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Market Development

Knowledge of current market developments is a highly important factor in a globalized world.

MDC – Iraq Development Company has access to an extensive range of information based on our wide networks throughout the Iraqi market. Therefore, MDC – Iraq Development Company can detect market developments and trends early and supply its clients with knowledge that is indispensable for success.

Mentioned below are a few facts that quickly outline Iraq’s economic position:

Economic Performance & Economic Growth

Since 2006, the Iraqi economy has had an average real growth rate of 6.1 % per year even though a modest growth rate of 1.7% in 2007 has negatively influenced the average growth rate accordingly.

Although Iraq was not unaffected by the economic crisis and by the temporary decline in oil prices, given that oil is the main source of Iraq’s income, the immediate effects of the financial crisis are assessed as marginal due to a low interdependence on global economics. For 2009, a real growth rate of 6.9 % is anticipated; likewise, for 2010, a real growth rate of over 6 % is predicted. The mid-term growth prospects show accordant numbers, depicting the advantageous potential of Iraq’s growth.

Import & Export of Commodities

From 2006 to 2008, Iraq’s exports doubled to approximately USD 62 bn , with nearly 99 % of these exports stemming from the oil industry. Based on the development of oil prices, export rates are expected to decline in 2009, but the momentary rise in oil prices will have a positive effect on the remaining development in the years 2009 and 2010.

The import of goods has been and remains lower than the rate of exports and, consequently, Iraq’s liquidity need not garner apprehension. Primary import goods include machines, electronics, cars and accessories, as well as process measurement and regulatory instruments.

That being said, the German-Iraqi trade balance is highly capable of expansion and further development, although the exports from Germany to Iraq have already almost doubled from 2008 to 2009 to EUR 600 m.

Investments & Projects

After the time of the embargo and the last Gulf War, a tremendous demand in investments has emerged. This affects almost all market segments ranging from infrastructure to the industry and oil sectors, to the public health sector. Since there is a lack of suppliers, or because major projects have a long investment period, the large demand has not yet been met.

Unfortunately, German businesses have been hesitant to contribute to the development of Iraq. Aside from some large-scale projects by German Blue Chip businesses and a few smaller initiatives, German involvement has not yet tapped its full potential.

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