Despite being one of the biggest oil exporters in the world, Iraq still has a depressing recession. It does take part in the financial crisis that cripples the whole world at this time. With oil prices tanking and consumer spending falling, the economy as a whole is in a stall. Car and electronic goods sales have fallen, and 25% of men in the ages of 18 to 29 are unemployed.(1) Businesses throughout Iraq essentially are a risk as a whole. Private investors from around the world have limited interest in opening businesses because of lack of security.
Another impediment to recovery was that during the 1991 Persian Gulf War, 90% of Iraq’s power generation and distribution were destroyed and damaged, causing a very slow recovery. And in the 2003 invasion further damage was inflicted on the infrastructure, which to date hasn’t been fundamentally remedied. Using the Iraqi dinar as a barometer of the strength of the economy in Iraq, it can be deduced that the economy of Iraq has deteriorated over the past 77 years quite dramatically. See graph below. As of August 2009 the rate was $0.00086 per 1 Iraqi Dinar.(17)
In addition to above the sad fact that smuggling and black markets exist, along with apparent corruption in main cities. Weapons and firearms are a very big part of the black market today. As a result of the ubiquitously present arms engendered by the previous regime and the United States providing weapons to the Iraqi army and police there arose a business for some Iraqis. As such stored arsenals may be seen in the back of grocery stores, rug shops, and tea houses, which may be purchased for a pretty penny. Oil trading takes a part in black markets as well. Approximately $30 million worth of oil was being stolen every day in 2008.(2)
Another high value market, is the pirating of software, having a value of $205 million. On an even darker note, human trafficking is a market as well, selling young boys and girls for basic slavery. But most of this traffic is carried out by foreign entities.(3,4,5,6,7,8,9,10)
That being said Iraq still does have several investment and industrial opportunities in different sectors, including construction, engineering, chemicals, textiles, manufacturing, clothing, cigarettes, footwear, food and drugs.(11) Manufacturing industries, are centered mainly in Baghdad, and are relatively small in scale. There is a small fishing industry, with a mainly freshwater catch.
The positive points for Iraq in this day and age have to do with finances, agriculture related industries and of course the oil exportation. Iraq has a pretty stable agriculture production, and it used to be the largest producer of dates in the world but now reigns sixth.(12) There is production of a good amount of wheat, barley, beans, and rice.(13) Other main industries include leather goods, cement, building materials, tobacco, and sulfur extraction. In the financial sector of Iraq, the Central Bank of Iraq was controlled strictly by the government until 2003. The Coalition Provisional Authority removed the restriction to allow the bank to be independent. In 2004 three foreign banks obtained licenses to carry on business in Iraq.(14)
It may be hard for some to believe, but one industry that’s booming, despite the global recession, is Iraqi tourism. Sectors of Iraq like Najaf and Karbala had restricted access to the outside visitors of the world, during the reign of Saddam Hussein. Considering the fact Karbala and Najaf are pilgrimage spots for the Shiite Muslims in particular and Muslims in general, 7 to 10 million visitors come through annually.(15) On a gloomier note, there has been a rise of employment for gravediggers, but there is no real record of how many people were and are being buried.(16)
- Oil (article pending)
- Financial industries (article pending)
- Animal and food related industries - within section on agriculture
- Building materials industries (article pending)
- Chemical and drugs industries (article pending)
- Textiles industries (article pending)
- Tourism industries (article pending)
- Energy industries (article pending)
- Raw materials industries (article pending) - other than oil
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