Investing In Iraq
Foreign firms investing in Iraq
*TOP EXPORTERS TO IRAQ
*January through April (in millions):
*United States: $737
*Turkey: $648
*China: $358
*Thailand: $110
*South Korea: $102
WASHINGTON — European and Asian companies are beating their American rivals into Iraq now that security has improved the investment climate, Iraq and U.S. officials say.
"It's starting to turn … and the people who are getting in on the ground floor are not American," said Paul Brinkley, the Pentagon official who is leading U.S. efforts to help Iraq rebuild its economy. "It's ironic."
Foreign companies, including U.S. investors, have committed to deals worth about $500 million so far this year and Brinkley expects at least $1 billion in foreign investment by the end of the year.
So far, Romanian consortium and a Lebanese company have signed revenue-sharing deals with Iraqi state-owned cement factories. Each group will invest about $150 million.
China has also aggressively pursued the Iraqi market, selling machinery to the government and electronic products to consumers.
Zebari noted that Turkish and Russian companies were already active in Iraq. "They take risks," he told USA TODAY in an interview. "No pain, no gain."
Many of the companies active in Iraq now are from countries, including France, Russia and Turkey, that did not send combat troops to back the U.S.-led invasion.
Some U.S. and Iraqi officials say American companies risk losing an early opportunity to establish long-term strategic ties with Iraq.
"My question is, 'Where are you guys in terms of investment, in terms of economic engagement?' " said Naufel al-Hassan, Iraq's commercial counselor in Washington. "Iraqis need your support. Why let someone else do that?"
HighFive
There are no reliable historic numbers, but the deals this year are among the first major investment opportunities outside U.S.-funded reconstruction projects and they signal new confidence in Iraq's economy.
The activity by non-U.S. companies is not a cause for concern, said Charles Reis, the U.S. counselor for economic transition in Iraq. "This is a normalization of Iraq's relationship with the rest of the world," he said.
Large U.S. companies won the bulk of the $20 billion worth of reconstruction contracts funded by the military. Now, however, opportunities are riskier and require more local understanding.
That has favored non-U.S. investors who have had prewar experience in Iraq, said Timothy Mills, president of the American Chamber of Commerce in Iraq.
American companies may also be reluctant to invest in Iraq because the war has generated so much controversy at home, Brinkley said.
The private investments that come from the USA are generally individual or institutional investors — not American corporations, Brinkley said. U.S. investors, for example, are part of a $120 million deal to build a hotel in the heavily fortified Green Zone, where U.S. and Iraqi government offices are located.
Americans lead other nations in the number of exports to Iraq, but other nations have ramped up trade. China doubled the number of exports to Iraq this year.
China is now Iraq's third-largest trade partner behind the USA and Turkey, according to Global Trade Information Services, a firm that tracks trade statistics.
Rest Of Story Here
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Where is the US on this? If the rest of the world can invest in Iraq I think we could do alot more. After all it was the US that Liberated them. Boy has the tide turned from (Harry Dumbass Reid D-NV) "The War Is Lost" statement, to Resort Hotels and investing in Iraq from all over the world. The Democrats have been wrong on this issue all along and they continue to be wrong with their Rock Star Leader Barack Obama leading the charge. Sorry Democrats our Troops have been Victorious, we have WON the War, and you prove constantly that you have no clue how to run this Country.
*TOP EXPORTERS TO IRAQ
*January through April (in millions):
*United States: $737
*Turkey: $648
*China: $358
*Thailand: $110
*South Korea: $102
WASHINGTON — European and Asian companies are beating their American rivals into Iraq now that security has improved the investment climate, Iraq and U.S. officials say.
"It's starting to turn … and the people who are getting in on the ground floor are not American," said Paul Brinkley, the Pentagon official who is leading U.S. efforts to help Iraq rebuild its economy. "It's ironic."
Foreign companies, including U.S. investors, have committed to deals worth about $500 million so far this year and Brinkley expects at least $1 billion in foreign investment by the end of the year.
So far, Romanian consortium and a Lebanese company have signed revenue-sharing deals with Iraqi state-owned cement factories. Each group will invest about $150 million.
China has also aggressively pursued the Iraqi market, selling machinery to the government and electronic products to consumers.
Zebari noted that Turkish and Russian companies were already active in Iraq. "They take risks," he told USA TODAY in an interview. "No pain, no gain."
Many of the companies active in Iraq now are from countries, including France, Russia and Turkey, that did not send combat troops to back the U.S.-led invasion.
Some U.S. and Iraqi officials say American companies risk losing an early opportunity to establish long-term strategic ties with Iraq.
"My question is, 'Where are you guys in terms of investment, in terms of economic engagement?' " said Naufel al-Hassan, Iraq's commercial counselor in Washington. "Iraqis need your support. Why let someone else do that?"
HighFive
There are no reliable historic numbers, but the deals this year are among the first major investment opportunities outside U.S.-funded reconstruction projects and they signal new confidence in Iraq's economy.
The activity by non-U.S. companies is not a cause for concern, said Charles Reis, the U.S. counselor for economic transition in Iraq. "This is a normalization of Iraq's relationship with the rest of the world," he said.
Large U.S. companies won the bulk of the $20 billion worth of reconstruction contracts funded by the military. Now, however, opportunities are riskier and require more local understanding.
That has favored non-U.S. investors who have had prewar experience in Iraq, said Timothy Mills, president of the American Chamber of Commerce in Iraq.
American companies may also be reluctant to invest in Iraq because the war has generated so much controversy at home, Brinkley said.
The private investments that come from the USA are generally individual or institutional investors — not American corporations, Brinkley said. U.S. investors, for example, are part of a $120 million deal to build a hotel in the heavily fortified Green Zone, where U.S. and Iraqi government offices are located.
Americans lead other nations in the number of exports to Iraq, but other nations have ramped up trade. China doubled the number of exports to Iraq this year.
China is now Iraq's third-largest trade partner behind the USA and Turkey, according to Global Trade Information Services, a firm that tracks trade statistics.
Rest Of Story Here
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Where is the US on this? If the rest of the world can invest in Iraq I think we could do alot more. After all it was the US that Liberated them. Boy has the tide turned from (Harry Dumbass Reid D-NV) "The War Is Lost" statement, to Resort Hotels and investing in Iraq from all over the world. The Democrats have been wrong on this issue all along and they continue to be wrong with their Rock Star Leader Barack Obama leading the charge. Sorry Democrats our Troops have been Victorious, we have WON the War, and you prove constantly that you have no clue how to run this Country.
Labels: Investing In Iraq, Victory
posted by Marie's Two Cents | 1:50 PM
8 Comments:
Maybe the CEO of General Electric should read this piece. He seems to have gotten confused and is investing in Iran and not Iraq. Jeffrey Immelt CEO of GE has driven the price of GE down since he took over in 2001 and they are calling for his resignation now. Jack Welch the former CEO and good all around guy said he would like to shoot Immelt during an interview on CNBC.
Right now it's tough to get comapnies to invest in anything. Everything has been put on hold in the hopes that the Obama-rama say anything doll is not elected.
j_g is right.
GE is the ONLY US Corp that is doning business with Iran.
The only one since 2006.
Selling them stuff that is being used to kill our guys in Iraq.
Kind of tell me what NOT ot buy!
The problem is that many on the Boards of these major companies are liberal leaning and to invest in Iraq would be admitting that Bush was right and Iraq IS a success.
Jenn,
I heard about that. O'Reilly has been all over G.E. for quite a while now.
I heard G.E. is going to stop doing business with Iran soon but then again who knows if that's true.
I also wonder what Obama is going to say whenever he goes to Iraq. Is he still going to say our Troops need to come home before the reconstruction is complete, let other countries finish the reconstruction and us be last in investing in the Country we liberated without giving people that want to invest in Iraq the time of day?
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DD,
I havent bought a damn thing GE makes since I heard about that.
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Ken,
True.
But I cant believe even the left would sit back and not get in on the investment opportunity's available in Iraq.
But you are right that would mean admitting the war has been an incredible success.
so true Marie..dont u get fed up with hearing how we lost the war every dang day!!
It really comes down to money. It's too expensive for American companies to do business in Iraq right now. Many American companies are bringing their foreign operations back to the US because of cost.
Plus, they're American companies. That makes them targets for anybody with a grudge against America, whereas, a Turkish company doesn't carry the same baggage.
American oils companies have negotiated a return to the oil fields. That should count for something.
There's also the problem of appearances. For the entire war, the US has said we do not want to remain in Iraq. By encouraging US businesses to start up in Iraq creates the illusion that is exactly what we are doing. Don't forget that most countries have greater control over business than has Washington DC. American businesses popping up in Iraq would be interpreted as US colonialism.
The US hasn't much business choice but to stay out, allow others in first, withdraw troops, and after an appropriate number of years, reintroduce US business.
Marie, if you want to argue that things look much more promising in Iraq, that's one thing. If you want to say that the surge and the change in tactics has produced positive results, that's fine. If you want to say that a continued commitment of troops in Iraq will help ensure that Iraq has a chance to establish a healthy democracy, that is your right to argue that position.
But you undermine every point you make when you fall into this silly trap of saying "we have WON this war." No American military commander would use such terminology, even privately.
What could you possibly say to a parent of an American soldier killed in Iraq from this point forward when they would ask you, "Why did my son die in Iraq? I thought we WON the war by June 2008."
To me, to say such a thing is disrespectful of the sacrifices that lie ahead should we decide to keep significant troop levels in Iraq. No matter what you believe about the war, one must acknowledge at the least that the challenges are enormous.
Angel,
Yes I get fed up with the nay-sayers that claim we are losing the war, we have lost the war, or constant babbling about how we got there to begin with.
They make me sick and pissed off.
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Indigo,
I see your point, but if we sit out to long we will miss some grand opportunities to invest in Iraq.
At least the private sector could do more I think.
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Phillip,
But you undermine every point you make when you fall into this silly trap of saying "we have WON this war." No American military commander would use such terminology, even privately.
Really? Of course Military commanders on the ground dont use that terminology because we are still there and that would be like celebrating victory as if it were a baseball game and the score is 2-1 with the losing team at bat and 3 men on base. They never claim victory.
Victory hasnt even been declared in Bosnia/Kosovo/Croatia etc..because we are still there.
I can say we have won this war because looking at all the statistics and seeing the company's and Country's investing in Iraq it's already a forgone conclusion.
What could you possibly say to a parent of an American soldier killed in Iraq from this point forward when they would ask you, "Why did my son die in Iraq? I thought we WON the war by June 2008."
I would say that Soldier was committed to winning the war, he/she signed up VOLUNTARILY, and fought and died for what he/she believed in and they should be proud of him/her.
Parent's that have their son/daughter serving and dieing in Iraq from this point forward know what the terrorist's want to do but are succeeding badly at it. US and Coalition Troop deaths have dropped by 89% and are steadily dropping because the people of Iraq have had enough of the terrorist bullshit and dont want to live like that anymore. They deserve the right to be free just like we do.
I wonder what was told to the Parent's of Soldiers who died freeing us from the British?
To me, to say such a thing is disrespectful of the sacrifices that lie ahead should we decide to keep significant troop levels in Iraq. No matter what you believe about the war, one must acknowledge at the least that the challenges are enormous.
I'm not being disrespectful I'm being truthful and proud parent's, wives, husband's, brother's, sisters, etc..that knew the risk's when thier loved one signed on for this knew what to expect.
Sure there are still challenges ahead but they arent as enormous as they used to be.
You see I have had a son that has already been to Iraq and back, been there, done that.
So I know exactly what the parent's of the Soldiers are feeling and are going through and they should be proud of their Soldiers. It was their choice.
I know I am a very Proud Army Mom :-)
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