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					                        Iraq Mission
                          ‫يهًت انؼشاق‬




 U.S. EMBASSY BAGHDAD
COMMERCIAL COUNSELOR
     FRANK CARRICO
U.S. DOC Organizational Support

 U.S. & Foreign Commercial Service (FCS)
 Baghdad Chancery (5 staff)
 U.S. Embassy Amman (2 staff)
 RRT Erbil (1 staff)
 100+ offices in all major U.S. cities
 80 offices overseas with U.S. Embassies and Consulates




 Iraq Investment and Reconstruction Task Force (IIRTF)
 Headquarters - Department of Commerce, Washington DC
Current Environment                                                        ‫البيئة الحبلية‬
                             Economy since 2003
                            2003 ‫انىضغ االلخصادٌ يُز ػاو‬
 • 26,000 companies registered with Ministry of Trade
 • 96 new companies listed on Iraq Stock Exchange.
 • 16,500 Iraqis have borrowed over $18 million from USAID programs,
     with an average loan size of $1,140, and a loan repayment rate of 98%.
 • Over seven million new telephone lines, over 200,000 internet
     subscribers, and over 2,000 cyber cafes
                                                    ‫000,62 ششكت يسجهت نذي وصاسة انخجاسة‬     •
                                      .‫69 ششكت جذَذة يسجهت فٍ سىق انؼشاق نألوساق انًانُت‬    •
 ‫لاو 005,61 ػشالٍ بالخشاض 81 يهُىٌ دوالس أيشَكٍ يٍ انبشايج راث انصهت بانىكانت األيشَكُت‬     •
  ‫). يخىسط حجى انمشض 041,1 دوالس أيشَكٍ، ويؼذل سذاد انمشوض‬USAID( ‫نههخًُُت انذونُت‬
                                                                                    .%98
  ‫أكثش يٍ سبؼت يالٍَُ خط هاحفٍ جذَذ وأكثش يٍ 000,002 يشخشن ػهً شبكت اإلَخشَج، وأكثش‬         •
                                                                   ‫يٍ 000,2 يمهً نإلَخشَج‬
‫‪Current Environment‬‬                                               ‫البيئة الحبلية‬
                          ‫‪Exports‬‬                       ‫‪Currency‬‬
                          ‫انصادساث‬                        ‫انؼًهت‬

 ‫03‬
                                         ‫008,1‬
 ‫52‬
                                         ‫005,1‬
 ‫02‬
                                         ‫002,1‬
 ‫51‬                                       ‫009‬
 ‫01‬                                       ‫006‬
   ‫5‬                                      ‫003‬
   ‫0‬                                        ‫0‬
           ‫6002 5002 4002‬                        ‫6002 5002 4002‬
                   ‫‪Billions USD‬‬                      ‫‪Iraqi Dinar/USD‬‬
                ‫أمري كي دوال ر ب ل يون‬           ‫أمري كي دوال ر/عراق ي دي نار‬
  ‫) ‪(Source: World Bank‬‬
                                                                       ‫(المصدر: البنك الدولي)‬
‫‪Current Environment‬‬                                                     ‫البيئة الحبلية‬
                         ‫‪GDP‬‬                                ‫‪GDP Per Capita‬‬
                   ‫إجًانٍ انُاحج انًحهٍ‬                   ‫إجًانٍ انُاحج انًحهٍ نهفشد‬
 ‫05‬                                              ‫000,2‬

 ‫04‬                                              ‫006,1‬

 ‫03‬                                              ‫002,1‬

 ‫02‬                                               ‫008‬

 ‫01‬                                               ‫004‬

   ‫0‬                                                ‫0‬
           ‫4002‬           ‫5002‬            ‫6002‬           ‫4002‬      ‫5002‬           ‫6002‬
                      ‫‪Billions USD‬‬                                 ‫‪USD‬‬
                     ‫بليون دوالر أمريكي‬                         ‫دوالر أمريكي‬
 ‫) ‪(Source: World Bank‬‬                                                         ‫(المصدر: البنك الدولي)‬
Budget Revenue                                         ‫حؼضَض حىافض انسىق‬
               Iraqi Budget Revenue (2006)
                )2006( ‫إَشاداث انًُضاَُت انؼشالُت‬


                                                            ‫إَشاداث انبخشول‬              Oil revenue

                                         3.1 %             ‫ضشَبت انششكاث‬                 Corporate
                                                                                         Tax
                                          1.3%              ‫انجًاسن‬                      Customs

      92 .8%
                                                            ‫ضشَبت دخم‬                    Personal
                                           .2
                                          0 %               ‫انفشد‬                        Income Tax
                                                            ‫أخشي‬                         Other
                                         2.6 %


                                                                      3. 1%

                                                             92. 8%    1. 3%
                                                                       0. 2%

                                                                      2. 6%




                                  Source: Iraqi Ministry of Finance via U.S. Treasury Department.
                                              ‫المصذر: وزارة الماليت العراقيت مه خالل وزارة الخساوت األمريكيت‬
‫‪Budget Revenue Support‬‬                                                                                        ‫حؼضَض حىافض انسىق‬

 ‫%51 ‪Currently: Flat individual and corporate tax rate of‬‬
                         ‫حانُا: َسبت انضشائب ثابخت ػهً األفشاد وانششكاث وهٍ 51%‬                                                                      ‫•‬



  ‫‪Country‬‬                    ‫‪Corporate Tax Rate‬‬                                                                          ‫‪Individual Tax Rate‬‬
                   ‫انذونت‬                                                                 ‫َسبت انضشَبت ػهً انششكاث‬               ‫َسبت انضشَبت ػهً األفشاد‬
  ‫‪Iran‬‬                       ‫%52‬                                                                                         ‫%53-0‬
                   ‫إيران‬                                                                                        ‫52%‬                               ‫0-53%‬
  ‫‪Kuwait‬‬                     ‫%55-5 ‪Local companies exempt; Foreign companies‬‬                                             ‫‪None‬‬
                  ‫الكويج‬                       ‫الشركاث المحليت معفاة؛ الضرائب علي الشركاث األجىبيت حخراوح مه 5 إلي 55%‬                             ‫ال حوجذ‬
  ‫‪Libya‬‬                      ‫%06-02‬                                                                                      ‫‪None‬‬
                     ‫ليبيا‬                                                                                 ‫02-06%‬                                  ‫ال حوجذ‬
  ‫‪Qatar‬‬                      ‫%53-5‬                                                                                       ‫%53-0‬
                    ‫قطر‬                                                                                      ‫5-53%‬                                ‫0-53%‬
  ‫‪UAE‬‬                        ‫‪20% for banks, varying rates by oil companies. All other‬‬                                    ‫‪None‬‬
         ‫اإلماراث العربيت‬    ‫.‪corporations are exempt‬‬                                                                                              ‫ال حوجذ‬
                  ‫المخحذة‬                 ‫02% علي البىوك، حخراوح الىسب لشركاث البخرول. جميع الشركاث األخرى معفاة.‬
Banking Sector Support
                                                       ‫تعزيز القطبع المصرفي‬
                Increasing efficiency of financial sector
             ٍ‫انغاَت: صَادة انساليت انشخصُت وانفؼانُت فٍ انمطاع انًان‬



  •   Develop a mobile phone banking and money transfer system
  •   Provide trade-related training for Iraqi bankers
  •   Encourage greater private sector expansion in banking
  •   Improve telecommunications backbone

                          ‫حطىَش َظاو نهًصاسف وححىَم األيىال ػبش انهاحف انًحًىل‬        •
                         ‫حىفُش انخذسَب انًخؼهك بانًهُت نهؼايهٍُ فٍ انًصاسف انؼشالُت‬   •
                          ‫حشجُغ يضَذ يٍ حىسغ انمطاع انخاص فٍ األػًال انًصشفُت‬         •
                                                   ٍ‫ححسٍُ َظاو االحصاالث األساس‬       •
Develop Housing and Construction
                                                            ‫حطىَش اإلسكاٌ وانبُاء‬

       Stimulate construction and improve access to capital
             ‫انغاَت: انخشجُغ ػهً انبُاء وحُسُش انحصىل ػهً سأط انًال‬
 •   Develop and implement modern land registry system
 •   Resolve property rights and land ownership disputes
 •   Develop U.S. Iraqi business in housing and construction
 •   Establish building codes to promote safety
                                          ٍ‫حطىَش وحطبُك انُظاو انحذَث نخسجُم األساض‬      •
                                ٍ‫حم انُضاػاث راث انصهت بحمىق انًهكُت ويهكُت األساض‬       •
                   ‫حُسُش انؼًم انًشخشن بٍُ ششكاث اإلسكاٌ وانبُاء األيشَكُت وانؼشالُت‬     •
                                                       ‫وضغ أَظًت نهبُاء نخؼضَض انساليت‬   •
Iraq – a Top Oil Producer

Iraq's Oil Reserves, Which Are Significantly Untapped, May Be Twice As
Great As Previously Thought. According to a Study Done by Texas-based
Energy Analysts IHS, Iraq Has Known Reserves of 116 Billion Barrels,
and Could Be Sitting on an Additional 100 Billion Barrels.




 Kuwaiti Gulf Company for Petroleum Investment (Petro-Gulf) stated that
the company is planning to help build an oil refinery in northern Iraq worth
  $130 million along with Turkish Chokorova group and Taqat Company.
   The company inked an agreement with the Turkish companies to help
   construct a refinery that has a capacity of 20,000 barrels daily. The oil
          refinery is expected to be functional by the end of 2008.
  Oil & Gas
                          Moscow Backs Lukoil Iraq Project
         The Russian government supports Lukoil's ambition to develop to
       develop the West Qurna field. West Quran is believed to hold as many
        as 11 billion to 15 billion barrels of recoverable oil and has potential
                              up to 1 billion barrels a day.



Shell is poised to become the first oil and gas major to agree terms to reenter Iraq
   following reports that it has struck a deal with Turkey’s state oil company,
 TPAO, to extract gas. The Anglo-Dutch giant is expected to work in partnership
      with TPAO to build a pipeline from the Kirkuk field to Ceyhan on the
                       Mediterranean, according to reports.
Telcom - IT

Mobi-Tel, the First 3G Network in Iraq, to provide SMS/MMS two-way
services will open up to more than 518 new operators in the next year,
after signing a three-year exclusive contract with Monty Mobile for
SMS hubbing services.

MTC Atheer Leads Growth In Iraq in 2006
The Number of Mobile Subscribers in Iraq Is Estimated to Have
Reached Nearly 9 Million at the End of 2006, Representing a Mobile
Penetration Rate of 33%.

 155 Internet Centers for Iraqi Universities
 The Ministry of Higher Education and Scientific Research in Iraq
 Reported That Technicians Are Setting up 155 Internet Centers at
 Iraqi Universities. The Ministry Is Also Establishing an Intranet
 System to Wire Iraqi Universities.
Iraq Stock Exchange (ISX) and Iraq
Depository Center (IDC)

Iraq Stock Exchange (ISX) and Iraq Depository Center (IDC)
Established in April 2004, the ISX is an independent capital market
established to replace the government-run Baghdad Stock Exchange,
which ceased operations on March, 2003.

The ISX is directed by a nine-member board of governors representing
different sectors of the economy. Trading is currently conducted via open-
outcry sessions at the ISX headquarters in Baghdad. The ISX will be
implementing the OMX Horizon automated trading system in mid- 2007.

Concurrent with the implementation of Horizon at the ISX, the IDC will
implement the OMX Equator central securities depository (CSD) system,
allowing issues in Iraq to become dematerialized, and settlements to take
place directly in the CSD system via book entry.

For more info, refer to: http://www.isx-iq.net/
Iraq-driven Investments

  Iraq's Ministry of Industry and Minerals (MIM) is seeking strong
  international investors to enter into joint venture production-
  sharing partnerships with its state-owned plants in many
  industries, including cement, glass and ceramics, paper,
  petrochemical, iron and steel, sanitary ware and automotive.




  The first tranche of these investment offers, 12 large factories
  throughout Iraq, are presented by Senior MIM officials meeting
  with investors during the Rebuild Iraq 2007 conference. MIM
  officials are present during the exhibition for consultations.
Investment Support

    IMMDF Loans - $500K to $5M for businesses located in Iraq that are
  majority owned by Iraqis. Funded by USAID / OPIC. Interest rates in the
  high teens. Total funding: $35M (plus $18M in pipeline for agribusiness).
                          http://www.immdf.org.jo/
 USAID Microfinance Loans – Micro-loans averaging $1,200 offered to Iraqi
  individuals and small businesses. Managed by various NGO’s throughout
    Iraq. Interest rates in the high teens. Total loans outstanding of $18M.
                 www.acdivoca.org/ and www.chfhq.org/ and
   OPIC Loans – Up to $250M for businesses in Iraq that are at least 25%
 owned by US citizens. Market interest rates. Unknown if any loans have been
          made yet, but OPIC claims to be willing to make a loan.
                        http://www.opic.gov/finance/
 MoLSA / MoF Subsidized Loans - $3,000 to $10,000 (up to $40,000) for Iraqi
 businesses. Interest rates only 2%. Funding: $30M (plus $100M in pipeline).
USAID

    Private-Sector Development ($105 million)
 • Improved business skills of nearly 4,000 individuals and hundreds of
    firms, through a network of over 60 Iraqi trainers.

 • Supported microfinance lending in 17 provinces. Current outstanding
    loan portfolio consists of 17,000 loans worth $21M.

 • Established the Iraqi Company for Bank Guarantees.

 • Developed five Small Business Development Centers.

 • Advised on new Investment Law (adopted Oct 06).
    (i) Intellectual Property Rights, (ii) Technical Barriers to Trade, (iii)
    Sanitary and Phytosanitary Measures, and (iv) Customs.

 • Established WTO Unit, Investment Promotion Agency, Trade
    Information Center and Iraqi Association of Securities Dealers.
                                                                                16
Provincial Reconstruction Teams


• Local knowledge of business conditions, market demand, and
  distribution channels.

• Access to information on local commercial opportunities from
  governments and businesses.

• Mobility to put a human face on USG commercial assistance to local
  Iraqi companies.
Trade Development Agency

    USTDA has completed six Orientation Visits (OV) for Iraq, in the
railways, oil & gas, e-learning, housing/construction, and private banking
  sectors. Orientation Visits in the telecom and civil aviation sectors are
                       expected to take place in 2007.



   In 2006, USTDA contractors began executing a multifaceted training
    program for the Iraqi Ministry of Oil that addresses management,
   technical/engineering, and human resources development. This $2.5
  million training program has trained more than sixty representatives of
        the Ministry of Oil and is expected to be completed in 2007.
DOC Services for Iraqi Companies

   U.S. & Foreign Commercial Service
 • Trade events – Recruit and Support Iraqi companies to attend events
   targeting sectors as food processing, petrochemical, construction, housing,
   and agricultural machinery.
 • Sourcing U.S. Goods/Equipment – Help Iraqi companies source U.S.
   goods and equipment through the assistance of more than 100 district
   offices in the U.S.
 • International Transactions – Recommend and assisting U.S. and Iraqi
   companies with freight forwarders, banks, and all other international
   service providers that can assist with international transactions.

• www.buyusa.gov/iraq - bilingual English/Arabic website for latest info and
  reports on Iraq
• www.export.gov/iraq - information on USG, UN, World Bank, and GoI
  procurements.
Trade Events and Delegations

      Led Iraqi businessmen and women to five trade events last year.
    Supported visa applications, pre-scheduled appointments, and set up
                   networking events at the trade event.

                          In additon, supported -
           Northern Iraq Outreach to Middle East in March, 2007
                 Dubai Petrochem Conference, May 28-30
            Southern Iraq Outreach to Dubai in September, 2007

  Worldwide Food Expo - showcase of processing, packaging, equipment,
services, and ingredients for the food industry. Sponsored by the International
Dairy Foods Association (IDFA) and American Meat Institute (AMI), Worldwide
  Food Expo ‘07, will be held October 24-27, 2007, in Chicago, Ill. The event
 attracts 25,000 industry leaders from 100 countries to see the largest display of
    food industry suppliers in one location. http://www.worldwidefood.com
Trade Events and Delegations to U.S. in 2006


 POWER-GEN International, Orlando, December 6-8
 World Ag Expo, Tulare, California, February 14-16
 WEFTEC, Dallas, October 28-30
 Pack Expo, Chicago, October 29-November 2
 International Builders Show, Orlando, Feb 7-10




                                                     21
Successful Ventures

              Large-Size U.S. Business Success Stories

 PepsiCo has reinstated its partnership with the Baghdad Soft Drinks
 Company to once again produce and distribute PepsiCo brand soft drinks
 in central Iraq. The partnership will create approximately 2,000 new jobs
 at Baghdad Soft Drinks Company over the next several years, as well as
 new economic opportunities for retailers, distributors and suppliers.


  Procter & Gamble, the largest maker of household products in the U.S.,
    has begun operating in Iraq through a distributor. P & G will sell a
      wide variety of its global brands in Iraq, including, Tide laundry
  detergent, Pampers diapers, Crest toothpaste, Fairy dishwashing liquid,
                    Pert shampoo and Camay bar soap.
Medium-size Successful Ventures


 • Sandi Group, a private finance, investment and management company
 has several projects in Iraq with commercial and residential properties.
 The Sandi Group has emphasis on using local companies and Iraqi
 nationals are performing close to 99% of the work on Sandi’s Iraqi
 projects. Sandi’s multi-million dollar investments have employed over
 8,000 Iraqi workers. Additionally, a majority of its security, water
 purification and medical products utilized in Iraq are of U.S. origin.


 • Transoceanic Shipping, a Louisiana based freight shipping company is
 currently operating two offices, one in Baghdad and another in Umm
 Qasr, provide 24-hour shipping services. It is currently employing over
 20 Iraqis to support its operations. As Transoceanic continues to see the
 demand for its freight forwarding services increase, it anticipates
 employing many more Iraqis.
    Small-Size Successful Ventures


  • O'Shea Limited, a merchandising company in Kansas City, Missouri,
supplied $50,000 worth of consumer goods to Baghdad distributors in 2004.
The success of the transaction has lead to additional supply contracts in Iraq
   for O'Shea, one of which included an order for over $12,500 consumer
                             electronic products.


• Advanced Technology Systems, a small-size Michigan telecommunications
   firm is currently providing broadband internet service via satellites in
 Baghdad. It also provides voice over internet protocol (VOIP) that allows
     individuals to use the internet for spoken conversations. Advanced
Technology’s anticipates its Iraqi sales to total more than $2 million this year.
Small-Size Business Success Stories



  •Security Financial Services (SFS), an Iraqi-American company based in
  Southfield, Michigan, provides its “AMAN” card, a pre-paid purchase
  and Internet shopping tool offered under MasterCard logo. Iraqis can
  “charge up” a plastic card with as little as $25. The maximum values are
  $5,000 and $10,000, with funds in banks in Iraq. The company received
  1,200 applications in the first 18 hours of operation.


  Fargo Inc., an Eden Prairie, MN company, produces security badges and
  other security devices for small companies. They have had sales in the
  Iraqi marketplace using a local distributor.




                                                                             25
Northern Iraq

 Northern Iraq has become a safe environment for much of Iraq’s new
 construction and commercial activity. Building cranes are everywhere.
 Erbil is building a mall with a value of approximately $120 million. The
 mall will have a hotel with 300 beds, a commercial office complex, a retail
 market, large shopping center, three buildings of residential apartments
 and a recreational facility.

  Erbil also has plans to establish $400 million Media City by 2009
  Northern Iraq’s regional government along with a UAE firm will build
  a media city in Erbil, at a total cost of $400 million.
Northern Iraq and its Neighbor

 Tuzmen said Turkey's trade volume with Iraq could reach $3.5 billion
 this year and stressed the government wanted to further increase trade.
 If Turkish activities in the construction and service sectors are added,
 Turkish-Iraqi business volume is around $7 billion.

   Top Six Country company participants in Erbil
   U.S.A: 7
   Germany: 7
   Lebanon: 9
   Britain: 11
   Iran: 15
   Turkey: 319
                        Iraq Mission
                          ‫يهًت انؼشاق‬




 U.S. EMBASSY BAGHDAD
COMMERCIAL COUNSELOR
     FRANK CARRICO

				
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