PortuguêsLeisure
Market context
As the security and stability of Iraq rise, increased too the desire of the Iraqi people to have fun and rest. This scenario opens up possibilities for investment in various forms of entertainment, such as amusement parks. Moreover, according to the International Monetary Fund, per capita income in the country increased from £1,163 in 2006 to a projection of £2,085 in 2008.
The oportunity
Investors are welcome to assist in the development of an amusement park in the province of Wasit, located near Baghdad. The park would have the intention to attract people of all economic levels, both in the local and regional market. Other facilities such as water and electricity, are guaranteed by the local authority.
Tourism and Hotel Business
Market context
The city of Najal, located in Iraq, is the third most popular destination for Muslim pilgrims. According to the Iraqi National Investment Commission, religious places of Al-Najaf, Karbala and Kufa receive about 3 million pilgrims a year. However, currently Najaf has only 4,000 accommodation and there is no hotel recognized for having the best international standards.
The oportunity
The National Investment Commission is looking for investors interested in developing some three or four star hotels, with more than 100 accommodations each. This investment opportunity has already attracted the attention of countries like Lebanon, England, South Korea, Germany and Sweden. Positive outlook also arise for other activities related to tourism in the region.
Refineries
Market context
The Iraq exports about 1.8 million barrels/day (b/d) of 2.4 million b/d of crude oil, but suffers from a shortage of refined products. The refineries operating today has a total capacity of more than 700,000 b/d, but only use about 450,000 b/d. The demand of 570,000 b/d in 2008, tends to increase as economic activity is reborn.
The oportunity
The Iraqi Oil Ministry invited international companies to invest in expansion projects, modernization and reform of the capacity of existing refineries. In addition, there are plans to build five new refineries by the end of 2015 in order to increase the refinery capacity of 600,000 b/d to 1.5 million b/d and thus meet domestic and foreign demand.
Metallurgy
Market context
The steel industry in Iraq is strategically important, not only as a supplier for reconstruction projects, but also for a large number of other industries. Currently, Iraq doesn’t have the production capacity to meet demand, estimated at around 3 tonnes/year, according to government data. For this reason, the government has sought to attract partners to invest in state-owned companies and make them competitive with foreign imports.
The oportunity
Several state-owned companies are seeking investment partners. Many of these have the advantage of established market positions by providing steel for government departments and other public sectors. Among its customers are also the gas and oil industries. In contrast to the amount invested, the entrepreneurs will receive a share in the final product for periods between 10 and 20 years.
Hospital equipments and remedies
Market context
The Iraqi health system, once one of the best in the region deteriorated sharply over the past two decades. However, the Iraqi market has again shown a strong demand for pharmaceuticals and medical equipment, offering varied opportunities for private investors. According to the Minister of the Iraqi Health to improve the health system is one of the most urgent priorities of the country today.
The oportunity
The Iraqi government seeks investors wishing to participate in the medical equipment industry and medicine either through joint ventures, either through the establishment of new businesses. One possibility is to invest in the State of Medicines and Medical Supplies Industry Company, whose market share is 40%.
Construction and building materials
Market context
Estimates claim that in 2015 Iraq’s population could reach 39 million, generating the need for about 1.9 million homes. According to the General Director for the Construction Industry in Iraq, the country “will become the largest construction market in the region soon,” since such growth requires not only homes but also schools, hospitals, bridges and roads.
The oportunity
The Iraqi reconstruction projects include from renovations and construction of oil facilities to improve the electricity infrastructure, water and sewage treatment, expansion of ports, roads and airports, and construction of hospitals and schools. This massive demand offers numerous opportunities for industries related to the construction sector.
