Foreign companies in Iraq achieved successful business

Dubai: While there are risks relating to conflict and instability in Iraq, foreign companies that recently expanded their businesses in Iraq have achieved a successful result, said Baroness Emma Nicholson of Winterbourne, UK Prime Minister’s Trade Envoy to Iraq.

“International companies have done an excellent job. And it is an excellent time to come in as Iraq continues to rebuild its economy,” she said.

Despite the violence taking place across Iraqi cities, the country is experiencing better political cohesiveness. Iraq’s government is not only fighting Daesh extremists but also it is thriving economically, explained Nicholson.

As a resource-rich country with a national budget underpinned by oil revenues and a highly educated workforce, Iraq holds a significant promise, she said

Oil and gas, power generation, environment and water, construction, financial services, health care, education and defence and security are sectors with a particularly high potential for investment.

“I have been working to promote British and, indeed, European, and USA businesses for six-and-half years now and I am delighted to say that good contracts are emerging and wonderful business is being done,” she said.

“I am working with Iraqi’s government to facilitate business development for the foreign investors there,” she said.

However, there is a wide range of opportunities available to companies who are not looking for long-term returns and are able to beat the bureaucratic hurdles, said Nicholson.

“The business climate in Iraq has improved dramatically in recent years, especially in the north [Irbil]. Foreign investment is surging. Despite its troubles, Iraq is becoming a nation that cannot be ignored,” she said.

Nicholson started as UK’s former Prime Minister David Cameron’s trade envoy for Iraq. She set up Iraq Britain Business Council. It is based in London, but it is open to membership from all western countries that follow the anti-bribery act and have the right ethics and ideal ways of working, she said.

 

Proper behaviour

“We need only companies that followed the World Bank criteria and offer proper business behaviour to invest in Iraq,” she added.

“I am very keen to see really good companies in Iraq and not the quick rip-off merchants that were there originally as we get nothing out of these,” she said.

People, particularly the country’s youth, need jobs, Nicholson said. “They need proper career[s], they need to beat corruption and need to be chairman or executive of big companies, which work internationally.”

Currently, there are almost 63 big international companies working in Iraq including BWC, Deloitte, HWA, and others related to oil and gas, financial services and construction business activities.

She also said that currently there is a new stream of business in the educational sector, which enables linking British education to Iraq universities.

Defence and security companies are among the most successful businesses in Iraq, due to the current political situation.

Eighty-five per cent of Iraq energy, which is provided by two British companies — Shell and BP (BP) and GDP — are backed up heavily by other British companies in the field of construction and oil and gas.

All these are a succeeding despite chaos and instability across the country, she said.

Iraq would not survive without the help of the private sector, but the government should do more everyday to move limitations and support the private sector, she added.

 

Real picture

While Iraq is not an easy market in which to do business, Nicholson doesn’t see this as too challenging. “The picture we see through media is quite natural as the whole world seems unstable especially places with oilfield,” she said.

“Behind the headlines, there is a story of hope, ambition, opportunity and eventually huge success,” she added.

However, the humanitarian cost — 2.5 million Iraqi refuges — is the main challenge in Iraq, Nicholson said.

“I urge everyone look into this suffering and put more effort to change the lives of these people,” Nicholson said.

original source: http://gulfnews.com/business/economy/foreign-companies-in-iraq-achieved-successful-business-1.1475036