IRAQ | Economy

[Persi]

Iraqi Stock Market in the Spotlight

Posted on 27 September 2011.

With most Middle East stock markets having been dragged down by the turmoil unleashed by the Arab spring and a sputtering global economy, some adventurous fund managers have started exploring opportunities in the tiny Iraqi market, according to a report from Bloomberg.

The Iraqi Stock Exchange, or ISX, says its main market index has surged some 65% so far this year, making it one of the world’s best-performing markets. Though many doubt the accuracy of the ISX’s main index, fund managers who follow the country agree that Iraqi share prices have risen about 15% in 2011—still outperforming most global peers.

Investors have been attracted by the relative political stability following the formation of Prime Minister Nouri al-Maliki’s coalition government last year, as well as the promise of higher oil revenues and the reconstruction of the economy. The International Monetary Fund estimates that Iraq’s economy will grow at 9.6% this year and likely expand by 12.6% in 2012.

“Foreign buying has picked up in the past 18 months or so with inflows estimated at about $130 million in this period,” said Shwan Ibrahim Taha, chief executive of Rabee Securities, whose weekly stock market reports are published by Iraq Business News.

“The fact that it is one of the best performing markets this year, with further potential upside as the economy develops, is definitely whetting investor appetite,” he said.

The Iraqi bourse’s gains this year compare well to the performance of other indices in the region. Saudi Arabia, the Middle East’s biggest market, is down some 7% so far this year. Egypt, the most open market in the region, has dropped 38% in the wake of the January revolution that toppled former President Hosni Mubarak.

With a market capitalization of about $4 billion, and daily turnover of about $2 million, the ISX is one of the smallest markets in the region. Even after its sharp falls this year, Egypt has a market capitalization of about $56 billion.

Investing in the Iraqi market is still complicated and risky. The ISX lists about 85 companies across sectors such as banking, insurance, services, industry and agriculture. But only about 30-40 stocks are actively traded, and only a smaller number are liquid enough for investors to buy or sell without disrupting the price, according to Sherif Salem, a fund manager at Abu Dhabi-based Invest AD, which has an Iraq-focused fund with about $20 million in assets under management.

Iraq’s $115 billion economy continues to be dominated by the oil sector, which provides over 90% of government revenue and 80% of foreign-exchange earnings. But the country’s major energy companies aren’t listed, depriving investors of one of Iraq’s most attractive sectors.

This leaves Iraq’s banking sector as the dominant component on the index, accounting for about 70% of market turnover. However, the shares of several Iraqi banks have been subject to lengthy trading suspensions this year because of the regulator’s policy of halting trade while institutions are involved in market-sensitive activity such as bonuses or rights issues. Many Iraqi banks have also been seeking new capital this year.

Mr. Salem at Invest AD said that transparency is an issue that has put off investors, though he expects this to improve. Companies are allowed almost six months to disclose their quarterly financial reports, and even when issued the reports in general contain limited information. “This will likely improve with time, and can be overcome if one has a typically longer term view of say five years,” he said.

Mr. Salem said he also hopes that liquidity will improve once more companies list. At least three telecom firms are expected to go public this year, though their plans have been delayed, mostly due to concerns about liquidity. The companies—Zain Iraq, a unit of Kuwait-based Zain Group; Asiacell, a unit of Qatar Telecom; and Korek Telecom, in which France Telecom and Kuwaiti logistics company Agility own around 44%—are all expected to list at least 25% of their shares under the terms of licences issued in 2007.

“We need more companies…The next 18-24 months are likely to see a lot more action on this front,” said Mr. Taha of Rabee. He said liquidity is a concern but added that the situation is getting better as about six Iraq-specific funds have been set up. Several more are also investing in the market as part of their broader frontier market mandates.

While investing in Iraq’s stock market carries risks similar to those associated with any young emerging market—including lack of transparency and bureaucratic hurdles—security remains a big concern, especially among fund managers who visit the country regularly.

Violence is down across Iraq from its peak in 2006 and 2007, but concerns remain as the deadline approaches for the U.S. to withdraw its troops from the country by the end of the year. Some investors, though, are ready to take that risk for now.

“Iraq has continued to stumble along a slow and bumpy path towards improved institutions. But with oil revenues buoyant, and production volumes set to increase, we still think the risk-reward trade-off is acceptable,” said Gabriel Sterne, a London-based analyst at investment bank Exotix.

[Persi]

Capital Bank Opens first National Bank of Iraq Branch in Erbil

Posted on 03 October 2011.

As part of its expansion plans across Iraqi provinces, and in an effort to offer premium banking services and facilities to its corporate clients, Capital Bank announced the opening of its first National Bank of Iraq (NBIRQ) branch in Erbil.

Through its acquisition of a controlling 72% share in the National Bank of Iraq (NBIRQ), Capital Bank is the only Jordanian bank in Iraq offering superior services that facilitate and fund trade and banking services between clients in Jordan and Iraq.

The new Erbil branch was inaugurated by His Excellency Dr. Barham Salih, Prime Minister of the Kurdistan Regional Government, in the presence of His Excellency Bassem Khalil Al-Salem, Chairman of Capital Bank, and Nozad Hadi, Governor of Erbil, in addition to National Bank of Iraq Board Members and a number of prominent figures in the region.

The new Erbil branch increases the total number of NBIRQ branches to seven, three of which are located in Baghdad, one in Mosul, one in Karbala and one in Basra.

“We are delighted that the National Bank of Iraq has brought its services to Erbil in addition to the other provinces it is already serving and we are also pleased that the National Bank of Iraq branch is the only Capital Bank branch in the Region. Erbil is currently witnessing exceptional economic activity as a result of its political stability making it a prime destination for investors that are targeting the Iraqi market”, said His Excellency Dr. Barham Salih, Prime Minister of the Kurdistan Regional Government.

“Our investment in the National Bank of Iraq is a long-term strategic decision that stems from Capital Bank’s firm belief in the wide-ranging economic opportunities that are available in Iraq”, commented His Excellency Bassem Khalil Al-Salem, Chairman of Capital Bank, the fourth largest bank in Jordan in terms of capital.

“As the only Jordanian Bank in Iraq that provides both commercial and investment banking services – through its investment arm Capital Investments – our relationship with the National Bank of Iraq allows Capital Bank to better service businessmen and merchants in Jordan and support the increase of Jordanian exports to Iraq”, stated Al-Salem.

Al-Salem went on to affirm that the National Bank of Iraq aims to strengthen ties and enhance investment opportunities between Jordan and Iraq, which is considered one of the fastest growing economies in the world.

[IraqiPlan_et]

Economic researcher: oil exports will reach 250 billion dollars/year over the next five years
October 10 2011



Baghdad (newsletter).Hussein sees economic researcher, increase the size of the star oil production in the coming years to (6) million barrels and exports will reach 250 billion dollars a year, calling for the exploitation of these amounts to investment and service projects for the country.

The star said in an interview with a reporter (News Agency news) Monday: Iraq oil production will develop from 3 million barrels to 6 million barrels over the next five years to reverse the oil plan that up to 12 million barrels for very common (2017), noting that a number of difficult access Fantasy within five years.

Star: he held large cash block Iraq through annual imports as a result of increased oil production by up to 250 billion dollars per year, adding that a large number and the Iraqi market will drive towards progress and prosperity.

And stressed the need to exploit this star funds to investment projects and services and sustainable development of other economic sectors, especially the infrastructure sector, noting that changes that occur on global oil prices that do not affect the Iraqi economy that produced high oil and economy investor through cash.

Economic researcher said Iraq other production despite a slowdown in some oil fields as a result of third party infrastructure complete or plans require sophisticated programs to sustain these fields.

[BigDreamer]

Do they mean exports instead of imports ?

[IraqiPlan_et]

Lol that I didn't catch that....it should obviously be "exports"....I'll change it

[IraqiPlan_et]

Or maybe they mean "incomes" or "incomings" as in revenues but through google trans it became "imports"

[IraqiPlan_et]

Khor Al-Zubair witnessed export more than 10 million tons of dates last month
November 3 2011



Announced that the General Company for Ports of Iraq that the port of Khor Al-Zubair has exported more / / 10 million tons of dates in the past month.

A source in the company that with the beginning of the season dates and cattle exported from Iraq to many countries of the world could the port of Khor Al-Zubair ports to be attractive to exporters of these materials. "

He noted that "the volume of oil exports for the month of last October amounted to ten thousand and 825 thousand tons of dates and / 400 / tons of cattle.

[IraqiPlan_et]

A new Japanese loan to Iraq
November 17 2011


Tokyo plans to implement 15 projects worth in excess of three billion dollars

BAGHDAD - Al Sabah -
Revealed the Japanese ambassador to Iraq Susu Segawa all went according to plans for the loan of a major financial of Iraq. Segawa said in an interview with the "morning" to be published in a later issue: "The size of the new loan, and mechanisms to deal with it will be agreed upon during the visit of Prime Minister Nuri al-Maliki Japan next week. "

It is said that the Prime Minister will visit Japan next week at the top of high-level delegation, the official invitation of his Japanese counterpart Yoshihiko Noda, where The delegation comprises the Ministers of Finance and the oil industry and a number of advisers and heads of bodies, and will focus the talks with the Japanese side on the development of political and diplomatic relations and coordination of positions in international forums, in addition to the expansion of investment in energy and oil industries, and is scheduled to sign agreements in this regard, according to a statement issued by the Office of the Prime Minister.

He said the Japanese ambassador that his country is willing to increase its presence in Iraq, where she participated for the first time in the Baghdad International Fair since 2003, pointing to the pursuit of his country's companies to create partnerships with companies operating in Iraq, especially the Turkish projects strategy is huge. And new Segawa his country's support to Iraq's full , said in this regard: "The security and stability of Iraq is necessary in the region, and that Iraq is at the forefront of countries in the region which saw a democratic revolution, democracy Iraqi progressing day after day, what drives the world, particularly Japan to increase its presence in Iraq."

And on the steps to remove Iraq from Chapter VII of the Charter of the United Nations, Ambassador of Japan:

"The Tokyo supports the processing of this file through the mechanisms of the United Nations." And got "morning" on the scheme in English shows loans to develop 15 projects currently valued at three billion and 280 million, which are: a project to rehabilitate the Gaza port, and a loan for the irrigation sector, and project to rehabilitate the thermal power plant in Mussayab, in addition to the project for the construction of bridges and roads Samawa, and the development project refinery refining Basra and Rehabilitation Project Factory Khor Al-Zubair Fertilizer, as well as the project re- construction of facilities to export crude oil, and the project re-construction of the electricity sector, and the development project processing water Basra, also includes a draft re-construction of the electricity sector in the province of Kurdistan, and a project to develop water supply in the province of Kurdistan, and a project development facility sanitation, and supply project water sector in Central western Iraq, in addition to the gas plant construction project crutch, and factory construction project Hidrelik of energy.

[IraqiPlan_et]

New Deals and a Better Future for Iraq
November 17 2011


The past week has seen two of the biggest oil stories in recent times in Iraq — the approval by the Iraqi cabinet of the $17 billion project with Shell and Mitsubishi to capture gas from Iraq’s main southern oilfields, and the confirmation that the KRG has signed an exploration agreement with the giant ExxonMobil.

The Shell contract has been very broadly welcomed, and it brings us closer to the day when Iraqi homes and businesses will have a reliable supply of electricity, powered by the gas that is currently flared off into the atmosphere.
Exxon’s project, on the other hand, is more politically sensitive, and the full implications of it remain to seen.

But it is very clear that significant deals such as these in the energy sector will be required to push Iraq forward towards greater prosperity and stability. And as the UK’s Ambassador Michael Aron said this week:

“A combination of stability, economic development and the creation of a competitive private sector offer huge opportunities for international and Iraqi business. And it puts Iraq right back at the centre of the global economy it left 20 years ago …
“Ultimately, business will go where conditions are best.“

Few would argue with that.

[IraqiPlan_et]

Iraqi-Emirati trade reached $6.5bn
04 Dec 2011


UAE and Iraq trade is worth $6.5 billion USD (7,500 billion IQD), up from $5 billion USD (6,000 billion IQD) in 2009 according to Iraqi Government figures. The two countries hope to continue this rise and increase trade to $7 billion USD (8,000 billion IQD) at the start of 2012.

The relations improved between the UAE and Iraq after Abu Dhabi decided in 2008 to cancel Baghdad's debt which reached to about $7 billion USD.

The volume of trade between Kurdistan Region and the UAE reached $3 billion USD (3,500 billion IQD) with hopes it could rise to $10 billion USD (11,500 billion IQD).

The Economic Advisor in the Iraqi government Salam al-Quraishi told AKnews the commercial exchange includes all industrial, agricultural, food and service products. About 24 Emirati companies are operating in Iraq in the investment, housing and food processing sectors, he added.

[IraqiPlan_et]

Increase in the volume of Turkish exports
03 Dec 2011


Turkish media sources said on Saturday, the volume of Turkish exports in the last month compared to last year, according to Turkey's breaking news today.

A site that "according to the data Turks Exporters Association (TİM), the volume of Turkish exports in the month of November of this year reached $ 10.7 billion, an increase of 13.9% compared to the same month last year."

While the total Turkish exports in the period between the month of December and the month of November of this year of $ 122.1 billion, an increase of 19.7% over the same period of last year.

The total exports of Turkey during the last twelve months 133 billion and 978 million, an increase of 19.5%.

It is worth mentioning that most sectors of the Turkish export in the month of November last was the auto industry with total exports amounted to one billion and $ 624 million, followed in second place the chemicals and their products at one billion and 254 million, while the garments sector in third place with total exports of billion and $ 160 million.

[Sinjar]

Hmm but it doesn't say if Iraq is exporting more from Turkey.

[IraqiPlan_et]

It says that Iraq is importing more.....and Turkey is exporting more

[Sinjar]

Originally Posted by IraqiPlan_et

It says that Iraq is importing more.....and Turkey is exporting more

It's about ALL the Turkish export is increasing which is not a necessity that it's the same way for Iraq.

[IraqiPlan_et]

Originally Posted by Sinjar

It's about ALL the Turkish export is increasing which is not a necessity that it's the same way for Iraq.

Yea you're right ....I just assumed that Turkish exports to Iraq increased, since I took this article from an Iraqi news agency

[Persi]

Iraq Approves $100bn Budget for 2012

07/ December/ 2011.

Iraq’s Cabinet has approved a federal spending plan of almost $100 billion for 2012.

The budget is based on an oil price of $85 a barrel and is smaller than the $112 billion spending plan discussed by the Cabinet in September, which was based on an oil price of $90 a barrel.

The deficit will be about 16 trillion dinars ($14 billion).

Revenue projections are based on exports of 2.6 million barrels of oil a day, including 175,000 barrels from the northern Kurdish region.

Iraq’s 2011 budget was $82.6 billion, based on an average oil price of $76.50 per barrel and 2.2 million bpd in crude exports.

Iraq also has $4.5 billion in International Monetary Fund loans available should it need additional funds, government spokesman Ali al-Dabbagh (pictured) said.

[Sinjar]

Has the budget increased and shouldn't be higher?

[Chounz]

Yeah the budget for this year was $110 billion and next year it'll be $100 billion?? LOL the budget should be increasing not decreasing!

[Sinjar]

weird :S

[Ali - Iraq]

This is iraqi politic