A resurgence in foreign investment in Iraq is likely to be cut short by the advance of the Islamic State.
Greenfield foreign direct investment (FDI) into Iraq boomed last year as a period of relative stability attracted large-scale investment from petroleum companies.
But since the US launched air strikes on Sunni militant forces and EU leaders agreed to arm the Kurdish Peshmerga, Iraq’s attractiveness as a location for foreign firms was likely to suffer.
Iraq attracted the Middle East’s largest net increase in greenfield FDI last year, rising to US$14.96 billion last year from $960m in 2012, according to a report from Foreign Direct Investment Intelligence, which is owned by The Financial Times.
Iraq received 15 per cent of greenfield FDI in the Middle East and Africa, compared to 1.21 per cent the previous year.
Greenfield FDI differs from foreign direct investment proper in that it is a measure of new capital, plant and infrastructure projects built by foreign companies in a region.
It does not include investments to repurpose existing capital, plant or infrastructure. This means that it is arguably a better measure of investment that should boost an economy’s spare capacity and create new jobs.
Overall FDI to Iraq increased to “new heights underpinned by [Iraq’s] vast hydrocarbon wealth”, and was rising by about 20 per cent, according to the United Nations Conference on Trade and Development (UNCTAD).
But the rapidly deteriorating security situation might reverse this rosy picture.
Renewed US and EU intervention was likely to exacerbate the conflict, while the Islamic State’s gains have threatened the safety of foreign firms in Iraqi Kurdistan.
This month, Sunni militants captured the oilfields at Ain Zalah from the Iraqi Kurds. These fields are about 170 kilometres from Erbil, the seat of the Kurdistan regional government.
“Security in the semi-autonomous Kurdish region is in jeopardy as a result of the IS’s takeover of northern Iraq in June,” said a recent report from Business Monitor International, a research firm.
Exxon, Total and Gazprom all have operations in Iraqi Kurdistan, along with Abu Dhabi companies Taqa and Dana Gas.
Dana Gas said that production had been unaffected by security concerns, and that there had been no incident affecting their operations.
But the Iraqi News media outlet reported that BP and Exxon were both evacuating staff from the country.
“Oil majors are starting to withdraw from [Iraq], which would impact on oil production,” said Arjuna Mahendran, the chief investment officer of Emirates NBD Wealth Management.
Wayne White, a US state department official, told Bloomberg News that “mounting violence has frightened investors, physically damaged a large number of businesses and discouraged the exploitation of substantial hydrocarbon reserves known to lie under central Iraq”.
As investment in Iraq’s oilfields composed the largest percentage of investment in Iraq, according to UNCTAD, it was likely that hostilities would impede FDI inflows.
Standard Chartered cut its growth forecast for this year for Iraq to 3.5 per cent from 6 per cent, while cutting its forecast for next year to 6 per cent from 8.5 per cent. In June the International Energy Agency reduced forecasts for Iraqi oil production up to 2019.
Business Monitor International also cut its forecasts for growth in Iraq. In a recent report, it stated: “We have revised down our 2014 and 2015 economic growth forecasts for Iraq, given high risks of a return to sectarian civil war.”
Yields on Iraqi government bonds have risen 59 basis points since Islamic State fighters captured Mosul in June.
abouyamourn@thenational.ae
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The biog
Alwyn Stephen says much of his success is a result of taking an educated chance on business decisions.
His advice to anyone starting out in business is to have no fear as life is about taking on challenges.
“If you have the ambition and dream of something, follow that dream, be positive, determined and set goals.
"Nothing and no-one can stop you from succeeding with the right work application, and a little bit of luck along the way.”
Mr Stephen sells his luxury fragrances at selected perfumeries around the UAE, including the House of Niche Boutique in Al Seef.
He relaxes by spending time with his family at home, and enjoying his wife’s India cooking.
How to donate
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In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Race card
1.30pm: Handicap (PA) Dh 50,000 (Dirt) 1,400m
2pm: Handicap (TB) Dh 84,000 (D) 1,400m
2.30pm: Maiden (TB) Dh 60,000 (D) 1,200m
3pm: Conditions (TB) Dh 100,000 (D) 1.950m
3.30pm: Handicap (TB) Dh 76,000 (D) 1,800m
4pm: Maiden (TB) Dh 60,000 (D) 1,600m
4.30pm: Handicap (TB) Dh 68,000 (D) 1,000m
Teri%20Baaton%20Mein%20Aisa%20Uljha%20Jiya
%3Cp%3E%3Cstrong%3EDirectors%3A%3C%2Fstrong%3E%20Amit%20Joshi%20and%20Aradhana%20Sah%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECast%3A%3C%2Fstrong%3E%20Shahid%20Kapoor%2C%20Kriti%20Sanon%2C%20Dharmendra%2C%20Dimple%20Kapadia%2C%20Rakesh%20Bedi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
UAE squad
Ali Kashief, Salem Rashid, Khalifa Al Hammadi, Khalfan Mubarak, Ali Mabkhout, Omar Abdelrahman, Mohammed Al Attas (Al Jazira), Mohmmed Al Shamsi, Hamdan Al Kamali, Mohammad Barghash, Khalil Al Hammadi (Al Wahda), Khalid Eisa, Mohammed Shakir, Ahmed Barman, Bandar Al Ahbabi (Al Ain), Adel Al Hosani, Al Hassan Saleh, Majid Suroor (Sharjah), Waleed Abbas, Ismail Al Hammadi, Ahmed Khalil (Shabab Al Ahli Dubai) Habib Fardan, Tariq Ahmed, Mohammed Al Akbari (Al Nasr), Ali Saleh, Ali Salmeen (Al Wasl), Hassan Al Mahrami (Baniyas)
The specs: 2019 Haval H6
Price, base: Dh69,900
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Seven-speed automatic
Power: 197hp @ 5,500rpm
Torque: 315Nm @ 2,000rpm
Fuel economy, combined: 7.0L / 100km
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Recipe
Garlicky shrimp in olive oil
Gambas Al Ajillo
Preparation time: 5 to 10 minutes
Cooking time: 5 minutes
Serves 4
Ingredients
180ml extra virgin olive oil; 4 to 5 large cloves of garlic, minced or pureed (or 3 to 4 garlic scapes, roughly chopped); 1 or 2 small hot red chillies, dried (or ¼ teaspoon dried red chilli flakes); 400g raw prawns, deveined, heads removed and tails left intact; a generous splash of sweet chilli vinegar; sea salt flakes for seasoning; a small handful of fresh flat-leaf parsley, roughly chopped
Method
▶ Heat the oil in a terracotta dish or frying pan. Once the oil is sizzling hot, add the garlic and chilli, stirring continuously for about 10 seconds until golden and aromatic.
▶ Add a splash of sweet chilli vinegar and as it vigorously simmers, releasing perfumed aromas, add the prawns and cook, stirring a few times.
▶ Once the prawns turn pink, after 1 or 2 minutes of cooking, remove from the heat and season with sea salt flakes.
▶ Once the prawns are cool enough to eat, scatter with parsley and serve with small forks or toothpicks as the perfect sharing starter. Finish off with crusty bread to soak up all that flavour-infused olive oil.
