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Market |
Defence |
Report Type |
Market Research |
Country |
Iraq |
Published |
12 February 2009 |
Number of Pages |
39 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
In Iraq there were a number of moves towards a more secure long-term future. Iraq’s government gave its approval to a new security pact with the USA, which provides for the departure of all US troops from Iraq by the end of 2011. US troops should be withdrawn from major cities by the middle of 2009. However, bombings continued, with 30 people killed in two incidents in October and 26 in multiple incidents in mid-November. Overall, Iraq is likely to remain a transition state encumbered with relatively high levels of violence at least into the medium term, if not longer. Nevertheless, it is making progress towards becoming a 'normal' country and as such we have revised its political risk ratings upwards.
In the past quarter Iraq’s defence industry has not grown appreciably. It is predicted that it will be a decade or so before the country’s indigenous defence industry is fully established. Until then, Iraq will be dependant on donations from other countries, such as the US, for its arms. The largest player in the native Iraq defence industry is the Dabin Group, a commercial consortium primarily involved in the construction of hotels, retail and leisure facilities. The Dabin Group holds a 42% stake in Seabird Aviation Jordan, specializing in both civilian and defence aerospace projects.
We expect Iraq's economy to expand robustly over the coming years, on the back of increasing oil production and strong growth in the non-oil sector. We have pencilled in real GDP growth of 8.0% in 2008, 7.8% in 2009, and over 2009-13 we expect growth to average 7.4%. The foundations for our sanguine view lie primarily with the much improved security situation, the prospects for significant investment into the oil industry over the coming years, and the continued post-war reconstruction of the country.
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