$20bn for Iraq to spend in next 12-months

This week saw the first lunch organized by the newly formed Iraqi Business Council in Dubai, and around 250 local businessmen attended to hear a speech from Vice-Chairman Dr. Salwan F. Yousif.

'Iraq has over $20 billion in cash trapped in different places which will be available over the next 12 months,' he said. 'There will be $3-4 billion in oil revenues and billions are frozen in other accounts, and the Central Bank has over $1 billion'.

Dr. Salwan said telecommunications, IT and construction would be among the sectors to benefit most from this initial spending. He noted that a mobile phone system was out to tender, and that estimates of demand for PCs over the next year ranged from one to five million.

'Iraq will need over $1 billion worth of IT products and services. Some of this will go into the banking and financial sector to upgrade IT infrastructure at 140 branches of various banks spread across the country'.

His presentation also highlighted the $300-500 million that needs to be spent on the healthcare sector which used to be the pride of the nation.

'Iraq's electricity generation capacity is about 10,000MW and needs huge investment for upgrading, spares and maintenance,' he continued. 'The construction and infrastructure contracts will be about $2.4 billion this year'.

Other business opportunities were as varied as hospitality, industry and agriculture, according to Dr. Salwan. Some hotels still have the same bed linen as 12 years ago, one Dubai official told AME Info.

'Iraq used to be the agricultural heart of the Middle East,' added Dr. Salwan. 'Now people are living on food parcels and that is not a situation that can be allowed to continue'.

However, the Iraqi Business Council lunch, which was hosted by the Dubai Chamber of Commerce and Industry, was not entirely an occasion for rampant optimism. Dr. Salman warned business leaders to be careful to check the bona fides of their Iraqi business partners and not to take too much on trust.

Meanwhile, many in the audience believed that the best Iraqi business opportunities would only emerge in two years or so when the security situation is resolved and an interim government is in place.