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IFC Strategy in Iraq
IFC Strategy in Iraq
Ziad Badr
Iraq Country Manager
Feb 2018
IFC in Iraq
Significant Scale-up of IFC Engagements Despite the Odds…IFC’s portfolio 10x since
2010
Centers around the following objectives:
.
.
. Guided by 4 key principles:
Identifying and supporting local investors who
have the potential to grow
Support South-South investments (e.g., investors
from GCC, Lebanon, Jordan, and Turkey).
July 2003 2005 Sept 2011
Mobilization of additional funding from financial
First IFC mission First IFC investment in IFC opened an office institutions particularly in Infrastructure
after the invasion the Credit Bank of Iraq and a representative development
was stationed in Collaboration with the World Bank, MIGA, &
Baghdad in other Donors
… AND PROGRAM IS DIVERSIFIED
IFC INVESTMENTS AND MOBILIZATION IN IRAQ REACHED US$1.2 BILLION
Pipeline
Erbil: Private Hospital Portfolio
Erbil: Rotana Erbil, Arjaan, Al-Safi Danon
Sulaimania: ,Lafarge Bazian, Mass Energy
Global, Suli real estate dev project.
Baghdad: Credit Bank Iraq, Comm Bank of Iraq, Across Geography
Zain Iraq
Baghdad: Telecom up to $250 m
Baghdad power up to $500 m
Karbala: Lafarge Karbala
Telecom
Infra: Power
WHILE ADVISORY PROGRAM IS COMPLEMENTING INVESTMENTS
PPP 2 MOUs signed: Key sectors of focus include : water, waste, power, transports, and social and municipal services
• 10% equity stake in Credit Bank of Iraq in partnership with National Bank of Kuwait
• US$30 million loan for the first 5-star Greenfield hotel in Erbil – Erbil Rotana Hotel & Erbil
Arjaan new hotel.
• US$135 million loan to Lafarge for the Bazian and Karbala cement plants
• US$5 million equity investment with Nafith logistic company in Oum Qasr port
Committed Government: The Iraqi government is committed to an ambitious reform program focusing on
improving the investment climate, supporting the private sector, and attracting foreign investments
Stable Macroeconomic Framework: Iraq has a stable Macroeconomic framework, with an International Monetary
Fund program supported by the World Bank Group
No restrictions on transfer of funds: Iraq has a healthy foreign international reserve, stable exchange rate regime
pegged to the US dollar, with no restrictions on transfers of funds across borders.
Investment Opportunities in all sectors: With the 2nd largest oil reserves and huge reconstruction needs, Iraq
provides investment opportunities in almost all sectors
High Risk, High returns: Investments in Iraq provide among the highest rate of rate, as the risk increases so will
the return
6
SOME POTENTIAL NON-OIL DRIVERS OF FUTURE GROWTH
Critical non-oil infrastructure needs Religious and cultural tourism Iraq enjoys a privileged geo-
to be rebuilt, including the energy attracts millions of visitors each year strategic location.
sector, transport, housing and ICT to Najaf, Karbala, and other areas.
Reconstruction can be a catalyst for
private sector growth; private Microfinance institutions served Investments in transport and
sector involvement would maximize nearly 100,000 low-income logistics
economic inclusion and jobs impacts entrepreneurs prior to Daesh conflict can boost domestic and foreign
and may hold promise trade: connecting Asia to Europe
via Basra with link to Turkey.
High food imports indicate potential
Needs are significant everywhere, in agribusiness (e.g. horticulture)
particularly in post-Daesh areas. After oil, ICT is largest private-
and light manufacturing, such as sector-led contributor to GDP. Much
Construction materials and services food processing. Chemicals,
are examples of opportunities for room for growth in telecoms market
particularly petrochemicals, have as Iraq has one of lowest rates of
local investment attracted FDI and domestic mobile and fixed broadband
investment (8% of total) adoption in MENA
7
NEW POTENTIALS IN THE OIL & GAS SECTORS