It is a pleasure to participate in this event which is being held at the initiative of the private sector, in cooperation with the Gulf Research Center at the American University in Kuwait. And the convening of this symposium in April, where people are celebrating the eighth anniversary of Iraq to topple Saddam's regime in 2003, has many political, economic, and hope that is a good sign for the flourishing relations between the two countries:
• It is true that Kuwait was one of the first countries in the region that supported the change in Iraq and Kuwait had throughout the years after the change station for many Iraqi politicians.
• But can say that the beginning of 2011 the latest quantum leap in the evolution of political relations, where she was visiting Kuwaiti Prime Minister Sheikh Nasser Al-Mohammad Al as well as the state visit of President al-Maliki of Kuwait and also record the month of March of this year, the initial meeting of the Higher Ministerial Committee between the two countries, which was candid, direct and despite limited results, but that both parties agreed that the meeting such as a focal point to address the outstanding issues between the two countries.
• It could be argued also that the beginning of this year, the latest shift in economic relations where able to Kuwait through its private sector - Kuwait Energy reports first attend a regional company that Arab investment in the energy field has been won and eligibility within international coalitions - a regional development fields Sepah and Mansouriet invading.
• So today we are talking about tangible progress in the political and economic realities between the two countries and this is what drives us strongly to talk about the possibility of the private sector to play a role in the consolidation of relations.
Prospects for private sector
• The toil Iraq throughout the last four decades under a totalitarian regime is the most prominent features of totalitarian regimes on the state takeover of all joints of political and economic life, then your there is no community participation in state administration. The private sector has been marginalized and expelled from the economic landscape. And Altgieralssayas that has occurred in Iraq in 2003 if they want him permanence and growth must be synchronized with the change in all spheres of political, economic, social and cultural rights. Must be involved in the management of state-society and the country's economic community will be able to supplement the State in the movement which is a product can not be achieved unless the government pays to create a strong private sector. And this was proved by the Constitution of 2005 (the reform of the State to ensure that the Iraqi economy according to economic principles that ensures complete investment of its resources, diversifying its sources and encouraging the private sector and development). Despite the political and security challenges that faced Iraq in the past years, Valqnaap that have taken root in most Iraqi politicians that Iraq would emerge from the economic crises require Aladawr distribution between public and private sector Otherwise, Iraq will continue to face difficult situations and make political experience in the wind. However, the presence of a strong private sector guarantee for the development of political experience in Iraq and is therefore a need for an Iraqi first. On the other hand, the stability of Iraq depends on the ability to set up the prospects of economic partnership at the regional level and international level. To guarantee the continuation of this partnership, we have to develop relations between the private sector to be able to adapt and revitalize the political decision in the interest of peoples rather than governments. Then activate the private sector is not needed to ensure the Iraqi democratic process, but need to ensure the continuation of regional coexistence for the consolidation of peaceful relations and minimize the differences.
• It is our knowledge of the conditions of Cairo, which ruled Iraq, which led to the lack of growth of the role of the Iraqi private sector did not enjoy real opportunities in the economic landscape, but has always suffered from the policies of marginalization and exclusion for the benefit of the public sector today faces challenges and obstacles we have to work to remove them, and the other hand, our knowledge of the capabilities of the sector Kuwaiti private in terms of capital, experience and investment experience outside of Kuwait, particularly in Lebanon and Syria as well as in Egypt, North Africa and the other in European countries lead us to be optimistic, because playing a role for good Not in the near future, but he has to take into account the contribution to the development of the Iraqi private sector this would State help in accelerating the success of the structure of the Iraqi economy.
• the data in the Iraqi arena looks promising to get into the realm of investment and employment capacity of the private sector in both countries to fight construction is useful in this context, serious thought has established partnerships Iraqi - Kuwaiti and other parties and this would contribute in restoring the Iraqi capital that has moved to neighboring countries In recent years, estimated at tens of billions of dollars and also contributes to the growth and development of the capacity of the Iraqi private sector administrative, technical and legal.
• It is true that there are a lot of obstacles today in Iraq an obstacle to private sector growth, especially in the field of legislation and regulations as well as in the state bureaucracy governing institutions of the mentality of working for the public sector at the expense of the private sector, which was marked by mismanagement and performance, which led to the outbreak of financial and administrative corruption as well the weakness of the banking system. Therefore, Iraq needs a revolution administrative, legislative and banking are pushing for a balance between the public and private sectors and this would undermine much of the corruption, Ghoul, who is trying to swallow the development process.
• that the Iraqi economy is facing significant challenges Vairadat oil nearly 93% of the total exports (the economy of one) and limited the private sector in the development process, it is flexible sector can not respond to the changes to the target.
• However we should not ignore legislative effort, even if he was without ambition, which the Iraqi state has done in previous years, to encourage the private sector as legislation law and the law of investment banks and the stock market and so in addition to the establishment of the national investment. As well as granting the provinces the powers in the field of investment contracts. And directed the guardian Monetary Fund and the World Bank to provide technical and administrative support to the Iraqi private sector companies is a step in the right direction.
Encouraging signs in 2010
• The steps that go by the oil sector during the past refers to the beginning of a new phase encourages investors to open up to Iraq and that's what we're betting it, we assert that the key to investment operations must start from the oil sector and find the major oil companies the opportunity to develop oil and gas resources, then You will find other investments courage to enter Iraq.
• today, after the entry of more than 13 global coalition to the world of oil and gas in addition to a number of oil service companies turned for movement from the private sector are more serious and visits by senior officials, accompanied by dozens of investors to Iraq. France, Germany and South Korea and China find Diahrkp diplomatic high distinct from previous years as well as from Turkey, Iran and Egypt as well as reflect the movement to open consulates in Basra and Najaf, Arbil, a number of countries interested in capturing opportunities further indication of a desire to move into investment.
• Day of interested States, commercial companies and businessmen and investors are moving in the two main axes. Axis with the federal government and the Investment Authority and the ministries concerned and the focus of the closer relations with the provinces and councils where there are investment opportunities out.
National Plan for 2010-2014 Ntmip
Do you have a strategic vision of the Iraqi economy in the coming years? National development plan for the coming years, as put forward bear the following objectives:
- Work on the economic growth rate of 9-10% annually.
- Diversification of the economy, particularly the productive sectors such as agriculture, industry, tourism, and is characterized by a growing participation of the private sector.
- Improving the activities of the competitive advantage of oil and gas, petrochemicals, cement, plastics and pharmaceutical industries, electricity
Means of achieving the vision
- Increasing oil exports by 300 thousand barrels per day annually over four years starting any actual reality of the daily export of 2.1 million to about 3.1 million barrels per day in 2014
- Iraq needs investment in the four years up to 190-200 billion dollars to achieve the desired economic growth and the federal government can allocate 30% of revenues for capital spending or about $ 100 billion.
- Iraq needs to cover the rest is up to 50% of the investments of the national private sector and foreign investment in the areas of oil, electricity, agriculture and tourism.
- The central question remains Is the government can simulate the economic vision and means raised during the management of the economy.
The role of the private sector in trade
Today the role of the private sector is confined mainly in the commercial hub in the import of oil derivatives, which are estimated up to 3-4 billion per year and food up to 5-6 billion annually and medicine, and the rest is consumer commodity materials.
• two-thirds of import trade between Iraq and surrounding countries is for the private sector for the year 2010 up to $ 30 billion. 10-15 and up to one billion of the public sector. The geographical distribution of this trade Vetozaa that two-thirds of the total 45 billion by the regional states dominate. Up to 12-15 billion to Turkey and 7-8 billion Iran and Syria up to 3 billion and up to Jordan and a half billion and the United Arab Emirates up to 5 billion. Either dominate the other third by the two countries after the Asian Aruba and the United States. So dominant are the foundation of the Turks to the Iraqi market.
• When you review the volumes of trade between regional countries and Iraq we find Dialp trade between Iraq and Kuwait. In fact this point I raised in my intervention with His Highness the President during his recent visit to Baghdad, noting the need to open up to the Iraqi private sector and overcome the obstacles in front of him to become the Kuwait one regional stations for trade with Iraq and to take practical steps because Tand Kuwait events of Iraq's economic and business of Iraqis to contribute to strengthening the relations between the two countries. We must praise the recent effective and called for by the Kuwait to receive a number of businessmen and trade Iraqis.
• The success of Turkey and its hegemony over the Iraqi market, although there are a lot of political complexities of experience worth studying. In Iraq today, more than 400 Turkish companies working to implement infrastructure projects and service as well as the many investments in Iraqi Kurdistan. The move Turkish trade was confined largely in Arbil, but in the past two years, enabling the Turkish private sector has to find a foothold in the center and south. We need to think seriously that the Kuwaiti sector plays a prominent role in trade.
Private sector's role in the development of oil and gas resources:
• What has been achieved in Iraq over the past two years is the most economic event in the history of Iraq over the past four decades. I am confident that he instituted the largest partnership in the history of the oil industry in the world between public and private sector standards with in a very short period and within the size of the reserves nearly 60 billion barrels of oil or more. Iraq has succeeded in signing oil contracts with coalitions of international companies of different sizes up to 25 companies and project whose investments guess about $ 180 billion over the next twenty years.
• Although we are still in the early history of the experiment it is difficult to judge but its beginnings were not easy, but began her career as well as with other companies at a moderate pace stable since the beginning of 2004, when the decision was taken to the signing of memorandums of understanding with the international oil companies and through more than a year was signed by more than 40 note, and through Iraq was able to update the technical studies on the discovered fields and producing as well as patches in addition to the exploratory technical consultancy. With a focus on training and fellowships. The fact is that the experiment was successful in terms led to the idea of contracts backing the technical failure and then crystallized to the licensing rounds involving qualified companies allowed to compete on the development of producing fields and fields discovered oil and gas licensing round fields.
• What has been achieved so far, the cooperation with the oil companies came as a result of Iraq's need to maximize revenue through increased oil production and the desire of companies to invest in the opportunity to cooperate with the oil sector. This option is a combination approach between national investment and foreign investment in various formula contractual necessity for the advancement of the oil sector and meet the requirements of development and the development of our national. We look forward to this pairing success a must to end this partnership to the winner and loser, each has its technical, administrative and understanding of different career goals are complementary. National companies have reserves and lacks proper management and technology, capital and foreign companies control most of the businesses that need our national, so we look with great interest to the balance between the interests of Iraq and the interests of foreign companies.
• The senses coalitions invested oil problems and the size of bones and some of this goes back to duck the decision-making in national companies and another due to the lack of coordination required between the government agencies concerned, which Ibty work according to schedules. This may be due to our lack of administrative capacity, technical and financial, legal and Altdeghiqp required to understand the nature of the contracts and mechanisms of implementation and this is what causes some confusion. Here highlights the responsibility of coalitions oil in adapting the public sector to understand the requirements of private sector growth and development for the success of the investment project and establish a lasting partnership and complementarity. Foreign companies do not aspire not only to the advancement and success of the Decade to achieve his goals, but aim to further extensions and to consider this opportunity is the beginning and not the end and on this basis in my conviction requires an extraordinary effort:
- Development of the Iraqi private sector from the core responsibilities of the investing companies. As already noted the weakness of the role of the Iraqi private sector, despite the presence of cadres reliable, but its financial, legal and technical needs to support and develop because Alaanal take its role in the construction of joint and secondary needed by the companies in the implementation of contracts.
- Provide full support to the cadres of the ministry and corporate-level administrative, technical and legal, regulatory and accounting for the high level of performance in line with experience and efficiency of international companies making it easier to enforce contracts. True, there are annual amounts Stsrvha companies for training, but confirms my belief that companies will be generous and gracious in their support of training and development programs are the most capable in the survival of the extension and connect with other investment opportunities.
Other great opportunities in the energy sector
- Manufacturing: It is wrong tactical killer in Iraq, said separating the process of developing the fields and Tohlleha from the rest of the oil industry and must be linked to the development of the extractive sector the rest of the stages of the oil industry, which depends on the products bottom and this is what gives the partnership the strength and sustainability and give Iraq time investment for the development of an important aspect to meet the needs and development economy and create jobs.
- Infrastructure: In the time that Iraq looks forward to significant increases in oil production infrastructure is the sector must cooperate with the private sector to increase energy storage and update system and rehabilitating pipelines and rehabilitation and upgrading of pumping systems as well as develop the system of export.
- Investment of Gas: The balance between the use of gas to meet domestic consumption and focus on building and petrochemical industries to take advantage in exports to strengthen the position of Iraq as a producer of gas, an important issue worthy of further discussion and linked to a significant energy strategy for the country.
- Events exploration: yesterday, announced the Ministry of Oil for a fourth round of licensing terms will be about 12 exploration blocks to go Ttaiwirahit Iraq to compensate for expected attrition in production by stepping up its reserves are installed. Companies will compete at the beginning of next year to achieve that in my conviction as the Kuwaiti private sector found his chance in the development of gas fields can also find it in exploration.
Abstract
• Despite the fall of the regime in 2003 appear to be prohibiting its political, economic, social and cultural relationship will take a long time to remove them. There are two countries, who suffered from lameness of the former regime and its policies of aggression, hotbeds of seeking to stir up trouble while we are still lacking to draft a community development real outside the formal framework provides a viable success in normalizing the situation in proportion to the size of the participants and take the initiative to address the challenges facing the partnership between the two peoples .
• Iraq's political future is closely linked to the possibility of its institutions to encourage the private sector to become a partner in the management of the state. It must be a balance between the roles of public and private sector in this partnership and Iraq faces a real test in the provision of the investment environment.
• Key economic partnership between Iraq and Kuwait lies in activating the role of the private sector. Accordingly, the leadership of the initiative in breaking into the economic arena and to grasp the opportunities above psychological barriers and artificial barriers. And work to establish partnerships Kuwaiti - Iraqi with other parties to fight the battle and taking the priorities of the national development plan in mind. In this context must be taken initiatives towards the rising sap to protect the interests of both countries.
• In the area of energy, the Kuwaiti private sector succeeded in breaking into the investment in the energy sector and to push forward should be taken distinct steps to develop the Iraqi private sector and the ability to highlight the success of investment experience along to other energy sectors.
• In the area of trade, openness to the Iraqi private sector to expand trade between the two countries to take Kuwait's position in the regional balance of trade import.
• In the area of tourism, that Kuwait could contribute to the development of religious tourism, Iraq has witnessed a boom in the number of visitors from 350,000 in 2006 to a million and a half million in 2010. This is what drives the investment in the infrastructure of the cities of the holy shrines.
• the consolidation of economic relations with the provincial task like Basra, Nasiriyah, Najaf, and others to the presence of a significant number of investment opportunities and expanded to include a larger number.
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