women’s hospital are planned. The open a public Islamic bank with assets Regional Government of Kurdistan has of USD 21.3m. The nine currently exis Nearly 1,000 Turkish companies are commissioned the construction of the ting Islamic banks do not contribute to operating in the country with thousands first children’s hospital and constructions raising the economic level. The 36 pri of active employees. Especially in the will be concluded in 2013. vate banks could do that, but they do not Kurdish north of the country that have the ability to promote monetary and includes Sulaimaniyah and Arbil. The economic policies. Numerous licences to trade volume between Turkey and Iraq More water dams for establish private banks will be granted is now USD 5bn and is still growing. Kurdistan by the Central Bank of Iraq, raising hope that the increase of private banks will Kurdistan has three large dams: Dokan enhance the economy. German-Iraqi trade Dam stores 8.8 billion, Darbandikhan back to pre-invasion Dam 3 billion and Duhok Dam 50 million cubic metres of water, respectively. The From oil to diversity level amount of stored water is already suffi By dint of laws and changes the cient to produce electricity, but in the Kurdistan region could enhance its For the first time after the U.S. invasion face of climate change and the resulting economy. In 2006, the Kurdistan in 2003, the trade volume between Iraq drought, three dams are not enough. Regional Governments enacted an and Germany has surpassed the USD investment law that opened doors for 1.5bn mark and grew by an annual 63 Rivers will dry out and the people will economic development and foreign percent last year. Germany’s Federal have to leave their villages, because investment. In 2007, Iraq’s Stock Ministry of Economics and Technology they can not live on farming anymore. Exchange followed and was opened to and Iraq intend to intensify their cooper For this reason the Kurdistan Regional foreign investors. The Stock Exchange, ation in the future. Currently, Germany Government plans to build more water where currently 100 firms are represent exports mainly machinery, cars, electri dams in the framework of a five year ed, switched from manual to electronic cal goods, chemical and steel to Iraq plan. Eight large and 19 medium and trading in 2009. There is still a long way and imports oil. small dams are planned; some of them to go to diversity Kurdistan’s economy, are already under construction such as but these new developments have built Iraq calculates the investment it will Hamamok Dam in Koya, Hassan the base. The hotel and restaurants sec need for the rebuild of its economy at Kanush Dam in Garmiyan and Bawa tor announced, as well as the retail com about USD 600bn; therefore it has allo Shaswar in Kifri. The current budget merce and banking sector, that they are cated USD 186bn for a five year plan. includes ID 28bn for dam construction, part of the economic boom. compared to ID 96bn in 2010. Design award for chil- First government brick Access to Iraq reopened dren’s hospital in factory after 20 years Kurdistan The first governmental brick factory On the 8th of June 2011, the first Austrian opened in Erbil. The factory which was On 9th July the 1997 founded and civilian plane landed in Baghdad built by the United Nations Educational non profit organisation “International International Airport after more than 20 Scientific and Cultural Organisation can Academy for Design and Health” award years. The resumption is dedicated to produce 8,000 cement building blocks a ed the prize in the category “Future the reinforcing investment cooperation day. The factory makes materials avail Health Project” to a new children’s hos between Iraq and Europe. able which are necessary to realise new pital in the Kurdistan region. The acade governmental projects. But the material my cited the improvement in the stan The direct airline route Baghdad Vienna is also obtainable for companies and dard of care for children as one of the will allow a faster and less circuitous and individuals. The price of one single brick reasons. expensive access for businessmen and amounts to ID 1, 25.
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 23 Business enquiries
Business enquiries Asia and the USA, MICRODYN NADIR which deal with fasteners overstock from GmbH is the leading independent man all over the world, especially Germany. ufacturer of micro, ultra and nanofiltra The company is interested in contacts tion membranes and modules. For over and cooperation with German companies Altin Daagh Co. 40 years, our products are utilized in for future business opportunities. Contact: Ali Imani Raad many varied industrial and municipal Shasti Street, Suleimania applications, among others in the field Nawafith Center for Feasibility Republic of Iraq of water and wastewater treatment, but Studies Phone: +964 748 042 1852 also in many process integrated appli Conact: Ali Al Fadhil E mail: a.imaniraad@altin alvars.com cations. Our products’ outstanding sharp Al Muraba Building 2nd Floor We are a construction company special cut offs and reproducability allow a high Al Gahdeer Str., Najaf Ashraf ized in Modern Facade construction. We application variety in the most difficult Republic of Iraq are partners of 3Acomposite company industrial uses. One of our most innova Phone: +964 7706009357 for distributing ALUCOBOND aluminium tive products is the immersed BIO CEL Phone: +964 7801241716 composite panels in Iraq. This company module for membrane bioreactors. Email: alial [email protected] is located in Germany and is one of the Email: [email protected] Alusuisen Group. Western Company for Bolts and Internet: www.nawafith13.com Industry and Al Muthabitat Trading The company offers the preparation of Kurt Faustig KG L.L.C feasibility studies, the building of strate Contact: Kurt Faustig Contact: Ali Adnan Khaleel gic plans, the building of marketing Kraillinger Str. 12 P.O. Box: 3125 Amman plans, quality control of products and 82131 Stockdorf 11953 Jordan services, the building of policies and Phone: +49(0)89 89563122 Phone: +964 799301919 rules of procedure of institutions, crisis Fax: +49(0)89 89563172 Fax: +962 53824809 management and human resources E mail: [email protected] Internet: www.wstud.com development. Line of business: manufacturers of finest Email : [email protected] classical and modern crystal chandeliers. The company is supporting the Iraqi oil Alain Co. for Security Equipment & We are looking for costumers in Iraq. industry by supplying the special stud Communication bolt B7/ASTM193 and the heavy hexag Contact: Amir Al Zahawi MICRODYN NADIR GmbH onal nut 2H/ASTM194 which is widely Baghdad, Republic of Iraq Contact: MICRODYN NADIR GmbH used in all industrial fields, importing raw Phone: +964 7902653898 Rheingaustrasse 190 196 materials from Western sources and Phone: +964 7702522538 65203 Wiesbaden / Germany according to the high standards and Phone: +962 0796284776 Phone: +49(0)611 962 5870 involvement in the Iraqi market through Email: [email protected] Fax: + 49(0)611 962 9893 the sister companies in Baghdad (Al The company for security equipment Email: info@microdyn nadir.de Muthabitat Alasaseia Co. L.L.C) and and communication is interested in The company with locations in Europe, Jordan (Al Muthabitat Trading L.L.C), cooperation.
BUSINESS ENQUIRIES FROM GERMANY AND IRAQ If you are looking for German and/or Iraqi business partners, kindly specify your business enquiry details here. Your business enquiry and company details will be printed in the next issue free of charge for companies from Iraq and for NUMOV Members.
Brief Profile of your Company:
Business Enquiry Details:
Company (exact name and legal status):
Contact person: Address: City: Phone: Fax: Email: Web:
Reply to NUMOV: Fax: 0049 – (0)30 – 20 64 10 –10 ; email: [email protected]
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 24 Tenders
7. Installing WLL for Marshes (under 13. Activated Carbon H 2 Silica Tenders the classification (6 19) for Iraqi Gel H 3. telecom & post company CD: 12 September 2011 1. Supply ductile pipes (Ф 1200mm) CD: 12 September 2011 for Kirkuk water project/stage 2 for 14. Design, Supply of automatic FM – the Ministry of Construction and 8. Design, supply, construction, com 200 system for electrical, control Housing. mission, operation and maintenan building pump house and booster CD: 4 September 2011 ce of new power projects in pumps protection for K 3 pumping Kurdistan region for its Ministry of station at Haditha. 2. Supply of Power Transformers. Electricity. CD: 20 September 2011 CD: 5 September 2011 CD: 15 September 2011 15. Supply of Filling Pumps 500 m3/ hr 3. Visalia Maws 301 Hydrometer 9. Supply of jointing and packing QT. 2 for Crud Oil Faw Depot. System Configuration Compressing sheet gaskets. CD: 29 September 2011 CD: 5 September 2011 CD: 5 September 2011 16. Electrical spare parts for Plastic 4. Spare for lPQ Density Meter. 10. Supply of metals comprising novel Containers and Plug Making and CD: 5 September 2011 brass sheet. Filling Plastic. CD: 5 September 2011 CD: 19 September 2011 5. Supply of 17 items of pipe fittings CD: 5 September 2011 11. Supply of 69 items of general 17. Screw pump with Three Spindle safety valves. with out Motor and Base Plate. 6. Spare Parts for P01a /B/C/D CD: 5 September 2011 CD: 19 September 2011 Booster Pump TYPE:RPH 100 280, P03A/B, 12. Bearing corrosion inhibitor 18. Spare pars of Instrument and P04A/B (Zink dialky Dithiophsphate). Automation for Plastic Factory. CD: 5 September 2011 CD: 12 September 2011 CD: 19 September 2011
Reply to E Mail: [email protected] or Fax: 0049 (0)30 20 64 10 10 □ I / We would like to receive further information to the following investment tenders: Nr. This service is for Iraqi companies and NUMOV members only.
Name, Company, Address Phone, Fax, Email
Services for NUMOV members: Austrian Airlines flies to Baghdad three times a week Important information available on request: International Commercial Arbitration Center Najaf, General Austrian Airlines, a subsidiary company of Deutsche Information Lufthansa AG, has operated a route three times a week, utilising an Airbus A320, from Vienna to Baghdad and back International Commercial Arbitration Center – Najaf, Rules of to the Austrian capital. The Iraqi capital is the airline’s sec Arbitration ond destination in the country besides the northern Iraqi city International Commercial Arbitration Center – Najaf, Internal of Erbil, which has also been directly served by Deutsche System Lufthansa AG four times a week since April 2010 from Frankfurt/Main. Najaf Investment Commission Guide Flight details Vienna to Baghdad flight day departure arrival Reply to: FAX 0049 (0)30 206410 10
Wednesday, Friday, OS 827 10.00 a.m. 3.00 p.m. We request that the indicated documents be sent to us: Sunday
Our membership number: Baghdad to Vienna flight day departure arrival
Member / Address: Wednesday, Friday, OS 828 4.00 p.m. 7.30 p.m. Sunday
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 25
Fairs 2011 - 2012 Registering Companies Public Holidays
1. 1st 4th Oct – Baghdad International in Iraq Public Holidays in Iraq 2011 Health Fair medical equipment, medical supplies and hospital The Trade Law, No. 30 (1984), the 1 Jan New Year's Day construction Companies Laws, No.21 (1997), and 6 Jan Army Day Location: Baghdad Public Companies Law, No.22 (1997) regulate all incorporation and trade 15 Feb Mouloud (Birth of the 2. 3rd 6th Oct – Makinat Iraq activities for Iraqi businesses. Follow Location: Erbil the procedures below to register a Prophet Muhammad) company in Iraq: 3. 7th 10th Oct – Basa Machinex 2011 9 Apr Baghdad Liberation Day – plant and machinery industry 1. Determine what category the com 17 Apr FAO Day Location: Basra pany in question belongs to, accor ding to the Companies Law, No. 21, 1 May Labour Day 4. 17th 20th Oct – Basra El En – Basra 1997. This law divides companies Electrics & Energy Expo into the list of Varieties of Legal 14 Jul Republic Day Location: Basra Companies in Iraq. 8 Aug Ceasefire Day (End of 5. 24th 27th Oct – Erbil International 2. Fulfill all required registration Iran Iraq War) Fair procedures: Location: Erbil a. Register a trade name with the 30 Aug Eid al Fitr (End of relevant trade chamber or the 6. 21st 24th Nov – Iraq Agro Food union of trade chambers. Ramadan) Location: Erbil b. Submit a contract signed by the founders of the company, stating 3 Oct Iraqi Independence Day 7. 25th 28th Nov – Basra International the name of the company, its Oil & Gas activities, and its capital. (National Day) Location: Basra c. Deposit appropriate capital for 6 Nov Eid al Adha (Feast of the the company, in IQD, at an autho 8. 11th 14th Dec – Iraq Energy Expo rized Iraqi bank and notify the Sacrifice) and Conference – Oil, Gas, Electricity Companies Registrar. Location: Baghdad d. Pay all fees required to register 26 Nov Islamic New Year the company with the Companies 9. 20th 23rd Jan 2012 – MARI PORT Registrar. Please see 5 Dec Ashura International Marine Industry, Port http://www.motiraq.org/registrati Construction and Investment on.aspx. Equipments Exhibition e. For joint stock companies, submit Public Holidays in Germany 2011* Location: Basra the subscription certificate, sig ned by the founders, and the 1 Jan New Years Day Reply to E Mail: company's feasibility studies. f. Define the commercial and tech 2 Apr Good Friday [email protected] nical activities of the incorpora 5 Apr Easter Monday or ting company to be included in Fax: 0049 (0)30 20 64 10 10 the contract for incorporation. 1 May Labour Day g. Obtain approval of the Minister of Interior for all foreign sharehol □ I / We would like to receive further 13 May Ascension Day information to the following fairs: ders. Nr. 24 May Whit Monday This service is for Iraqi companies 3. After the company is founded: and NUMOV members only. a. Employ a legal advisor (attorney) 3 Oct Day of German Unity for the company from the Bar 25 Dec Christmas Day Association. b. Employ a chartered accountant 26 Dec Boxing Day Name, Company, Address Phone, form the Chartered Accountants and Auditors Association. * fixed dates Fax, Email c. Appoint an Executive Manager.
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 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 Commission 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 3/2011 28 Useful links Useful links Republic of Iraq Government of Iraq Ministry of Higher Education Federal Republic of Germany www.cabinet.iq www.mhe krg.org Parliament of Iraq Ministry of Electricity EMBASSIES IN IRAQ www.na iraqi.com www.krgelectric.org German Embassy Baghdad Ministry of Finance and the Economy www.bagdad.diplo.de MINISTRIES www.mof krg.org Federal Republic of Germany Ministry of Agriculture Ministry of Higher Education and Government of the Federal Republic of www.moagr.com Scientific Research Germany Ministry of Communication www.mhe krg.org www.bundesregierung.de http://www.iraqimoc.net Ministry of Justice Parliament of the Federal Republic of Ministry of Construction and Housing www.mojkurdistan.com Germany www.moch.gov.iq www.bundestag.de Ministry of Martyrs and Anfal Affairs Ministry of Defense www.momakrg.org www.mod.mil.iq MINISTRIES Ministry of Planning Ministry of Electricity Federal Environment Ministry www.mop krg.org www.moelc.gov.iq www.bmu.de Ministry of Foreign Affairs Ministry of Transport and Federal Foreign Office www.mofa.gov.iq Communications www.auswaertiges amt.de www.moc krg.com Ministry of Higher Education and Federal Ministry of Defense Scientific Research www.bmvg.de www.mohesr.gov.iq INVESTMENT COMMISSIONS IN IRAQ Federal Ministry of Economic Ministry of Human Rights National Investment Commission (NIC) Cooperation and Development www.humanrights.gov.iq www.investpromo.gov.iq www.bmz.de Ministry of Industry and Minerals Anbar Provincial Investment Commission Federal Ministry of Economics and www.industry.gov.iq www.anbarinvest.net Technology www.bmwi.de Ministry of Interior Babil Provincial Investment Commission www.moi.gov.iq www.bic iraq.org Federal Ministry of Education and Research Ministry of Labour and Social Affairs Baghdad Provincial Investment www.bmbf.de Commission Ministry of Municipality and Public Work Ministry of Family Affairs, Senior citizens, www.mmpwirg.com www.baghdadic.gov.iq Women and Youth Ministry of Oil Basrah Provincial Investment www.bmfsfj.de www.oil.gov.iq Commission Federal Ministry of Finance Ministry of Science and Technology www.investbasrah.com www.bundesfinanzministerium.de www.most.gov.iq Dahuk Provincial Investment Federal Ministry of Food, Agriculture Ministry of Higher Education and Commission and Consumer Protection Scientific Research www.kurdistaninvestment.org www.bmelv.de www.moheiraq.org Diyala Provincial Investment Federal Ministry of Health Ministry of Planning Commission www.bmg.bund.de www.mop.gov.iq. www.investdiyala.com Federal Ministry of Labour and Social Ministry of Trade Erbil Provincial Investment Commission Affairs www.mot.gov.iq www.kurdistaninvestment.org www.bmas.de Ministry of Water Resources Karbala Provincial Investment Commission Federal Ministry of the Interior www.mowr.gov.iq www.krinves.com www.bmi.bund.de Muthanna Provincial Investment Federal Ministry of Justice KURDISTAN REGIONAL GOVERNMENT Commission www.bmj.bund.de www.miciraq.org Kurdistan Regional Government Federal Ministry of Transport, Building www.krg.org Najaf Provincial Investment Commission and Urban Development Kurdistan Parliament www.investnajaf.com www.bmvbs.de www.kurdistan parliament.org Qadissiya Provincial Investment Commission EMBASSY OF THE REPUBLIC OF IRAQ MINISTRIES www.investmentd.com www.iraqiembassy berlin.de Ministry of Agriculture and Water Sulaymaniyah Provincial Investment Resources Commission NUMOV / Nah und Mittelost Verein www.moawr krg.org www.kurdistaninvestment.org German Near and Middle East Association www.numov.org Ministry of Sports and Youth, Minister of Wassit Provincial Investment Culture and Youth Commission IRAQI GERMAN BUSINESS DIALOGUE www.mosy krg.org www.wasitic.com www.iraqi german business dialogue.com
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 29 Imprint / Board Imprint Board of NUMOV
HONORARY CHAIRMAN BOARD MEMBERS IRAQI GERMAN Martin Bachmann Michael Ludwig BUSINESS DIALOGUE© Dr. Gerhard Schröder Member of the Board of Executive Member of the Executive Board Directors of Wintershall Holding AG Verbundnetz Gas AG Former Chancellor of the Federal Jürgen Chrobog Martin Marsmann Published by: Republic of Germany NUMOV Nah und Mittelost Verein e.V. Chairman of the Board Head of International Business, BMW Stiftung Herbert Quandt UniCredit Bank AG German Near and Middle East Association Secretary of State (ret.) Jägerstr. 63 D, 10117 Berlin, Germany CHAIRMAN Hartmut Mehdorn (+49) 030 206410 0 Burkhard Dahmen Chairman of the Board (ret.) Member of the Board Deutsche Bahn AG (+49) 030 206410 10 Martin Bay SMS Siemag AG Matthias Müller Klaus Eberhardt Deutsche Bahn International Chairman of the Board Chairman of the Board Publishing Director / Chief Editor: German Railway Group Rheinmetall AG Porsche AG Helene Rang Vice Chairman Qatar Railways Dr. Bernd Eisenblätter Günther Mull Development Co. Deputy Chief Editor: Chairman of the Management Proprietor Board GIZ, Deutsche Gesellschaft DERMALOG Identification Systems Abdurrahim Güleç CEO AND DEP. CHAIRPERSON für internationale Zusammenarbeit Jürgen Sander Joachim Enenkel Managing Director 3rd Edition Helene Rang Member of the Board VEM motors GmbH September 2011 Bilfinger Berger SE Proprietor Maria Elisabeth Schaeffler Four monthly Dieter Ernst Proprietor Helene Rang & Partner President Europe / MENA Ina Holding Schaeffler KG Editorial team: RWL Water Group Samira Akrach, Mathias Canzler Jürgen Fitschen Paul Schockemöhle Peter Dingens, Tutku Güleryüz, DEPUTY CHAIRMEN Member of the Management Board Proprietor, Paul Schockemöhle Pferdehaltung GmbH Susen Hollmig, Qais Hourani, Deutsche Bank AG Dr. Klaus Dieter von Horn, May Sarah Dr. Martin Herrenknecht Hans Peter Floren Werner Schoeltzke Huber, Ivo Lisitzki, Alina Mambrey, Chairman of the Board Member of the Board Proprietor, ENTRACON Tugrul v. Mende, Denise Penquitt, Herrenknecht AG E.ON Ruhrgas AG Prof. Dr. Rainer Schwarz Manuela Rost, Peter Schmitz, Michael Glos, MdB CEO, Berlin Airports Sebastian Sons, Sophie Awreja Vender, Dr. Norbert Kloppenburg Former Federal German Minister of Gada Younes,Tom Wells, Benedikt van Member of the Board Economics and Technology Erich Staake Member of the Federal German Chairman of the Board den Woldenberg, Karl Heinz Wittek, KfW Bankengruppe Parliament Jan Zimmermann Duisburger Hafen AG Marc Hall Bernd Romanski Dr. Monika Wulf Mathies Further assistance: Managing Director Member of the Board Bayerngas GmbH Former Member of the Ozan Celebi, Hubert Hesse, European Commision HOCHTIEF Solutions AG Wanda Kubrinski Joachim Hörster, MdB Proprietor, wulf.mathies.consult Member of the Federal German Jens Ove Stier Parliament Honorary Member Layout / Technical services: of the Board 1998 2005 Hui Pieng Lie Managing Director, Elke Hoff, MdB Hans Jürgen Wischnewski † Winterstein Kontor GmbH Member of the Federal German Federal Minister/Minister of State (ret.) Printing: Brandenburgische Parliament Universitätsdruckerei und Verlagsgesellschaft mbH, Potsdam Advisory Board of NUMOV For their support for this edition, Peter Dingens Wolfgang Kenntemich Bernhard von der Planitz we would particularly like to thank: Ambassador (ret.) Editor in Chief MDR Television Ambassador (ret.) Federal Foreign Office Federal Foreign Office Arnold Schwerlast GmbH & Co. KG Marc Landau DB International Rudolf Dreßler Executive Director Deutsch Türkische Klaus Rollenhagen deugro International Spedition Ambassador (ret.) Industrie und Handelskammer Managing Director of Verband Federal Foreign Office Beratender Ingenieure VBI Endress Hauser Dr. Michael Lüders Herrenknecht AG Thomas Ellerbeck Michael Lüders Nahostberatung Andreas von Stechow IFP Group Building Dep. Chairman of German Ambassador (ret.) Director Communications and Federal Foreign Office KfW IPEX Bank GmbH Politics of Vodafone D2 GmbH Orient Foundation LEYCO CHEMISCHE LEYDE Dr. Rainald Steck M.G. International Transports GmbH Dr. Henryk Frystacki Dr. Gunter Mulack Ambassador (ret.) Ambassador (ret.) Siemens AG (ret.) Director of the German Orient Institute Federal Foreign Office All published contributions are protected by Wilfried H. Graf Bernd Mützelburg Folkmar W. O. Stoecker copyright. Reproduction or duplication Arab Bank AG (ret.) Ambassador (ret.), (including extracts) only permitted with the Ambassador (ret.) Federal Foreign Office Programme Director (NMO) explicit permission of the German Near and Dr. Gabriela Guellil International Training for Diplomats at the Federal Foreign Office Middle East Association, Berlin. The pub Federal Foreign Office Dr. Jürgen K. Nehls lisher accepts no liability for the com Giesecke & Devrient GmbH (ret.) Knut Witschel pleteness or factual accuracy of individual Dr. Jürgen Hellner Ambassador (ret.) Managing Director & Head of Dietmar Ossenberg Near & Middle East/Africa, contributions and any claims or damages Federal Foreign Office Head of ZDF Cairo Office potentially resulting from these. Deutsche Bank AG (ret.) Dr. Herbert Honsowitz Michael Pfeiffer Karl Heinz Wittek Ambassador (ret.) Managing Director Counsellor (ret.) Federal Foreign Office Germany Trade and Invest Federal Foreign Office
IRAQI GERMAN BUSINESS DIALOGUE 3/2011 30