Global Business Environment

Topic – A brief report on Global Business Environment of IRAQ in this

report we will study about the GDP, Inflation, Development, History
of Industries, Contribution towards world, PESTAL analysis.

Subject – Global Business Environment

Assigned By – Prof. Divya Agrawal

Name and Enrolment – Group 18

Name Enrolment No.

Hatim Kasarawala 21254381008
Kajal Chauhan 21254381009
Umang Gupta 21254381007
Janki Paridwal 21254381015
Braj Shah 21254381003
Contents :
 Introduction
 History
o Prehistoric Era
o Ancient Mesopotamia
o Bronze age
o Middle age
o Republic and Ba’athist Iraq
o 2019- civil unrest
 Geography
 Inflation rate
 Economic Growth
 Worldwide Contribution
 Pestal Analysis
Introduction
Iraq is a country in Western Asia. It is bordered by Turkey to the north, Iran to the east,
the Persian Gulf and Kuwait to the southeast, Saudi Arabia to the south, Jordan to the
southwest and Syria to the west. The capital and largest city is Baghdad. Iraq is home
to diverse ethnic groups including Arabs, Kurds, Turkmens, Assyrians, Armenians,
Yazidis, Sabian-Mandaeans, Persians and Shabakis with similarly diverse geography
and wildlife. The majority of the country's 40 million citizens are Muslims, and other
recognized religions include Christianity, Yazidism, Mandaeism, Yarsanism and
Zoroastrianism The official languages of Iraq are Arabic and Kurdish, with other
recognized regional languages being English, Neo-Aramaic, Turkish and Armenian.
During ancient times, lands that now constitute Iraq were known
as Mesopotamia (“Land Between the Rivers”), a region whose extensive alluvial
plains gave rise to some of the world's earliest civilizations and empires since the 6th
millennium BC, including those of Akkad, Babylon, Assyria and Sumer, the earliest
known civilisation.[14] The "Cradle of Civilisation" is a common term for the area
comprising modern Iraq and was the birthplace of many valuable inventions and
discoveries, including writing system, mathematics, time, calendar, astrology and law
code. It was here that mankind began first to read, write, create laws and live in cities
under an organised government—notably Uruk. Following the Muslim conquest of
Mesopotamia, Baghdad became the capital and the largest city of the Abbasid
Caliphate, and during the Islamic Golden Age, the city evolved into a significant
cultural and intellectual center, and garnered it a worldwide reputation for its academic
institutions, including House of Wisdom. The city was largely destroyed at the hands
of the Mongol Empire in 1258 during the Siege of Baghdad, resulting in a decline that
would linger through many centuries due to frequent plagues and multiple successive
empires.
Modern Iraq dates back to 1920, when the British Mandate for Mesopotamia, joining
three Ottoman vilayets, was created under the authority of the League of Nations. A
British-backed Kingdom was established in 1921 under Faisal I of Iraq.
The Hashemite Kingdom of Iraq gained independence from the UK in 1932. In
1958, the monarchy was overthrown and the Iraqi Republic created. Iraq was
controlled by the Arab Socialist Ba'ath Party from 1968 until 2003. In 1980, Iraq
invaded Iran, sparking a protracted war which would last for almost eight years, and
end in a stalemate with devastating losses for both countries. After an invasion by
the United States and its allies in 2003, Saddam Hussein's Ba'ath Party was removed
from power, and multi-party parliamentary elections were held in 2005. The US
presence in Iraq ended in 2011. Iraq is a federal parliamentary republic. The president
is the head of state, the prime minister is the head of government, and the constitution
provides for two deliberative bodies, the Council of Representatives and the Council of
Union. The judiciary is free and independent of the executive and the legislature. Iraq
is considered an emerging middle power with a strategic location and a founding
member of the United Nations, the OPEC as well as of the Arab League, OIC, Non-
Aligned Movement and the IMF. Since its independence, Iraq's political history has
been characterized by periods of significant economic and military growth, as well as
periods of political and economic instability.
History

Prehistoric era
Since approximately 10,000 BC, Iraq, together with a large part of the Fertile
Crescent also comprising Asia Minor and the Levant, was one of centres of
a Neolithic culture known as Pre-Pottery Neolithic A (PPNA), where agriculture and
cattle breeding appeared for the first time in the world. In Iraq, this period has been
excavated at sites like M'lefaat and Nemrik 9. The following Neolithic period, PPNB, is
represented by rectangular houses. At the time of the pre-pottery Neolithic, people
used vessels made of stone, gypsum and burnt lime (Vaisselle blanche). Finds
of obsidian tools from Anatolia are evidences of early trade relations.

Ancient Mesopotamia

The "Cradle of Civilisation" is thus a common term for the area comprising modern
Iraq as it was home to the earliest known civilisation, the Sumerian civilisation, which
arose in the fertile Tigris-Euphrates river valley of southern Iraq in
the Chalcolithic (Ubaid period).[44]
It was here, in the late 4th millennium BC, that the world's first writing system and
recorded history itself were born. The Sumerians were also the first to harness
the wheel and create city states, and whose writings record the first evidence
of mathematics, astronomy, astrology, written law, medicine and organised religion.
Bronze Age
In the 26th century BC, Eannatum of Lagash created what was perhaps the
first empire in history, though this was short-lived. Later, Lugal-Zage-Si, the priest-king
of Umma, overthrew the primacy of the Lagash dynasty in the area, then
conquered Uruk, making it his capital, and claimed an empire extending from
the Persian Gulf to the Mediterranean. It was during this period that the Epic of
Gilgamesh originates, which includes the tale of The Great Flood.
From the 29th century BC, Akkadian Semitic names began to appear on king lists and
administrative documents of various city states. It remains unknown as to the origin of
Akkad, where it was precisely situated and how it rose to prominence. Its people
spoke Akkadian, an East Semitic language. Between the 29th and 24th centuries BC,
a number of kingdoms and city states within Iraq began to have Akkadian speaking
dynasties; including Assyria, Ekallatum, Isin and Larsa. However, the Sumerians
remained generally dominant until the rise of the Akkadian Empire (2335–2124 BC),
based in the city of Akkad in central Iraq. Sargon of Akkad, originally a Rabshakeh to
a Sumerian king, founded the empire, he conquered all of the city states of southern
and central Iraq, and subjugated the kings of Assyria, thus uniting the Sumerians and
Akkadians in one state.

Middle Ages
The first organized conflict between invading Arab-Muslim tribes and occupying
Persian forces in Mesopotamia seems to have been in 634, when the Arabs were
defeated at the Battle of the Bridge. There was a force of some 5,000 Muslims under
Abū `Ubayd ath-Thaqafī, which was routed by the Persians. This was followed
by Khalid ibn al-Walid's successful campaign which saw all of Iraq come under Arab
rule within a year, with the exception of the Persian Empire's capital, Ctesiphon.
Around 636, a larger Arab Muslim force under Sa`d ibn Abī Waqqās defeated the main
Persian army at the Battle of al-Qādisiyyah and moved on to capture the Persian
capital of Ctesiphon. By the end of 638, the Muslims had conquered all of the Western
Sassanid provinces (including modern Iraq), and the last Sassanid
Emperor, Yazdegerd III, had fled to central and then northern Persia, where he was
killed in 651. The Islamic expansions constituted the largest of the Semitic expansions
in history. These new arrivals did not disperse and settle throughout the country;
instead they established two new garrison cities, at Kufa, near ancient Babylon, and
at Basra in the south and established Islam in these cities, while the north remained
largely Assyrian and Christian in character.

Republic and Ba'athist Iraq

In 1958, a coup d'état known as the 14 July Revolution was led by the Brigadier
General and nationalist Abd al-Karim Qasim. This revolt was strongly anti-imperial and
anti-monarchical in nature and had strong socialist elements. Numerous people were
killed in the coup, including King Faysal II, Prince Abd al-Ilah, and Nuri al-
Sa'id.[90] Qasim controlled Iraq through military rule and in 1958 he began a process
of forcibly reducing the surplus amounts of land owned by a few citizens and having
the state redistribute the land. He was overthrown by Colonel Abdul Salam Arif in
a February 1963 coup. After the latter's death in 1966, he was succeeded by his
brother, Abdul Rahman Arif, who was overthrown by the Ba'ath Party in 1968.
Ahmed Hassan al-Bakr became the first Ba'ath President of Iraq but then the
movement gradually came under the control of Saddam Hussein, who acceded to the
presidency and control of the Revolutionary Command Council (RCC), then Iraq's
supreme executive body, in July 1979.
In 1979, the Iranian Revolution took place. Following months of cross-border raids
between the two countries, Saddam declared war on Iran in September 1980, initiating
the Iran–Iraq War (or First Persian Gulf War). Taking advantage of the post-revolution
chaos in Iran, Iraq captured some territories in southwest of Iran, but Iran recaptured
all of the lost territories within two years, and for the next six years Iran was on the
offensive. The war, which ended in stalemate in 1988, had cost the lives of between
half a million and 1.5 million people.
In 1981, Israeli aircraft bombed an Iraqi nuclear materials testing reactor at Osirak and
was widely criticised at the United Nations. During the eight-year war with Iran,
Saddam Hussein extensively used chemical weapons against Iranians. In the final
stages of the Iran–Iraq War, the Ba'athist Iraqi regime led the Al-Anfal Campaign,
a genocidal campaign that targeted Iraqi Kurds, and led to the killing of 50,000–
100,000 civilians.
Saddam Hussein, President of Iraq (1979-2003).

Saddam Hussein's family, mid-late 1980s

Due to Iraq's inability to pay Kuwait more than US$14 billion that it had borrowed to
finance the Iran–Iraq War and Kuwait's surge in petroleum production levels which
kept revenues down, Iraq interpreted Kuwait's refusal to decrease its oil production as
an act of aggression. Throughout much of the 1980s, Kuwait's oil production was
above its mandatory OPEC quota, which kept the oil prices down.
In August 1990 Iraq invaded and annexed Kuwait. This subsequently led to military
intervention by United States-led forces in the First Gulf War. The coalition forces
proceeded with a bombing campaign targeting military targets and then launched a
100-hour-long ground assault against Iraqi forces in Southern Iraq and those
occupying Kuwait.
Iraq's armed forces were devastated during the war. Shortly after it ended in
1991, Kurdish Iraqis led several uprisings against Saddam Hussein's regime, but
these were successfully repressed using the Iraqi security forces and chemical
weapons. It is estimated that as many as 100,000 people, including many civilians
were killed. During the uprisings the US, UK, France and Turkey, claiming authority
under UNSCR 688, established the Iraqi no-fly zones to protect Kurdish population
from attacks by the Saddam regime's fixed-wing aircraft (but not helicopters).

2019– Civil unrest

Serious civil unrest rocked the country beginning in Baghdad and Najaf in July 2018
and spreading to other provinces in late September 2019 as rallies to protest
corruption, unemployment, and public service failures turned violent. Protests and
demonstrations started again on 1 October 2019, against 16 years of corruption,
unemployment and inefficient public services, before they escalated into calls to
overthrow the administration and to stop Iranian intervention in Iraq. The Iraqi
government at times reacted harshly, resulting in over 500 deaths by 12 December
2019.
On 27 December 2019, the K-1 Air Base in Iraq was attacked by more than 30 rockets,
killing a U.S. civilian contractor and injuring others. The U.S. blamed the Iranian-
backed Kata'ib Hezbollah militia. Later that month, the United States bombed five
Kata'ib Hezbollah militia's positions in Iraq and Syria, in retaliation for the presumed
Kata'ib attack of 27 December. According to Iraqi sources, at least 25 militia fighters
were killed. On 31 December 2019, after a funeral for Kata'ib Hezbollah militiamen
killed by U.S. airstrikes, dozens of Iraqi Shia militiamen and their supporters marched
into the Green Zone of Baghdad and surrounded the U.S. embassy compound (see
article: Attack on the United States embassy in Baghdad). Demonstrators smashed a
door of the checkpoint, set fire to the reception area, left anti-American posters and
sprayed anti-American graffiti. U.S. president Trump accused Iran of orchestrating the
attack.
On 3 January 2020, amid rising tensions between the United States and Iran, the
U.S. launched a drone strike on a convoy traveling near Baghdad International Airport,
killing Qasem Soleimani, Iranian major general and Islamic Revolutionary Guard
Corps (IRGC) and Quds Force commander, the second most powerful person of
Iran;[173] Abu Mahdi al-Muhandis, deputy commander of Iraq's Popular Mobilization
Forces (PMF or PMU), four senior Iranian officers; and four Iraqi officers.
Following months of protests that broke out across Iraq in October 2019 and the
resignation of Prime Minister Adel Abdul Mahdi and his cabinet, Mustafa Al Kadhimi
became a leading contender for the Premiership. On 9 April 2020, he was named
by President Barham Salih as prime minister-designate, the third person tapped to
lead the country in just 10 weeks as it struggled to replace a government that fell the
year prior after months of protests. Kadhimi was nominated by President Barham
Salih, state television reported, shortly after the previous designated prime
minister, Adnan al-Zurfi, announced he was withdrawing having failed to secure
enough support to pass a government.
In November 2021, Iraqi Prime Minister Mustafa al-Kadhimi survived a failed
assassination attempt.

Geography
Iraq lies between latitudes 29° and 38° N, and longitudes 39° and 49° E (a small area
lies west of 39°). Spanning 437,072 km2 (168,754 sq mi), it is the 58th-largest country
in the world. It is comparable in size to the US state of California, and somewhat larger
than Paraguay.
Iraq has a coastline measuring 58 km (36 miles) on the northern Persian Gulf and
encompasses the Mesopotamian Alluvial Plain, the northwestern end of the Zagros
mountain range and the eastern part of the Syrian Desert. Two major rivers,
the Tigris and Euphrates, run south through Iraq and into the Shatt al-Arab near the
Persian Gulf.
Near the two major rivers (Euphrates and Tigris) are fertile alluvial plains, as the rivers
carry about 60,000,000 m3 (78,477,037 cu yd) of silt annually to the delta. Rocky
deserts cover about 40 percent of the land. Much of the south is marshy and damp.
Another 30 percent is mountainous with bitterly cold winters. The north of the country
is mostly composed of mountains; the highest point being at 3,611 m (11,847 ft) point,
unnamed on the map opposite, but known locally as Cheekah Dar (black tent). Iraq
has a small coastline measuring 58 km (36 mi) along the Persian Gulf. Close to the
coast and along the Shatt al-Arab (known as arvandrūd: ‫ اروندرود‬among Iranians) there
are marshlands. Many were drained in the 1990s and later revived.
Iraq is home to seven terrestrial ecoregions: Zagros Mountains forest steppe, Middle
East steppe, Mesopotamian Marshes, Eastern Mediterranean conifer-sclerophyllous-
broadleaf forests, Arabian Desert, Mesopotamian shrub desert, and South Iran Nubo-
Sindian desert and semi-desert.

Climate

Much of Iraq has a hot arid climate with subtropical influence. Summer temperatures
average above 40 °C (104 °F) for most of the country and frequently exceed 48 °C
(118.4 °F). Winter temperatures infrequently exceed 21 °C (69.8 °F) with maxima
roughly 15 to 19 °C (59.0 to 66.2 °F) and night-time lows 2 to 5 °C (35.6 to 41.0 °F).
Typically, precipitation is low; most places receive less than 250 mm (9.8 in) annually,
with maximum rainfall occurring during the winter months. Rainfall during the summer
is rare, except in northern parts of the country. The northern mountainous regions have
cold winters with occasional heavy snows, sometimes causing extensive flooding.
Climate change in Iraq is leading to increasing temperatures, reduced precipitation,
and increasing water scarcity which will likely have serious implications for the country
for years to come.[180][181] As a result dust storms have become increasingly
common; particularly in 2022.

Biodiversity
The wildlife of Iraq includes its flora and fauna and their natural habitats. Iraq has
multiple and diverse biomes which include the mountainous region in norther to the
wet marshlands along the Euphrates and Tigris rives, while western part of the country
comprises mainly desert and some semi-arid regions. Many of Iraq's bird species were
endangered, that includes seven of Iraq's mammal species and 12 of its bird species.
Little has been made by the governemt to tackle the issue. The Mesopotamian
marches in the middle and south are home to approximately 50 species of birds, and
rare species of fish. The marshes are home to millions of birds and the stopover for
millions of migratory birds, including flamingo, pelican and heron. At risk are some
50% of the world's marbled teal population that live in the marshes, along with 60% of
the world's population of Basra reed-warbler. The draining of the Mesopotamian
Marshes, which was carried out by Saddams regime, caused a significant decline in
bioproductivity, however, following the Multi-National Force overthrow of the Saddam
Hussein regime, water flow to the marshes was restored and the ecosystem has
begun to recover.
Iraqi corals presence is one of the most extreme coral-bearing environments in the
world, as the seawater temperature in this area ranges between 14 and 34 °C. Aquatic
or semi-aquatic wildlife occurs in and around these lakes

Government and politics

The federal government of Iraq is defined under the current Constitution as

a democratic, federal parliamentary republic. The federal government is composed of
the executive, legislative, and judicial branches, as well as numerous independent
commissions. Aside from the federal government, there are regions (made of one or
more governorates), governorates, and districts within Iraq with jurisdiction over
various matters as defined by law.
The National Alliance is the main Shia parliamentary bloc, and was established as a
result of a merger of Prime Minister Nouri Maliki's State of Law Coalition and the Iraqi
National Alliance. The Iraqi National Movement is led by Iyad Allawi, a secular Shia
widely supported by Sunnis.The party has a more consistent anti-sectarian
perspective than most of its rivals. The Kurdistan List is dominated by two parties,
the Kurdistan Democratic Party led by Masood Barzani and the Patriotic Union of
Kurdistan headed by Jalal Talabani. Both parties are secular and enjoy close ties with
the West.
In 2008, according to the Failed States Index, Iraq was the world's eleventh most
politically unstable country. The concentration of power in the hands of Prime
Minister Nouri al-Maliki and growing pressure on the opposition led to growing concern
about the future of political rights in Iraq. Nevertheless, progress was made and the
country had risen to 11th place by 2013. In August 2014, al-Maliki's reign came to an
end. He announced on 14 August 2014 that he would stand aside so that Haider Al-
Abadi, who had been nominated just days earlier by newly installed President Fuad
Masum, could take over. Until that point, al-Maliki had clung to power even asking the
federal court to veto the president's nomination describing it as a violation of the
constitution.
Transparency International ranks Iraq's government as the eighth-most-corrupt
government in the world. Government payroll have increased from 1 million employees
under Saddam Hussein to around 7 million employees in 2016. In combination with
decreased oil prices, the government budget deficit is near 25% of GDP as of 2016.

Law

In October 2005, the new Constitution of Iraq was approved in a referendum with a
78% overall majority, although the percentage of support varying widely between the
country's territories.] The new constitution was backed by the Shia and Kurdish
communities, but was rejected by Arab Sunnis. Under the terms of the constitution,
the country conducted fresh nationwide parliamentary elections on 15 December
2005. All three major ethnic groups in Iraq voted along ethnic lines, as did Assyrian
and Turcoman minorities. Law no. 188 of the year 1959 (Personal Status Law) made
polygamy extremely difficult, granted child custody to the mother in case of divorce,
prohibited repudiation and marriage under the age of 16. Article 1 of Civil Code also
identifies Islamic law as a formal source of law. Iraq had no Sharia courts but civil
courts used Sharia for issues of personal status including marriage and divorce. In
1995 Iraq introduced Sharia punishment for certain types of criminal offences. The
code is based on French civil law as well as Sunni and Jafari (Shi'ite) interpretations
of Sharia.
In 2004, the CPA chief executive L. Paul Bremer said he would veto any constitutional
draft stating that sharia is the principal basis of law. The declaration enraged many
local Shia clerics, and by 2005 the United States had relented, allowing a role for
sharia in the constitution to help end a stalemate on the draft constitution. The Iraqi
Penal Code is the statutory law of Iraq.

Military
Iraqi security forces are composed of forces serving under the Ministry of Interior (MOI)
and the Ministry of Defense (MOD), as well as the Iraqi Counter Terrorism Bureau,
reporting directly to the Prime Minister of Iraq, which oversees the Iraqi Special
Operations Forces. MOD forces include the Iraqi Army, the Iraqi Air Force, Iraqi
Navy and Peshmerga, which, along with their security subsidiaries, are responsible
for the security of the Kurdistan Region. The MOD also runs a Joint Staff College,
training army, navy, and air force officers, with support from the NATO Training
Mission - Iraq. The college was established at Ar Rustamiyah on September 27,
2005. The center runs Junior Staff and Senior Staff Officer Courses designed for first
lieutenants to majors.
The current Iraqi armed forces was rebuilt on American foundations and with huge
amounts of American military aid at all levels. The army consists of 14 divisions, all of
them infantry, except for the ninth division, which is motorized infantry. Each division
consists of four brigades and comprises 14,000 soldiers. Before 2003, Iraq was mostly
equipped with Soviet-made military equipment, but since then the country has turned
to Western suppliers.
The Iraqi air force is designed to support ground forces with surveillance,
reconnaissance and troop lift. Two reconnaissance squadrons use light aircraft, three
helicopter squadrons are used to move troops and one air transportation squadron
uses C-130 transport aircraft to move troops, equipment, and supplies. The air force
currently has 5,000 personnel. It was planned to increase to 18,000 personnel, with
550 aircraft by 2018, but that did not happen as planned.

Foreign relations

On 17 November 2008, the US and Iraq agreed to a Status of Forces Agreement, as

part of the broader Strategic Framework Agreement. This agreement states that "the
Government of Iraq requests" US forces to temporarily remain in Iraq to "maintain
security and stability" and that Iraq has jurisdiction over military contractors, and US
personnel when not on US bases or on–duty.
On 12 February 2009, Iraq officially became the 186th State Party to the Chemical
Weapons Convention. Under the provisions of this treaty, Iraq is considered a party
with declared stockpiles of chemical weapons. Because of their late accession, Iraq is
the only State Party exempt from the existing timeline for destruction of their chemical
weapons. Specific criteria are in development to address the unique nature of Iraqi
accession.
Iran–Iraq relations have flourished since 2005 by the exchange of high level visits:
Iraqi PM Nouri al-Maliki made frequent visits to Iran, along with Jalal Talabani visiting
numerous times, to help boost bilateral co-operation in all fields. A conflict occurred in
December 2009, when Iraq accused Iran of seizing an oil well on the border.
Relations with Turkey are tense, largely because of the Kurdistan Regional
Government, as clashes between Turkey and the PKK continue. In October 2011, the
Turkish parliament renewed a law that gives Turkish forces the ability to pursue rebels
over the border in Iraq. Turkey's "Great Anatolia Project" reduced Iraq's water supply
and affected agriculture.
On 5 January 2020, the Iraqi parliament voted for a resolution that urges the
government to work on expelling US troops from Iraq. The resolution was passed two
days after a US drone strike that killed Iranian Major General Qasem Soleimani of
the Islamic Revolutionary Guard Corps, commander of the Quds Force. The resolution
specifically calls for ending of a 2014 agreement allowing Washington to help Iraq
against Islamic State groups by sending troops. This resolution will also signify ending
an agreement with Washington to station troops in Iraq as Iran vows to retaliate after
the killing. On 28 September 2020, Washington made preparations to withdraw
diplomats from Iraq, as a result of Iranian-backed militias firing rockets at the American
Embassy in Baghdad. The officials said that the move was seen as an escalation of
American confrontation with Iran.

Economy
Iraq's economy is dominated by the oil sector, which has traditionally provided about
95% of foreign exchange earnings. The lack of development in other sectors has
resulted in 18%–30% unemployed and a per capita GDP of $4,812.Public sector
employment accounted for nearly 60% of full-time employment in 2011.The oil export
industry, which dominates the Iraqi economy, generates very little
employment. Currently only a modest percentage of women (the highest estimate for
2011 was 22%) participate in the labour force.
Prior to US occupation, Iraq's centrally planned economy prohibited foreign ownership
of Iraqi businesses, ran most large industries as state-owned enterprises, and
imposed large tariffs to keep out foreign goods. After the 2003 invasion of Iraq,
the Coalition Provisional Authority quickly began issuing many binding
orders privatising Iraq's economy and opening it up to foreign investment.
On 20 November 2004, the Paris Club of creditor nations agreed to write off 80% ($33
billion) of Iraq's $42 billion debt to Club members. Iraq's total external debt was around
$120 billion at the time of the 2003 invasion, and had grown another $5 billion by 2004.
The debt relief was to be implemented in three stages: two of 30% each and one of
20%.
The official currency in Iraq is the Iraqi dinar. The Coalition Provisional
Authority issued new dinar coins and notes, with the notes printed by De La Rue using
modern anti-forgery techniques. Jim Cramer's 20 October 2009 endorsement of
the Iraqi dinar on CNBC has further piqued interest in the investment.
Five years after the invasion, an estimated 2.4 million people were internally
displaced (with a further two million refugees outside Iraq), four million Iraqis were
considered food-insecure (a quarter of children were chronically malnourished) and
only a third of Iraqi children had access to safe drinking water.
In 2022, and after more than 30 years after the UN Compensation Commission
(UNCC) was created to ensure restitution for Kuwait following the Iraqi invasion of
1990, the reparations body announced that Iraq has paid a total of $52.4 billion in war
reparations to Kuwait.

Tourism

Iraq was an important tourist destination for many years but that changed dramatically
during the war with Iran and after the 2003 invasion by US and allies. As Iraq continues
to develop and stabilizes, the tourism in Iraq is still facing many challenges, little has
been made by the government to meet its tremendous potential as a global tourist
destination, and gain the associated economic benefits, mainly due to conflicts.
However, in recent years the government has made some efforts to attract tourists to
the various destinations in the country and arrivals have increased to some degree.
The domestic tourism has also seen improvements. Sites from Iraq's ancient past are
numerous and many that are close to large cities have been excavated. Babylon has
seen major recent restoration; known for its famous Ziggurat (the inspiration for the
Biblical Tower of Babel), the Hanging Gardens (one of the Seven Wonders of the
World), and the Ishtar Gate, making it a prime destination. Nineveh, a rival to Babylon,
has also seen significant restoration and reconstruction, and lies close to Mosul. Ur,
one of the first Sumerian cities, which is near Nasiriyya, has been partially restored.
This is a list of examples of some significant sites in a country with a tremendous
archaeological and historic wealth. Iraq is considered to be a potential location
for ecotourism. The tourism in Iraq includes also making pilgrimages to holy Shia
sites near Karbala and Najaf.

Oil and energy

With its 143.1 billion barrels (2.275×1010 m3) of proved oil reserves, Iraq ranks third in
the world behind Venezuela and Saudi Arabia in the amount of oil reserves. Oil
production levels reached 3.4 million barrels per day by December 2012. Only about
2,000 oil wells have been drilled in Iraq, compared with about 1 million wells
in Texas alone. Iraq was one of the founding members of OPEC.
During the 1970s Iraq produced up to 3.5 million barrels per day, but sanctions
imposed against Iraq after its invasion of Kuwait in 1990 crippled the country's oil
sector. The sanctions prohibited Iraq from exporting oil until 1996 and Iraq's output
declined by 85% in the years following the First Gulf War. The sanctions were lifted in
2003 after the US-led invasion removed Saddam Hussein from power, but
development of Iraq's oil resources has been hampered by the ongoing conflict.
As of 2010, despite improved security and billions of dollars in oil revenue, Iraq still
generates about half the electricity that customers demand, leading to protests during
the hot summer months.The Iraq oil law, a proposed piece of legislation submitted to
the Council of Representatives of Iraq in 2007, has failed to gain approval due to
disagreements among Iraq's various political blocs.
According to a US Study from May 2007, between 100,000 barrels per day
(16,000 m3/d) and 300,000 barrels per day (48,000 m3/d) of Iraq's declared oil
production over the past four years could have been siphoned off through corruption
or smuggling.[242] In 2008, Al Jazeera reported $13 billion of Iraqi oil revenues in US
care was improperly accounted for, of which $2.6 billion is totally unaccounted
for. Some reports that the government has reduced corruption in public procurement
of oil; however, reliable reports of bribery and kickbacks to government officials persist.

Water supply and sanitation

Water supply and sanitation in Iraq is characterized by poor water and service
quality.[181] Three decades of war, combined with limited environmental awareness,
have destroyed Iraq's water resources management system. Access to potable water
differs significantly among governorates and between urban and rural areas. 91% of
the entire population has access to potable water. But in rural areas, only 77% of the
population has access to improved drinking water sources compared to 98% in urban
areas.[254] Large amounts of water are wasted during production.

Languages

The main languages spoken in Iraq are Mesopotamian Arabic and Kurdish, followed
by the Iraqi Turkmen/Turkoman dialect of Turkish, and the Neo-Aramaic languages
(specifically Chaldean and Assyrian). Arabic and Kurdish are written with versions of
the Arabic script. Since 2005, the Turkmen/Turkoman have switched from the Arabic
script to the Turkish alphabet. In addition, the Neo-Aramaic languages use the Syriac
script.
Other smaller minority languages
include Mandaic, Shabaki, Armenian, Circassian and Persian.

Religion
The Sunni population complains of facing discrimination in almost all aspects of life by
the government. However, former Prime Minister Nouri al-Maliki denied that such
discrimination occurs.

Mor Mattai Monastery (Dayro d-Mor Mattai) in, Bartella, Nineveh, Iraq. It is recognized
as one of the oldest Christian monasteries in existence and is famous for its
magnificent library and considerable collection of Syriac Christian manuscripts
Christianity in Iraq has its roots from the conception of the Church of the East in the
5th century AD, predating the existence of Islam in the region. Christians in Iraq are
predominantly native Assyrians belonging to the Ancient Church of the East, Assyrian
Church of the East, Chaldean Catholic Church, Syriac Catholic Church and Syriac
Orthodox Church. There is also a significant population of Armenian Christians in Iraq
who had fled Turkey during the Armenian genocide. Christians numbered over 1.4
million in 1987 or 8% of the estimated population of 16.3 million and 550,000 in 1947
or 12% of the population of 4.6 millions. After the 2003 invasion of Iraq, violence
against Christians rose, with reports of abduction, torture, bombings, and killings. The
post-2003 Iraq War have displaced much of the remaining Christian community from
their homeland as a result of ethnic and religious persecution at the hands of Islamic
extremists.
There are also small ethno-religious minority populations of Sabian-
Mandaeans, Shabaks, Yarsan and Yezidis remaining. Prior to 2003 their numbers
together may have been 2 million, the majority Yarsan, a non-Islamic religion with roots
in pre-Islamic and pre-Christian religion. The Iraqi Jewish community, numbering
around 150,000 in 1941, has almost entirely left the country.Iraq is home to two of the
world's holiest places among Shi'as: Najaf and Karbala.

Education

In general, the education of Iraq has been improving since the MDGs were
implemented. For example, enrollment numbers nearly doubled from 2000 to 2012. It
went from 3.6 million to six million. The latest statistic from 2015 to 2016 showed that
almost 9.2 million children were in school. Enrollment rates continue to be on a steady
increase at about 4.1% each year. The sheer increase in numbers shows that there
are clearly improvements of children in Iraq having access to education.
However, the dramatic increase of the number of students in primary education has
had some negative and straining effects for the education system. The budget for
education makes up about only 5.7% of government spending and continues to stay
at or below this percentage. Investments for schools has also been on the decline. As
a result, the country now ranks at the bottom of Middle East countries in terms of
education. The little funding for education makes it more difficult to improve the quality
and resources for education.

Culture

Iraq's culture has a deep heritage that extends back in time to ancient Mesopotamian
culture. Iraq has one of the longest written traditions in the world
including architecture, literature, music, dance, painting, weaving, pottery, calligraphy
, stonemasonry and metalworking. The culture of Iraq or Mesopotamia is one of the
world's oldest cultural histories and is considered one of the most influential cultures
in the world. Mesopotamian legacy went on to influence and shape the civilizations of
the Old World in different ways such as inventing writing
system, mathematics, time, calendar, astrology and law code. Iraq is home diverse
ethnic groups and has a very long and rich heritage and have contributed to the culture
differently. The country is known for its poets، architects، painters and sculptors who
are among the best in the region, some of them being world-class. Iraq is known for
producing fine handicrafts, including rugs and carpets among many other things.

Sport
Football is the most popular sport in Iraq. Football is a considerable uniting factor in
Iraq following years of war and
unrest. Basketball, swimming, weightlifting, bodybuilding, boxing, kick
boxing and tennis are also popular sports.
The Iraqi Football Association is the governing body of football in Iraq, controlling
the Iraq national football team and the Iraqi Premier League. It was founded in 1948,
and has been a member of FIFA since 1950 and the Asian Football
Confederation since 1971. Iraq were the 2007 AFC Asian Cup champions after
defeating Saudi Arabia in the final by 1–0 thanks to a goal by captain Younis
Mahmoud and they have participated in two FIFA competitions (the 1986 FIFA World
Cup and the 2009 FIFA Confederations Cup).

Music
Iraq is known primarily for its rich maqam heritage which has been passed down orally
by the masters of the maqam in an unbroken chain of transmission leading up to the
present. The Iraqi maqam is considered to be the most noble and perfect form of
maqam. Al-maqam al-Iraqi is the collection of sung poems written either in one of the
sixteen meters of classical Arabic or in Iraqi dialect (Zuhayri). This form of art is
recognised by UNESCO as "an intangible heritage of humanity".
Early in the 20th century, many of the most prominent musicians in Iraq were Jewish.
In 1936, Iraq Radio was established with an ensemble made up entirely of Jews, with
the exception of the percussion player. At the nightclubs of Baghdad, ensembles
consisted of oud, qanun and two percussionists, while the same format with
a ney and cello were used on the radio.
The most famous singer of the 1930s–1940s was perhaps the Jew Salima
Pasha (later Salima Murad). The respect and adoration for Pasha were unusual at the
time since public performance by women was considered shameful, and most female
singers were recruited from brothels.
The most famous early composer from Iraq was Ezra Aharon, an oud player, while the
most prominent instrumentalist was Yusuf Za'arur. Za'arus formed the official
ensemble for the Iraqi radio station and were responsible for introducing the cello and
ney into the traditional ensemble

Inflation Rate in IRAQ

The inflation rate for consumer prices in Iraq moved over the past 61 years
between -16.1% and 448.5%. For 2021, an inflation rate of 6.0% was
calculated.

During the observation period from 1960 to 2021, the average inflation
rate was 27.1% per year. Overall, the price increase was 941,679.07 %.
An item that cost 100 Dinar in 1960 was so charged 941,779.07 Dinar in
the beginning of 2022.
Economic Growth
Economic growth is a critical component to promoting long-term prosperity for all
Iraqis. However, political instability, insufficient infrastructure, and lack of financial and
institutional support has made it difficult for small and medium-sized enterprises
(SMEs) in Iraq to thrive. Working hand in hand with the Government of Iraq (GOI),
economic and civil society leaders, and vulnerable communities, USAID is helping to
pull households out of poverty and promote long-term economic growth by diversifying
and strengthening the private sector, and improving the business investment climate.

Through the $21m Middle East and North Africa Investment Initiative (MENA
II) activity, USAID is supporting qualified businesses in Iraq with access to capital
investment and business development services to improve firm-level competitiveness
and grow their revenue. The activity invests in Iraqi firms through GroFin, a
development financier specializing in financing and supporting small and growing
businesses across the Middle East and Africa. MENA II also provides technical
assistance and other business services to support the selected Iraqi small and
medium-sized enterprises (SMEs) set up, formalize, and sustainably scale up their
businesses. To date, MENA II has supported 100 entrepreneurs and has invested an
additional $4 million to support SMEs in the north of Iraq to counter the negative
economic impacts of the COVID-19 pandemic.
The $125m Durable Communities and Economic Opportunities
(DCEO/Tahfeez) project (known in Arabic as “Tahfeez”, meaning “encouragement”),
helps enhance the livelihoods of Iraq’s most vulnerable communities through local
private sector growth and job creation. The DCEO/Tahfeez project is working with
micro, small, and medium-sized enterprises (MSMEs) to support the development of
local business associations and networks, identify barriers to growth and trade, and
advocate collectively for policy changes to improve the local business
environment. DCEO/Tahfeez also identifies individuals eligible for support through the
Marla Fund and supports them through entrepreneurship, business acceleration, and
enterprise growth services.
USAID’s Iraqi Governance and Performance Accountability (IGPA/Takamul) project
(known in Arabic as “Takamul”, meaning “integration”), seeks to improve the
livelihoods of ethnic and religious minorities in northern Iraq. IGPA/Takamul provides
individualized business development services to SMEs to boost their access to
different markets and attract new private sector investment opportunities. The project
also aims to restore the Ninewa Plains’ reputation as Iraq’s breadbasket and promote
vibrant, IGPA organized the Ninewa Investment Forum in Erbil to showcase 20
investment-ready businesses to international private investors. The event sparked a
virtuous cycle of both exciting project opportunities and increased investor confidence.
Worldwide Contribution

Iraq is one of the most oil-dependent countries in the world. Over the last decade, oil revenues
have accounted for more than 99% of exports, 85% of the government’s budget, and 42% of gross
domestic product (GDP). This excessive dependence on oil exposes the country to
macroeconomic volatility, while budget rigidities restrict fiscal space and any opportunity for
countercyclical policy. As of January 2021, in a country of 40.2 million, Iraq’s unemployment rate
was more than 10 percentage points higher than its pre-COVID-19 level of 12.7 percentage points.
Unemployment among the displaced, returnees, women jobseekers, pre-pandemic self-employed
and informal workers remains elevated.

The economy is gradually recovering from the oil and COVID-19 shocks of 2020. Real GDP is
estimated to have edged up by 1.3% in 2021, after a sharp contraction of 11.3% in 2020. Both oil
and non-oil growths are on track to reach their pre-pandemic levels, as oil production increases
and the easing of COVID-19 restrictions restore domestic economic activity. The non-oil economy
grew by over 6% in the first nine months of 2021 (9M-21) (year-over-year), owing to a solid
performance in the services sectors as COVID-19 containment measures were eased. This
recovery outpaced the slowdown in the oil sector as Iraq adjusted to its OPEC+ quota early in the
year.

Government revenues surged by 73% year-over-year in 2021, spurred by higher oil prices which
averaged at US$68.3/barrel in 2021 (78% increase year-over-year). These budgetary gains were
in part boosted by the currency devaluation and measures to mobilize non-oil domestic revenues
mainly from customs. While recurrent expenditures – including the wage bill – remained high at
29% of GDP, improved oil receipts turned the overall fiscal balance to a surplus of 5.3% of GDP
in 2021. The current account deficit also turned into a surplus of 8.3% of GDP in 9M-21, hence
boosting the official reserves of the central bank.

While Iraq’s economic conditions are gradually improving as international oil markets recover, this
recovery is fraught by major risks posed by structural bottlenecks. Risks include public investment
management constraints that have impacted public service delivery, the slow clearance of arrears
(especially those related to public wages) and large exposure of state-owned banks and the central
bank to the sovereign. These fragilities are aggravated by fragile political conditions, a weak
healthcare system and rampant corruption that continue to trigger unrest across the country.

The turnaround in oil markets has significantly improved Iraq’s economic outlook in the medium
term. Overall growth in 2022 is now forecast at 8.9% as OPEC+ quotas end, and Iraq’s production
surpasses its pre-pandemic level of 4.6 million barrels per day. Growth in the outer years is
projected to remain modest at 3.7% on average as oil production moderates. Non-oil GDP growth
is projected to converge to its long-term potential growth trend in part aided by higher investments
that would be financed through the oil windfall. Growth is forecast to remain constrained by the
economy’s limited absorptive capacity and other inefficiencies. Higher projected oil prices in 2022–
2024 are forecast to keep Iraq’s fiscal and external balances in surplus. Iraq’s economic outlook
remains subject to significant risks. The recent geopolitical tensions related to the war in Ukraine
highlight risks for Iraq’s economy. While any further oil price hikes would improve Iraq’s fiscal
balance, rising food prices and disruption to agriculture imports will exacerbate pre-existing poverty
trends and increase food security risks. The conflict also poses risks to Iraq’s crude oil production
if operations of Russian oil companies in Iraq are impacted by international sanctions on Russia.
Higher oil prices could hurt the longstanding need to reform, thereby deepening Iraq’s structural
economic challenges. Further intensified climate change effects and water shortages will decrease
agricultural production. Additionally, COVID-19 vaccination in Iraq remains very low, among the
lowest in the region and well below the global rate, and poses additional risks. It remains low even
among the most vulnerable group, the elderly, and among those with high risk of exposure to the
virus – poorer households and informal workers that are less likely to work from home and more
likely to live in large households in cramped conditions. Other risks include the decline in oil prices
and a deterioration of the security situation.
PESTAL Analysis

1. Political Analysis of the Iraq: The politics of Iraq takes place in a framework of
a federal parliamentary representative democratic republic. It is a multi-party system
whereby the executive power is exercised by the Prime Minister of the Council of
Ministers as the head of government, as well as the President of Iraq. The current Prime
Minister of Iraq is Nouri al-Maliki, who holds most of the executive authority and
appoints the Council of Ministers.
History-
Before the fall of Saddam Hussein in 2003, the Ba'ath Party officially ruled. Iraq was
occupied by foreign troops beginning with the 2003 attack of Iraq, with military forces
coming primarily from the United States and the United Kingdom. Most foreign
militaries operated under the sunshade of the Multinational force in Iraq (the MNF–I)
.A permanent 275-member Council of Representatives was elected in the December
2005 Iraqi legislative elections, initiating the formation of the Government of Iraq,
2006-2010. The last elections were the January 2010 Iraqi legislative elections. The
federal government of Iraq is defined under the current Constitution as an Islamic,
democratic, federal parliamentary republic. The federal government is composed of the
executive, legislative, and judicial branches, as well as numerous independent
commissions.
Local Government- The basic subdivisions of the country are the regions and the
governorates. Both regions and governorates are given broad autonomy with regions
given additional powers such as control of internal security forces for the region such
as police, security forces, and guards.
Regions- Under the law, a region can be created out of one or more existing
governorates or two or more existing regions, and a governorate can also join an
existing region to create a new region.

Political Parties-
 Parliamentary Alliances and Parties
 National Iraqi Alliance
 Supreme Islamic Iraqi Council - led by Ammar al-Hakim
 Sadrist Movement - led by Muqtada al-Sadr
 Islamic Dawa Party - Iraq Organisation- led by Kasim Muhammad Taqi al-
Sahlani
 Islamic Dawa Party - led by Nouri al-Maliki
 Tribes of Iraq Coalition - led by Hamid al-Hais
  Democratic Patriotic Alliance of Kurdistan
 Kurdistan Democratic Party - led by Massoud Barzani
 Patriotic Union of Kurdistan - led by Jalal Talabani
 Kurdistan Islamic Union
 Movement for Change - led by Nawshirwan Mustafa
 Kurdistan Toilers‘ Party
 Kurdistan Communist Party

Other Parties
 Leftist Worker-Communist Party of Iraq
 Alliance of Independent Democrats - led by Adnan Pachachi
 Green Party of Iraq
 Iraqi Democratic Union
 Constitutional Monarchy Movement - led by Sharif Ali Bin al-Hussein
 Kurdistan Conservative Party

 Illegal Parties
 Hizb ut-Tahrir
 Arab Socialist Ba'ath Party (Regional Command · National Command)
 Elections

2. Economic Analysis of the Iraq:

A getting better security environment and foreign investment are helping to encourage
economic action, particularly in the energy, construction, and retail sectors. Broader economic
development, long-term fiscal wellbeing, and constant improvements in the overall model of
living still depend on the central government fleeting major policy reforms. Iraq's largely state-
owned economy is subject by the oil sector, which provides more than 90% of government
income and 80% of foreign exchange earnings.
Since mid-2009, oil export earnings have returned to levels seen previous to Operation Iraqi
liberty. As global oil prices remained high for much of 2011, government revenues bigger
accordingly. For 2012, Iraq's draft budget forecasts oil exports of 2.6 million barrels per day
(bbl/day), an imperative increase from Iraq's average of 2.2 million bbl/day in 2011. Iraq's
contracts with foremost oil companies have the possible to further expand oil revenues, but
Iraq will require making significant upgrades to its oil processing, pipeline, and exporting
infrastructure to allow these deals to reach their economic potential. Iraq is making slow
progress enacting laws and developing the institutions needed to implement economic policy,
and political reforms are still needed to moderate investors' concerns regarding the unsure
business climate.
In 2010, Baghdad signed agreements with both the IMF and World Bank for conditional aid
programs designed to help strengthen Iraq's economic institutions. Iraq is considering a
package of laws to establish a modern legal framework for the oil sector and a mechanism to
equitably divide oil revenues within the nation, although these reforms are still under arguable
and periodic negotiation.
The Central Bank has successfully held the exchange rate at about 1,170 Iraqi dinar/US dollars
since January 2009. Inflation has remained under control since 2006 as security improved.
However, Iraqi leaders remain hard pressed to translate macroeconomic gains into an improved
standard of living for the Iraqi public.
Iraq's economy has historically been characterized by a heavy dependence on oil exports,
traditionally accounting for nearly 95 percent of the country's revenues. Oil export levels,
which decreased during the Iran‐Iraq War, improved during the late 1980s only to stop under
international sanctions. In 1996, a UN agreement allowed Iraq to export oil for the first time
since 1990; by 2002, oil production reached approximately 70 percent of what it was in the
1970s. Following the U.S. invasion in 2003, oil production slowly returned to between 80 per
cent and 95 percent of what it had been in 2002
Aside from petroleum production and refining, Iraq has a small, diversified industrial sector
that includes food processing and the production of chemicals, textiles, leather goods,
construction materials, metals and agricultural production, which employs about a third of the
workforce alone. Food, medicine, and manufactured goods are the country‘s main imports, and
the United States, Turkey, and Syria constitute its chief trading partners.

What factors contribute to Iraq’s poor economy?

Lack of Security: About one out of every five dollars that goes toward non-military Iraqi
renovation is spent on security, U.S. officials estimate. ―It‘s incomparably more difficult than
either corruption or bureaucratic red tape,‖ Stuart Bowen Jr., who heads the office of the Special
Inspector General for Iraq Reconstruction (SIGIR), told CFR.org in May 2006.

Oil Smuggling: A May 2007 report by the Government Accountability Office estimates oil
valued at between $5 million and $15 million—or roughly between onehundred thousand and
three-hundred thousand barrels per day—has been siphoned daily since 2003 as result of
collusion between corrupt officials, smugglers, and insurgents. About $7.4 billion in U.S. funds
has been spent to restructure Iraq‘s electricity and oil sectors but output in both sectors remain
at pre-war levels.
Bureaucratic Inertia: The government has failed to spend billions of dollars of oil revenue
on reconstruction projects for fear of violating anti-corruption measures put in place over the
past few years by U.S. and Iraqi officials within the oil ministry, according to a December 2006
New York Times article.

Brain drain: Two million Iraqis have fled the country, many of them highly skilled
professionals like engineers and doctors—the backbone of a middle class. An estimated 40
percent of Iraq‘s professional class has fled the country, creating shortages of human and
entrepreneurial capital to keep the country‘s economy running.

3. Social Analysis of the Iraq:

Language: The official language of Iraq is Arabic. Many other languages are spoken
by a variety of ethnic groups, most notably Kurdish. ―Iraqi Arabic‖ also known as
Mesopotamia is a variety of Arabic spoken in the Mesopotamian basin of Iraq south
of Baghdad as well as in neighboring Iran and eastern Syria.
Symbolism: The goal was to focus on a new cultural life for modern Iraq and to
emphasize Iraq's uniqueness, especially in the Arab world. The Iraqi flag is also an
important national symbol, and is composed of three colored, horizontal sections,
starting with red on the top, white, and black. On the white band there are three green
five-pointed stars. During the Persian Gulf War in 1991, the phrase Allahu Akbar
(God is great) was added to the flag.
National Identity: The dominating culture within Iraq is Arab, and most Arabs are
Muslim. Iraqi Muslims are split into two groups, the Sunnis and the Shias (Shiites).
The Sunnis, a majority in Islam, are a minority in Iraq, and the Shias, a minority in the
Arab world, are the majority in Iraq. Between the Shia and Sunni Muslims, loyalty to
Iraq has come to be a common factor. Though they have differing views, both Sunnis
and Shias hold high leadership positions in the government (including the Sunni
Saddam Hussein), as do some Christians. Today Iraq stands firm in its belief in pro-
Arab nationalism.
Ethnic Relations: The largest minority in Iraq, the Kurds, continually fights with
the majority Arabs, and the infighting between these two cultural groups has
contributed to a survivalist mentality for the Kurds. this contributed to Iraq fighting
Iran in a costly war from 1980 to 1988 over a land dispute. The Iraqi Kurdish
population is surrounded by fellow Kurds in the countries of Iran, Turkey, Syria, and
Azerbaijan.
Food and Economy: Read more about the Food and cooking of Iraq.
Food in Daily Life: Prior to the United Nations economic sanctions, the traditional
diet included rice with soup or pulp, accompanied by lamb and vegetables. Today,
because food is tightly rationed, most people eat rice or another grain sometimes with
sauce. Both vegetables and meat are hard to come by. In rural areas it is customary for
families to eat together out of a common bowl, while in urban areas individuals eat
with plates and utensils.
 Food Customs at Ceremonial Occasions: It is traditional to sacrifice a lamb or
a goat to celebrate holidays.
Iraqi Society and Culture:
The People: The Iraqi population includes a number of ethnic groups, about 77%
of whom are Arabs, 19% Kurds, and the rest a variety of different groups, including
Turkomens, Assyrians, and Armenians. There is also a distinct sub-group of Iraqi
Arabs, called the Ma'dan or Marsh Arabs, who inhabit miles of marshy area just
above the point at which the Tigris and Euphrates join together.
Hospitality: Hospitality is an Arab and Muslim tradition deeply engrained in the
culture. A tradition within Islam actually stipulates someone is allowed to stay in your
home for 3 days before you can question why they are staying and when they will
leave, Invitations to a home must be seen as a great honor and never turned down.

Business Etiquette and Protocol:

Meeting and Greeting
 Iraqi businesspeople are relatively formal in their business dealings.

 The common Arabic greeting is "asalaamu alaikum" (peace be with you), to

which you should respond "wa alaikum salaam" (and peace be with you).

 The most common business greeting is the handshake with direct eye contact.

 Handshakes can be rather prolonged; try not to be the first person to remove
your hand.

 Men should wait to see if a woman extends her hand.  Business cards are
given out.

 It‘s a nice touch to have one side of your card translated into Arabic.

4. Technological Analysis of the Iraq:

Science, Technology and Innovation in Iraq
Science, Technology and Innovation (STI) are now universally recognized as the
drivers of national economic development and key contributors to poverty reduction,
disease prevention and environmental conservation. Once among the strongest in the
region in STI, Iraq has suffered substantial setbacks in its intellectual infrastructure
following years of isolation, diminishing resources and infrastructure damage. A large
number of Iraqi scientists and engineers are believed to have left the country. Most of
the country´s higher education and research institutions are not fully operational.
Technology across most economic sectors, including the oil sector, is outdated. While
the updating of technology has been a national priority, the transfer of scientific
knowledge and technology has been hampered, negatively impacting the quality of
life in almost every sphere, and limiting the country from harnessing the fruits of its
scientific discoveries.
The Government will need to respond with a comprehensive assessment of the
science and technology sector, backed up with policies, programmes, institutions and
partnerships which foster economic opportunities. The need for strengthening
capacity in science for sustainable development and harnessing innovation can only
be addressed within a comprehensive framework of science and technology
Petroleum Sector
Iraq has the fifth largest proven crude oil reserves in the world, and it passed Iran as
the second largest producer of crude oil in OPEC at the end of 2012.
Iraq was the world's eighth largest producer of total petroleum liquids in 2012, and it
has the world's fifth largest proven petroleum reserves after Saudi Arabia, Venezuela,
Canada, and Iran. Just a fraction of Iraq's known fields are in development, and Iraq
may be one of the few places left where much of its known hydrocarbon resources has
not been fully exploited. Iraq's energy sector is heavily based on oil. Over 90 percent
of its energy needs are met with petroleum (2010 estimate), with the rest supplied by
natural gas and hydropower. Iraq has begun to develop its oil and natural gas reserves
after years of sanctions and wars, but it will need to develop its infrastructure in order
to reach its production potential. According to estimates by Iraq's Deputy Prime
Minister for Energy, capital expenditures of $30 billion per year in Iraqi energy
infrastructure are required to meet Iraq's production targets. Progress has been
hampered by political disputes and the lack of a law to govern development of Iraq's
oil and gas. The proposed Hydrocarbon Law, which would govern contracting and
regulation, has been under review in the Council of Ministers since October 26, 2008,
but has not received final passage.
Telecommunications Sector
Iraq‘s telecommunications sector has been significantly damaged as a result of
economic sanctions over the 12 years preceding 2003. During this time, rapid
advancements in telecommunications technology did not reach Iraq, and the country
fell behind global telecommunications standards. By 2003, the fixed-line telephone
system was quite limited, and a nationwide telecommunications market did not exist.
Today, Iraq‘s Telecom sector is one of the fastest growing markets in the region, with
the private sector one of the primary drivers of this growth. Iraq's mobile
subscribership has reached almost 20 million since 2003.
Pharmaceutical Sector
Iraq has some existing capacity to produce pharmaceuticals. In the 1980‘s, Iraqis
enjoyed health care that was among the best in the region. Investments in education,
facilities and equipment over the previous decades had resulted in a system of well-
equipped hospitals, highly-trained medical specialists as well as a comprehensive
system of primary care clinics throughout Iraq. Prior to 1991, the Iraqi health system
provided free medical care to 97% of urban dwellers and 79% of the rural population.
However, the Iraqi health care system witnessed a steep decline between the mid-
1980‘s and 2003. Wars and economic sanctions exacted a heavy toll. Facilities were
damaged or destroyed and many clinics and hospitals suffered from a chronic lack of
spare parts, modern equipment and consistent electricity supply. The system today
offers a dramatically reduced capacity to serve the health needs of Iraqi citizens. Iraq
has some capacity to produce pharmaceuticals and joint ventures may be possible to
rehabilitate and upgrade existing factories.
 Petrochemical Sector
Iraq has imported Western technology for its petrochemical industry. The Scientific
Research Council was established in 1963 and includes nine scientific research
centres. The Nuclear Research Centre (founded in 1967) has conducted nuclear
physics experiments and produced radioisotopes with equipment supplied by France.
In 1982, the French government agreed to help reconstruct the institute's Osirak
reactor, knocked out by an Israeli air attack the previous year. Eight universities offer
degrees in basic and applied sciences. In addition, the Ministry of Higher Education
has 18 incorporated technical institutes. The Agriculture and Water Resources
Research Centre (founded in 1980) and the Iraq Natural History Research Centre and
Museum (founded in 1946) are both located in Baghdad. The Iraqi Medical Society
(founded in 1920) is headquartered there.

5. Environmental Analysis of the Iraq:

There are many factors and practices in Iraq that has a negative effect on the overall
health of the environment. Some of these issues are included below, fast and
immediate remedies should be put in place to prevent further degradation of
ecosystems in Iraq and start the healing process for a healthier and restored
environment in the country. We can see that some of the factors which negatively
affect the environment in Iraq are due to practices from across the borders of Iraq;
others are due to internal practices, policy shortfalls and lack of enforcement
mechanisms.
Water
Water is one of the most valuable elements in nature. Adequate availability of clean,
well-managed water resources is a key indicator of a healthy ecosystem. The main
external factor that has a devastating effect on Iraq‘s environment is the reduced flow
of surface water that comes to it through neighboring countries. While some of this
water reduction may be due to climate change and drought conditions, it is clear that
the main factor in the reduction of water entering Iraq from Turkey, Iran and Syria is
due to water projects erected in these countries; and other local practices that are
preventing the water from flowing into the Tigris and the Euphrates as it has done
throughout history. These external factors can only be addressed by Governmental
Political Initiatives to open dialogues with our neighboring countries for a fair and
equitable use of our shared water resources and also to get the support of the
International community for equal water distribution in the basin. Internal factors for
reduction of available water and for the poor quality of what is available are due.

Biodiversity
A rich and healthy environment is clearly portrayed on the ground whenever we find a
rich and diverse flora and fauna. In Iraq‘s case, both are suffering a great setback from
the levels that existed even a few decades ago. This degradation of Iraq‘s biodiversity
is due to a number of factors, some of which are easy to remedy simply by adopting
strong and effective regulations, while others are very complicated and require long-
term solutions with stakeholder involvement. One of the major setbacks (probably the
most devastating of all) is what happened to the Marshes of Mesopotamia, which
 were nearly destroyed by the criminal act by the deposed regime when it decided to
dry-up the marshes for political and military conveniences Some of these devastating
effects have actually been reversed immediately after the fall of the regime, when the
Marsh Arabs broke some of the dykes that the old regime had built to drain the
marshlands.. As a result of this action between 40-60% of the Marshes were re-
flooded in 2003 and life started to return to the area. Nature Iraq has been active since
2004 in the Marsh areas, as well as Kurdistan, Northern Iraq and Central and Western
Iraq, surveying areas to determine sites with the highest biodiversity and best water
quality.

6. Legislative Analysis of the Iraq:

Market Overview
 Iraq‘s transition from a centrally-run economy to a more market-oriented one
has been slow and uneven.
 The World Bank‘s Doing Business survey ranks Iraq 164th of 182 economies
evaluated.
 According to Iraq‘s 2010-2014 National Development Plan, Iraq must
mobilize $186 billion in investment, create 3.5 million new jobs, and cut
unemployment by half from 15 percent.
Market Challenges
 Business Visas
 Corruption
 Security
 Government Procurement
 Intellectual Property Protection
 Inflation
 Commercial Disputes Settlements
 Banking
 Standards and Labeling

Market Opportunities
The government has announced a national housing program to build one million new
housing units. Agricultural development, education, and healthcare are also
government priorities. The government‘s 2012 budget increases funding for the
Ministry of Electricity (MOE) by 31%. Of the $5.6 provided to the MOE, more than 70
percent is for capital investments. Iraq‘s goal is to increase power generation 33% by
the end of 2012.
Market Entry Strategy
Iraqi Government encourages foreign investment; a U.S. firm is strongly encouraged to
seek in-country legal counsel on the best approach. The U.S. Commercial Service can
assist by providing a list of local attorneys, which may be associated with American
law firms.
Trade Regulations, Customs and Standards
Import Tariffs- Iraq recently began imposing import tariffs based on the Harmonized
Classification System ranging from zero to 80%.
Trade Barriers- Iraq has trade barriers, mainly regulatory and bureaucratic practices,
which restrict the level of trade and investment.
Arab League Boycott Import Requirements and Documentation U.S. firms seeking to
export to Iraq must comply with Iraqi customs regulations Certifying Documents for
Iraqi Ministries: Many Iraqi ministries require importers to provide
authenticated/certified documents from their home governments. If such documents are
requested, companies should get as much detail as possible about the certification
requirements and be sure to follow those instructions closely.