Political instability at the top obstacles to investment in Iraq
Dr. Mahmoud Mohi El Din, Minister of Investment of Egypt, that since the visit of Egyptian has been to Iraq in August 2009, the Ministry of Investment is keen to coordinate the reception of a number of delegations the investment, as well as bringing in a number of delegations from the National Commission for Investment in Iraq, and prepare a program of meetings and field visits with a number From investment groups and businesses in Egypt.
According to sources with the Ministry of Investment is being organized various training programs for cadres of Iraq, where it is currently implementing the rehabilitation program and management development undertaken by the Ministry of Investment through the introduction of about 600 trained Iraqi workers in the sectors of investment and the stock market and insurance and financial services and asset management, accounting management levels Different, both at the central level or at the level of Iraq's provinces.
And it has been already completed four training sessions during the last period a total of 194 trainees, including 149 trainees belonging to the bodies of the Iraqi investment, at the central level and provinces, and 29 trainees from the Iraqi insurance sector, and 36 trainees who worked Iraqi Stock Exchange. Have been completed specialized training to groups within the headquarters of the General Authority for Investment and Financial Supervision Authority, and the Stock Exchange, in addition to the contents of the training program of field visits to communities of industrial and investment areas.
Despite the interest of political leaderships in both countries to promote economic relations, in many areas attractive to invest in Iraq, which can be of the Egyptian companies to enter it, especially in the field of construction, and infrastructure projects and reconstruction, but there are several problems that stand as an obstacle to Egyptian investors in Ala_i_mar inside Iraq comes on top the unstable security situation.
Says Abdul Wahab Charkaoui president of the Arab Business in Cairo, "The Assembly shall provide all research and scientific advice on all areas of investment, and our trainees from Arab and African countries, and welcome to training and skills of Iraq to engage in various economic and financial fields, and by the Assembly fully prepared to cooperate in re-Structure and organization of new companies, and provide scientific support and research, but must remove the obstacles to cooperation."
And asked about these constraints, "Charkaoui," the "atmosphere in Iraq overshadowed by a situation of instability, perhaps worse than war; In war things are specific danger is clear and probably know where to brings you the blow, but very awkward like that does not encourage the owner of the capital which Prefer a stable atmosphere for growth, is indeed a security-first is the most important factors encouraging investment in Iraq."
Although Egypt's application full Arab Free Trade Agreement, but that the volume of trade exchange between Egypt and the Arab countries is very weak, with only exports of non-oil Arab countries, eight billion dollars annually, followed by Iraq after sunset at the end of the existing 400 million dollars a year at best.
On this situation, "said Maj. Gen. Amin Yahya, Chairman of Al-Nasr Export and Import, "the company always welcomes the export of products and consumer goods to Iraq, and all the goods ready for export, and in quantities that meet market demands." He also stressed that "although the current phase of growth in trade between the two countries, they need to double the size of this exchange in the coming period to promote Arab economic integration, especially in view of the current Iraq crisis now."
Despite the completion of the modified Iraqi investment law, and continued work on the development of economic legislation as reflecting the desire of the Iraqi side to encourage investment, but economists Egyptians believe that "political instability and disruption of the security situation of the most important factors that do not encourage investment in Iraq."
In the opinion of one expert at the General Authority of the Egyptian Capital Market to the attention of Egypt's political leadership to encourage investment in Iraq, has had a positive impact on the volume of trade cooperation, "we see in the recent period increased willingness of companies, major Egyptian action in Iraq, the weight of investment in infrastructure and housing, petrochemicals and some Works in the field of electricity and energy effectively and other projects in Kurdistan, but the financial controls and non-specific there, the Iraqi financial system is suffering from lack of preparedness as mechanisms and conflicting regulations."
"We would have to be achieved political stability, so far as the investor economic trends of the future government in Iraq, because the financial system and financial and economic policies undoubtedly linked to the political directions of the state."
For her part, Mrs. Sarah decimal Information Officer Egyptian Businessmen's Association "The General looked forward to cooperating with both the Egyptian and Iraqi forces in their efforts to promote opportunities for the Egyptian investment in Iraq, but so far the Assembly has not received any serious proposals can talk about it in this context. "
As was also suggested that the current investment is not commensurate with the size of what it takes to Iraq in all fields, and attributed that to the lack of clarity of laws for the management and control investment in Iraq and the difficulty of the procedure and obtain permits, lack of planning for the economic development five-year, citing "the need to modernize the Iraqi banking system And unify the laws of financial transactions".
Some have called for "facilitating the procedures for obtaining visas for Egyptian investors like what is happening with investors from other nations, like Turkey for example, which exceed the size of its investments in Iraq, 9 billion dollars."
It is noteworthy that Mr. Sami Araji, head of the Investment Authority, he had told the agencies earlier, that the obstacles to investment in Iraq continues after the efforts made at local and international levels to persuade companies to enter the Iraqi market. And this year will be the year accomplishments, because the RTA has developed a map of investment up to 750 investment projects in Iraq at a cost of 600 billion dollars.
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