Dubai Summit promises bright future for Iraqi industry through investment

The summit, organised by the Iraq Development Program under the Iraqi Ministry of Industry & Minerals and featuring over 85 officials including Minister Fawzi Hariri, brought the international business community to the UAE to hold discussions with director generals from Iraq's various state owned companies.

The development of industrial sectors such as cement, iron and steel, engineering, fertiliser, glass and ceramics, mechanical industries, automotive industries, electrical industries and information systems is seen as essential to enabling Iraq's economic transformation, as it seeks to change from a state controlled economy to a more free market based approach.

Negotiations were held over the course of the two days between state company director generals and international operators to determine the level of investment needed to bring the various factories and plants towards capacity.

Organised in formal partnership with the US Task Force for Business & Stability Operations in Iraq, the summit welcomed US Deputy Under Secretary of Defence Paul Brinkley, who joined Minister Hariri in the opening address. Mr Brinkley leads the Task Force, which has been working with the Government of Iraq to restore production in Iraqi industry and to facilitate private direct investment, global supply agreements and joint ventures in Iraq. Mr Brinkley said that Iraq is now in a much better position to negotiate with potential investors.

"We are really seeing a groundswell at the moment. It is leading edge, with the most risk-oriented investors now coming in," he said. "The event provides the evidence that Iraq is now open for business."

The summit heralds the start of a process of commercialisation designed to eventually bring about similar economic benefits to those provided by fully fledged privatisation. Minister Hariri, whose vision and leadership enabled the summit to take place, proclaimed the event as a natural progression, following the issuing of a small number of tenders in 2007.

Iraq's Ministry of Industry & Minerals consists of 60 companies, with around 240 factories and plants located throughout the country. It is estimated that around $2bn needs to be generated to bring these facilities up to date. Minister Hariri has already declared that the Ministry is "making all of Iraq's state owned enterprises available for partnerships with the private sector," adding that despite the many challenges faced within the country the rewards for potential investors are considerable.

It is anticipated that a number of other joint ventures will be signed in the coming weeks, following the successful negotiations enjoyed at the summit.