(MENAFNEditorial)
Iraq's construction industry is being severely affected by the poor security situation with the Islamic State (IS) insurgency even affecting business sentiment in the Kurdish region the once-considered relative ly safe haven and primary investment destination. After failing to agree on a budget for 2014 the new parliament has approved one for 2015. However it has been greatly limited by the falling oil price and the diversion of funds to security meaning in the short term that infrastructure development will not likely receive the full state backing it requires. Meanwhile the poor business and operational environment will continue to deter private investment from a country with a large reconstruction-related project pipeline. The potential in Iraq is great as too is the risk and we do not foresee stability until at least the medium term.
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- http://www.fastmr.com/prod/987561_iraq_infrastructure_report_q3.aspx?afid=101
Key Developments
* In the previous quarter we had expected growth in 2014 to contract by 6% in 2014 but after the release of data showing estimated growth in 9M14 of -11% (at constant prices) we have significantly downgraded our estimate to -20.4% for the full year. Furthermore as opposed to seeing 2015 as a return to growth as we had originally expected we now see a decline of -8.5%. We are forecasting in 2016 a return to growth with a very base-effected 11.5%.
* Iraq's 2015 budget of around USD105bn has been approved. The budget includes a deficit of over USD19.7bn and is based on expectations of lower global oil prices.
* Hussein Al-Yassiri deputy chairman of the Al-Diwaniyah governorate investment authority tried to spike interest in March when he said multiple major project announcements were imminent. These include projects related to the long-delayed USD1.35bn Al-Diwaniyah International Commercial Airport including a USD210mn cement plant and five other investment contracts worth about USD250mn. Kuwaiti firm Al Nasriyah in January signed an agreement to build and operate the...
The Iraq Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects including transportation and logistics by land sea and air; power plants and utilities and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Iraq Infrastructure Report provides industry professionals and strategists sector analysts investors trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Iraqi infrastructure and construction industry.
Key Benefits
* Benchmark BMI's independent infrastructure industry forecasts for Iraq to test other views - a key input for successful budgetary and planning in the Iraqi infrastructure market.
* Target business opportunities and risks in the Iraqi infrastructure sector through our reviews of latest industry trends regulatory changes and major deals projects and investments in Iraq.
* Assess the activities strategy and market position of your competitors partners and clients via our Company Profiles (inc. SWOTs KPIs and latest activity).
Coverage
BMI Industry View
Summary of BMI’s key industry forecasts views and trend analysis covering infrastructure and construction regulatory changes major investments and projects and significant national and multinational company developments. These are broken down into construction (social commercial and residential) transport (roads railways ports airports etc) and energy & utilities (powerplants pipelines and so on).
Industry SWOT Analysis
Analysis of the major strengths weaknesses opportunities and threats within the infrastructure and construction sectors and within the broader political economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators supported by explicit assumptions plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads railways airports and ports and the energy and utilities sub-sectors of power plants and transmission grids oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The reports also include analysis of latest projects across the infrastructure sectors (transport utilities commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Index provides investors (construction companies suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry economic and demographic data points. These provide indices of highest to lowest appeal to investors with each position explained.
Market Overview
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry including the key financial figures from some of the largest players in the sector.
Company Profiles*
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