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Business and Investment

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Presentation on theme: "Business and Investment"— Presentation transcript:

1 Business and Investment
Ministry of Industry and Minerals Iraq Is The Right choice for Business and Investment

2 Ministry of Industry and Minerals
Introduction Iraq is considered as one of the distinguished economic attraction country in the world, progressive and viable for investment due to the availability of: Strategic location in the Middle East. Makes it a country well positioned for trade and investment. Rich in natural recourses, in addition to Oil an Gas. Availability of experienced workforce. Wide spread market with high demand percentage. Could be called as a Virgin Land for Investment in all economic sectors because the huge need for rebuilding. Ministry of Industry and Minerals

3 Ministry of Industry and Minerals
Encouraging Business Environment The environment in Iraq is favorable for business The Ministry of Industry and Minerals and State Owned Enterprises are preparing for growth International firms recognize this potential, and are beginning to invest in Iraq Legal and regulatory frameworks are structured to facilitate investment Ministry of Industry and Minerals

4 Ministry of Industry and Minerals
Iraq Ministry of Industry and Minerals manages key industrial sectors and is leading business development and growth initiatives The Ministry of Industry and Minerals (MIM) overseas public and private industry in Iraq 61 state-owned-enterprises (SOEs) 251factories 220,000 employees Budget exceeds $1.8B The industrial sectors under MIM include Construction Industries Textile Industries Petro-Chemical Industries Industrial Services Engineering Industries Food and Pharmaceutical Industries MIM is at the forefront of working with foreign partners and coordinating investment activity Ministry of Industry and Minerals

5 Ministry of Industry and Minerals
Iraq’s chemical sector is poised for growth as it supports other industries in Iraqi GDP growth The construction sector benefits from Iraq’s abundance of high quality raw materials and strong demand Sector overview Sector overview The Chemical Sector includes: Petrochemicals Fertilizer Chemicals Sulfur Rubber Paper Iraqi chemical industries have access to low cost feedstock and energy which is a significant source of competitiveness Iraq has abundant and very high quality raw materials distributed throughout the country, and plants are located throughout Iraq The construction sector includes Cement Glass and Ceramics Plastic Industries Ministry of Industry and Minerals

6 Ministry of Industry and Minerals
Engineering sector growth is driven by reconstruction and population growth The pharmaceutical sector is expected to show strong growth with the increase in per-capita spending Sector overview Sector overview There are two pharmaceutical companies within MIM; Samarra and Nineweh Pharmaceutical companies produce generic products from imported active ingredients Products include: Tablets, capsules, and powders Ointments and creams Oral and eye drops Engineering sector companies include: Steel production Fabrication of steel products Electrical Manufacturing Water treatment End products include: Rebar / steel pipes Sponge iron Steel structures / towers / lighting poles Agricultural machinery Electrical fixtures Ministry of Industry and Minerals

7 Ministry of Industry and Minerals
Industrial services have advanced capabilities to support investors’ projects with the SOEs Strategic Opportunities to Implement New Industrial Projects Plants Petrochemical Industries project No.2: Fertilizer Industries projects Sulphur Mining Project: New Iron and Steel Plant: Concentration of Raw Phosphate Project Longitudinally Welded Pipes Plant Erw Plant New Float Glass Plant Sector overview Industrial services sector can provide a variety of services to support investment: Project management Process engineering Design and implementation of Control systems Supervisory Control and Data Acquisition (SCADA) systems Information and communication technology Chemical processes Consulting engineering and feasibility studies Assistance in working with the Ministry and its government and business partners Ministry of Industry and Minerals

8 Ministry of Industry and Minerals
Existing Industrial Investment Legal Framework Allow transformation of SOEs to public and/or private share holding companies; Law 22, (Rehabilitation of existing Plant on partnership basis with International Companies) Develop requirements and formation of private and mixed shareholding companies; Law 21, 1997. Enable sale and lease of Government property and real estate to private sector; Law 32, Organize Investment in Mining and Natural Resources Law No. 91, 1988. Establish framework for foreign investment in Iraq, Law No. 13/2006. Industrial Investment Legal Enhancements Protect locally produced goods through tariffs on imported goods; 2009 Align existing arbitration law with International standards and best practices Establish method of SOE privatization; Law on SOE Economic Reform Ministry of Industry and Minerals

9 Ministry of Industry and Minerals
MIM took the task of development and promotion of all sectors of Iraqi Industry by adopting a comprehensive economic reform on the following basis: First: Rehabilitation and Upgrading some if the plants on Partnership basis by establishment of Joint Ventures and Production Sharing agreements between foreign companies, businessmen and Iraqi public sector to increasing the design production capacity to cover the huge demand for most of the Iraqi products. Investment Files are available with all technical, financial information and visibility study for each plant. Ministry of Industry and Minerals

10 Ministry of Industry and Minerals
Second: Transforming some of the SOE's to share holding companies giving the big share of about 45% of the capital to a strategic partner through transparent evaluation process. Third: Establishing new Private Companies. Fourth: Investing in new Industrial plants in accordance with Investment Law No (13) 2006. Fifth: Investing in new Green Field Cement plants utilizing available raw materials (Lime Stone) at several locations in Iraq owing to of the high local demand for construction materials needed for rebuilding Iraq. Sixth: Investing in new strategic large scale Industrial plants on Joint Venture basis ( Petrochemicals, Fertilizer, Phosphate, Sulphur Plants). Ministry of Industry and Minerals

11 Ministry of Industry and Minerals
Advantages Enjoyed by the Investors for Rehabilitation on Partnership basis Well trained, experienced labor force. Availability of major raw materials. Reduced time to market due to the availability of markets and high local demands. No Real Estate Expenses. Clear cost advantage over imports. Fast return on investment. Full support of the Government of Iraq Investors are insured that their interests are in parallel to the government's interests. Both parties will have the incentive to rehabilitate and operate the factory to its greatest potential. The Ministry of Industry and Minerals will serve as an effective interlocutor between the investor's need and the government's requirement. Exemption of all Duties and Taxes. Ministry of Industry and Minerals

12 Ministry of Industry and Minerals
International firms recognize Iraq’s potential and have already invested Iraqi business with international investors International companies with operations in Iraq Investment $ millions Case New Holland has begun to assemble tractors in Iskandiriah 400 tractors already delivered On track to deliver 1,250 tractors Business Northern Fertilizer - Baiji 150 Kubaysa Cement 150 Daimler Benz has agreed to build trucks in restarted SOE factory in Iskandiriah Al Qaim Cement 90 x x Scania has agreed to build 500 trucks in Iskandiriah Sinjar Cement 150 Caterpillar has agreed to rebuild and assemble generators in Baghdad Karbala Cement 100 Fallujah Cement 45 Cummins Diesel has agreed to rebuild and assemble generators at Iskandiriah Diyala Electric 60 Ministry of Industry and Minerals

13 Ministry of Industry and Minerals
Conclusion This is a unique window of opportunity to invest in Iraq MIM sectors have natural competitive advantages Iraqi industries are building capabilities and preparing for growth The environment in Iraq is favorable for investment, and investors are already recognizing the potential growth For Further Information Visit our website Contact our Investment Dept. at: Ministry of Industry and Minerals

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