The Trade Bank of Iraq is launching a 585 billion dinar fund to invest in domestic infrastructure projects. It is also in the process of recruiting a general partner to lead the investments. Private investment is expected to triple to over 35 trillion dinars this year. Much of these investments will go to sectors like oil, power and housing to rebuild Iraq.
The private investment sector is a good feeler for how stable Iraq is. Private investors are very wary of any security issues that might affect their investment. Although security in Iraq remains a concern, many investors are looking into this unique opportunity to get in early and help rebuild Iraq. It is likely that private investments in Iraq will boom in the next five years as Iraq stabilizes as a country. Infrastructure improvements will be essential for Iraq's future and this is the sector that is attracting a lot of investors.
Private investment is also important for Iraq as it will create more jobs and accelerate the exchange of dinars between contractors, employers and consumers. This is also the fastest way to create jobs as government sponsored projects take much longer to be realized. In addition, Iraq must adopt business friendly laws to keep attracting more foreign investors. It must make it easy for foreign companies to come into Iraq, set up shop and operate. Iraq has the potential to be a very attractive place to do business, the government must do all that it can to lower barriers to entry.
Some countries have already jumped on the Iraq bandwagon, especially China. China has made huge investments in Iraq, both in oil, power and infrastructure. The Chinese see Iraq as a land of opportunity and have made it a point to get in early. In addition, China is establishing not only an economic relationship, but also a political one with Iraq that will be mutually beneficial. As Iraq settles itself as a country, it will become a very powerful player in the world economy and the dinar will be a major world currency. China sees this future and has acted upon it.
What other countries will follow China's example? Will the United States follow their lead? Iraq is drawing more countries in, but many are still worried about the stability in the region, especially now with the political unrest. But it does appear that in the long run, Iraq will be stable and a great place for opportunities.
留言列表
