The security and political news out of Iraq is simply awful and that’s putting it mildly. Suicide bombs, political chaos bordering on a meltdown, and ISIS horror stories are now so commonplace that the people appear to be numb to them. They seem to have tuned out all the chaos, and somehow, economically, some sectors are thriving. One growth area in Baghdad is the restaurant business, and I don’t mean the roadside stands which are prevalent throughout Asia, but top-rated, sit-down, may I take your order please, restaurants.
Who would have thought in among the ruins of perpetual warfare, fine dining is blooming? As an article by Daniel McDonald on dailynewsx.com states, “Local businessmen are pouring millions of dollars into buying or renting property, bringing in foreign chefs and staff, competing with one another for the fanciest design, best decoration and most attractive cuisine.”
That has to put a smile on your face. I believe it is a testament to the tenacity of the Iraqi people, not the politicians who have destroyed their country with corruption and gross mismanagement of the economy. The article “Mismanagement Is Killing Iraq” from The National Interest further explains this theory.
Iraq has the fifth largest oil reserves at 144 billion barrels, which represents 8.5% of the world’s supply. Yet due to gross mismanagement of the economy, they are forced to import gasoline because they don’t have enough refineries. According to Bloomberg, Iraqi oil exports are at a near record high, shipping 3.36 million barrels a day, thereby contributing to the already existing worldwide glut. But even with that, the economy is in shambles.
Now factor in the political instability with the storming of the parliament by the followers of the Muslim cleric, Al-Sadr, and one has a recipe for the total breakdown of society. However, believe it or not, Iraq does have a stock market, and listed securities are actively traded, but investing in that market would be unwise because of all the instability. What the instability does create is an opportunity to purchase U.S. defense-related stocks, such as Lockheed Martin (LMT) and Raytheon (RTN), because the war with Islamic terrorism will be multigenerational.
I end with this quote from restaurateur Salam Mijbar Mohammed in the dailynewsx.com article, “Whenever there are bombings, we expect a slow business day, but hours later we see a big turnout and that’s what encourages us.” Now that’s something to cheer.
original source: http://www.nasdaq.com/article/is-iraq-turning-a-corner-cm615146