Iraq’s economy is rising very rapidly and so some industry polls or reports say that within 18 years Iraq may have control over the Middle Eastern energy output. The booming economy is indeed drawing everyone’s attention in the world and it is becoming one of the most promising countries in the world of economy.
Iraq’s economy greatly depends on the oil fields and the revenues out of it. 90% of the country’s profits come from the oil production. And so the government is wise enough to put effort behind the industry and making more money out of it.
The foreign investment is a great help behind the economy of the country and so the government is making the ambiance of the country investor-friendly. Due to some past examples, the foreign investors showed unwillingness to enter Iraq initially, but the scenario has changed now. American companies, Chinese, Korean and other countries also coming and investing in Iraq. US-based Exxon Mobil, WFT, BP, CAM these companies are investing in oil fields, pumps, drilling supply and others. The South Korean STX group is planning to launch extensive oil and gas processing plant in Basra district, in southern Iraq. A real estate developer company of South Korea is in negotiation on an agreement worth $35 billion to build 500,00 building units and infrastructure related to that.
The oil production in Iraq has increased to 3 million bpd and the international oil companies facilitated to happen. Observing the rapid improvement, the Iraq government has a great expectation that the capacity will get increased to 10 mln barrels per day within six years and that would make the country reach the top amongst the oil producing countries across the world.
It was forecasted by the International Monetary Fund that Iraq’s economy will increase 11.1% in 2012 to about $144 billion.
But only oil production cannot give employment to all the citizens of Iraq, which is more than 30 million. The country needs to work more on the security issues, unemployment problem, political tensions and corruption.
The foreign investors are still looking for short-term investments. They are seeking for the contracts, guaranteed by the government instead of investing huge amount of money, which may not return enough in years. Definitely the wise policies by government can resolve these problems and can attract more long-term, bid budget foreign investments in future. But all over the scenario is bringing hope for the country to rise in the world of economy.
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