ME Magazine Article

An article I wrote about my work in Iraq was just published in Mechanical Engineering Magazine.  Check it out here:

http://memagazine.asme.org/Articles/2010/June/Rebuilding_Broken_Land.cfm

Iraq's Elections

Iraq's national elections happened with a level of violence that was below most expectations.  This, on the heel of successful governate-level elections in early 2009.  Again, I'm not recommending vacations to Baghdad, but things are improving.  You should definitely keep an eye on Iraq's market.  If a new government is successfully formed, it will be an important milestone.  The overall winner, Ayad Allawi, was very popular among Iraqis that I spoke with (though neither Allawi nor Maliki won enough seats in the Council of Representatives to form a majority).

http://topics.nytimes.com/top/news/international/countriesandterritories/iraq/elections/index.html?scp=1-spot&sq=iraq%20elections&st=cse

Iraq's Investment Law

Iraq's National Investment Commission (NIC) was established in 2006, and began operating in earnest in 2007.  If you need specifics about Iraq's investment laws and general information about doing business in Iraq, check out the NIC website at:

http://www.investpromo.gov.iq/

Iraq's Culture of Business

Continuing on the list of reasons why you should consider doing business in Iraq is: 2) Iraq has a strong culture of business.  Let me clarify.  There are three types of businesses/business owners I ran into when I was in Iraq:

1.  State owned enterprises.  These anachronisms were bad when they were open, and they're worse now.  As a make-work, counter-insurgency project, there may be some value.  As a business, I'm not sure what to make of them.

2.  Opportunistic men calling themselves "sheiks" and offering to do anything for government money.  Hey, why not?  There's lots of money to be had.

3.  Real small business owners who were dedicated, eager to learn and grow, and willing to work hard.

I went to Iraq seeking the 3rd type of business owner, and I'm happy to report that I found many of them.  My work focused on an industrial area north of Baghdad, called Boob Al Sham (or Bab Al Sham).  I won't go into detail, as Mechanical Engineering magazine just published an article I wrote about the area (link to that tomorrow, or as soon as the story is posted).

You have to look for good businessmen, and not fall into the easy trap of working with the person with the best English and most helpful attitude, but if you look, the right type of business partner can be found.

Have you done business in the Middle East?  In Iraq?  How did you find the business culture?  Let me know!

What Does Iraq Need?

Continuing from yesterday's post, my first point was that Iraq needs everything. There are approximately 30 million people in Iraq, with approximately 20% of the population in greater Baghdad. Years of war and embargo (don't forget, starting in 1980 with the Iran-Iraq war) have prevented consumer goods, industrial goods, and building materials from reaching the country. As the political and economic situation in Iraq improves, there will be a rising demand for almost everything.

According to some reports, Iraq will need at least three million new housing units in the coming years. Most construction material is now imported from neighboring countries, and is of poor quality. While the current market is very price sensitive, this too will change as the situation improves. Demand for higher-priced, better-quality product will increase. If your company makes material used in commercial and residential construction, you may want to consider Iraq for future market expansion.

Should You Do Business in Iraq?

Yes, you should consider it, and here's why:

1. Iraq has roughly 30 million people. It's not a huge market, but they need everything.

2. The culture of business is there, and it's strong. Prior to the disastrous Iran-Iraq war (yes, Iraq's troubles actually precede the Bush 43 administration), Iraq led the world in date exports, the manufacturing sector was robust, and the medical system was the envy of the Middle East.

3. While commercial code lags most developing countries, the Council of Representatives addresses the issue every year. Don't put both feet in Iraq, but as business law develops, be ready to move.

4. Physical security is improving. I don't recommend a vacation in Baghdad yet, but it's getting better. The elections went off with a level of violence that was below most expectations. There are security options, and Iraqis can move very freely (except for the occasional security checkpoint).

5. There is money in Iraq. Some of it is waiting patiently on the sidelines -- wealthy Iraqis in Syria, Jordan, Turkey, Europe, and the US are waiting for the right time to re-enter the Iraqi market. When the time is right, there will be a massive influx of cash.

Of course, there is a list just as long for why you shouldn't do business in Iraq, and most of that list would deal with corruption and security. Still, Iraq is an interesting market, and a beautiful country that should be a treasure for the world to visit and enjoy. I believe that someday it will be.

What do you think? Are you curious about Iraq? Let me know.

Another Piece on Iraq

While in Iraq, I wrote a proposal for several of the industrialists that I had been working with to visit the US. The purpose of the trip was to learn about best practices in manufacturing, quality control, and business associations. The proposal was approved, and in April, the industrialists visited the US. What a strange experience to see my friends in the US! Initially they seemed so out of place -- so overcome by the natural beauty of our great country. Like most good businessmen, they adapted quickly, and like small children, were eager to learn from everyone they met. Here's a link to a TV news piece that was done about the trip:

http://rochester.ynn.com/content/501758/hope--friendship-bring-iraqi-business-association-to-rochester/

Some of the details are wrong, but overall, it's a nice piece.