Zalmay Khalilzad, US ambassador to Iraq, on Tuesday urged the business community not to miss opportunities in Iraq because of the myriad risks posed by instability and violence.
“From the business perspective, the question is when and how to become involved in Iraq,” he told potential investors at the Rebuild Iraq conference in the Jordanian capital Amman.
“While acting now undeniably involves risks, waiting might entail the risk of missing fleeting opportunities as Iraq’s energy industry, agricultural and tourism industry takes shape.
“For those understandably concerned about security, I remind you that 14 of Iraq’s 18 provinces have little or no insurgent or terrorist violence.”
Many of the representatives of the more than 1,000 companies exhibiting in Amman say future investment decisions hinge on the ability of Nouri al-Maliki, prime minister-designate, to install a stable government over the next few months, a point acknowledged by Mr Khalilzad.
Mr Maliki said on Tuesday he hoped to present a new cabinet for parliamentary approval by the end of this week. Such a move would enable the US to plan for the withdrawal of some forces and hand over more functions to the Iraqis. However, few of the potential investors appeared optimistic about Iraq’s future for at least the next year or so while recognising the enormous potential for growth and profits.
Mr Khalilzad said that purchases of appliances and cars had risen sharply and that the number of mobile phones had increased to more than 6m sets from virtually none before the US-led war to oust Saddam Hussein three years ago.
In addition, more than $54m (€42m, £29m) in micro-loans had been disbursed, while a Loan Guarantee Corporation was being established to encourage private banks to make loans to small businesses, he said. Six foreign banks were licensed to operate in Iraq, mostly in partnership with Iraqi private banks.
He cited International Monetary Fund figures showing Iraq’s gross domestic product grew last year by about 2.6 per cent and about 10 per cent growth was expected this year, mostly because of high oil prices.