NINEWA INVESTMENT FORUM December 3–5, 2019 Final Report
IRAQ GOVERNANCE AND PERFORMANCE ACCOUNTABILITY PROJECT (IGPA/TAKAMUL)/NINEWA INVESTMENT FACILITATION INITIATIVE
Program Title Iraq Governance and Performance Accountability Project (IGPA)/Ninewa Investment Facilitation Initiative (NIFI)
Sponsoring USAID Office USAID Iraq
Contract Number AID-267-H-17-00001
Contractor DAI Global LLC
Date of publication January 4, 2019
Author IGPA/NIFI Project Team
Cover Panelist discuss the benefits of investing in Ninewa Province during the opening panel of the Ninewa Investment Forum.
The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.
2 | Ninewa Investment Forum Final Report CONTENTS
ACRONYMS ...... 4 EXECUTIVE SUMMARY ...... 5 INTRODUCTION ...... 8 PRE-EVENT ACTIVITIES ...... 9 Investor Engagement Through Roadshows ...... 10 Business Development Services for Featured SMEs ...... 12 OUTCOMES ...... 13 Analysis of Attendance...... 13 Conference Proceedings ...... 16 Matchmaking Meeting Proceedings ...... 21 Business Development Center Registration ...... 27 Women’s Participation at the Forum ...... 28 Supporting Organizations ...... 28 Communications and Outreach ...... 29 Media Coverage ...... 30 CHALLENGES AND LESSONS LEARNED ...... 34 ANNEXES ...... 39 Annex 1 – Summary of Investor Roadshow Report ...... 39 Annex 2 – Agenda ...... 44 Annex 3 – NIFI Business Development Center Materials ...... 49 Annex 4 – Communications Materials ...... 51 Annex 5 – SME Profiles ...... 60
3 | Ninewa Investment Forum Final Report ACRONYMS
AMCHAM American Chamber of Commerce AV Audio-visual BDC Business Development Center BDS Business Development Services GOI Government of Iraq IGPA Iraq Governance and Performance Accountability project IMMDF Iraq Middle Market Development Foundation KRI Kurdistan Region of Iraq KRG Kurdistan Regional Government MENA Middle East and North Africa MoU Memorandum of Understanding NCCR Ninewa Center for Consulting and Research NDA Non-disclosure agreement NIB Ninewa Investment Board NIC Ninewa Investment Commission NIFI Ninewa Investment Facilitation Initiative SME Small and medium enterprises UAE United Arab Emirates USAID United States Agency for International Development
4 | Ninewa Investment Forum Final Report EXECUTIVE SUMMARY
The Ninewa Investment Forum conducted in Erbil from December 3-5, 2019 brought together international and diaspora investors with businesses from Ninewa to showcase the investment potential of northern Iraq. The Forum represented a unique collaboration between the U.S. and Iraqi private and public sectors to support communities in Ninewa through catalytic investment opportunities.
Attendees included local businesses, international and domestic investors, and high-level officials from the U.S. Government, Government of Iraq (GOI), and the Kurdistan Regional Government (KRG). The Forum demonstrated the potential of the private sector to align diverse groups around shared interests and the strong desire within northern Iraq’s communities to achieve self-reliance through developing prosperous local economies. US Ambassador to Iraq Matthew Tueller reads a The Forum was organized by the letter from Vice President Michael Pence addressed to Forum participants. USAID-funded Iraq Governance and Performance Accountability (IGPA)/Ninewa Investment Facilitation Initiative (NIFI) and was the first investment forum of its kind in a region still recovering from the devastation of Islamic State occupation.
Highlights of the Ninewa Investment Forum include:
• A total of 943 individuals requested registration to the Forum, of which more than 300 were approved, limited only by the capacity of the venue. In the final count, 369 individuals participated, including investors, fund managers, and business executives from the United States, Europe, and the Middle East. The initial target was to host 200 participants. • The Forum featured 19 small and medium enterprises (SME) from Ninewa province and 24 international investors, including Chaldean diaspora investors, that came together to discuss investment opportunities. The featured SMEs received Business
5 | Ninewa Investment Forum Final Report Development Services from IGPA/NIFI prior to the Forum to help them prepare for match making meetings with investors. • More than 100 SMEs from Ninewa province and the Kurdistan Region of Iraq (KRI) attended the Forum. • In his keynote speech, Ambassador Matthew Tueller dispensed with his prepared remarks to read a letter sent by US Vice President Michael Pence addressed to Forum participants.
USAID Mission Director Dana Mansuri speaking on the role of the private sector in driving the rehabilitation and development of Ninewa province.
• Eight panel sessions featuring subject matter experts offered substantive discussions on relevant topics. • 31 matchmaking meetings were conducted between international investors and featured SMEs. The meetings generated interest in many businesses and investors asked to follow up and sign non-disclosure agreements (NDA). • The SME Marketplace served as a networking hub for the 19 featured SMEs and four women-owned enterprises that were showcased, facilitating a further eight networking meetings and expressions of interest between investors and SMEs. • The IGPA/NIFI Business Development Center (BDC) that was set up at the Forum received 86 applications for Business Development Services, thus expanding the project’s demand-driven pipeline development. • Eight organizations and six media entities were engaged as supporting partners, providing the Forum with institutional support in reaching qualified participants and
6 | Ninewa Investment Forum Final Report attaining wide publicity. Supporting partners included: American Chambers of Commerce Iraq, Board of Investment - Kurdistan Regional Government-Iraq, Iraq Middle Market Development Foundation, Iraq Private Banks League, Iraqi Federation of Industries-Ninewa Chamber of Industries, Ninewa Investment Commission, US- Iraq Business Council, and Yazda (Global Yazidi Organization). Supporting media organizations included Alghad Radio, Ezidi24, Iraq Media Network, Kirkuk Now, Rudaw, and Sama al-Mosul. • 14 local and international media organizations provided extensive coverage to the three-day event, including live streaming of the conference proceedings. Social media posts generated more than 43,000 views, while YouTube videos accumulated 418 views for English videos and 970 views for the Arabic version as of December 7, 2019.
7 | Ninewa Investment Forum Final Report INTRODUCTION
The USAID-funded Iraq Governance and Performance Accountability/Ninewa Investment Facilitation Initiative (IGPA/NIFI) conducted the Ninewa Investment Forum on December 3-5, 2019 in Erbil, Kurdistan Region of Iraq (KRI). The Forum was one of IGPA/NIFI’s three main tasks designed to support the recovery of the private sector as a means to improve the economy and livelihoods of the people of Ninewa province who were most affected by the Islamic State occupation.
The Forum featured representative businesses that were ready for growth and expansion and had the potential to offer robust ventures for domestic and international investors. From working with the provincial and district governments of Ninewa province, relevant ministries of the Government of Iraq (GOI), businesses organizations, and businesses on the ground, IGPA/NIFI determined that four sectors offer the best opportunity for investments. IGPA/NIFI worked with businesses within these priority sectors: agribusiness (food production, cold storage), manufacturing (food processing, electronics), services (education, health, hospitality, construction), and entrepreneurship (youth and women entrepreneurship, IT-based businesses). The Forum also highlighted the long-term prospects of Ninewa and Iraq as a business-friendly destination for investors.
The event achieved the following expected results:
• At least one promising investment venture and letter of interest from the matchmaking sessions will be identified and followed through to successful deal closure. • Expand IGPA/NIFI’s existing investor pipeline and identify initial investment interests to be pursued. • Create broader awareness of, and interest in, showcased companies and investment opportunities in the Ninewa Plains within the region and around the world. • Signal the U.S. Government’s (USG) investment and development commitment to the people of Iraq.
In addition, the Forum provided a venue for the GOI and Ninewa governorate to articulate its commitment to the region and its overall economic growth aspirations for the country. The event also enabled the USG to reaffirm its commitment to support the people of Ninewa and Iraq as a whole.
8 | Ninewa Investment Forum Final Report PRE-EVENT ACTIVITIES
IGPA/NIFI commenced technical activities in May 2019. IGPA/NIFI has three core activities—The creation of a Business Development Center (BDC), offering of Business Development Services, and conducting the Ninewa Investment Forum.
To prepare for the rollout of the Forum, the team conducted formative research and market investigation to determine the current business condition in northern Iraq and Ninewa province. This research was supplemented by hosting workshops within BDCs across Ninewa at which entrepreneurs and business owners discussed barriers to investment and opportunities for growth. The team likewise initiated meetings with numerous government agencies, chambers of commerce, financial, trade, and socio-civic organizations throughout Ninewa and the KRI. Through these connections, IGPA/NIFI began creating a database of Ninewa SMEs that offered strong investment potential. IGPA/NIFI provided these SMEs with Business Development Services to prepare them for matchmaking with investors. This included support in preparing company profiles, pitch decks, and business plans, as well as coaching business owners for matchmaking.
The Project utilized a three-stage model in selecting SMEs to support with investor matching: source, select, and support. The diagrams below summarize IGPA/NIFI’s process of filtering and selecting opportunities for support.
Figure 1A: Overview of SME engagement process
Investment Market Landscape Sourcing Selection Support Monitoring Engagement Analysis
• Produce Capital • Create Fact Sheet • Meet investors via • Conduct initial • Guide firm and / or • Maintain dialogue Map • Create Overview extended networks conversations and capital provider as with investor / Deck and desk research to screening of chosen needed to facilitate investee pairings understand criteria, firms investment • Deliver post-event compiling in an • Identify potential matching investment investor database areas of support • Present investment- matching report on • Meet enterprises via required; compile ready firms to matches made and existing IGPA into an investment capital providers at prospective pipeline, extended pipeline road shows and investments networks, and desk • Ensure non- investor conference research to disclosure ascertain agreements are in investment needs place and viability
9 | Ninewa Investment Forum Final Report
Investor Engagement Through Roadshows While IGPA/NIFI was developing its portfolio of SMEs in Ninewa to be featured in the Forum, the team likewise began to identify and engage investors in the United States, Middle East, United Kingdom, as well as Iraqi diaspora investors from across the globe.
Figure 1B: Selection process for SME investment pipeline
Sourcing Selecting Support
Compile list of Research Facilitate match-making potential Provide input on fit check potential SME between relevant firms companies for and evaluation of investment and investors during IGPA TO4 potential companies IGPA/NIFI opportunities roadshows & NIF pipelinepipelin e
Conduct Suggest potential areas preliminary fit for support Deliver support to MOU check on companies potential companies Create investment pipeline outlining each Refer to opportunity and potential Investor areas of support Advisory Team for further Key evaluation Sign MOU with DAI team companies that pass fit check and evaluation by Investor Advisory Team Investor Advisory Team
IGPA/NIFI conducted six roadshows in the U.S., UK, Jordan, Lebanon, Saudi Arabia, and the UAE to meet with potential investors. In London and Riyadh, the team timed the roadshows to coincide with events which would gather relevant investors with possible interests in Iraq. The following roadshows were conducted:
Chaldean American Diaspora in Detroit, Michigan. The IGPA/NIFI team met with potential investors from the Chaldean American diaspora community represented by Dr. Adhid Miri, Director of Special Projects for the Chaldean Community Foundation; Martin Manna, President of the Chaldean American Chamber of Commerce; and Bassam (Sam) Salman, Chaldean Community Foundation. A representative from the Kurdistan Regional Government (KRG) also attended the meeting as well as 11 entrepreneurs from the Iraqi diaspora in Michigan. The Chaldean investors provided meaningful suggestions for further outreach and investment generation and committed to attend the Forum.
London, United Kingdom. The team met with the following investors to present investment opportunities in Ninewa and to invite investors to the Forum: • Stirling Education, a strategic investor with several education projects in Iraq and the UK;
10 | Ninewa Investment Forum Final Report • Richard Greer, a private investor who has previously invested in the tech sector in Iraq; • Zaab Sethna, investor at Northern Gulf Partners, active in investing in Iraq for many years and with connections to private individuals in the UK who have invested in Iraq. The team also met with five market actors to secure introductions to potential strategic and private investors.
Amman, Jordan. The team met with potential investors: • 17 Asset Management, which is raising its first fund, the Jordan Growth Fund, that will invest in growing enterprises in Jordan, Iraq, and other Middle East and North African (MENA) countries. • Silicon Badia, a Jordan-based venture capital firm specializing in early stage ventures, particularly in the technology sector, online and mobile innovation, e-commerce, fintech, healthcare technology, life sciences, agriculture, healthcare, finance, consumer internet and digital media services, real estate, and education. • EDGO Holdings, a diversified, family-run holding company with investments in Iraq and interest in industries outside of oil and gas services.
In an earlier trip to Amman, the IGPA/NIFI team met with the American Chamber of Commerce in Jordan, GroFin, the International Finance Corporation, Al Janabi Group, Bell Finance, and Silicon Badia.
Beirut, Lebanon. In Lebanon, the team met with nine investors: • Middle East Venture Partners, a venture capital firm that invests in the early and growth stages of innovative companies. • Emerging Investment Partners, a private investor with multiple funds covering the MENA region, • Proparco, a development financial institution partly owned by the French Development Agency and private shareholders from developed and developing nations. • EuroMena, a private equity firm specialized in emerging markets; the European Bank for Reconstruction and Development, a multilateral developmental investment bank actively developing open and sustainable market economies and boosting growth in emerging markets. • BeryTech, a Lebanese start-up fund; IM capital, a USAID-backed organization that provides matching capital, equity guarantees, and support programs to a broad range of qualified early-stage businesses and investors in Lebanon. • Malia Group, a holding group of 27 companies that are leaders in consumer goods distribution, technology and management solutions, engineering and contracting, and hospitality and real estate.
11 | Ninewa Investment Forum Final Report • Amer Mardam-Bey, director of International Business Development at REED, a company that offers mission critical support services to foreign companies operating in Iraq. Riyadh, Saudi Arabia. IGPA/NIFI timed the roadshow to coincide with the Future Investment Initiative, which is an international platform for expert-led debate between global leaders, investors, and entrepreneurs. The team conducted nine meetings with: • NBK Capital Partners, a leading alternative investment manager in the region. • Dalma Capital, a global alternative investment platform and accelerator focused on emerging markets. • Gateway Partners, a private equity fund focused in investment opportunities across the dynamic growth markets of Africa, Middle East, and South East Asia. • Zayed Foundation for Charity and Humanitarian Works, with $1billion investment and grants budget to support projects that improve the quality of human lives. • Olayan Group, a holding company based in Saudi Arabia that invests in a diversified mix of public and private equities, real estate, fixed-income securities, and other specialized assets. • Badwa Capital, an investment management firm that invests in regional real estate, infrastructure, and other private assets, and advises on mergers and acquisitions, equity and debt financings, and re-structuring. • ACWA Power, a developer, investor, co-owner and operator of a portfolio of power generation, renewable energy, and desalinated water production plants. • Saudi Development Fund, a group focused on financing development projects in developing countries by issuing loans and grant, making investment, and providing technical aids. • Milken Institute, an independent economic think tank. Dubai, United Arab Emirates. The team met with two investors: • Khudairi Group, a strategic investor, family business with several food and manufacturing business units in Iraq • Innovest – private investor who has previously invested in start-ups in Iraq
A summary of the roadshow report is included in Annex 1.
Business Development Services for Featured SMEs Although many of the 19 SME owners who were featured at the Forum have been in business for some time, the majority of them did not have experience in investment matchmaking. IGPA/NIFI also discovered that although the SME owners were experienced businessmen, most of them run their businesses as family enterprises and did not always follow internationally accepted business management conventions. Financial records of
12 | Ninewa Investment Forum Final Report some SMEs were not in proper order or were non-existent, some of which had been destroyed during the Islamic State occupation.
To prepare SME owners to effectively interact with investors, IGPA/NIFI coached selected SMEs on presenting their business proposal to potential investors or financiers. Through individual sessions, IGPA/NIFI coached businessowners on how to strategically position their businesses in a presentation and to emphasize important selling points and business strengths. In addition, IGPA/NIFI prepared one-page investment profiles in English and Arabic for each of the 19 featured SMEs to share with investors.
OUTCOMES
Analysis of Attendance The Forum was initially planned for 200 participants, but due to the high level of interest, IGPA/NIFI ended up accepting more than 350 participants. Online registration was promoted via social media, email lists, and local media outlets, after which applicants were screened and selected to attend. IGPA/NIFI also sent invitations directly to selected international investors, VIP guests, speakers, SMEs, local businesses, and other participants.
Guests register during the first day of the Ninewa Investment Forum. While IGPA/NIFI originally planned for 200 guests, more than 350 individuals attended the three-day event.
In all, the team received 943 requests for registrations. Although, IGPA/NIFI placed a cap of 350 (excluding 44 NIFI team and temporary staff, as well as security detail for VIP guests), total participation was recorded at 369. The breakdown of participants is shown below.
13 | Ninewa Investment Forum Final Report Table 1. Participation in the Ninewa Investment Forum VIPs and dignitaries 45 Panelists / speakers 35 Participants 245 Media 44 Total conference attendees 369
USG Representatives and Other VIP Participants Attendees included high-level officials from the USG, GOI, and KRG, as well as from Ninewa province and municipal officials, heads of chambers of commerce, banks and financial organizations, including top-level international investors. Some of the VIP participants are shown below:
Table 2. VIP Participants
No. Name Title/Organization 1 H.E. Matthew Tueller U.S. Ambassador to Iraq 2 Hon. Hal Ferguson USAID Senior Deputy Assistant Administrator, Middle East 3 Hon. Dana Mansuri Mission Director, USAID Iraq USAID Special Representative for Minority Assistance 4 Hon. Max Primorac Programs 5 H.E. Qubad Talabani Deputy Prime Minister, Kurdistan Regional Government 6 Mr. Jamal Ware Senior Advisor, US Export Import Bank 7 Hon. General Najm al-Jubouri Governor of Ninewa 8 Mr. Steve Kim Trac Development 9 Mr. Steve Lutes US Chamber of Commerce, Middle East Division 10 Mr. Victor Simon Simon Group Holdings 11 Mr. Timothy Mills President of the American Chamber of Commerce in Iraq 12 Mr. Wadee Nouri Al Handal Chairman of the Iraqi Private Banks League Director of Special Projects of the Chaldean Community 13 Dr. Adhid Miri Foundation
Featured SMEs Since the inception of IGPA/NIFI in April 2019, the team had been working to identify SMEs in Ninewa province that showed the most potential for growth. From the more than 50 applications received from SMEs, 19 were selected to be showcased at the Forum.
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Table 3. SMEs Featured at the Forum
1 Aela Tahini Tahini/food production 2 Al Layth Company Electronics manufacturing and distribution 3 Aseel Cold Storage Cold storage 4 Bartullah Medical Supplement Factory Pharmaceuticals 5 Brilliant Academy Education 6 Diwan Company Construction 7 Erbil Delivery Delivery Service 8 Gajo Company Tissue paper manufacturing 9 Ghazal Dairy Calves fattening 10 Pharma Distribution Company Pharmaceuticals 11 Ishtar Pasta Pasta production 12 Lezzoo Delivery service 13 Nahrain Association for Agriculture Calves fattening 14 Namaa Cattle Dairy 15 Sabeh Agriculture Eggs production 16 Al Sahel Al Akhdar Hotel Hotel 17 Samim Tahina Tahini/food production 18 TeamMart Retail 19 Thaker Rashi Tahini Tahini/food production
In addition, four women-owned enterprises were featured at the SME Marketplace, which gave them the opportunity to present their businesses and interact with prospective investors. These enterprises were: 1. Hopeful Hands 2. Lala Candles 3. RJ Fabrics World 4. CM for Sewing
International Investors Engaging international investors was a collaborative effort undertaken by different entities, specifically: the office of USAID Special Representative for Minority Assistance Programs; USAID, and IGPA/NIFI. At least 24 international investors, funding organizations, chambers of commerce, and diaspora organizations participated in the three-day Forum. The investment firms and companies represented are listed below.
15 | Ninewa Investment Forum Final Report Table 4. International Investors No Company Location 1 17 Asset Management Jordan 2 American Chamber of Commerce in Iraq USA 3 Candre Energy Systems USA 4 Chaldean American Chamber of Commerce/Chaldean USA Community Foundation
5 Chaldean Chamber of Commerce USA 6 CIRTA Electro-Mechanical Maintenance UAE 7 Ewing Group International USA 8 Export-Import Bank USA 9 FinnFund Finland 10 GroFin Iraq 11 ICON International Consulting & SMA Trading Company Lebanon
12 IK Development Holdings Limited UK 13 Interlink Capital Strategies USA 14 Kalabat Corporation & ICON-GAE, Inc USA 15 MGH (Monla Group Holding) Lebanon 16 Monsieur France 17 Khudairi Group UAE 18 Northern Gulf Partners UAE 19 Northern Group Holdings USA 20 Proparco France 21 Simon Group Holdings USA 22 Siraj Capital UAE 23 Stirling Education UK 24 Switz Group Saudi Arabia
Conference Proceedings Over the course of three days, the delegates to the Ninewa Investment Forum listened and participated in various discussions about investment and business prospects in Ninewa province. The Forum agenda covered all aspects of investments and business opportunities for investors and SMEs in Ninewa. Matchmaking sessions between investors and SMEs were scheduled throughout the Forum.
16 | Ninewa Investment Forum Final Report December 3, 2019 The first day of the conference was devoted to registration of delegates at the Divan Hotel and networking among the participants. IGPA/NIFI hosted a dinner for VIP participants, including USG representatives, key GOI and KRG officials, international investors, and high- level national and regional investors. The VIP dinner served as a venue for VIP guests to get acquainted and engage with each other in an informal atmosphere.
December 4, 2019
Keynote Speeches – Watch full speech videos
H.E. Matthew Tueller, U.S U.S. Vice President Michael Pence’s letter to Forum participants which was read by Ambassador Tueller. Ambassador to Iraq • The Ambassador dispensed with his original speech to read a letter from Vice President Pence addressed to NIF participants. • The letter thanked attendees for participating in the NIF. • The Vice President’s letter reiterated firm U.S. commitment to growing bilateral ties and supporting Iraq as a prosperous sovereign nation. • The Vice President extended best wishes to the new Governor of Ninewa.
H.E. Qubad Talabani, KRG DPM • The diversity of Ninewa can be a source of strength in the same way it has been for the KRG. • The KRG has an important role to play in supporting Ninewa’s recovery. • The government must make tough decisions to improve the business enabling environment.
Jamal Ware, Senior Advisor, ExIm Bank of the U.S. • In October, the U.S. and Iraq signed a $5 billion MOU aimed at increasing U.S. exports to Iraq. • This multi-faceted financing program will increase employment in both the U.S. and Iraq.
17 | Ninewa Investment Forum Final Report • The agreement has already facilitated deals that are bringing new technology related investments to Iraq. • The NIF created a tremendous opportunity to connect businesses and investors.
Hon. General Najm al-Jubouri, Governor of Ninewa • Provided an overview of the challenges of rebuilding Ninewa, including high unemployment rate and large numbers of widows and orphans. • Emphasized the importance of rebuilding and revitalizing Mosul. • Highlighted the entrepreneurial spirit and investment potential of Mosul, as well as the need to improve the investment climate in Ninewa. • Encouraged more events and initiatives to boost U.S. and foreign investment and cooperation.
Luncheon Speech Steve Kim of Trac Development provided remarks during lunch. He gave an overview of the Mr. Qubad Talabani Kurdistan, Deputy international business community’s evolving Prime Minister of the KRG, declares that perception of northern Iraq’s investment Kurdistan “is ready and able to play a key role in the process of rebuilding Ninewa,” landscape, sharing his unique perspective of during his keynote speech. managing various investments in competing regional hubs.
Panels – Watch full panel discussions
The first panel “Why invest in Ninewa” presented key selling points for investors to invest in the province. Panelist reiterated that Ninewa is back and open to businesses. The Mayor of Hamadaniya gave a presentation on his district, calling on investors to invest in Hamadaniya to take advantage of its human resources and rich cultural history. In addition, the Mayor highlighted Hamadaniya’s needs, including factories, services facilities, schools, and a hospital. He also proposed public-private partnership opportunities. Other panelists emphasized the opportunities and resources that Ninewa can provide to attract investors.
In the second panel on the current business and investment climate in Ninewa, panelists discussed challenges facing investors, as well recommendations to enhance the investment climate. These include streamlining investment policies and procedures. Participants also discussed incentives to invest in Ninewa, such as natural resources, an improved security situation, and local government’s willingness to enhance the investment climate.
The third panel “US Government Promotion of Business Partnership” focused on the importance of coordination and collaboration between different stakeholders, including
18 | Ninewa Investment Forum Final Report government, the private sector, and civil society organizations. The panel highlighted U.S. government support to help rebuild northern Iraq after the ISIS occupation.
In the fourth panel on private sector financing, investors shared their outlooks, requirements, and strategies for investing in Iraq. Panelists discussed sectors and businesses with the most potential for growth, as well as the challenges facing investors and financial institutions, including the need to build the financial literacy of SMEs. In conclusion, panelists stressed the importance of entrepreneurship and how pioneering entrepreneurs can benefit from their risk appetite and untapped market opportunities.
USAID Middle East Senior Deputy Assistant Administrator Hal Ferguson discusses USAID support for Iraq’s private sector during a panel on U.S. Government promotion of business partnerships.
December 5, 2019
Speeches – Watch full speech videos opening and closing.
Opening remarks: Wadee Nouri Al Handal, Chairman of the Iraqi Private Banks League
• Recapped the Bank League’s work to rehabilitate private banks in Ninewa destroyed by ISIS. • Called on the Central Bank of Iraq to build the capacity of private banks so they can help finance the rebuilding and rehabilitation in key sectors, such as agriculture, infrastructure, and education. • Discussions held in 2018 about an IDQ 8 billion fund to rebuild Mosul and Ninewa. Private companies that were supposed to invest did not follow through, citing the lack of a trust-worthy partners to implement the projects.
19 | Ninewa Investment Forum Final Report • Private banks can help implement the IDQ 1 billion initiative to help SMEs, but the Central Bank should give the Bank League a larger role and make them a partner in the initiative.
Panels – Watch full panel discussions
The second day of panels introduced the four target sectors and discussed the potentials, challenges, and investment opportunities in these sectors. The first panelists discussed the agribusiness sector in Ninewa and how to unlock investment opportunities in this sector. Panelist highlighted strengths and discussed needs and solutions to build the capacity of agribusinesses. Four SMEs participated in the panel and pitched their business plans, including a farm for raising calves, cold storage warehousing, and a dairy factory.
The second panel discussed the entrepreneurship climate in northern Iraq and presented two success stories: Lezzo co-founder Yadgar Merani and Hopeful Hands founder Noura Adil. Both shared their stories and discussed challenges facing youth entrepreneurs in general as well as women entrepreneurs in particular.
The third panel discussed the manufacturing sector and highlighted the resources available in Ninewa Province. Participants from Al Layth Electronics, Bartullah Supplement Factory, and Alaela Tahini shared their stories and presented their investment opportunities. They also shared their concerns and suggestions to strengthen Ninewa’s manufacturing sector.
The fourth panel focused on Ninewa’s services sector and demonstrated that there are significant opportunities for investors. Four SMEs presented their business plans, including Al Sahel Al Akhdar Hotel, Team Mart Supermarkets, Brilliant Academy Kindergarten, and property developer Diwan Co.
Closing Remarks: Dr. Adhid Miri, Director of Special Projects of the Chaldean Community Foundation
• Several diaspora investors attended the event because they feel connected to their homeland and want to help. • Acknowledged USAID, including Max Primorac’s efforts to provide hope to minorities and persecuted people. Thanked President Trump and Vice President Pence for their support to persecuted Christians and Yazidi communities in the Ninewa Plains, and lauded the implementation of the Genocide Recovery and Persecution Response Program. • Michigan is home to 200 thousand Iraqis, 160 thousand of which are Chaldean Catholics, mostly from the villages of Ninewa. 20,000 businesses are owned by Iraqis in Michigan. • The Chaldean Chamber of Commerce is the largest ethnic chamber of commerce in the US, and wants to be a partner in rebuilding Ninewa. • Rebuilding cannot be done by Iraqis in Iraq alone, those who are abroad should also help.
20 | Ninewa Investment Forum Final Report Dr. Ahdid Miri, Director of Special Projects of the Chaldean Community Foundation in Michigan, speaking about the obligation of Iraqi expatriates to support their countrymen back home.
Closing remarks: Dana Mansuri, USAID Iraq Mission Director • The significance of the Forum has been highlighted by the participation of international investors, the US Ambassador, and written greetings from Vice President Michael Pence. • The large number of registrations and participation of supporting organizations and media coverage is a sign of the NIF’s success and significance. • Ninewa’s future is vested in the private sector; government should facilitate the private sector’s role in driving development in the province.
Matchmaking Meeting Proceedings Out of the 43 scheduled matchmaking meetings, 31 meetings took place during the two conference days on December 4 and 5. Due to the cancellation of one investor’s travel and the rearrangement of some investors’ schedules, 11 meetings were cancelled. As part of the scheduled matchmaking, 10 institutional investors met with the featured SMEs. The other 14 investors interacted with SMEs during the event. The meetings generated interest on the behalf of investors in several businesses, with investor requests for follow-up and non-disclosure agreements. Below are the results of matchmaking meetings:
21 | Ninewa Investment Forum Final Report The Unit
1. Al Aseel Cold Storage Company. The Unit is interested in equity partnership. Al Aseel will provide a business plan to investors based on new technology usage by January 10, 2020. 2. Al Ghazal Dairy Factory. The Unit is interested in equity partnership. Al Ghazal prefers a loan and was requested to submit a business plan by January 10, 2020. 3. Al Sahel Al Akhdar Hotel for equity partnership. However, the company requested Islamic Sharia compliant financing, to which the investor agreed. The investor was provided with all investment materials and will present this opportunity to the investment committee in January 2020. A non-disclosure agreement will be signed. After the New Year, the company and investor will jointly develop a detailed budget for renovation. 4. Brilliant Academy. The Unit is interested in investing in Brilliant Academy as long as it will not include real estate and immovable assets (which company is currently including in the investment ask). The investor wants Brilliant Academy to rent the land. IGPA/NIFI will share the investment pitch deck and the company's financials with the investor, who also requested further information on the company's projected financials as well as assessments of the demand in the area. Parties will sign an NDA. The Unit will also share the proposal with other potential investors. The Unit wants to review the updated foreign investor law. 5. Erbil Delivery. The Unit expressed strong interest to invest. IGPA/NIFI has provided a template of NDA to Erbil Delivery. Next steps are to sign the NDA and provide the investor with the KRG investment law. 6. Lezzoo. Interested in equity partnership but has reservations that the Lezzoo might be overvalued. This might change in the future as investors proceed with due diligence. The investor requested an updated financial model, which IGPA/NIFI is working to provide. 7. Nahrain Association for Agriculture. Strong interest in equity partnership. The Unit has a similar project in Turkey. The investor wants to know the value of the land and to see a feasibility study and projections. 8. Sabeh Agriculture Company. The Unit is interested in equity investment. The investor asked the company to establish a separate entity for investment. The company will share a business plan in the new year.
Chaldean Diaspora/Michigan
1. Pharmaceutical Distribution Company (Hawkary Group). The investor group is interested in the proposal and asked to sign an NDA and to review financial documents. The SMEs still needs to decide on moving forward with this investor.
22 | Ninewa Investment Forum Final Report 2. Al Sahel Al Akhdar Hotel. The company has requested Islamic Sharia compliant financing to which the investor agreed. All investment materials were provided to the investors. 3. Diwan Company. The investors offered $15 million in equity contribution. Diwan provided architectural plans for residential, hospital, school, petrol station, and mall. The SME has secured all government approvals and licenses and has set up a payment system for buyer payments through real estate banks. Diwan will come back to investors with equity size and profit sharing percentage. 4. Medical Supplement Factory. The investor asked for the business plan, which will be finalized with support from IGPA/NIFI. 5. Nahrain Association for Agriculture. The investor group is interested in the proposal and was provided with investment materials. 6. Sabeh Agriculture Company. The investment group is interested in equity contribution. The company will send a feasibility study for this project and for a cold storage project. 7. Thaker Rashy Factory. The group conducted initial discussions. Follow up needed.
FinnFund
1. Al Layth. The investor showed strong interest in capital investment. However, Finnfund prefers if the owner can increase his capital contribution to the project. The investor will get back on the maximum loan amount. Both FinnFund and SME will seek additional lenders. 2. Al Sahel Al Akhdar Hotel. The company has requested Islamic Sharia compliant financing. All investment materials provided to investors. The investor is checking on Islamic Sharia financing and consulting with its internal hospitality and services team and will follow up with sector specific questions and requests. SME to provide details of renovation costs. 3. Bell Finance. Investor is interested in the proposal and asked for financial documents. 4. Pharmaceutical Distribution Company (Hawkary Group). Finnfund is interested in the proposal. Investment ask is $25 million. Investor’s cap is $20 million but they are is willing to co-invest with others. FinnFund asked for additional information on the investment ask and plans for how to use the funding, which will also allow investors to assess if the amount is appropriate. Next steps include signing NDAs and sharing audited financials, investment pitch, and detailed breakdown of funding use. 5. Nahrain Association for Agriculture. FinnFund was flexible with the structure of financing (debt or debt-like instruments) but would prefer the owner to increase his capital contribution in the project. FinnFund is consulting with its internal agricultural team and will follow up with specific questions on the calf market and
23 | Ninewa Investment Forum Final Report the investment split. SME to submit building and reconstruction cost as well as include current property value to the SME contribution. 6. TeamMart. All parties are in agreement with the financing amount of $8 million and the structure. This could change in the future as investors advance in their due diligence. The company will sign an NDA and share the investment pitch deck.
Proparco
1. Al Layth Company. Proparco is interested in the proposal and is considering a 50 percent guarantee of bank loan. Proparco is looking at the option of providing a loan through international banks, such as Byblos or Audi, or a bank guarantee instead of direct investment. The SME agreed to prepare audited financials. The company will respond to further questions from Proparco after the new year. 2. Bell Finance. Proparco may be interested as co-investor given equity ask of $5 million. Funding requirement may be too small in terms of ticket size. The investor asked for historical financials. The investor is presenting this opportunity to investment committee in Paris in January 2020 and will conduct reference checks on the company and the founder. 3. Pharmaceutical Distribution Company (Hawkary Group). Showed interest in the investment proposal pending further discussions and provision of additional details about the specifics of its investment ask and plan to use the funding, which will allow investors to assess if the amount is appropriate. The parties signed NDAs and the company shared audited financials and investment pitch deck. 4. Medical Supplement Factory. The funding request of US$3 million is below Proparco’s investment floor of $5 million. However, the investor will refer the proposal to potential investors in Lebanon and Jordan and will refer the SME to other pharma companies they are in contact with. 5. TeamMart. Interested in debt financing (Islamic Sharia) and all parties are in agreement with the financing amount and structure. This might change in the future as investors advance in their due diligence. Next step is to sign NDAs and share investment pitch deck.
Northern Gulf Partners
1. Pharmaceutical Distribution Company (Hawkary Group). Showed initial interest and will have further discussions. The investor asked for further specifics of its investment ask of $25 million and its plan for using the funding. The parties will sign NDAs and the company will share audited financials, investment pitch deck, and detailed breakdown of use of funding. 2. Lezzoo. Interested in equity investment. All parties are in agreement with the financing amount and structure. This might change in the future as investors advance
24 | Ninewa Investment Forum Final Report in their due diligence. Investor requested updated financial model. IGPA/NIFI will develop detailed financial model to maximize chances of success.
Grofin
1. Samim Tahina. Interest is debt financing. IGPA/NIFI helped the company prepare a business plan for submission to GroFin. 2. Alaela Tahini. The company’s proposal was referred to Grofin as the investment ask of $1 million was below Proparco minimum level. IGPA/NIFI will follow up with GroFin. 3. Gajo Company. IGPA/NIFI helped prepare the business plan for submission to GroFin.
Khudairi
1. Al Sahel Al Akhdar Hotel. The company has strictly requested Islamic Sharia compliant financing. All investment materials sent to investors. The investor will review investment materials and will get back to the team with questions. Investor will conduct site visit. 2. Bell Finance. Khudairi Group showed interest in the proposal and will sign an NDA. The company will send investment pitch deck. 3. TeamMart. The company prefers Islamic Sharia compliant loan, but the Khudairi Group is interested in equity.
17 Asset Management
1. Pharmaceutical Distribution Company (Hawkary Group). Further discussions needed after the Forum to confirm mutual interest in the investment. 2. TeamMart. All parties are in agreement with the $8 million financing amount and structure. This might change in the future as investors advance in their due diligence. IGPA/NIFI had filled 17 Asset Management's due diligence questionnaire on behalf of TeamMart.
Stirling Education
1. Brilliant Academy. The Investor is interested in operating the school while Brilliant Academy is looking only for financing. 2. Diwan Company. The SME and investor showed mutual interest in an investment partnership. Stirling Education is interested in a management contract.
25 | Ninewa Investment Forum Final Report
Piers Drysdale
1. Lezzoo. Both parties are in agreement with the financing amount and structure. This might change in the future as investors advance in their due diligence. Investor requested updated financial model. IGPA/NIFI will develop a detailed financial model to maximize chances of success. Some of the matchmaking meetings did not generate further interest due to the following reasons: • Out of the scope and policy of the investor (Stirling Education wanted to operate the school while Brilliant Academy is seeking capital injection). • Larger or smaller ticket size (the Unit and Pharmaceuticals Distribution Co or Proparco and Bell Finance). • The need of the SMEs, such Islamic Sharia compliant financing or different financing tool request (TeamMart and FinnFund)
The SME Marketplace The project organized a SME Marketplace outside the main ballroom to provide space for featured SMEs to connect with investors and engage participants. The SME Marketplace served as an important networking hub for participants and allowed SMEs to pitch their investment opportunities and answer questions about their business. The Marketplace showcased 24 SMEs—19 featured SMEs and four women enterprises—who displayed their products and marketing materials.
SMEs showcased their businesses to investors and attendees at the SME Marketplace. At the SME Marketplace, eight unscheduled meetings or expressions of interest outside of the matchmaking sessions materialized. These connections are summarized below.
26 | Ninewa Investment Forum Final Report
Table 5. Unscheduled Investor-SME Meetings # Stakeholders Minutes of Discussion Next Step 1 Diwan Co. & Mr. Abdullah introduced himself as an investor Mr. Abdullah will Abdullah Al based in the UAE with interests in the contact Diwan Co and Shemary (UAE infrastructure projects. He asked about Diwan will study the company’s investor) Residential project and exchanged contact website for further information with the company. information. 2 CM Sewing & Mr. Ahmed, the owner of Brilliant Academy CM sewing to provide Brilliant Co. and also working in the health sector, Mr. Ahmed with a expressed interest in cooperating with CM to sample. provide Iraq Ministry of Health with uniforms. 3 Brilliant Academy HFDC is a consultancy company in the health Brilliant will contact & HFDC sector (design of hospitals) and have modern HFDC in January 2020. equipment for young students with autism. HFDC wants to see whether a potential collaboration can be forged. 4 Al Layth Co. & Al Layth Co. had a meeting with Interlink, a Al Layth not interested Interlink consultancy company that offered its services in the service. to present Al Layth’s project to international investors.
5 Al Layth Co. & Al Al Fanar works in refrigeration and air- The two companies will Fanar A.C. conditioning and has previously met with Al meet for further Layth before the Forum. Al Fanar has shown discussions. initial interest to become a shareholder in Al Layth. 6 Al Ghazal Dairy Mardam Bey is interested in offering a Submit the feasibility Factory and The partnership agreement. The initial proposal is study. Al Ghazal will Unit to establish a new company, where the two submit application companies can start out as partners. papers after the new year. Mardam Bey will evaluate the factory price. 7 Sabeh Agriculture The Iraqi government is in the process of Sabeh will submit a Company banning the import of egg. Investor has feasibility study. and The Unit questions about revenue and logistics of business.
8 Sabeh Agriculture Discussed the market demand and Sabeh will submit a Company distribution capabilities. feasibility study and and Chaldean appraisal of the land. Community Foundation
Business Development Center Registration IGPA/NIFI Business Development Center (BDC) was set up at the SME Marketplace to promote its Business Development Services to SMEs attending the event. The Project received 86 applications for Business Development Services during the Forum, thus
27 | Ninewa Investment Forum Final Report expanding the project’s demand-driven pipeline development. Below is a list of services requested by SMEs.
Table 6. Business Development Services Requested by SMEs
Business Development Services No. Business planning and feasibility studies 47 Business performance improvement 36 Business start-up planning 37 Entrepreneurship program for women 23 Access to finance and investment 73 Cash flow management 24 Digital marketing 23 Production improvement 27
Annex 3 includes BDC information sheet and application form.
Women’s Participation at the Forum IGPA/NIFI invited four businesswomen and entrepreneurs to the Forum and provided space at the SME Marketplace for companies to display their products and engage investors and participants. One of the businesswomen, Ms. Nour Adil, founder of Hopeful Hands, participated in the entrepreneurship panel. Hopeful Hands is a sewing project that helps Syrian refugees and internally displaced Iraqi women to learn a new livelihood skill. The women-owned enterprises were:
1. Hopeful Hands The proprietor of R.J. World of Fabrics 2. Lala Candles speaks with an investor. 3. R.J. World of Fabrics 4. CM for Sewing
Supporting Organizations A total of 14 organizations and media entities signed up to be supporting partners of the Ninewa Investment Forum. Supporting partners agreed to promote the Forum on their websites and within their networks. Supporting organizations included:
1. AMCHAM Iraq
28 | Ninewa Investment Forum Final Report 2. Board of Investment - Kurdistan Regional Government-Iraq 3. Iraq Middle Market Development Foundation 4. Iraq Private Banks League 5. Iraqi Federation of Industries-Ninewa Chamber of Industries 6. Ninewa Investment Commission 7. US-Iraq Business Council 8. Yazda (Global Yazidi Organization)
IGPA/NIFI’s six official media partners agreed to promote the Forum ahead of the event and to provide coverage during it. Rudaw Media, a major media outlet across Iraq with more than three million followers on Facebook, offered to live-stream the Forum and provided extensive coverage throughout two days of the conference. This included setting up a mobile studio within the Divan Hotel to broadcast interviews. Media partners included:
1. Alghad Radio 2. Ezidi24 3. Iraq Media Network 4. Kirkuk Now 5. Rudaw 6. Sama al-Mosul
Communications and Outreach IGPA/NIFI developed a wide range of communications and outreach materials to promote the Ninewa Investment Forum. Copies of communications materials are in Annex 4.
Website - The Ninewa Investment Forum website (www.invest-in-ninewa.com) featured a registration page, information on SMEs, supporting organizations, and other useful information.
Social Media - The Project promoted the Ninewa Forum through targeted paid posts on the IGPA/Takamul Facebook page and DAI LinkedIn page, as well as regular posts on the DAI Twitter account (DAI accounts were used as IGPA/Takamul does not have accounts on these platforms). IGPA/NIFI posted updates and videos on these platforms throughout the Forum as well. IGPA/NIFI social media posts about the Forum generated more than 43,000 views.
29 | Ninewa Investment Forum Final Report - The Project produced six quick turnaround videos of the highlights of each day of the conference to share on social media, including the IGPA/Takamul YouTube page. - Livestreamed proceedings of conference from the IGPA/Takamul YouTube page (English Day 1 and 2: 370 views, Arabic Day 1: 925 views, Day 2: 707 views)
Videos - One 6-minute Ninewa overview video presented at the Forum - Four 3- to 5-minute videos for each of the four sectors presented at the Forum - One 3-minute summary video of the highlights of the Forum - One 10-minute video documentary of the Forum
Banners, Promotional Materials, Conference Materials - Wide-format backdrop banners - Roll-up banners for featured SMEs, women entrepreneurs, promotional banners, supporting organizations, and BDC program banners - Conference materials including Forum brochure, Forum overview, and fact sheet - Branded notebooks, pens, bags, flash drives with conference documents
Media Coverage The Ninewa Investment Forum received extensive media coverage, with 14 local and national media organizations providing coverage during the event, including Al Hurra TV, Alghad Radio, Devex, Extreme Media, Ezidi24, Iraq Media Network Kirkuk Now, Kurdistan TV, Radio AlGhad, Rudaw, Salahdin TV, and The National. In addition, more than 30 international and national news outlets published stories about the Forum.
More than a dozen national and international media outlets covered the Ninewa Investment Forum.
30 | Ninewa Investment Forum Final Report Highlights of Media Coverage Rudaw held an exclusive interview with United States Ambassador Matthew Tueller, who pointed to bureaucratic red tape as a factor that hinders economic development in the area. “We welcome reforms in the government to create conditions and an atmosphere that will make it easier for private sector investment to flow into Mosul and other areas of Iraq to create these jobs for young people,” he said.
Ninewa Governor Najim al-Jabouri and USAID Senior Deputy Assistant Administrator for Middle East Hal Ferguson also sat down for interviews with Rudaw.
Several weeks before the Forum, IGPA/NIFI launched a media outreach campaign to publicize the event. IGPA/NIFI team members were interviewed on Iraqi media such as al- Hurra TV, Rudaw English, Sama al-Mosul, Radio al-Ghad, and KirkukNow, helping Newly appointed governor of Ninewa Hon. General to promote registration for the event. Najm al-Jubouri speaks to the media about his plans for the rehabilitation of the province.
Below is a summary of articles and interviews published by the Iraqi media about the Forum.
Table 7. Ninewa Investment Forum News Stories Date Headline Posted by Link(s) 6-Nov-19 NIF will be held in Erbil Westga News http://westganews.net/dreja.aspx?=he
wal&jmara=78417&Jor=1
19-Nov-19 NIFI Private Sector Investment Team Sama al-Mosuk https://www.youtube.com/watch?v=B Lead exclusive interview Xhf2zkdxQ0&feature=youtu.be&fbcli d=IwAR0w5cJf6O3Nkeeamu4l9gw76 In0nYO49QXqIpTjWeYQby4C9Z3
DM7mbya8 19-Nov-19 MENAFN - Iraq Business News Menafm https://menafn.com/1099299139/Nin
ewa-Investment-Forum
20-Nov-19 Ninewa Investment Forum Iraq-business https://www.iraq-businessnews.com/
25-Nov-19 The Ninewa Investment Forum holds a Alghada.fm http://alghad.fm/ conference in Erbil to attract capital for the province and invest in it 27-Nov-19 Through American support, Erbil hosts Basnews http://www.basnews.com/index.php/a
the Ninewa Investment Forum r/economy/kurdistan/563969
27-Nov-19 The Ninewa Investment Forum Sotkurdistan http://sotkurdistan.net/ highlights opportunities for economic investment in Ninewa governorate
31 | Ninewa Investment Forum Final Report 28-Nov-19 With the aim of providing economic Xedeng https://xedeng.uoz.edu.krd/ support ... the capital of the Kurdistan region hosts the Ninewa Investment Forum 28-Nov-19 With the aim of providing economic xedeng.uoz https://xedeng.uoz.edu.krd/ar/tag/%D support ... the capital of the Kurdistan 9%85%D9%86%D8%AA%D8%AF%D region hosts the Ninewa Investment 9%89- Forum %D9%86%D9%8A%D9%86%D9%88%
D9%89/
28-Nov-19 With US support, Erbil hosts the Iraqakhbar https://iraqakhbar.com/2109218 Ninewa Investment Forum 1-Dec-19 The Ninewa Investment Forum seeks Ankawa http://www.ankawa.com/forum/index.
to invite investors to revive Ninewa php?topic=958774.0
1-Dec-19 Erbil embraces the business of the Iraqi medi news https://al- Ninewa Investment Forum agency iraqnews.com/%D9%88%D8%A7%D8 %B9 1-Dec-19 Erbil hosts a forum to offer $127 Mawazin https://www.mawazin.net/Details.asp
million in investment opportunities in x?jimare=75104 Ninewa 1-Dec-19 Erbil hosts the Ninewa Investment Rudaw https://www.rudaw.net/arabic/busines
Forum to offer $127 million in s/011220192 investment opportunities
1-Dec-19 Forum highlights opportunities for Azzaman https://www.azzaman.com/ economic investment in Ninewa 4-Dec-19 Governor of Ninewa: The previous Mawsuaat Iraq https://www.ikhnews.com/index.php?
mistakes were a reason for the fall of page=article&id=203852 Mosul in the hands of terrorism
4-Dec-19 Qubad Talabani: Kurdistan Region is Gov.krd https://gov.krd/ ready to participate in the reconstruction of Ninewa
4-Dec-19 The activities of the international forum Noor news https://alnoornews.net/ for Investment and reconstruction are launched in Ninewa 4-Dec-19 Ninewa governor participates in the Ninava https://ninava.gov.iq/details.php?id=12
work of the international forum for 9 investment and reconstruction
4-Dec-19 Jubouri: We seek to invest in religious Wna-news http://wna-news.com/ tourism for Ninewa, similar to Najaf and Karbala
4-Dec-19 Governor of Ninewa: the Kurdistan Sotaliraq https://www.sotaliraq.com/ region is sind and the dahir
4-Dec-19 Governor of Ninewa: Kurdistan is our Kurdistan TV https://kurdistantv.net/ main supporter
4-Dec-19 With media support from Al-Ghad Alghad http://alghad.fm/news Radio ... the Ninewa Investment Forum was launched in Erbil to offer investment opportunities worth $ 127 million 4-Dec-19 Tueller: Ninewa has the largest share of Alghadpress https://www.alghadpress.com/view.ph
US investment opportunities p?cat=225730
4-Dec-19 Najm Al-Jubouri: There is a good Radionawa https://www.radionawa.com/all-
atmosphere and structure for detail.aspx?jimare=16443 investment in Ninewa
4-Dec-19 Talabani: One million displaced Mosli in Alsumaria.tv https://www.alsumaria.tv/news the Kurdistan region
4-Dec-19 Qubad Talabani: Kurdistan region is Gov.krd https://gov.krd/ ready to participate in the reconstruction of Ninewa
32 | Ninewa Investment Forum Final Report 4-Dec-19 Talabani: About a million displaced Shafaaq https://www.shafaaq.com/ people from Ninewa go Kurdistan region
4-Dec-19 Qubad Talabani: About a million Dwarozh https://www.dwarozh.net/ displaced from Mosul in the Kurdistan region
4-Dec-19 Governor of Ninewa: Kurdistan is our Zagrosnews https://zagrosnews.net/ main supporter 4-Dec-19 Talabani: One million displaced Mosuli 24news https://24news.agency/content.php?id
in the Kurdistan region =51963
5-Dec-19 Ninewa on the investment map- Results KirkukNow http://kirkuknow.com/ar/news/60870 of NIF from day 1 to last day
5-Dec-19 Washington declares its economic Radio Nawa https://www.radionawa.com/ support to Ninewa province
5-Dec-19 Washington declares its economic Alforatnews https://alforatnews.com/ support to Ninewa province 6-Dec-19 Q&A: How USAID is responding to Devex Link Iraq's violent crackdown
7-Dec-19 Christians from the Ninewa Plains Hathalyoum https://hathalyoum.net/ participate in the Ninewa Investment Forum
7-Dec-19 Christians from the Ninewa Plains Ezidi24 https://ezidi24.com/ participate in the Ninewa Investment Forum
8-Dec-19 The Assyrian Aid Society _ Iraq Zowaa.org https://www.zowaa.org/ participates in the works of Ninewa Investment Forum
8-Dec-19 The US Ambassador: Ninewa will have Baghdad Post https://www.thebaghdadpost.com/ the largest share of our investments
8-Dec-19 Christians from the Ninewa Plains Bet-nahrain https://www.bet-nahrain.org/ participate in the Ninewa Investment Forum
9-Dec-19 Security is just the beginning for Iraqi Devex link entrepreneurs in ISIS' wake
10-Dec-19 Matthew Tueller: Ninewa has largest New Sabah http://newsabah.com/ share of US investment opportunities
10-Dec-19 The start of the Ninewa Investment Iraqakhbar https://iraqakhbar.com/2120488 Forum with the participation of Iraqi private banking association in Erbil 12-Dec-19 Too little security, too much red tape Rudaw English https://www.rudaw.net/english/middl
preventing Nineveh's prosperity: US eeast/iraq/041220192 Ambassador to Iraq
12-Dec-19 Two years since ISIS defeat, foreign Rudaw English Link investors look to Nineveh
Videos Posted The following videos about the Forum were posted by media outlets on YouTube: https://www.facebook.com/RudawArabi/videos/719328881888301/ https://www.rudaw.net/sorani/kurdistan/0512201916 https://www.youtube.com/watch?v=dAJytz4pY5k https://www.youtube.com/watch?v=f1_8v3cB4wY https://www.youtube.com/watch?v=kMzbvH1iF60 https://www.youtube.com/watch?v=U5d0hy0DWeg https://www.youtube.com/watch?v=i0yPkCyWu7g
33 | Ninewa Investment Forum Final Report https://www.youtube.com/watch?v=20bKzgVm808 https://www.youtube.com/watch?v=guXmorWeZdY https://www.youtube.com/watch?v=BXhf2zkdxQ0&feature=youtu.be&fbclid=IwAR0w5cJf6 O3Nkeeamu4l9gw76In0nYO49QXqIpTjWeYQby4C9Z3DM7mbya8
CHALLENGES AND LESSONS LEARNED
Attracting Investors Despite Iraq’s High-Risk Profile Convincing international investors to take a serious look at specific investment opportunities in Ninewa was a huge challenge given the high-risk profile of Ninewa and Iraq in general. The destruction of the local economy by ISIS exacerbated an already challenging investment environment. The challenges to attracting investment for private sector development are many.
• First, Iraq suffers from a very weak business enabling environment. Iraq is now ranked 172nd out of 190 countries in the World Bank’s Doing Business 2020 report, down from 171st place the previous year. Iraq ranks 154th in ease of starting a business, 131st in getting electricity, and 147th in enforcing contracts. Trade barriers, mainly regulatory and bureaucratic practices, restrict the level of trade and investment. • Lack of infrastructure, mainly inadequate power supply and weak transport networks, has been identified as a major constraint to private sector growth. As cited above, getting electricity is a major obstacle to doing business in Iraq. In addition, an estimated 40 percent of total electricity generated is lost in the distribution network. • The inefficient and bloated public sector is the predominant employer in Iraq. Non-oil private firms struggle against being crowded out by state-owned enterprises (SOE) which are kept alive by the government due to fear of significant lay-offs and social costs of closure or downsizing. • The long-standing lack of trade policies has made it difficult if not impossible for entrepreneurs to compete against what amounts to dumping by Iran, Turkey, Jordan, and China. This is especially the case for agricultural products, consumer goods, manufactured products, and medicines which are Iraq’s main imports. • The financial sector in Iraq is relatively small and dominated by the state, making it uncompetitive and unable to meet the needs of the private sector. The World Bank Doing Business 2020 report ranks Iraq 186th in “getting credit,” revealing a severe lack of access to finance for both established businesses and new entrepreneurs. The amount of credit provided to the private sector amounts to less than 7 percent of GDP. A deficient collateral system means that banks over-collateralize loans, typically requiring 140 percent collateral for a loan to an SME.
34 | Ninewa Investment Forum Final Report • The Iraqi private sector suffers from a shortage of skilled labor due to the continuing brain drain and the failure of the educational system to provide the skills and training needed compete in the global knowledge economy. The last World Bank Systems Approach for Better Education Results (SABER) workforce development assessment conducted in 2013 rated Iraq at the Latent stage. The damage and disruption caused by ISIS has exacerbated the situation. The private sector also struggles to attract talent because of the greater appeal of public sector jobs with their higher benefits and pensions. • Women’s participation in Iraq’s labor market is estimated at only 19 percent and female ownership of businesses may be as little as 7 percent. Iraq is missing out on the benefits of higher rates of female inclusion in the private sector economy. Economies with greater gender equality tend to grow faster and more equitably, and women generally devote more of the household budget to education, health, and nutrition than men. • Finally, widespread bribery and corruption are a real economic and financial cost to doing business in Iraq. Iraq is ranked 168th out of 180 countries in Transparency International’s Corruption Perceptions Index. All of the factors mentioned above combined with the legacy of conflict and instability contribute to Iraq’s high-risk profile that deters international investors. To encourage investors to participate in the Forum and consider investing in the featured SMEs, IGPA/NIFI learned to focused on three factors that were sufficiently compelling to a select group of international investors. IGPA/NIFI will need to continue to emphasize these factors as the search continues for additional investors.
First, Ninewa represents an untapped relatively virgin market for many types of businesses. There is almost no competition in many spheres of business. First-mover advantages and potential rewards are tremendous. This was one of the most important messages highlighted by the panels during the Forum.
Next, most of the SMEs chosen to showcase and matchmake with investors are operated by experienced entrepreneurs with successful track records prior to the ISIS invasion. These businessowners know how to operate successfully despite all the obstacles cited above. Thus, investors have the opportunity to invest in proven entrepreneurs with the added potential for upgrading technology and know-how to exceed pre-ISIS revenues and profits.
These opportunities were detailed in the SME profiles found in Annex 5.
Finally, IGPA/NIFI sought out investors that have compelling non-financial reasons to invest in Ninewa. This includes the Chaldean diaspora who have a mission to help their home communities. This also includes investors and financing organizations that have a social impact and/or a locally oriented corporate social responsibility mission, such as Proparco and Northern Gulf Partners, and GroFin.
35 | Ninewa Investment Forum Final Report Helping Firms Become Investment Ready – The Need for Sustained Business Development Services and Capacity Building The SMEs from northern Iraq that IGPA/NIFI selected to be showcased at the Forum are representative of the more sophisticated and experienced enterprises from the region. Nevertheless, they all required significant Business Development Services in the form of firm-level technical assistance and coaching leading up to the Forum to prepare them for matchmaking meetings with international investors. Given the timing of the Forum, the amount of time available to prepare the SMEs was very limited.
The IGPA/NIFI team of business advisors worked with each SME to develop company profiles that include a synopsis of the business, a description of the proposed investment, the amount of financing needed, and the purpose of the financing. These company profiles were sent to prospective investors to familiarize them with each featured SME and help them decide which SMEs to meet with during the Forum. IGPA/NIFI also put together pitch decks for each SME and conducted individualized training sessions to teach SME owners how to pitch their business to investors. Each business owner not only practiced their pitch but also practiced responding to frequently asked investor questions.
Despite the pre-Forum technical assistance each SME received, they will require further Business Development Services to advance negotiations started at the Forum. Additional technical assistance needs will include the compilation of historical financial statements, verifying financing requirements, developing monthly financial projections, working on business plans and market assessments, and facilitating further negotiations.
Capitalizing on SME and Investor Meetings at the Forum Rather than just bringing investment ready businesses to the attention of investors during the Forum through the sector panels, the IGPA/NIFI team arranged matchmaking meetings between the featured SMEs and investors. These meetings were arranged before the Forum by sending the company profiles to the investors and allowing them to identify which SMEs they were interested in meeting with. The meetings were conducted during the Forum in designated match making rooms.
Therefore, the Forum went beyond being just a mechanism to introduce SMEs and potential investors. It facilitated the initial face-to-face discussions and in some cases negotiations between the parties. Several NDA signings were arranged during the matchmaking meetings.
Arranging the matchmaking meetings at the Forum enabled IGPA/NIGI staff to record the results of the meetings and bolster the confidence of some SME owners with no previous experience meeting with international investors. In addition, IGPA/NIFI recognized the importance of taking advantage of face-to-face meetings at the Forum to facilitate dialogue and build momentum between SMEs and investors, before the parties go their separate ways to continue negotiations remotely.
36 | Ninewa Investment Forum Final Report Creating an SME Market Place to Promote SMEs and Facilitate Networking Although the panel discussions gave the featured SME owners the opportunity to pitch their businesses to the Forum audience, IGPA/NIFI sought other ways to increase exposure for SMEs. The solution was to set up an SME Marketplace right outside the ballroom where the speeches and panels took place. Each SME was assigned a table where they could station a representative and display product samples and information. IGPA/NIFI created banners for each SME to display alongside their tables.
The strategic location outside the ballroom fostered an extremely dynamic networking environment whereby business to business discussions took place and investors and media were able to have discussions with SME owners and representatives. The U.S. Ambassador and other representatives of the U.S. Government were able to meet SME owners and see some of their products first-hand. The SME Marketplace was particularly lively during coffee breaks.
The lesson learned is to always seek ways to use the conference space and coffee breaks to foster topic relevant networking and informal discussions.
Expanding the Demand-Driven Pipeline of SMEs for Business Development Services During the early stages of IGPA/NIFI, it was challenging to communicate with and reach to a large base of potential beneficiaries (SMEs) to promote the Project’s Business Development Services (BDS). The Forum presented a great opportunity for IGPA/NIFI team to reach SMEs and collect data on their BDS needs.
IGA/NIFI set up a Business Development Center (BDC) table at the SME Marketplace to enable SMEs and other stakeholders to learn more about the Project. In addition, IGPA/NIFI created a combination survey/application form that SMEs filled in to indicate the types of BDS they needed. Categories included:
• Business planning and feasibility studies • Business performance improvement • Business start-up planning • Entrepreneurship program for women • Access to finance and investment • Cash flow management • Digital marketing • Production improvement
A total of 86 SMEs completed applications. IGPA/NIFI has added these firms to its pipeline and will review each firm to determine if they meet the criteria for receiving BDS. The important lesson learned is to think of creative ways to ensure program interventions are demand-driven.
37 | Ninewa Investment Forum Final Report Using a Win-Win Approach with Iraqi Media to Ensure Extensive Coverage of the Forum One of the challenges for the IGPA/NIFI was how to ensure constant media presence at the Forum. During such events, Iraqi media typically follow their favorite government officials. Additionally, the Iraqi media usually allocate short coverage times during such conferences and produce short clips or news articles that are not picked up by wider Iraqi audiences. To address this issue, IGPA/NIFI was successful in bringing in several major Iraqi media outlets, including Rudaw Media Network, Alghad Radio, and others to provide constant coverage for the Forum. Although few Iraqi and KRG senior officials were present, IGPA/NIFI convinced the media outlets that the Forum provides a unique opportunity to conduct a series of exclusive interviews with influential figures in Iraq, especially for the investment scene in Ninewa, such a Ninewa’s new governor, the U.S. Ambassador to Iraq and a USAID senior official.
Rudaw agreed to broadcast the Forum live on TV. They also set up a temporary interview studio at the Forum. In addition, in the lead up to the Forum, IGPA/NIFI launched a media campaign that included interviews with IGPA/NIFI staff and introduced the event to editorial leaders.
Moving forward, IGPA/NIFI should maintain its good relations with the Iraqi media as it is an instrumental tool to inform networks of investors nationally and internationally. Also, IGPA/NIFI should make use of these channels to launch investment educational series for Iraqi audiences, especially in Ninewa.
Leveraging Media, Digital Marketing, and Social Media to Reach Maximum Attendance at The Forum The tremendous interest in the Forum was generated by the launch of an NIF website and social media outreach in conjunction with traditional media, i.e. televised and radio broadcast interviews. IGPA/NIFI’s senior staff were interviewed several times on major Iraqi media to publicize the Forum. These interviews were simultaneously broadcast on these outlets’ social media and re-broadcast on their YouTube channels. One example was IGPA/Takamul Chief of Party Peter Dimitroff’s two interviews on Rudaw in English and Arabic few days before the Forum. Also, a major Iraqi media outlet posted an ad for the Forum for a month free of charge that contributed in increasing registration requests.
IGPA/NIFI social media posts generated more than 43,000 views, while YouTube videos accumulated 418 views for English videos and 970 views for the Arabic version as of the last day of Forum. Following the promotion by traditional and social media, the Forum’s registration requests increased dramatically.
In parallel, with the successful digital and traditional media outreach campaign, IGPA/NIFI believes that targeted and regular introductory meetings and workshops about the Forum in Ninewa helped explain the Forum's objectives and helped ensure that relevant participants attended the Forum.
38 | Ninewa Investment Forum Final Report ANNEXES
Annex 1 – Summary of Investor Roadshow Report
PURPOSE OF INVESTOR ROAD SHOWS USAID/Iraq’s Governance and Performance Accountability’s (IGPA/Takamul) Ninewa Investment Facilitation Initiative project is improving the livelihoods of ethnic and religious minorities in northern Iraq. The immediate outcome will be matching minority communities in the Ninewa Plains with potential investment sources to rebuild and expand their businesses. The longer-term outcome will be restoring the reputation of the Ninewa Plains as Iraq’s breadbasket and as a vibrant, multi-ethnic investment target.
STERLING HEIGHTS, MICHIGAN Date: September 26, 2019 Trip outcomes and results 1) Generation of interest in attending the Ninewa Investment Forum The Team shared information about the dates and content of the Ninewa Investment Forum and agreed to share a save- the-date and invitation once these materials are available. Dr. Adhid Miri and Martin Manna expressed that they would attend the NIF, and Shakhwan Azeez followed up by email to RSVP. The Team expects that some level of reimbursement may be required to facilitate travel, though this was not discussed during the roadshow.
2) Identification of potential match • During the presentation, two Chaldean investors noted that they were personally familiar with the CEO of Nahrain Agriculture, Mr. Bashar Jomoo. Mr. Jamal Kalabat, specifically requested to be re-introduced in the context of his current project and investment request. The Team made this introduction after further conversation with Mr. Jomoo and revision of the investment request summary. • Secondarily, the team had a follow-up meeting with Mr. Shakhwan Azeez and his son in Erbil regarding the capabilities of Depth Gulf LLC in construction and project management. 3) Identification of key areas of interest and concern for diaspora investors • A portion of the meeting and lunch was dedicated to collecting feedback and questions from attendees in response to the opportunities that were presented. Key themes included: ▪ As a general principle, the Michigan business community expressed the sentiment that they are looking for commercial opportunities, and “participation is not expected to be based on community cultural attachments and emotional logic.” ▪ Local investment: Attendees noted that they are most interested in projects that also have strong local investment. Projects that do not already have capital raised or are not contributing capital themselves would not likely be of interest. o Note: Of the opportunities presented, four had clear investment commitments from the entrepreneurs or companies of between 18-30% of the total project cost. ▪ Stage of opportunities: In general, attendees wanted to discuss projects in greater detail including seeing specific terms for the investment. The Team reiterated that the immediate goal was to collect early feedback on which opportunities may be of interest in order to develop them further, and that engagement of interested investors would help determine the terms and structure of the investment.
Area of Concern Potential Investment Risk Mitigation Security: Attendees raised concerns about the From an investment perspective, Political Risk security risks in the Ninewa Plains region. In Insurance is a common tool used to guard against particular, there are concerns around the losses of physical assets and business revenue related presence of the PMF and impact on minority to political violence. communities. Trust: Attendees noted that they would be There are best practices and professional due more interested to invest in businesses run by diligence providers that operate in Iraq to provide individuals that they personally knew and could Political Exposed Persons/Integrity Due trust. Diligence which can help reduce risk when working with a new partner. Getting money ‘out’: Attendees raised From an investment perspective, Political Risk concerns about getting money from investments Insurance also guards against currency out of Iraq. inconvertibility issues – if it is not possible to get USD out of the country.
Recommendations from CACC Following the meeting, the Chaldean American Chamber of Commerce offered the following suggestions for further engagement of NIFI: ▪ Lead business advocacy efforts in the Nineveh Plain and KRG region, through the combined power of local business community and CACC/CCF members. ▪ Develop a regional strategy prioritizing areas for funding, projects and services. Priority areas could include healthcare/medication, mental healthcare, entrepreneurship, transportation, manufacturing, and housing, recognizing that many areas are inextricably linked. ▪ Be explicit in the collaborative’s goal to fund projects targeting immigrant and refugee communities in Christian areas. ▪ Organize a new mutual-fund collaborative in Michigan, USA, focused on supporting refugees’ projects and displaced communities. ▪ Proactively share projects and business stories with the broader regional and diaspora community. ▪ Foster dialogue and collaboration between USAID/NIFI/ADI/KRG and local Chambers of Commerce members in Iraq, Jordan, Lebanon and Gulf region. ▪ Set up an organization to reduce service overlap and competition, and to increase efficiency. ▪ Include a multilingual, multicultural (Arabic, English, Chaldean, Kurdish) speaking person in CB staff in Iraq. A thought leader to provide diverse perspectives and local expertise regarding community needs within the Nineveh Plain region. We can suggest a list of good candidates for the Iraq- Nineveh Plain post. o In response to this feedback, the NIFI team explained that project employs five full-time local staff specialized in private sector development, who are from the Ninewa Plains region and representative of the languages and cultures. This is the team that was primarily responsible for identifying high-potential projects. The team is directly managed by a senior staff member who is a native Arabic speaker and has several decades of experience in finance and private sector development. The team has engaged a wide range of local leaders and members of the business community to support the project and help identify and vet promising projects, including business chambers, investment commissions, etc. Recommendations and next steps The Team recommends the following next steps: ▪ Complete: Facilitate introduction between Mr. Jamal Kalabat and Mr. Bashar Jomoo of Nahrain Agriculture ▪ Complete: Share Ninewa Investment Forum save-the-date with all attendees and confirm attendance ▪ In Progress: Share detailed information about Political Risk Insurance products and providers in Iraq – these products can be purchased to cover expropriation, currency inconvertibility, and political violence
LONDON, UK Dates: October 2-3, 2019 Trip outcomes and results 1) Successful invitation of three investors to NIF a. The Team shared a targeted investment opportunity in the education space with Stirling Education. The Team had prepared a brief financial model based on conversations with the CEO to outline the projections for Stirling. At the meeting, Stirling described their existing interests in Iraq, and affirmed its desire to pursue education opportunities in Mosul. b. The Team met with Richard Greer to discuss the range of business opportunities that would be showcased at the NIF. Richard outlined the range of his historic investment and philanthropic interests in Iraq. He has previously invested privately within the tech startup space in Iraq. Further, he described plans, in partnership with Omar Hussain, for his Middle East Tech Hub, a venture capital investment fund that will focus on technology companies in the Middle East. Richard Greer also suggested several potential people to contact that are active within the Northern Iraq business environment and might be able to make investor introductions.
40 | Ninewa Investment Forum Final Report c. The Team met with Zaab Sethna and presented the range of investment opportunities that we would be showcasing at the NIF. Zaab also described the activities of Northern Gulf Partners, which has been investing in Iraq since 2007. It invests in both listed and unlisted equities. For unlisted equities, it will typically invest alongside other private investors. Further, Northern Gulf Partners has been approached to advise private investors that are interested in investing in Iraq. Zaab therefore offered to introduce the Team to other potential investors that had previously shown interest in investing in Iraq. Zaab also spoke about his optimism about investment in Iraq, driven by the growing middle class, and referred a potential investment opportunity in Mosul.
2) Potential introductions to further investors • The Team met with several people in London who were not direct investors themselves, but who had encountered private individuals interested in investing in Iraq. For example, the Risk Advisory Group will advise investors interested in conducting political risk due diligence on potential investments in Iraq. As a result, the Team circulated high level information about the investment opportunities in the pipeline with individuals who were connected to potential investors.
Recommendations and next steps The Team recommends the following next steps: ▪ Complete: IGPA/NIFI to circulate further NIF details once materials are approved by USAID, thus extending formal invitations to investors ▪ Complete: IGPA/NIFI to follow up on potential SME and investor leads as appropriate ▪ Complete: IGPA/NIFI to conduct follow up calls with potential investors to discuss which investment opportunities they might be interested in, and facilitate introductions or further information requests as required
AMMAN, JORDAN Dates: October 23-24, 2019 Trip outcomes and results 1) Successful invitation of three investors to NIF a. The Team met with 17 Asset Management’s co-founder and head of Jordan Growth Fund, Mary Nazzal-Batayneh, to share three pipeline opportunities. 17AM shared an NDA to obtain further information and will provide specific questions for the opportunities of interest. The Team shared the NIF invitation, and 17AM expressed interest in having at least one team member attend. b. The Team met with Silicon Badia’s co-founder and managing partner, Emile Cubeisy, to share an update on the pipeline, details of the NIF, and to request several additional introductions in Jordan. It is likely that someone from Silicon Badia will attend the NIF, though Mr. Cubeisy has another commitment at that time. c. The Team met with Hamza Al Assad to share the pipeline of opportunities and details of the NIF. Edgo is looking to diversify its investments outside of oil and gas in Iraq, and the company can support a wide range of ticket sizes, from as low as about $150k to tens of millions. It is not currently interested in real estate opportunities.
2) Potential introductions to further investors • Through these meetings, the Team identified several other regional investors who may have an interest in opportunities in Iraq and is following up to secure warm introductions.
Recommendations and next steps The Team recommends the following next steps: ▪ Complete: IGPA/NIFI to conduct follow up calls with potential investors to discuss the investment opportunities they expressed interest in, and facilitate further engagements and information requests with the opportunities as required ▪ Complete: IGPA/NIFI to follow up regarding warm introductions to other potential investors
BEIRUT, LEBANON Dates: October 14-15, 2019 Trip outcomes and findings 1) Regional and development-focused investors have expressed interest in multiple businesses and in attending the NIF
41 | Ninewa Investment Forum Final Report a. Prior to the meeting, the Team shared teasers for Bell Finance and Al Layth with Proparco. These teasers were discussed in the meeting. At the meeting, Proparco described its interest in Iraq and affirmed its desire to pursue opportunities in the country. The MENA investment team at Proparco has not visited Iraq previously and expressed interest in timing their first visit with the NIF. Currently, the Team is working with the investor and the two opportunities to discuss and clarify details regarding the investment. To that extent, the Team has signed a non-disclosure agreement with Proparco and received a list of detailed questions to start early due diligence process with these two opportunities. b. The Team met with Malia Group and presented the range of investment opportunities that would be showcased at the NIF. The founder of Malia Group, Jacques Sarraf, also described the activities of Malia Group, which holds and manages several investments in Iraq. It invests in sectors such as hospitality, entertainment and pharmaceutical distribution. Mr. Sarraf expressed interest in two opportunities, the pharmaceutical manufacturing company and the supermarket chain. The Team is currently following up with these companies to facilitate the match-making. c. The Team met with investors such as EuroMena and Emerging Investment Partners who have not invested in Iraq yet but expressed interest in investing given the right opportunity. The investors outlined their investment mandates and their reservations when it comes to investing in Iraq. For instance, both funds mentioned that they would prioritize pooling and co-investing with experienced investors, whether local Lebanese investors or DFIs, to minimize their risk exposure. 2) Key meetings with experts and relevant stakeholders have expanded the Team’s knowledge and network • In addition to stakeholders directly investing in Iraq, the Team also met with connecting organizations and individuals. For instance, the Team met with Amer Mardam-Bey, who heads the business development unit of REED, a company that offers mission critical support services. Following the meeting, Amer introduced the Team to potential investors and lawyers who shared their insight on investing in Iraq and are interested in attending the NIF. 3) Some Lebanese investors have restricting mandates when it comes to investing in regional enterprises • While there are a growing number of funds based in Lebanon, many have restricting mandates prohibiting investments outside the country. This restriction is due to local funds receiving capital injections and guarantees from the Lebanese Central Bank. This Central Bank initiative is called “Circular 331.” When funds receive this support from the Central Bank, they are obliged to only invest in local start-ups. While Circular 331 has been effective in promoting investment into Lebanese start-ups, it means that these funds would be highly unlikely or even unable to invest in Iraqi enterprises.
Recommendations and next steps The Team recommends the following next steps: ▪ Complete: IGPA/NIFI to circulate save-the-dates and further NIF details, thus extending formal invitations to investors ▪ Complete: IGPA/NIFI to conduct follow up calls with potential investors to discuss the investment opportunities they expressed interest in, and facilitate further engagements and information requests with the opportunities as required
RIYADH, SAUDI ARABIA Dates: October 29-30, 2019 Trip outcomes and lessons learned 1) One investor is interested in an opportunity in the Team’s pipeline • During the conference the Team met with the Kuwaiti private equity fund, NBK Capital Partners, which is interested in building a pharmaceutical platform in the MENA region. The fund has extensive experience in the pharmaceuticals space and recently acquired two pharmaceutical companies in Morocco and Saudi Arabia. The Team extended an NIF invite to the investor and shared the teaser for the pharmaceutical company in its pipeline with the investor as well. 2) Some investors are showing early interest in Iraq • The Team shared information about the opportunities it is supporting as well as the investment landscape in Iraq during meetings and informal conversations. While most of the investors engaged have not looked at Iraq as a market recently, many and especially those with an impact angle are watching the space and monitoring its development. For instance, Huda Al Lawati from Gateway Partners, a MENA impact investing fund, mentioned that Iraq is not currently covered as part of its geographies, but is looking to include Iraq in the fund it is currently raising. Another group of capital providers interested in Iraq is foundations such as the Zayed Foundation for Charity and Humanitarian Works (ZFCHW). ZFCHW has supported various programs in the MENA region including Iraq in the past and is willing to invest in the country again in a philanthropic capacity. 3) Investors are after bigger ticket sizes and large-scale projects 42 | Ninewa Investment Forum Final Report • Many of the investors in the GCC region, and thus the sample engaged during this trip, have clear mandates that do not cover the majority of enterprises supported under NIFI. The first group is large funds that are looking for large-scale projects starting from US$100m. The second is private equity funds that have a ticket size of US$40-100m and invest in mature companies that have an established track record. The third is venture capital firms that would invest in smaller companies and are willing to take greater risks. Venture capital firms, however, tend to only look at transactions in the technology space which can support rapid growth and 10x returns. 4) Investors invest in sectors they are familiar with even if those sectors pose similar risks • Many GCC investors are not new to Iraq but only invest in oil and gas transactions, primarily in Basra. For instance, the Team spoke with the holding company, Olayan Group, which has multiple investments in Iraq in energy and is not looking to diversify into other sectors. For some holding companies, concentrating investments in oil and gas makes sense because they are able to leverage their deep experience in this sector to minimize risks in more complex markets such as Iraq. 5) Meetings with experts and relevant stakeholders further expanded the Team’s network of potential investors • In addition to stakeholders directly investing in Iraq, the Team also met with connecting organizations and individuals. For instance, the Team met with ACWA Power and Milken Institute. The two organizations offered to introduce the Team to potential investors who may be interested in investing in Iraq and attending the NIF.
Recommendations and next steps The Team recommends the following next steps: ▪ In Progress: Facilitate introduction between NBK Capital Partners and Hawkary’s management team ▪ Complete: Follow up on introductions to potential investor leads as appropriate
DUBAI, UAE Dates: October 22 – 23, 2019 Trip outcomes and results 1) Successful invitation of two investors to NIF a. The Team met with Arin Pinto, the Dubai branch manager of the Khudairi Group, who outlined the company’s long-standing interests in Iraq. He described the business’ long history in Iraq and his experiences of enforcing different investment laws in different regions of Iraq. He outlined the business units of the Khudairi Group, which span food manufacturing and leasing of equipment to industrial companies in Iraq. He also suggested that the company would be interested in investing in the food sector, and was interested in the supermarket opportunity that the Team is supporting for the NIF. b. The Team met with Bassam Falah, CEO of Innovest and founder of Iraqpreneurs. Mr. Falah described the previous investments that Innovest had made in Iraq, including a fashion retail start-up that was expanding from Baghdad. Mr. Falah spoke about his interest in start-ups in Iraq, having founded Iraqpreneurs, a competition platform for start-up businesses in Iraq. As a result, the Team proposed that the tech investment opportunity in the NIF pipeline might be of interest. Mr. Falah expressed his interest in this, but also outlined areas where he had further questions for the start-up. 2) Potential introductions to further investors • The Team met with a consultant in Dubai who is not a direct investor, but who had encountered private individuals and businesses operating and/or interested in investing in Iraq. As a result, the Team circulated high level information about the investment opportunities in the pipeline to connect with these private businesses and secure introductions, if they were interested.
Recommendations and next steps The Team recommends the following next steps: ▪ Complete: IGPA/NIFI to circulate further NIF details, thus extending formal invitations to investors ▪ In Progress: IGPA/NIFI to follow up on potential SME and investor leads as appropriate ▪ Complete: IGPA/NIFI to conduct follow up calls with potential investors to discuss which investment opportunities they might be interested in, and facilitate introductions or further information requests as required
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Annex 2 – Agenda
December 3 – 5, 2019 Divan Hotel Erbil, Kurdistan Region of Iraq Agenda December 3, 2019 – Registration and Networking
3:00 – 8:00 pm Registration Location: Divan Ballroom Entrance
6:00 – 8:00 pm Networking Reception Location: Divan Ballroom
December 4, 2019 – Conference Day 1
8:00 – 9:00 am Registration Location: Divan Ballroom Entrance
Continental Breakfast Location: Lobby Outside of the Ballroom
9:00 – 10:00 am Opening Remarks and Keynote Speakers Opening of Forum and Welcome: MCs Ava Nadir & Gashaw Kawa
9:00 – 9:15 am Keynote Speaker #1 H.E. Matthew Tueller, U.S Ambassador to Iraq
9:15 – 9:30 am Keynote Speaker #2 H.E. Qubad Talabani, Deputy Prime Minister – KRG
9:30 – 9:45 am Keynote Speaker #3 Mr. Jamal Ware, Senior Advisor – ExIm Bank
9:45 – 10:00 am Keynote Speaker #4 Hon. General Najm al-Jubouri – Governor of Ninewa
10:00 – 11:15 am Panel Session 1: Why Invest in Ninewa? Moderator: Dr. Nesreen Barwari, Advisor, Cihan University Group
Presentation: Mr. Issam Bihnam Daaboul, Mayor of Hamdaniya 44 | Ninewa Investment Forum Final Report
Mr. Raid Adeeb Jirjis, Nineveh Development Corporation
Mr. Anis Younis Alagha, Chairman of the Iraq Businessmen Union-Ninewa
Mr. Samir Al Azzawi, Azzawi Group Corporation
Questions from the Audience
11:15 – 11:30 am Networking/Coffee Break – Walk through the SME Marketplace and Business Development Center
11:00 am – 4:00 pm MATCHMAKING MEETINGS IGPA will organize multiple one-on-one sessions between investors and SMEs with parallel interests. An IGPA staff will sit during these sessions to record the events, draw up letters of interest as necessary, and follow through on the agreements after the event.
11:30 – 12:30 pm Panel Session 2: Current Business/Investment Climate in Ninewa Moderated by Mr. Anis Younis Alagha, Chairman of the Iraq Businessmen Union – Ninewa
Dr. Abdulmenam Al Jabbouri, Ninewa Center for Consulting and Research • Improving Investment Climate/Addressing Barriers to Investment
Mr. Ali Awad, Chairman of the Ninewa Investment Commission • Investment Requirements in Ninewa Plains
Mr. Zuhair Araji, Mayor of Mosul • Investment Outlook in Mosul
Questions from the audience
1:00 – 2:30 pm Luncheon Location: Divan Hall
Introduction of Speaker: Dr. Mojeeb Stanikzai, Deputy Chief of Party, IGPA
Speaker: Mr. Steve Kim, Trac Development
3:00 – 4:00 pm Panel Session 3 – US Government Promotion of Business Partnerships 45 | Ninewa Investment Forum Final Report Moderated by Mr. Steve Lutes, US Chamber of Commerce, Middle East Division
Mr. Jamal Ware, ExIm Bank Senior Advisor
Mr. Fred Aziz, Regional Director, US Foreign Commercial Service
Hon. Hal Ferguson, USAID Sr Deputy Assistant Administrator, Middle East
Questions from the audience
4:00 – 4:15 pm Networking/Coffee Break
4:15 – 5:15 pm Panel Session 4: Private Sector Financing Moderated by Mr. Jake Cusack, President of CrossBoundary
Mr. Sam Parker, Director, Shell Foundation
Mr. Zaab Sethna, Northern Gulf Partners
Mr. Victor Simon, Simon Group Holdings
Mr. Raed Adnan, Investment Executive at Grofin
Questions from the audience
6:00 – 7:30 pm Dinner Location: Divan Hall
Speaker: Mr. Timothy Mills, President of the American Chamber of Commerce in Iraq
Speaker: Mr. Jorge Vila, General Manager, Iraq Middle Market Development Foundation (IMMDF)
(note: Traditional Music provided by Yazidi Band)
December 5, 2019 – Conference Day 2
8:00 – 9:00 am Registration Location: Divan Ballroom Entrance
Continental Breakfast Location: Lobby Outside of the Ballroom
46 | Ninewa Investment Forum Final Report 9:00 – 9:15 am Mr. Wadee Nouri Al Handal, Chairman of the Iraqi Private Banks League
9:10 am – 2:00 pm MATCHMAKING MEETINGS IGPA will organize multiple one-on-one sessions between investors and SMEs with parallel interests. An IGPA staff will sit during these sessions to record the events, draw up letters of interest as necessary, and follow through on the agreements after the event.
9:15 – 1:00 pm Panel Sessions – Featured SMEs by Sector
9:15 – 10:15 am Panel Session 5 – Agribusiness Moderator: Mr. Sahel Annabi, IGPA/Takamul Project
Video presentation of the agribusiness sector
4 SMEs from the Agribusiness Sector (food processing, livestock, dairy, poultry) will present their investment and partnership potential to investors and participants
• Mr. Bashar Yousif Jamoo – Nahrain Agriculture Association • Mr. Khairi Dakhil Sleman – Samim Factory • Mr. Duraid Salm Jbo – Al Aseel Cold Storage • Mr. Rabee Elias Benham – Al Ghazal Dairy Factory
Questions from investors and other participants
10:15 – 10:30 am Networking/Coffee Break
10:30 – 11:15 am Panel Session 6 – Entrepreneurship Moderator: Master of Ceremonies Ava Nadir
Video presentation of the entrepreneurship, including IT, women and youth enterprises, and others
3 SMEs in the Entrepreneurship will present their investment and partnership potential to investors and participants
• Ms. Nour Adil – Hopeful Hands • Ms. Sozan Safar Ismail, Yazidi Entrepreneur • Mr. Yadgar Merani – Lezzoo Delivery Founder
Questions from investors and other participants
47 | Ninewa Investment Forum Final Report 11:15 – 12:00 pm Panel Session 7: Manufacturing Moderator: Mr. Mohammad Ismail, Hawkary Group
Video presentation of the manufacturing sector, including steel recycling, electronic, and other businesses
3 SMEs from the sector will present their investment and partnership potential to investors and participants
• Mr. Abdullah Naif Darwish – Alaela Tahini • Mr. Qusay Hashim Wali – Al Layth Electronics • Dr. Nihad Isshaq Essa – Bartullah Supplement Factory
Questions from investors and other participants
12:00 – 1:00 pm Panel Session 8: Services Moderator: Mr. Said Abu Hijleh, DAI Palestine
Video presentation of the service sector, including education, health, transportation, hospitality businesses
4 SMEs from the service sector will present their investment and partnership potential to investors and participants
• Mr. Mohammad Mahfouz Khairedine – Al Sahel AlAkhdar Hotel • Mr. Mohammad Ismail – TeamMart/Mistawfi Group • Mr. Ahmed Shahir – Brilliant Academy • Mr. Thakwan Al Saffar – Diwan Company
Questions from investors and other participants
1:00 – 1:15 pm Speech Dr. Adhid Miri Director of Special Projects of the Chaldean Community Foundation
1:15 – 1:30 pm Closing Remarks/Announcement of the Results of the Conference
Closing Remarks: Ms. Dana Mansuri, USAID Iraq Mission Director
1:30 – 3:00 pm Luncheon Location: Divan Hall
48 | Ninewa Investment Forum Final Report
Annex 3 – NIFI Business Development Center Materials BDC Information Sheet
49 | Ninewa Investment Forum Final Report
BDC Application Form
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Annex 4 – Communications Materials
Samples of Conference Materials
WEBSITE
51 | Ninewa Investment Forum Final Report
BANNERS
Conference Backdrops
SME Marketplace Backdrop
Divan Hall backdrop
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Ninewa Investment Facilitation Initiative (NIFI) program banners
Banners of Featured SMEs and Women Enterprises
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Advocacy Banners
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Supporting organizations/media and other banners
Invites
Folder Bag
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Media Releases
Media Advisory
USAID to Showcase Investment Potential of Ninewa Plains Region of Northern Iraq Dec. 3-5 • Divan Erbil Hotel, Kurdistan Region of Iraq
Erbil – November 7, 2019 - Internationally-focused investors, executives, journalists, financial and service professionals and other interested individuals are invited to attend the Ninewa Investment Forum (NIF), which will showcase the investment potential of Northern Iraq. This event will focus on the Ninewa Plains and feature representative businesses that are ready for growth and have the potential to offer robust ventures for domestic and international investors. It will be held at the Divan Erbil Hotel on December 3-5, 2019, located in Erbil, Kurdistan Region of Iraq.
For information concerning the program agenda and other details please visit: https://www.invest-in-ninewa.com/en/conference
The Ninewa Investment Forum, supported by USAID, is a visible symbol of the commitment of the US Government to the Ninewa Plains region of northern Iraq. By engaging with investors across the globe, as well as within the Iraqi diaspora, the Ninewa Investment Forum will build off efforts to enhance the capacity of small and medium sized enterprises in areas recently liberated from ISIS, and to foster the economic re-birth of the Ninewa Plains. This event will feature US, Iraqi and Kurdistan Regional Government and other speakers, while highlighting Ninewa businesses representing at least $127 million of potential investment, in sectors, including agriculture, manufacturing, tourism, and education.
Supporting organizations include the US-Iraq Business Council and Iraqi Federation Industries – Ninewa Chamber of Industry. Supporting Media includes Ezidi24, Iraqi Media Network, Sama al-Mosul, and KirkukNow.
To register to attend the Ninewa Investment Forum, or to obtain more information, please click here or contact the individual noted below Contact: For media inquiries: Alan Attoof Media Liaison Phone: Email: [email protected] For Ninewa Investment Forum Inquiries: Baisaran Naqshbandy Deputy Event Manager Phone: Email: [email protected]
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Press Release
For Immediate Release Contact: Alan Attoof 26 November 2019 NIF Media Liaison Phone: Email: [email protected]
Ninewa Investment Forum Highlights Economic Investment Opportunities in Ninewa Province of Iraq Erbil, Kurdistan Region of Iraq - December 3-5, 2019
26 November 2019, Erbil, Kurdistan Region of Iraq – The U.S. Government announced today additional economic support for Ninewa Province through the Ninewa Investment Forum. This event will be held on December 3-5, 2019 in Erbil, Kurdistan Region of Iraq.
The Forum will bring together investors and businesses from Ninewa to showcase the investment potential of northern Iraq, an area rich in history and cultural diversity. The Forum is focused on opportunities in various sectors including agriculture, manufacturing, tourism and tech sectors, showcasing the wide range of businesses that are ready for growth and investment in Ninewa.
U.S. Ambassador to Iraq Matthew H. Tueller stated, “supporting the economic growth of Ninewa Province is an important part of the United States’ strong and abiding interest in a prosperous Iraq that is resilient to violent extremist groups and deters those who would undermine Iraqi sovereignty and democracy.”
Groups representing U.S. and Iraqi businesses welcomed this event. “I believe there is no stronger force for healing and rehabilitating than economic development, putting young men and women to work, and getting communities back on their feet after the destruction experienced across Ninewa and Iraq. We believe American businesses and investors can play a vital role in helping achieve this growth and job creation," said Steve Lutes, Vice President for Middle East Affairs at the U.S. Chamber of Commerce.
Businesses at the Ninewa Investment Forum will represent more than $127 million in investment opportunities, and investors will be provided the chance to meet face-to-face with promising entrepreneurs.
The event is organized by the U.S. Agency for International Development (USAID), and will feature experts and speakers in international investment and development. The Forum is a unique collaboration between the U.S. and Iraqi private and public sectors to support communities in Ninewa through investment opportunities.
Supporting organizations include the American Chamber of Commerce in Iraq, Board of Investment – Kurdistan Regional Government – Iraq, Global Yazidi Organization, Iraqi Federation of Industries – Ninewa Chamber of Industries, Iraq Middle Market Development Foundation, Iraq Private Banks League, Ninewa Investment Commission and US-Iraq Business Council. Supporting media include Alghad Radio, Ezidi24, Iraq Media Network, KirkukNow, Rudaw and Sama al-Mosul. ####
Additional information about the Ninewa Investment Forum can be obtained by visiting www.invest-in-ninewa.com or by email [email protected] and phone .
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Press Release
For Immediate Release Contact: Alan Attoof November 28, 2019 NIF Media Liaison Phone: Email: [email protected]
Ninewa-based Companies and Government Leaders to Showcase Exciting Opportunities in Agriculture, Manufacturing, Services and Technology at Ninewa Investment Forum Erbil, Kurdistan Region of Iraq - December 3-5, 2019
November 28, 2019, Erbil, Kurdistan Region of Iraq – Ninewa-based companies and government leaders will meet international, regional and local investors, business leaders and other stakeholders to discuss exciting investment opportunities in agriculture, manufacturing, services and technology and market conditions in the region at the Ninewa Investment Forum. This event will be held on December 3-5, 2019 in Erbil, Kurdistan Region of Iraq.
The Forum will bring together investors and businesses from Ninewa to examine the investment potential of northern Iraq. This area is historically known as the breadbasket of Iraq, rich in history and cultural diversity, and has served as a regional hub and commercial center for thousands of years. The Forum will showcase established businesses recovering from the devastation of the Da’esh (ISIS) invasion in 2014 as well as start-up enterprises.
“Ninewa is ready for growth and investment, and we are now benefiting from returning refugees, local businesses, and local and foreign stakeholders, who are working together to revive the local economy,” noted Hamdaniya Mayor Mr. Isam Bihnam. “Foreign and local investors attending the Ninewa Investment Forum will be presented with a range of attractive Hamdaniya- based businesses as well as priority projects in areas such as housing, waste sorting and recycling, healthcare, power sector development, education, tourism and infrastructure which will help our district to advance and realize our economic potential.”
“As the leading chain of supermarkets in the Kurdistan Region of Iraq, with 100 branches and significant infrastructure, we see Ninewa Plains and Mosul City as a prime opportunity to extend our footprint,” stated Mr Muhamad Ismail, Chairman of Erbil- based Mustawfy Group. “The Ninewa Investment Forum offers us a platform to reach out and interface with foreign and regional investors who would like to take advantage of the reconstruction and recovery now taking hold, by working with us to open dozens of new stores in the region.”
Businesses at the Ninewa Investment Forum will represent more than $127 million in investment opportunities, and investors will be provided the chance to meet face-to-face with promising entrepreneurs.
The event is organized by the U.S. Agency for International Development (USAID), and will feature experts and speakers in international investment and development. The Forum is a unique collaboration between the U.S. and Iraqi private and public sectors to support communities in Ninewa through investment opportunities.
Supporting organizations include the American Chamber of Commerce in Iraq, Board of Investment – Kurdistan Regional Government – Iraq, Global Yazidi Organization, Iraqi Federation of Industries – Ninewa Chamber of Industries, Iraq Middle Market Development Foundation, Iraq Private Banks League, Ninewa Investment Commission and US-Iraq Business Council. Supporting media include Alghad Radio, Ezidi24, Iraq Media Network, KirkukNow, Rudaw and Sama al-Mosul. ####
Registration is available for qualified groups and individuals and can be accessed through www.invest-in-ninewa.com and through email [email protected] and phone .
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Press Release
For Immediate Release Contact: Alan Attoof December 1, 2019 NIF Media Liaison Phone: Email: [email protected]
Additional Ninewa-Focused Business Development Centers, Services and Workshops to be Announced at Ninewa Investment Forum Erbil, Kurdistan Region of Iraq - December 3-5, 2019
December 1, 2019, Erbil, Kurdistan Region of Iraq – The USAID-funded Ninewa Investment Facilitation Initiative (NIFI) will announce an expansion of its ongoing efforts to support regional development through the opening of additional Business Development Centers at the upcoming Ninewa Investment Forum. These efforts will help revitalize the private sector in Ninewa.
The three-day Forum will bring together Ninewa-based companies and government leaders with international, regional and local investors, business leaders and other stakeholders to discuss the investment potential of northern Iraq and to present exciting opportunities in agriculture, manufacturing, services and technology. This event will be held on December 3-5, 2019 in Erbil, Kurdistan Region of Iraq.
“Shortly after launching the NIFI program six months ago, we established our first Business Development Center in Erbil and are now actively assessing sites for additional facilities in Ninewa Province - with an anticipated opening of our second facility during the first quarter of 2020”, stated Sahel Annabi, NIFI Private Sector Team Leader.
Arun Hsu, NIFI Task Order Team Leader noted “The Business Development Centers will provide Ninewa-based businesses with access to knowledge, tools, and financial facilitation services to help them revitalize, mobilize financing, and grow. Special programs will be offered to support women entrepreneurs and start-ups.”
Businesses at the Ninewa Investment Forum will represent more than $127 million in investment opportunities, and investors will be provided the chance to meet face-to-face with promising entrepreneurs.
The event is organized by the U.S. Agency for International Development (USAID), and will feature experts and speakers in international investment and development. The Forum is a unique collaboration between the U.S. and Iraqi private and public sectors to support communities in Ninewa through investment opportunities.
Supporting organizations include the American Chamber of Commerce in Iraq, Board of Investment – Kurdistan Regional Government – Iraq, Global Yazidi Organization, Iraqi Federation of Industries – Ninewa Chamber of Industries, Iraq Middle Market Development Foundation, Iraq Private Banks League, Ninewa Investment Commission and US-Iraq Business Council. Supporting media include Alghad Radio, Ezidi24, Iraq Media Network, KirkukNow, Rudaw and Sama al-Mosul. ####
Registration is available for qualified groups and individuals and can be accessed through www.invest-in-ninewa.com and through email [email protected] and phone .
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Annex 5 – SME Profiles
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