Iraq business update for DHL clients

"Since sanctions against Iraq lifted and DHL's operations began there earlier this year, there have been a growing number of questions posed from UAE business people who want to know more," said David Wild, General Manager, DHL UAE.

"As a direct result of these enquires and because of DHL's first hand experience in Iraq we wanted to share the latest information on the opportunities in the country and how DHL can help realize client's business aspirations there.''

Since May this year DHL has reported many account holders from the UAE actively shipping into Iraq. The company says as further opportunities within the country unfold, it will scale its operations to meet future customer demands efficiently.

Wild commented, "It is clear that there is some way to go in rebuilding the country, but the future growth, prosperity and opportunity for business in Iraq is evident. Iraq remains a country with proven wealth potential."

Wild explained that in July, the Coalition Provisional Authority suspended all tariffs, duties and fees and similar charges for goods entering or leaving Iraq until December 31 2003 although manifests are being checked for contraband goods.

Present at the evening were business consultants Balloch and Roe who have been active in the country and guests also heard how the Trade Bank of Iraq has been established separately to provide financial and related services to facilitate the import and export of goods and services to and from Iraq.

"This will dramatically bolster confidence between trading partners that funds will be received in exchange for goods delivered. General economic recovery and reform programs are gathering pace to rapidly establish a competitive private sector," Wild added.

"Economic reform will be an ongoing project covering current policies, laws, regulations and institutions and massive support is being provided to create a business environment that is both sustainable and appealing to foreign investment and trade.

"As a business looking to expand and invest into Iraq it is clear that although major problems will be prevalent for months to come, the business support available is real and valuable," said Wild.

To explain the exact situation on the ground Wild introduced DHL's Country Manager in Iraq, Pete Toghill, who gave an up-to-the-minute summary. He explained that since sanctions were lifted the Coalition Provisional Authority (CPA) had been established as a transitional, interim administration to restore security and stability and create an overall environment in which the Iraqi people can freely determine their own political and economic future.

Toghill announced that, "Trade finance is improving with the Export Import Bank (Ex-Im) considering applications under its working capital guarantee programme for subcontractors to provide goods and services to Iraq. A Business Support and Information Centre has also been based in Baghdad to provide a link between foreign investors and Iraqi business people as well as a forum for Iraqis to advise on their business needs.

"The support structures to facilitate business in Iraq is being developed and implemented to encourage commerce today and in the future," he added that, "although practical barriers are evident the support to overcome them as swiftly as possible already exists."

Toghill said the physical infrastructure constitutes a major barrier to normal business activity although the work needed is in itself a major investment opportunity. Communications are also poor with satellite connections being the primary international link - again, he said, the opportunity in this sector is huge.

In conclusion David Wild, explained where the future opportunities lie in detail but emphasised that, "The country is only at the beginning of a long journey of restructure and recovery and business requirements will change rapidly. There are a number of key areas where opportunities exist for UAE companies."

DHL was the first express and logistics company to operate in Iraq following the lifting of sanctions. Recently it consolidated its operations in the company by expanding its air and road operations to and within Iraq. This is in addition to the three weekly flights currently operating between Bahrain and Baghdad.