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MEED
Events
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
Cityscape
Dubai
02- 04 October
2012
• Housing units
• Public Buildings
• Roads and Bridges
• State owned companies / contracting
• Design & Consultancy Centres
• Laboratories and Research Centres
Duties and responsibilities
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
GovernmentPrivate sector
P. Resources
Loans
Budget
Funds
Banks
S.O.EP. Sector
Companie
s
Housing
Fund
Ministrie
s
Investment
commissio
n
Housing Providers
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
Local
governments
MOCH
Other
Organisations
61 continuous
Projects
10 new projects
Every year
(Ave.600units each )
2 Billion $
Budget
7000 units for
MoCH staff
Oil contracts
Low cost Housing
50000-60000 units
2 Billion$
2012 – 2015
Investment
Total Cost
3 Billion $
Housing Project
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
Capital of 300M$
( to be increased to 1 Billion $ by 2016(Housing Fund Legislation 2011))
1- 50% Mortgage system
•Max. of $30,000
•New construction or Extensions only
•Management fees of 2%
•Repayment period of 25 year
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
2- 50% investment in Housing project
• Housing projects only:
• up to 50% of project value
• Finance start after 25% of work program
• Partnership (% of profit)
• Risk assessment
TWO WAY Partnership with Housing Fund
- Private sector to use Housing Fund money in Housing
projects
- Private sector to invest their money in Housing Fund (increase
investment capital).
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
6
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
Typical Housing Projects Prices
185 185
235
250
275
150
175
165
190
160 160
190
150
240
160
0
50
100
150
200
250
300
city
Iraq National Housing Policy
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
1) Land Management
• infrastructure expansion in peri-urban areas
• create capital from land sale
• integrate the urban and peri- urban areas
• Electronic land registry
• land stamp duty and tax capitation
• prepare and provide land in different scales
2) Housing Production
• restructuring of Enterprises (public) and encourage affordable
housing
• integration and partnership of public and private companies
• Introduce different designs
3) Housing Finance
• Different Housing sources and housing bank to be a secondary
source
• Support for families with low income
• Housing Fund Law
Iraq National Housing Policy
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
4) Infrastructure for Housing
• Improve management
•Encourage private sector
5) Housing Management and Maintenance
• introduce min. standard
• Review of policies for multi families housing
• Protection of historical places
6) Housing Construction Materials
• facilitate funds for materials producers
• Encourage PPP
• Encourage local products
• Improve quality control
7) Informal Housing
• Proper survey and introduce appropriate measures
• Fair re-housing
High
Tech.
Machine
&
Factories
H.
Res
L.
Mark.
Land
&
Loc.
Gov.
support
Evaluatio
n
Super
Business
Opportunity
P.P.P
MoCH companies
Public Private Partnership
P M Office
&
W. B.
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
State Owned Companies
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
• Building ( Al Fao )
• Roads ( Ashor - Hamoraby)
• Bridges ( Al Mutasim)
• Infrastructure ( Al Farooq )
• Construction Material prod. (Al Rasheed)
• Property Development (Al Mansor )
• Oil upstream services
( Saad )
• Upgrade, expand, and rehabilitate production facilities
• Introduce new products
• Develop sales and marketing skills
• Build capabilities to assess market needs, develop pricing strategy...
• Upgrade technical and R&D capabilities
• Resize labour force and introduce systematic training
• Improve quality control systems
• Introduce modern accounting processes and systems
S.O.E needs:
• Government support
• Assets (land and machineries)
• Local market knowledge
• Human resources
What S.O.E Offer ?
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
Partnership Methodologies:
• Legislation No. 22 1997
Public 51% min
Private 49% max
Governmental companies law applies
• Legislation No. 21 1997
Public 24% max
Private 76% min
Private companies law applies
REPUBLIC OF IRAQ
Ministry Of Construction & HousingPilot SOE
McKinsey & com. findings
Annual Con. Output
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
Potential partner will provide:
• Technology
(New precast factors)
• Technical Knowledge
(Improve marketing abilities)
• Operational System
(Finance, management)
• Capital investing
(Production lines and equipments)
- No loans
- No financial commitments (loans ,bounds
guarantees)
- No legal disputes
- No masked Unemployment
Potential Partner wishes a trouble free company:
17
Iraq’s 2010 GDP is expected to double in 2013
165.026.7%
2012
144
2011
115
2010
81
2013
Source: IMF
Iraq GDP (IMF)
US$ billions
Nominal dollars
CAGR%
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
REPUBLIC OF IRAQ
Ministry Of Construction & Housing
- Direct Investment
- Partnership (Housing Fund/ S.O.C)
- Deferred payment (Grace Period)
- Oil Investment Contract
P.P.P
Possible Economical Models

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Real estate development and investment opportunities in iraq cityscape 2012

  • 1. MEED Events REPUBLIC OF IRAQ Ministry Of Construction & Housing Cityscape Dubai 02- 04 October 2012
  • 2. • Housing units • Public Buildings • Roads and Bridges • State owned companies / contracting • Design & Consultancy Centres • Laboratories and Research Centres Duties and responsibilities REPUBLIC OF IRAQ Ministry Of Construction & Housing
  • 3. GovernmentPrivate sector P. Resources Loans Budget Funds Banks S.O.EP. Sector Companie s Housing Fund Ministrie s Investment commissio n Housing Providers REPUBLIC OF IRAQ Ministry Of Construction & Housing Local governments MOCH Other Organisations
  • 4. 61 continuous Projects 10 new projects Every year (Ave.600units each ) 2 Billion $ Budget 7000 units for MoCH staff Oil contracts Low cost Housing 50000-60000 units 2 Billion$ 2012 – 2015 Investment Total Cost 3 Billion $ Housing Project REPUBLIC OF IRAQ Ministry Of Construction & Housing
  • 5. Capital of 300M$ ( to be increased to 1 Billion $ by 2016(Housing Fund Legislation 2011)) 1- 50% Mortgage system •Max. of $30,000 •New construction or Extensions only •Management fees of 2% •Repayment period of 25 year REPUBLIC OF IRAQ Ministry Of Construction & Housing 2- 50% investment in Housing project • Housing projects only: • up to 50% of project value • Finance start after 25% of work program • Partnership (% of profit) • Risk assessment
  • 6. TWO WAY Partnership with Housing Fund - Private sector to use Housing Fund money in Housing projects - Private sector to invest their money in Housing Fund (increase investment capital). REPUBLIC OF IRAQ Ministry Of Construction & Housing
  • 7. 6
  • 8. REPUBLIC OF IRAQ Ministry Of Construction & Housing Typical Housing Projects Prices 185 185 235 250 275 150 175 165 190 160 160 190 150 240 160 0 50 100 150 200 250 300 city
  • 9. Iraq National Housing Policy REPUBLIC OF IRAQ Ministry Of Construction & Housing 1) Land Management • infrastructure expansion in peri-urban areas • create capital from land sale • integrate the urban and peri- urban areas • Electronic land registry • land stamp duty and tax capitation • prepare and provide land in different scales 2) Housing Production • restructuring of Enterprises (public) and encourage affordable housing • integration and partnership of public and private companies • Introduce different designs 3) Housing Finance • Different Housing sources and housing bank to be a secondary source • Support for families with low income • Housing Fund Law
  • 10. Iraq National Housing Policy REPUBLIC OF IRAQ Ministry Of Construction & Housing 4) Infrastructure for Housing • Improve management •Encourage private sector 5) Housing Management and Maintenance • introduce min. standard • Review of policies for multi families housing • Protection of historical places 6) Housing Construction Materials • facilitate funds for materials producers • Encourage PPP • Encourage local products • Improve quality control 7) Informal Housing • Proper survey and introduce appropriate measures • Fair re-housing
  • 12. State Owned Companies REPUBLIC OF IRAQ Ministry Of Construction & Housing • Building ( Al Fao ) • Roads ( Ashor - Hamoraby) • Bridges ( Al Mutasim) • Infrastructure ( Al Farooq ) • Construction Material prod. (Al Rasheed) • Property Development (Al Mansor ) • Oil upstream services ( Saad )
  • 13. • Upgrade, expand, and rehabilitate production facilities • Introduce new products • Develop sales and marketing skills • Build capabilities to assess market needs, develop pricing strategy... • Upgrade technical and R&D capabilities • Resize labour force and introduce systematic training • Improve quality control systems • Introduce modern accounting processes and systems S.O.E needs: • Government support • Assets (land and machineries) • Local market knowledge • Human resources What S.O.E Offer ? REPUBLIC OF IRAQ Ministry Of Construction & Housing
  • 14. REPUBLIC OF IRAQ Ministry Of Construction & Housing Partnership Methodologies: • Legislation No. 22 1997 Public 51% min Private 49% max Governmental companies law applies • Legislation No. 21 1997 Public 24% max Private 76% min Private companies law applies
  • 15. REPUBLIC OF IRAQ Ministry Of Construction & HousingPilot SOE McKinsey & com. findings Annual Con. Output
  • 16. REPUBLIC OF IRAQ Ministry Of Construction & Housing Potential partner will provide: • Technology (New precast factors) • Technical Knowledge (Improve marketing abilities) • Operational System (Finance, management) • Capital investing (Production lines and equipments) - No loans - No financial commitments (loans ,bounds guarantees) - No legal disputes - No masked Unemployment Potential Partner wishes a trouble free company:
  • 17. 17 Iraq’s 2010 GDP is expected to double in 2013 165.026.7% 2012 144 2011 115 2010 81 2013 Source: IMF Iraq GDP (IMF) US$ billions Nominal dollars CAGR%
  • 18. REPUBLIC OF IRAQ Ministry Of Construction & Housing
  • 19. REPUBLIC OF IRAQ Ministry Of Construction & Housing
  • 20. REPUBLIC OF IRAQ Ministry Of Construction & Housing
  • 21. REPUBLIC OF IRAQ Ministry Of Construction & Housing
  • 22. REPUBLIC OF IRAQ Ministry Of Construction & Housing - Direct Investment - Partnership (Housing Fund/ S.O.C) - Deferred payment (Grace Period) - Oil Investment Contract P.P.P Possible Economical Models

Editor's Notes

  1. Typical