Private Foreign Investment In Iraq 2009


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Update to Dunia\'s previous analysis--shows private, foreign, investment flows into Iraq during 2009.

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Private Foreign Investment In Iraq 2009

  1. 1. REPORT Private Foreign Investment in Iraq UPDATE : November 2009 Dunia Frontier Consultants Washington, D.C. | Dubai © Dunia, LLC 2009
  2. 2. PRIVATE FOREIGN INVESTMENT IN IRAQ Executive Summary: FDI into Iraq Accelerates in 2009 This report is an update to Dunia Frontier Consultant’s March 2009 study of investment into Iraq by privately owned, foreign domiciled companies.1 So far this year some $156.7 billion in capital commitments have been announced — a 241 percent increase over last year, and an astounding acceleration in deal-flow and investment into Iraq over the previous reporting cycle. However, it is largely reflective of a handful of multi-billion dollar energy deals that are the first wave of investments as Iraq moves to develop its hydrocarbon industries. Additionally, that figure includes several multi-billion dollar real estate and mixed2 investment deals that are extremely ambitious in scope, and like other such projects in Iraq, may face difficulty in coming to fruition. Even discounting these larger energy and real estate deals, however, there was at least $8.7 billion in investment projects announced in 27 deals in 11 different governorates across Iraq. The size and pace of these latest investment figures appear to be an indication of the growing confidence of foreign companies in Iraq as a place for business, and build upon the initial deal flow reported in the March report. Several major conclusions emerged from Dunia’s recent analysis: • 2009 has seen a major expansion of private FDI beyond Baghdad and the KRG territories. Major improvements in the security situation across Iraq have encouraged investors to look beyond the safety and stability of the Kurdish region. • FDI flows have increased 241 percent over last year and were concentrated in oil and gas deals, real estate, and mixed investment projects. • The global economic downturn slowed deal flow during the first five months of 2009, but since then new investments have been announced at record levels. • Despite problems faced by some large-scale real estate investment projects, the sector is expected to rebound as capital markets recover over the next year. • In addition to organic increased interest in Iraq, regional governments are encouraging state-owned investment funds to invest in Iraq. • Over the coming months, the conclusion of several major contracts between the Iraqi government and various international oil companies is expected to further boost the image of Iraq’s economy and its potential as a venue for future private FDI. 1 To produce this supplement, Dunia collected and analyzed investment data on the first three quarters of 2009 from a combination of publicly available regional and industry-specific media, as well as private sources. The data presented here are not intended to be exhaustive, but they do reflect emerging investor attitudes and intent in Iraq. Likewise, the themes and conclusions developed in this report on the basis of the data should provide useful insights into how private FDI into Iraq is evolving. 2 The term “mixed” investments refers to projects intended to develop large-scale economic zones and industrial cities that provide residential and commercial real estate, as well as manufacturing, processing, service-sector and other productive infrastructure. REPORT © Dunia, LLC 2009
  3. 3. PRIVATE FOREIGN INVESTMENT IN IRAQ Figure 1. Relative Size and Geographic Distribution of Private FDI While major political and security challenges remain for Iraq, especially with the high degree of uncertainty facing the national elections, the latest investment developments provide some reasons for optimism. Barring any radical disruptions in the security situation, Dunia expects to see a continued increase in private FDI flows over the coming year, as well as a proliferation of smaller, sophisticated deals across a range of sectors. Much of Iraq’s economy remains uncharted water for international investors, but this reality is rapidly changing. A successful election in January (or hopefully February at the latest) and the final withdrawal of US combat troops in September would fundamentally transform the international perception of Iraq as an emerging market. Kyle B. Stelma Emerging Markets Managing Director Dunia Frontier Consultants REPORT © Dunia, LLC 2009
  4. 4. PRIVATE FOREIGN INVESTMENT IN IRAQ Table of Contents Executive Summary: FDI into Iraq Accelerates in 2009 .............................................................2 I. Introduction ..............................................................................................................................5 II. Investments by the Numbers: The Big Picture .................................................................8 III. Investments by the Numbers: The Smaller Deals......................................................... 11 IV. Oil and Gas: A Turning Point?........................................................................................... 13 V. Conclusion: Progress and the Year Ahead..................................................................... 15 Appendix — Top 20 Deals in (Q1-Q3) 2009............................................................................ 16 REPORT © Dunia, LLC 2009
  5. 5. PRIVATE FOREIGN INVESTMENT IN IRAQ I. Introduction Despite Iraq’s relative detachment from international capital markets, the global economic downturn did cause some investors to adjust the size and pace of their investments. This trend was clearly visible in monthly deal flow primarily at the beginning of 2009: 9 8 7 6 5 4 3 2 1 0 Jan Feb Mar April May June July Aug Sep Oct Figure 2. Number of Deals Announced (Monthly) in 2009 The investment outlook in Iraq was temporarily altered by the collapse in the price of oil, which created a $9.5 billion fiscal deficit for the central government after several years of surpluses, as well as a general tightening of credit for many companies that had hoped to break ground on new projects. As a result of such difficulties raising capital, at least two previously announced mega3 real estate projects faced major delays or cancellations. The al-Rasheed Development District, a $20 billion project in east Baghdad led by Dubai-based Bonyan International Investment Group has been delayed. In addition, Damac Properties canceled its $15 billion Tarin Hills Development, which had been the largest real estate project in Iraq to date. The security environment in Iraq has also undergone some key developments during 2009 that have impacted the country’s risk profile. The official withdrawal of US military forces from Iraq’s urban centers on June 30 was celebrated as National Sovereignty Day, and the fledgling Iraqi security forces have proven their ability to conduct large-scale security operations during major religious festivals and public gatherings. However, the devastating attacks against government buildings in Baghdad on August 19 and October 25 revealed major gaps in the ability of security forces to adequately protect the capital against large-scale targeted attacks by suspected al-Qaeda 3 The term “mega” refers to projects valued at more than $1 billion. REPORT © Dunia, LLC 2009 Page 5
  6. 6. PRIVATE FOREIGN INVESTMENT IN IRAQ elements, Sunni-insurgent groups, or internal political foes. Scores of security officials in the police, Army and Interior Ministry were arrested after each blast on suspicion of having helped plan or facilitate the attacks. These security gaps and allegations of corruption have shown that powerful forces remain within the political establishment who are apparently willing to sacrifice security for short-term political gain. Violence is expected to increase moderately in the run-up to the 2010 national elections as opponents of the Maliki government and national reconciliation in general seek to undermine the political system. However, the overall number of attacks and fatalities will remain low compared to historical averages, and much of the violence will remain concentrated in the troubled central governorates of Anbar, Baghdad, Babil, and Diyala, as well as the disputed areas of Ninewa and Tameem. 600 500 400 300 200 100 0 Figure 3. Fatalities in Iraq (Monthly) As in previous years, the virtual absence of major violence from the semi-autonomous Kurdish areas of Iraq (the governorates of Dahuk, Erbil and Sulaymaniyah) has been a major driver of investment into that region. In particular, Turkish and Western European firms have been eager to develop trade opportunities with the Kurdish Regional Government (KRG), and non-hydrocarbon investment flows there are expected to continue steadily over the next several years. At the same time, a significant proportion of new deals announced in 2009, and in particular 68.3% of those valued at less than $1 billion, have taken place in four of Iraq’s more stable southern governorates (see next section). This development signals a transformational shift in the attitude of international investors to Iraq as a business opportunity, as well as a general confidence that the security situation in Iraq will continue to improve. REPORT © Dunia, LLC 2009 Page 6
  7. 7. PRIVATE FOREIGN INVESTMENT IN IRAQ Over the coming months, the conclusion of several major contracts between the Iraqi government and various international oil companies (IOCs) is expected to further boost the image of Iraq’s economy and its potential as a venue for future private FDI. This year saw several major international investment conferences sponsored by the Iraqi government in Great Britain, the United States, Germany and Turkey, among others, which have helped increase the visibility of Iraqi markets and attract new investment capital. Lingering regulatory hurdles and political disputes will continue to fuel some doubts about the business climate in Iraq, but so far the Iraqi government has demonstrated an ability to achieve a reasonable consensus on issues vital to the country’s continued reconstruction and economic development. The future of divided Kirkuk, as well as the lingering dispute over oil revenue sharing between the Kurdish region and rest of Iraq (see below), remain arguably the largest political challenges and have the greatest potential to disrupt progress in Iraq. The Iraqi government has prepared an FY2010 budget of $69.5 billion based on expected future oil revenues of $60 per barrel. That budget is expected to create a fiscal deficit of around $15.8 billion, which the Iraqi government hopes to bridge through an IMF loan and the issuance of new bonds through the Central Bank of Iraq. If the price of oil remains at or above $70 per barrel, as many analysts now expect, that fiscal deficit could be reduced to $6.2 billion or less. In either case, Iraqi Prime Minister Nouri al-Maliki has publicly announced his unwillingness to trim government salaries as part of any structural adjustment agreement with the IMF, although he has acknowledged the need to reduce the proportion of the budget that goes to pay civil servants and security personnel. The gradual recovery in the price of oil, along with an increase in FDI to Iraq’s hydrocarbon industry, real estate and basic infrastructure is expected to help spur economic growth through 2011. The improving security situation in Iraq will likely act as a driver for consumer spending and related retail markets. The unfreezing of international credit markets and the return of investor risk appetites should also help to revitalize some of the private investment projects that have been delayed or cancelled. All in all, 2009 is on track to be another banner year for private investment in Iraq. Dunia projects that economic growth will continue at one of the highest rates in the region, and that the long- term investment appeal of Iraq’s reconstruction remains sound. REPORT © Dunia, LLC 2009 Page 7
  8. 8. PRIVATE FOREIGN INVESTMENT IN IRAQ II. Investments by the Numbers: The Big Picture During the first three quarters of 2009, 53 foreign investors and firms from 24 different countries announced investments in Iraq. Table 1. Geographic Origin of Private FDI4 Country $ (millions) % Total UAE 37,683 24.05% S. Korea 24,700 15.76% United States 22,060 14.08% United Kingdom 10,500 6.70% Lebanon 10,167 6.49% Turkey 8,324 5.31% China 7,500 4.79% Kuwait 6,849 4.37% Italy 6,000 3.83% Ireland 5,000 3.19% Netherlands 5,000 3.19% Austria 2,667 1.70% Hungary 2,667 1.70% Australia 2,500 1.60% Japan 2,000 1.28% Iran 1,736 1.11% As in the previous reporting period, the UAE was the primary geographic origin of private capital into Iraq. New among the top-five countries of origin were Lebanon and South Korea, which jumped to the number two spot thanks to a proposed $20 billion investment in a new industrial city on Lake Habaniya in Anbar governorate. That deal, with an undisclosed South Korean firm, was announced in a contract with the provincial investment commission, but may face further modification as development progresses. While the United States also had a strong showing in the rankings, this is due almost entirely to the $25 billion West Qurna 1 investment deal with ExxonMobil and Shell. As Dunia has previously reported, when excluding government contracts and oil and gas investment, the United States consistently ranks in the bottom quartile of investment originations and this year would account for less than 1 percent of investment into Iraq. Oil & Gas Soars to Number One Spot Whereas real estate was the dominant sector for private FDI over the previous reporting period, in the past year energy deals have grown significantly both in total volume (from $18 billion to $73 billion) and as a percentage of total investment (from 29% to 34%). That growth is expected to 4 Countries with less than 1 percent of total private FDI: Jordan, Russia, France, Luxembourg, New Zealand, Oman, Saudi Arabia. REPORT © Dunia, LLC 2009 Page 8
  9. 9. PRIVATE FOREIGN INVESTMENT IN IRAQ accelerate as the Iraqi government opens up more oil and gas fields to development by IOCs through the end of 2009 and into next year (see below). Table 2. Sector Breakdown of FDI Sector $ (millions) % Total Energy, Oil and Gas 73,040 46.58% Mixed5 54,950 35.05% Real Estate 27,893 17.79% Transportation 450 0.29% Tourism & Hospitality 302 0.19% Infrastructure 82 0.05% Manufacturing 75 0.05% At the same time, more projects are being announced that invest across a range of sectors. Many provincial investment commissions have issued licenses to foreign firms for package deals that include a mix of residential and commercial real estate, manufacturing, school and medical facilities, along with upgrades to basic infrastructure. The governorates of Anbar, Dhi Qar and Karbala each announced deals for the construction of new industrial cities with foreign firms at a total combined value of $46 billion. Having faced nearly three decades of under-investment in housing, industry and basic services, nearly all of Iraq’s governorates are facing high unemployment, chronic housing shortages and major disruptions in water and electricity. The mixed sector investment deals are no doubt a central part of the economic development strategy of both the central government and provincial leadership to tackle these multiple challenges simultaneously. In some instances, foreign firms have been compelled to supplement their investment plans by building schools or roads as a condition for approval by the local investment authority. Even excluding the $46 billion in industrial city projects, there were still $8.95 billion in mixed investment projects that spanned manufacturing, transportation, retail, electricity, health, communications and agriculture. These deals attracted both regional and international investors, and were fairly well dispersed across Iraq’s non-Kurdish governorates. Dunia expects these types of deals to increase in frequency over the coming years as local governments move directly to address an array of economic development challenges. FDI Flows Into Southern Iraq 2009 has also seen a major expansion of private FDI beyond Baghdad and the KRG territories. Major improvements in the security situation across Iraq have encouraged investors to look beyond the safety and stability of the Kurdish region. At the same time, provincial governments have become very active in attracting foreign investment, and this is reflected in the growing number of governorates that are winning double-digit percentages of new investment flows. 5 The term “mixed” investments refers to projects intended to develop large-scale economic zones and industrial cities that provide residential and commercial real estate, as well as manufacturing, processing, service-sector and other productive infrastructure. REPORT © Dunia, LLC 2009 Page 9
  10. 10. PRIVATE FOREIGN INVESTMENT IN IRAQ Table 3. Governorate Breakdown of FDI Governorate $ (millions) % Total Basra 61,057 38.9% Anbar 28,000 17.9% Baghdad 20,370 13.0% Karbala 18,248 11.7% Dhi Qar 13,770 8.8% KRG 10,800 6.7% Qadisiyya 2,951 1.9% Muthanna 1,081 0.7% Salahaddin 300 0.2% Kirkuk 75 0.1% While relative security and the presence of hydrocarbons will remain the strongest determinants of investment for some time, the gradual rise of governorates such as Karbala, Dhi Qar, Qadisiyya and Muthanna as destinations for non-energy-related investment is a welcome sign that Iraq’s economy is evolving. 100% 90% 80% 70% 60% 50% Non-KRG 40% KRG 30% 20% 10% 0% 2003 2004 2005 2006 2007 2008 2009 Figure 4. KRG vs. Non-KRG Investment The sharp decline in investment in the Kurdish region of Iraq as a percentage of total private FDI is less a reflection of changes in the Kurdish region than it is a sign of rapidly accelerating investment elsewhere in Iraq. With most of the upcoming major oil and gas deals located in southern Iraq, the Kurdish share of private FDI will remain relatively low over the next few years. However, the overall volume of investment (at $10.8 billion in 2009) should continue to increase. REPORT © Dunia, LLC 2009 Page 10
  11. 11. PRIVATE FOREIGN INVESTMENT IN IRAQ III. Investments by the Numbers: The Smaller Deals Given the number of large investment projects announced in 2009 (there were 11 deals valued at $5 billion or more), Dunia has conducted an analysis of all investment deals valued at less than $1 billion to eliminate any exaggerated effects those larger deals may create. Table 4. Geographic Origin of Private FDI ( ≤ $1 billion) Country $ (millions) % Total Lebanon 1,000 24% S. Korea 600 15% Iran 536 13% UAE 350 9% Turkey 324 8% Jordan 300 7% Russia 230 6% Kuwait 182 4% Oman 150 4% Luxembourg 120 3% France 100 2% New Zealand 100 2% United States 60 1% Saudi Arabia 51 1% Once the major energy deals are stripped away, it is largely regional players that dominate the top five geographic origins of private capital into Iraq. As it happens, South Korea is again in the number two spot, although in this case because of a smaller energy project by the Korea National Oil Corporation in the Kurdish region. The other additions at the top of the list are Turkey and Iran, which is a more accurate reflection of the role these countries play in Iraq’s economy given their geographic proximity and opportunities for cross-border trade. In addition to real estate and industrial investments in the bordering Basra governorate, Iranian firms are actively looking to develop tourism and hospitality opportunities as part of the regular Shiite pilgrimages from Iran to the holy cities of Najaf and Karbala. The government of Iraq has encouraged these investments to develop local tourism industries and diversify its economy away from hydrocarbons. Stripping away the energy and industrial city investments that dominated the latest reporting period, real estate once again emerges as the major category of private FDI when looking at the sector breakdowns. There were six deals in five governorates each worth between $20 million and $500 million. Additionally, the mixed investment projects all included some kind of real estate component (whether residential or commercial), along with manufacturing and agriculture. This underscores the continued importance that real estate development will play in Iraq’s economy REPORT © Dunia, LLC 2009 Page 11
  12. 12. PRIVATE FOREIGN INVESTMENT IN IRAQ over the next several years as it seeks to tackle housing shortages and create new commercial space for economic expansion. Table 5. Sector Breakdown of FDI ( ≤ $1 billion) Sector $ (millions) % Total Real Estate 1,554 38% Mixed 950 23% Energy, Oil & Gas 940 23% Tourism & Hospitality 302 7% Transportation 200 5% Manufacturing 82 2% Infrastructure 75 2% In both the sector and governorate breakdowns, largely the same patterns are seen as in the previous analysis. In particular, mixed investment deals still occupy the number two spot, while other categories of non-hydrocarbon sectors lag significantly behind. Given the stage of Iraq’s reconstruction and economic recovery, this is likely to hold true for some time. Additionally, it is encouraging that Iraq’s southern governorates, especially Dhi Qar and Qadisiyya in addition to oil-rich Basra, are attracting a significant proportion of private FDI even when larger deals are excluded from the data. Table 6. Governorate Breakdown of FDI ( ≤ $1 billion) Governorate $ (millions) % Total Basra 857 21% Dhi Qar 770 19% Qadisiyya 701 17% KRG 700 17% Baghdad 370 9% Salahaddin 300 7% Karbala 248 6% Muthanna 81 2% Kirkuk 75 2% Despite the large number of deals presented in this data, Dunia believes that the actual number of deals valued at under $1 billion in 2009 may be nearly double the number recorded here. This discrepancy is due to the number deals that are not publicly disclosed. However, the trends seen in the above analysis should hold true for the entire segment of investments, and not just those captured by Dunia. REPORT © Dunia, LLC 2009 Page 12
  13. 13. PRIVATE FOREIGN INVESTMENT IN IRAQ IV. Oil and Gas: A Turning Point? Iraq’s oil and gas reserves have been the object of much speculation since the 2003 US-led invasion. The country’s 115 billion barrels of proven oil reserves are the world's third largest, behind Saudi Arabia and Canada, and yet Iraq currently ranks eleventh in oil production. Violence and political instability have until this year hindered any major developments within Iraq’s energy sector. The Iraqi government is eager to increase production levels in order to help fuel and finance the reconstruction and economic development. It recently announced an ambitious goal to increase output from current levels of just under 2.5 million barrels per day to 7 million (bpd) over the next seven years. After failing to attract foreign investors during a June auction of twenty-year service contracts on a dozen of Iraq’s major oil fields, the Iraqi Oil Ministry has had success in striking deals through separate negotiations. By early November, the Oil Ministry had announced multi-billion dollar deals with ExxonMobil to develop the West Qurna reservoir, BP and CNPC to develop the Rumaila oilfield, and a consortium led by Italian oil giant Eni to develop the Zubair field. Together these three deals could potentially add 4.5 million bpd to Iraqi output. Additionally, Iraq is preparing a second-round auction of service contracts in December that it hopes will help tap another 40 billion barrels. Investments in natural gas have also increased. Dana Gas and Crescent Petroleum signed deals with the KRG, subsequently bringing on Austria’s OMV and Hungary’s MOL to develop Khor Mor Field and export the gas to Europe via the Nabucco Pipeline at a total cost of $8 billion. Dana Gas also announced the prospective development of a “gas city” in Anbar governorate, which could cost anywhere between $8 billion and $60 billion if brought into full development. However, despite the apparent success in attracting investment and signing major service contracts with IOCs, significant challenges remain in the development of Iraq’s energy sector. The lack of a national hydrocarbons law to regulate the oil sector and guide revenue sharing between the central government and the semi-autonomous KRG is already causing major political problems. Additionally, ongoing security concerns and allegations of corruption within the Oil Ministry and the various subsidiaries of the former Iraqi National Oil Company are giving some IOCs and foreign investors pause. The lack of a hydrocarbons law is also significantly increasing tensions between Baghdad and Erbil. After Baghdad sought to assert its authority over the KRG and its oil industry by disqualifying from the December auction any firms active in the Kurdish fields, Erbil struck back first by threatening to halt oil exports, and more recently by threatening to retain all revenues from its oil exports (currently 100,000 bpd and potentially more than 1 million bpd by the end of 2011). Under a revenue sharing mechanism enshrined in Iraq’s current constitution, the Kurdish region is entitled to 17 percent of Iraq’s total oil revenues. This dispute is probably the largest political risk facing Iraq at the moment, and threatens to disrupt the unifying trends of the past few years. REPORT © Dunia, LLC 2009 Page 13
  14. 14. PRIVATE FOREIGN INVESTMENT IN IRAQ Furthermore, while the Oil Ministry and Iraqi cabinet move ahead with ratifying major oil contracts with foreign companies, members of the Iraqi parliament's oil and gas committee have independently warned representatives of foreign governments that the current contracts governing the Rumaila, Zubair and West Qurna deals are illegal. The allegation comes from a dispute over who in the Iraqi government has the ultimate authority to approve such licensing agreements, an issue which would be clarified in a final hydrocarbon law. The committee’s objections highlight the political risks facing oil firms in Iraq, with no guarantee that contracts signed by the current government will be honored after the elections. REPORT © Dunia, LLC 2009 Page 14
  15. 15. PRIVATE FOREIGN INVESTMENT IN IRAQ V. Conclusion: Progress and the Year Ahead Despite the turmoil faced by international financial markets over the last year, Iraq has seen an astounding acceleration in deal-flow and investment. The country is poised to continue strong economic growth and attract future private FDI. The improved security situation has encouraged investors to look beyond the relative safety of the Kurdish region, and Dunia expects this trend to continue and intensify. While violence is likely to rise around the time of the 2010 legislative elections, the large growth in deal flow over the last year is a sign of growing confidence on the part of international investors in Iraq as a place for business. The conclusion of several major contracts between the Iraqi government and various international oil companies over the coming months is expected to further boost the image of Iraq’s economy and its potential as a venue for future private FDI. As discussed in this report, Dunia expects investments in non-hydrocarbon sectors to lag for some time as oil and gas projects, and their related oil service contracts, dominate the Iraqi investment landscape through 2010. At the same time, the broad economic development needs of Iraq and the rise of provincial investment commissions as conduits and facilitators for private FDI are expected to increase the number of mixed investment projects that span various sectors. Dunia expects to see investment in southern governorates increase, particularly in low-income housing, tourism, and agriculture. Although serious political challenges remain in Iraq, as highlighted by the recent election law disputes, a successful election in early 2010 and continued security gains during the interim period as a new government is seated will fundamentally transform the international perception of Iraq as an emerging market. As the primary focus of the Iraqi government progresses from security to economic development, private FDI from regional and international investors will take on a new importance in Iraq. REPORT © Dunia, LLC 2009 Page 15
  16. 16. PRIVATE FOREIGN INVESTMENT IN IRAQ Appendix — Top 20 Deals in (Q1-Q3) 2009 Table 7. Top 20 Deals in 2009 $ (millions) Investor(s) Country of Domicile Investment Industry Province US, UK, Energy, Oil & 25,000 ExxonMobil, Royal Dutch Shell West Qurna 1 Oil Field Basra Netherlands Gas Bonyan International Investment Group, Al-Handal International Group, Millenium UAE, Lebanon, 20,000 Rasheed Development Real Estate Baghdad Solutions, Noor International Holding, Al-Mutakamil Kuwait 20,000 Undisclosed S. Korea Habaniya Lake Industrial City Mixed Anbar 18,000 Bloom Company UAE al-Madeena al-Jadeeda city Mixed Karbala United Kingdom, Energy, Oil & 15,000 British Petroleum (BP), CNPC Rumaila Oil Field Basra China Gas Energy, Oil & 10,000 ENI, Kogas, Occidental Italy, S. Korea, US Zubair Oil Field Basra Gas Energy, Oil & 8,000 Dana Gas/Crescent Petroleum UAE Anbar Gas City Anbar Gas UAE, Austria, Pearl Petroleum (Kurdistan Gas City), Khor Mor Energy, Oil & 8,000 Dana Gas, Crescent, OMV, MOL KRG Hungary Field, Gas Infrastructure Gas 8,000 Undisclosed Turkey Nasiriyah industrial City Mixed Dhi Qar 5,000 Frank Ennis Company Ireland 25,000 residential units & SOC infrastructure Real Estate Basra 5,000 Undisclosed Australia, Lebanon Power, housing, communication project Mixed Dhi Qar UK, Netherlands, Energy, Oil & 4,000 Royal Dutch Shell, Mitsubishi South Gas Utilization Project Basra Japan Gas Energy, Oil & 2,100 Korea National Oil Corp. (KNOC) S. Korea Sangaw South and Bazian Blocks (KRG)* KRG Gas 2,000 Ajman Co. UAE Refinery, cement factory, medical center Mixed Qadisiyya 1,200 Undisclosed Iran Residential housing and commercial space Real Estate Basra Hotel, shopping mall, caustic soda factory, and 1,000 Invest Paradise United Kingdom Mixed Muthanna airport 300 megawatt power plant in Erbil and an Energy, Oil & 600 Korea National Oil Corp. (KNOC) S. Korea KRG exchange board in Sulaimaniya. Gas 500 al-Murad Company Lebanon 5,000 residential units near al-Iskan al-Sinaie Real Estate Dhi Qar 500 Undisclosed Lebanon Residential city and dairy factory Mixed Diwaniya 455 Sazman Kerman Ommran Iran Residential housing and commercial space Real Estate Basra REPORT © Dunia, LLC 2009 Page 16
  17. 17. PRIVATE FOREIGN INVESTMENT IN IRAQ About Dunia With offices in Washington, DC and Dubai, Dunia Frontier Consultants (DFC) provides consulting services to investors and corporations operating at the frontiers of 21st century business. We understand that obtaining accurate, actionable information on rapidly changing frontier markets is challenging and time consuming. DFC eliminates these issues and enables you to focus on your core competencies - structuring and executing deals and managing your investments. As a firm with a presence in both Dubai and Washington, D.C., Dunia works closely with a small number of clients internationally to provide an unparalleled level of service. With a world-class staff and highly efficient global network of consultants and partners, we support your endeavors on two primary frontiers: • Emerging Markets - deal-sourcing, due diligence, and market survey support - the heart of our business • Energy Markets & Projects - a specialized subset of our emerging markets & political insight services Dunia has performed over 20 due diligence and market surveys in the agriculture, oil and gas, manufacturing, logistics, and real estate sectors of Iraq, and recently completed an in-depth survey of the upstream Oil and Gas sector; providing actionable Round II insights on developments in the Iraqi Ministry of Oil, its operating entities, and with comprehensive analyses of the on-the-ground situation surrounding the major oil fields up for bidding. Contact Dunia at: 971-50-659-1461 / REPORT © Dunia, LLC 2009 Page 17