The major oil exporter has been struggling to attract
much-needed investment to develop its infrastructure after years of militant
bloodshed, under-investment and sanctions as many firms wait for security to
improve.
Overall violence has dropped significantly in Iraq since the
height of sectarian warfare in 2006-07. But bombings and shootings are still
occur regularly in Baghdad and elsewhere.
While Iraq has signed eleven deals with global oil companies
to develop its richest fields, projects outside the energy sector have rarely
gone beyond aspirations. Lingering violence and political uncertainty, four
months after an inconclusive election, are keeping most western investors on
the sidelines. To persuade more investors to come, an Iraqi firm is planning to
build a “village of businesses” next to Baghdad airport, a 30-minute drive from
the city center, according to Shaker Al-Zamili, head of the Baghdad Investment
Commission.
The mini-city will offer all amenities for businessmen to
strike deals, showcase their products and chill out at night — offices, hotels
and apartments, banks, 119 shops, a petrol station, a car rental agency and
even duty-free shops. And there will be restaurants, Internet cafes and parks.
The area, scheduled for completion in three-five years for
$250 million, will also house offices of state investment commissions and
branches of most government ministries to help investors.
“When a company comes to Iraq, instead of wandering, it
could stay and deal with officials and get any information, any details it
wants while staying there,” Zamili said on Wednesday.
Companies also could rent places for displaying products and
services, he added.
Of those brave enough to invest in Iraq despite violence so
far, Iranian, Turkish and Gulf companies lead the pack, especially in Shiite
tourism, housing and banking.
The United Arab Emirates is the biggest investor in large
projects, with total pledges of $37.7 billion, while Lebanon tops the list of
investment deals below $1 billion, according to a report last year by Dunia
Frontier Consultants.
