Doing Business in Iraq

A US website maintains an FAQ on doing business in Iraq (last updated 18 May 2005). Some questions and answers below;

How can a small business pursue business opportunities in Iraq? Prime contractors of the first round of contracts issued under the $18.4 billion U.S. reconstruction funds are required by their contracts to allocate 10 percent and are encouraged through incentives to fulfill 23 percent of a contract to U.S. small, disadvantaged, or minority businesses. Small businesses interested in pursuing business opportunities in Iraq should demonstrate relevant experience, financial capability, capacity to proceed quickly and the aptitude to navigate a complex business environment, in addition to meeting specific contract criteria. The best way to ensure consideration as subcontractors or suppliers on reconstruction contracts is to directly contact the contractors, who are entirely responsible for choosing their own business partners. A listing of prime contractors’ representatives responsible for small business/subcontractor business development is available at http://www.export.gov/iraq/pdf/small_business_reps.pdf (PDF only). Businesses are encouraged to first consult the websites of these prime contractors because most require businesses to register on their websites. For Iraqi Ministries, private sector, and other business opportunities, businesses should monitor Iraqi newspapers www.onlinenewspapers.com/iraq.htm.
Are Iraqi banks participating in commercial transactions? On October 28, 2003, the Central Bank of Iraq authorized Iraq’s private banks to process international payments, remittances and foreign currency letters of credit. All Iraqi private banks participate in the daily currency auctions in U.S. Dollars and Iraqi Dinars conducted by the Central Bank of Iraq. A list of private and public Iraqi banks can be found on The Central Bank of Iraq’s website at: http://www.cbiraq.org/cbs4.htm. The National Bank of Kuwait, the Arab Banking Corporation, HSBC and Standard Chartered Bank have been licensed to commence banking operations in Iraq. Export & Finance Bank of Jordan is acquiring a minority share of the National Bank of Iraq. All these banks will be capable of wiring money into Iraq in the near future. Wiring money to Iraq can be done with any international bank with a correspondent relationship with an Iraqi bank. One bank, the Credit Bank of Iraq has opened an account with National Bank of Kuwait in New York City. Thus, funds can be transferred to Iraq by wiring funds to the Credit Bank's account in New York City. The Credit Bank will receive confirmation of the deposit and can immediately credit an account in Baghdad. Using this method, a prime contractor can wire funds to the Credit Bank of Iraq’s New York City account, upon confirmation the deposit will be credited to its account in Baghdad. In turn, the prime contract can deposit these funds into an Iraqi subcontractor’s account at the Credit Bank of Iraq where the subcontractor can then draw down its funds as required. Iraq’s creditors preclude banks, Rafidain and Rasheed, from international transactions because their offshore assets are subject to attachment.”

Related;
The Unique Situation of the Iraqi Dinar
A backgrounder on the Iraqi dinar, including details on why the Iraqi dinar is positioned for a huge rise in value.

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This page contains a single entry by Paul published on September 18, 2006 9:37 AM.

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