American Contractor

A lot of people are expecting an RV this week or even sometime this month in April.

The reasons certain people give are of all the news that has been coming out of Iraq such as the International compact, Foreign Investment Law enacted along with the rules and bylaws, the 12% gain on the exchange rate of the Iraqi Dinar (ID), the pending Iraq oil laws and many other stories that have been recently published in the media.

All the above mentioned certainly is positive and appears Iraq is going the right direction however, it is no where near in RV that everyone is talking about and expecting in the month of April. The International Compact (IC) that was signed last year will not be implemented because they along with everyone else is waiting on the Iraqi government to pass the Oil law. This is one of the benchmarks outlined in the IC before they would implement their program.

The 12% gain on the exchange rate was to control the 65% inflation rate and it remains to be seen if the Central Bank of Iraq (CBI) will find this as a success or not. It is very possible if the new measures from the CBI fail to control inflation you will possibly see the exchange rate decrease in value and head back to 1350 – 1400 ID in 2007.

Mailing list

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The recent issue of the Iraq Capital Markets Newsletter dated 15 Feb which I have a copy of the newsletter and It gives a little insight as the possible direction and not concrete as of yet since the Foreign Investment Law regulations and bylaws still need to be published in the Gazzette.

An excerpt is written below from the newsletter:

The law opened all areas of investment before Iraqi and foreign investors except for activities that are excluded and those are:

- Investment in oil and Gas extraction and production

- Investment in Banks and Insurance companies

Send an email if your interested in reading the newsletter. The file is 2 megs.

Remember, they are still trying to work the details on the Rules and Bylaws of the FIL.

Posted by American Contractor at 2:23 PM | Permalink | TrackBacks (0)

It was always the plan to open at least 10 state owned business and convert them to privately owned at a later date. This would create jobs and keep young and old Iraqi's from picking up arms and fighting the coalition.

The article talks about the opening of three state owned manufacturing companies in Iraq and producing uniforms and armored vehicles.

You can read the full article here.

WASHINGTON (AP) - In an Iraq jobs program, the Pentagon has helped reopen three factories shuttered after the 2003 invasion, seeding the ground by buying uniforms and armored vehicles from two of them.

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In less then 90 days the Iraqi Ministry of Finance and along with other Ministries to include the Central Bank of Iraq will be hosting an event in London called the Iraq 2007 Banking, Finance and Development.

The event will be held on June 26-27, 2007.

I will be attending in June so if you would like to also attend the event in London go to the web site below and read all about it.

Maybe I will send out updates on the event while I am there on my email list. If you would like to add your email address just send an email to

americancontractor@gmail.com

Iraq Banking, Finance and Development

Enhancing and Developing Long-term Trade and Investment Partnerships with Iraq

A practical & in-depth two-day international conference

Under the auspices of the Iraq Ministry of Finance and with the official support of the Trade Bank of Iraq

A new legal regime is emerging in Iraq that it is hoped will create the right conditions for a major influx of foreign investment into the country.

The recent passage of a new foreign investment law will give Iraqis and foreign investors equal shares in investment projects and allow investors to move money in and out of the country relatively unhindered. Meanwhile, a new hydrocarbons law is eagerly awaited by investors keen to play a part in the nation’s oil sector.

This high-profile conference interweaves senior-level presentations, practical and in-depth industry case-studies and panel debate to showcase the latest projects and examine how industry, commerce and government can work together to benefit from investment opportunities in, and trade with, Iraq.

Iraq Banking, Finance and Development will feature a well-balanced combination of UK, EU and US commercial interests and a senior delegation from the Iraqi government.

Taking place under the auspices of the Iraq Ministry of Finance and with the official support of the Trade Bank of Iraq

Distinguished speakers include:

* Senior Delegation from the Iraq Ministry of Finance
* H. E. Fawzi Hariri, Minister of Industry and Minerals
* H.E. Dr. Salah Al-Shaikhly, Ambassador of Iraq to the United Kingdom
* Hussain Al Uzri, Chairman, Trade Bank of Iraq
* Sinan Al Shabibi, Governor, Central Bank of Iraq
* Dr. Thair al-Faili, Chair, Iraq Investment Commission & Senior Deputy Minister, Construction and Housing

"Nothing Ventured: Nothing Gained"

Go to the link here.

Posted by American Contractor at 12:28 PM | Permalink | TrackBacks (0)

The American Embassy in Iraq had published a Warden Message last month to alert all U.S. Citizens of a new Iraqi law that now prohibits non-Iraqi persons from transporting any Iraqi Dinar currency out of the country. It looks like the Ministry of Foreign Affairs is tightening up on all the Iraqi Dinar that is being smuggled out of Iraq. I am sure in the future borders will be closing soon remember Oct 2003.

The Ministry of Foreign Affairs after the law had been changed notified the U.S. State Department to insure that this message gets out through the Warden system. The only potential problem is not every U.S. Citizen living and working in Iraq will get the message. To receive a Warden Message you have to register with the American Embassy and give them your personal details so they could deliver a message to you when needed. So if you don’t register you don’t get any Warden Messages.

I am sure some unlucky souls will be caught attempting to smuggle the Iraqi Dinar out of the country and then placed on the Iraqi customs black list. A list you do not want to be on.

You really think the Iraqi Dinar will be a internationally traded currency in the future when it has never been in its existence.

Time will tell.

WARDEN MESSAGE

February 23, 2007

The Embassy requests that wardens pass the following message in it entirety to members of the American community: The Ministry of Foreign Affairs of the Republic of Iraq has released updated regulations for non-Iraqi nationals exiting Iraq with foreign or Iraqi currency. Since December 25, 2005, Iraqi law has prohibited non-Iraqi adults from transporting more than U.S. $10,000 in cash out of Iraq. Iraqi law also prohibits carrying out more than 100 grams of gold. As of February 21, 2007, Iraqi law now prohibits non-Iraqi adults from transporting any Iraqi currency out of the country. Iraqi customs personnel are taking action to enforce this law and may pose related questions to travelers during immigration and customs exit procedures. (Civil customs personnel also will verify passport annotations related to any items such as foreign currency, gold jewelry, or merchandise that were declared by passengers upon entry into Iraq on Form-8.)

Posted by American Contractor at 9:14 PM | Permalink | TrackBacks (0)

The Iraqi oil legislation, expected to be approved by July, will open the door for the government to sign contracts for exploration and production of the country's vast untapped reserves, a top U.S. priority. But since few Western companies are prepared to send equipment or crews into the war zone, it could take five years or more before they begin extracting big shipments of Iraqi crude.

''You will see announcements and deals. But dollars in the ground is a different story,'' said Saad Rahim, a Mideast analyst with Washington-based PFC Energy.

That leaves China.

Read it here.

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The Iraqi government is considering the creation of an oil revenue fund that would be held outside the country to minimize the chances of corruption, as part of the country`s hydrocarbons law, Kurdish Regional Government Minister of Natural Resources Ashti Hawrami said Thursday.

A draft of the country`s long-delayed hydrocarbons law would create a revenue sharing commission in Iraq, as required by Iraq`s constitution. This commission could opt to establish a fund located abroad that would manage the country`s oil revenues. The fund would be audited by an outside party to ensure Iraq`s oil revenues aren`t misused or misallocated.

"The oil revenues would be put into a fund outside the country," Hawrami told journalists after speaking to investors about the status of Iraq`s hydrocarbons law.

The commission would also set aside 5% of all Iraqi oil revenues for future generations, Hawrami said, in addition to distributing the country`s oil moneys based on mechanisms that are currently being negotiated by Iraq`s various political groups.

Read the article here.

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