The reports coming out of Iraq for many years seem to have been largely negative.
This continues to be apparent now with current news on ISIS actions, sectarian unrest, political infighting, refugees and, although beyond the country’s control, falling oil prices, which are hugely important to Iraq and account for 96% of its national revenues.
There are some good news stories however that give hope for a brighter future for Iraq and its long-suffering people; a nation with a history of culture, education, good healthcare, and diverse businesses in a location strategically important to the Near and Middle East.
In September 2014, a new prime minister, Haider Al Abadi, was appointed as head of an inclusive government which includes Shia, Sunni and Kurdistan Regional Government (KRG) representation.
In May 2015, a provisional agreement was struck between the national government and the KRG to settle the long-running dispute over oil and gas revenue sharing.
At the same time, an international coalition was formed comprising regional and international forces to combat ISIS and, slowly but steadily, land has been regained.
Christophe Michels, chief operations officer of the Iraq Britain Business Council (IBBC), sees the potential in Iraq’s developments, and its hopes for the future.
“The country has great aspirations for the expansion of its oil and gas sector.
“This is both at an upstream level in terms of further exploration and recovery and with particular regard to the capturing of gas currently being flared on a massive scale to the tune of millions of dollars in lost revenue every day, and at a downstream level in terms of increasing the generation of electricity, increasing refinery capacity, increasing exports and the development of a petrochemical industry.”
British and international management and technical skills are needed for these activities, as the level of incountry expertise is still very poor.
As an initial step for potential exporters, registration as an approved supplier to the major international oil companies (IOCs) is recommended who, in this era of low oil prices, are continuously on the lookout for new suppliers with new ideas.
In the built environment sector, there is huge demand for all types of buildings from private housing, public and commercial buildings and transport infrastructure, to the provision of utilities, and in delivering these physical assets there is a serious demand for master planning and project management services, as Mr Michels describes.
“As the in-country expertise is generally at a low level, there is a significant appetite for joint ventures, marrying local resources and contacts with international management and technical and professional skills.
“Most Iraqi companies are relatively small. They are looking for small and medium-sized enterprises (SMEs) and money services businesses (MSBs) in particular.
“Across all business sectors, the final note to exporters is to target the higher value and higher specification products, as it is difficult to compete with Far East suppliers on high volume and low margin product and services.”
The IBBC was set-up in 2009 by Baroness Emma Nicholson, executive chairman
(and subsequently appointed British Trade Envoy to Iraq) and Mr Michels.
There are now 70 members, including major international oil companies, small and medium-sized businesses, British universities, Iraqi Chambers of Commerce and Iraqi-owned companies.
The purpose of IBBC is to assist international companies set-up in Iraq and identify business opportunities, as well as assisting members in winning business and in offering dispute resolution services when the need arises.
Support is also available for Iraqi companies seeking to do business in the UK.
The IBBC recognises the increasing importance of universities for global
business and aims to accelerate the knowledge transfer taking place between Iraq and the United Kingdom, and as such are working closely with UK universities that have an interest in Iraq.
To help achieve these objectives, the IBBC holds a number of events throughout the year at which Iraqi and British politicians, civil servants and businessmen and women are brought together to discuss the latest developments.
The aim is to advance better practice in both government and business and to
build on and begin personal relationships.
There are two flagship conferences in London in the spring and autumn.
The autumn conference, “Iraq in a Global Marketplace”, will be held on 9-10 November 2015.
Mr Michels adds: “The IBBC staff and members believe in the future of Iraq and
the huge potential the country has for British exports of products and services.”
For more information, visit the IBBC website at www.webuildiraq.org