News Producer, CNBC
US financial advisor Taylor DeJongh will partner with Baghdad-based investment bank Phoenix Capital to form the first Washington-Baghdad based financial services firm.
The firms plan to provide financial advisory services and investment banking services to companies doing business in Iraq, with an initial focus on the energy sector.
"You just can't make well-informed investment decisions on oil and gas deals without making Washington part of the equation," Phoenix Capital managing partner Hussain Qaragholi told CNBC.
"We are witnessing an uptick in investor interest in Iraq over the past 2 years," Qaragholi said.
Oil and gas deals have been signed with international oil companies to double oil production over the next 5 years, he said.
Power projects will require investment of some $20 billion, with significant funding requirements in infrastructure, ports and pipelines, according to Qaragholi.
The partnership will provide financial advisory and investment banking services for the entire oil and gas value chain: upstream, downstream, oil services companies, refining and petrochemicals, plus power generation and industrial and infrastructure development.
The deal comes as the Obama administration significantly amps up its economic efforts in Iraq, including a US Commerce Department- led trade mission to Baghdad in October.
Uncertainties
The US Chamber of Commerce is expected to bring in several top US companies in the coming months with trade-missions to Baghdad, Basra and Erbil.
Despite the increase in international investment and interest, the political and security uncertainties remain a major concern.
Just this week former Iraqi prime minister Ayad Allawi's Iraqiya party strongly condemned the recently-held government licensing auction of gas fields, calling them illegal.
The party said in a statement that some current international contracts could be canceled when a new government is formed, including several oil deals signed over the last year.
Iraqiya won most of the seats in Iraq's March elections leaving it well-positioned as the Iraqi government emerges from political deadlock.
Developments like this one just highlight the need for in-depth knowledge of the situation on the ground, Taylor DeJongh's CEO Terry Newendorp told CNBC.
"We have expertise that has great utility in Iraq, both for Iraqi businessmen and government officials and for international investors interested in the tremendous opportunities in Iraq," Newendorp said.
"The deep understanding and relationships in Iraq that Phoenix Capital brings are vital to understanding and effectively working in Iraq with both government and businesses," he added.