Ras Al Khaimah to host `Iraq First International Convention for the Development of Small and Medium Enterprises'

The groundbreaking initiative will be attended by H.E Dr. Adil Abdul Mehdi, Vice President of Iraq, and will bring together the Provincial Governors and entrepreneurs from across Iraq and international investors with the aim to foster the development of SMEs in Iraq and thereby contributing to the Iraq's overall economic development.

Speaking at a press conference held recently to announce the convention, Marsha Lazareva, Managing Director of KGL Investment Company, said that the convention will bring together potential investors interested in creating tangible and solid working network with Iraqi entrepreneurs and top decision makers from the government and business sector.

The convention will also witness the planned signing of many Memorandums of Understanding (MoU's) scheduled to take place concretizing the commitment by the international community in establishing a long term developmental strategy for SME's in Iraq.

"The presence of elected Iraqi Provincial Governors, who have been recently awarded the authority to grant investment licenses by a parliamentary decree, highlights the importance of this opportunity to meet with a large concentration of top caliber decision makers representing Iraq, who will be brought together for the first time in such a unique convention," she added.

Marsha Lazareva said that a key factor in attaining stability in Iraq in a non- kinetic approach would be the expansion of the Small and Medium size Enterprise sector of the economy which would provide more jobs for the local Iraqi population and would be a positive contributing factor in the achievement of a tangible transition to self sufficiency.

Iraq First was formed with the objective of promoting the SMEs in Iraq and a specialized team from KGL Investment had during the last seven months held numerous discussions with Iraqi Provincial Governors, businessmen and various Chambers of Commerce in Iraq to identify and allocate enterprises that the provinces require and the proper documents and the land provided to set up the enterprises.

Iraq First has received around 359 projects from Iraqi entrepreneurs encompassing many business fields- from hotels to water bottling plants to cement block factories as well a wide range of other businesses which will be presented to the Arab and International investors in addition to International Lending Organisations during the two- day convention.

Aleast five MoU's would be signed for the establishment of new businesses, including setting up of ceramic sanitary ware factories and liquefied oxygen factory, among others, at the convention. The rest of the projects will be followed up to a final conclusion with an expectation to complete the initiation of over 20 projects for the year 2007.

"Our endeavour has been to provide the Iraqi entrepreneur with the right knowledge and the tools needed to enable them to make connections with international financial institutions to get their projects financed,"

Marsha Lazareva said.

She noted that there is an estimated USD 3 billion of international financing available for business projects in Iraq through institutions like International Finance Corporation (IFC), World Bank, OPIC, various Arab Funds and other government initiatives. "Even though there are lot of organizations with specifically designed programmes to help the growth of Iraqi businesses, there is a disconnect between international agencies and the Iraqi entrepreneurs on the ground level. Iraq First endeavours to close these gaps and to enable Iraqi entrepreneurs make their projects bankable" she added.

Iraq First will also be connecting the Iraqi entrepreneurs to the Business Edge Programme of the International Finance Corporation (IFC) through which training would be provided for the development of entrepreneurial skills and new business techniques.

On the security situation in Iraq and its impact on the SME programme, she said that since the projects have been established by local Iraqi entrepreneurs and the individual governorates themselves, reflecting a keen understanding of the needs of their respective areas, there is no security risk for these projects due to their nature of originating and the benefits they provide for the provinces. "These are projects made by the local entrepreneurs of Iraq with a strong support of the Provincial Governorates and they will be able to ensure security for their projects. Moreover SMEs help foster growth from within the society itself by providing work for the people of that particular region", she added.

She said that Ras al Khaimah was chosen as the venue of the convention because RAK has become one of the greatest examples of a young developing entrepreneurship entity guided by the business oriented vision and leadership of H.H. Sheikh Saud, with the Emirate having the potential to develop into a major business free zone hub.

Yousef Obaid Al Nuaimi, Chairman of RAK Chamber of Commerce, said that Ras Al Khaimah was glad to host the conference and was pleased to provide all support to the progress and development of Iraq. Ali Saleh Itani, of KGL Investment Company was also present at the press conference.