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Real estate development and investment opportunities in iraq cityscape 2012

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Real estate development and investment opportunities in iraq cityscape 2012

  1. 1. MEED Events REPUBLIC OF IRAQ Ministry Of Construction & Housing Cityscape Dubai 02- 04 October 2012
  2. 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. 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. 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. 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. 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. 7. 6
  8. 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. 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. 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
  11. 11. 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
  12. 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. 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. 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. 15. REPUBLIC OF IRAQ Ministry Of Construction & HousingPilot SOE McKinsey & com. findings Annual Con. Output
  16. 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. 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. 18. REPUBLIC OF IRAQ Ministry Of Construction & Housing
  19. 19. REPUBLIC OF IRAQ Ministry Of Construction & Housing
  20. 20. REPUBLIC OF IRAQ Ministry Of Construction & Housing
  21. 21. REPUBLIC OF IRAQ Ministry Of Construction & Housing
  22. 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

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