Business And Investment Opportunities In Energy Market And So Forth In Iraq.

1-OVERVIEW AND INTENTION TO DO BUSINESS IN IRAQ

Located in the middle of the energy aisle, Iraq is very important for Turkey, regional countries, Europe and USA.

Turkey has a natural interest in Iraq throughout history, however, Turkish desire to become a regional player requires serious and meticulous works on Iraq. Considering the Turkish foreign policy about that region, it is thought that any work to be performed in Iraq shall be supported by Turkish Government and State.

Iraq should not be deemed as a country to go, do business and earn money for a particular work. On the contrary, it should be considered as a medium-term and long-term business area. So, investments into and relations with the strategic Iraqi regions shall bring long term and permanent profits. Furthermore, since relatively comfortable areas will soon be satisfied due to a busy work flow, there will be a medium-term profit. For instance, Northern Iraq has turned into a busy work area for Turkey and other countries and world.

Iraq has failed to develop for 23 years due to the wars with Iran from 1980 to 1989, the civil war resulted from Halabja killings, and the 1st and 2nd gulf wars with Kuwait. So, the investments then did not come true nor renewed through those period. For instance, the cement factories belong to pre-1970 period. It is only for the last few years where serious investments could be made.

In early 2011, a new government was established which has put an end to the turmoil in the country, which is further explained below. And this fact has created a suitable and safe environment for investments and other business attempts in Iraq.

So, it is possible to make huge profits in Iraq, however, big companies should reveal their intentions openly and create a concept work on that and then enter into this area.

2-DETERMINING WORK AREAS AND FIELDS BASED ON THE POLITICAL SITUATION IN IRAQ.

After the latest Iraqi elections in 2010, a new government was established in early 2011, which has eased the political situation in Iraq. After the elections, the Shia alliance got 18 ministries, Iraqiyye got 11, Kurds 8, El Avsat coalition 1 and Christians got 1 ministry. And Turkmens got 3 ministries from the Shia alliance. The Turkish government and US management welcomed the vote of confidence.

It is considered that this newly emerged situation would benefit to Turkey, including the 42 agreements which Turkey had entered into with Iraqi government in 2009. In this framework, it is considered that if foreign companies to invest or do business in other areas in Iraq should act together with Turkish Companies

In addition to the above mentioned facts, we have also observed during our trips to the region that medium term best business opportunities will emerge in the shia regions as the shia alliance dominates the new government (e.g in Najaf and Karbala), and that Mosul and Kirkuk, located in the middle of Iraq and being important for Turkey, also offer good opportunities for medium and long term business.

We have also noticed during our talks with the governor of Najaf that the cities of Najaf and Karbala will be a busy investment area, because Najaf was selected as the Capital of World Culture in 2012, and that governor has also said they will create opportunities for business in the region for Turkish businessmen and for the foreigners who will act in cooperation with Turkish businessmen, particularly in the...