New law to boost Iraq stock market

June 23rd, 2010

MEED – [6/18/2010]

The legislation will help encourage foreign investment and increase trading volumes on the bourse.  The Iraq Stock Exchange is set to receive a considerable boost to its trading volumes with the implementation of new securities legislation by the end of this year.

The legislation proposes a minimum capital requirement of ID250bn ($214m) for Iraqi banks, which would result in billions of new shares as they comprise about 75 per cent of the exchange by both market capitalisation and trading volume. Current volumes average only $1m to $1.5m a day.

The new law will also allow firms to list at market value – the current law only permits listings at the value of the company’s capitalisation. The regulation would not only boost trading volumes, but also attract much-needed foreign investment. Although the bourse allowed foreign investment in August 2008, non-Iraqi money comprises only 3 per cent of trade.

The Iraq investment story is becoming increasingly attractive as macro indicators show the economy is staging a recovery. Interest rates have come down from 20 per cent to 6-7 per cent, inflation has fallen from 80 per cent five years ago to about 5 per cent today. The country’s exports, namely oil, are growing.

For a foreign investor, the stock exchange provides the quickest and easiest way to invest in Iraq. The only problem is the lack of liquidity. The exchange’s market capitalisation currently stands at just $3bn.

However, the bourse has seen a gradual increase in trading volumes, mainly due to the successful move over to the OMX platform and increasing the trading days to five days a week.

In April 2009, the exchange began automated trading with five companies. Today, there are 85 listed companies.

The mechanisms are in place – the key challenge now is ensuring the appropriate legislation is brought in. The approval of the securities legislation is crucial for the exchange’s future growth.

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Iraq court approves election result

June 3rd, 2010

Iyad Allawi’s Iraqiya had a two-seat lead
over al-Maliki’s bloc [AFP]

Iraq’s supreme court has approved the final results of March 7 parliamentary elections, an important step towards the formation of a new government.  Tuesday’s approval from the high court allows electoral blocs to begin negotiations on forming a government, after elections produced no clear winner.

“Based on the articles of the constitution we have decided to approve the election results,” Midhat al-Mahmoud, the court’s chief judge, said.  The final certification of the results have come nearly three months after an election many Iraqis hoped would lead to stability and an end to sectarian conflict.

A cross-sectarian coalition led by Iyad Allawi, a former prime minister, won two more seats than a mainly Shia bloc headed by Nouri al-Maliki, the incumbent premier.

Close contest
Al-Maliki’s State of Law bloc won 89 seats in Iraq’s 325 seat parliament compared with Allawi-led Iraqiya’s 91 seats.

Al-Maliki has a announced a union between his party and the Iraqi National Alliance, which finished third. Together, this two party bloc will control 159 seats, just short of a parliamentary majority.  Allawi has warned that an alliance excluding his Iraqiya party, which has strong support from the minority Sunni community, could trigger renewed sectarian violence.

One candidate from the Iraqi National Alliance was not approved, as the court awaited information from the electoral commission surrounding his candidacy.  With the court’s approval of election results, the president now has 15 days to call the new parliament to convene.


Source – AlJazeera.net

Iraq May Maintain Growth of 7% This Year, Central Bank Says

May 26th, 2010

Bloomberg logo

Iraq May Maintain Growth of 7% This Year, Central Bank Says
May 21, 2010, 4:24 AM EDT By Alaa Shahine and Massoud A. Derhally

May 21 (Bloomberg) — Iraq may maintain an economic growth rate of about 7 percent this year, led by oil, Central Bank Governor Sinan Al-Shabibi said.

Growth was about 7 percent as well in 2009, al-Shabibi said in an interview yesterday at an economic conference in Beirut. “Of course oil output is still the main driver,” he said.
Iraq holds the world’s third-largest oil reserves, with 115 billion barrels, behind Saudi Arabia and Iran. The International Monetary Fund said it expects the economy of Iraq to expand 7.3 percent this year and 7.9 percent in 2011.

IMF and Iraqi authorities are projecting average production of 2.6 million barrels of oil per day with exports of 2.1 million barrels a day this year. Next year, the projections are for output of 2.9 million barrels a day and exports of 2.3 million a day.  The central bank cut its key interest rate by 1 percentage point to 6 percent in April to fuel growth.

Al-Shabibi said the bank has received requests from “six or seven” lenders seeking to set up units in Iraq or a partnership with existing banks in the country.  “We look favorably on any application,” he said without elaborating.

–Editors: Heather Langan, Karl Maier

To contact the reporters on this story: Alaa Shahine in Beirut at asalha@bloomberg.net; Massoud A. Derhally in Beirut at mderhally@bloomberg.net.  To contact the editor responsible for this story: Peter Hirschberg at phirschberg@bloomberg.net

Iraq’s Economy Wakes Up

May 4th, 2010

Investment and products from abroad begin flowing—along with oil

By Stanley Reed and Nayla Razzouk

• Boosting private investment won’t be easy. Officials were “raised in a statist environment”

Customers heading for a Baghdad branch of Dar Es Salaam Investment Bank know the drill. You walk through the entrance and heavily armed guards stop you. You get body-searched at least twice. And your phone is taken away before you reach a teller. Mobile phones, of course, can trigger bombs or send a signal to armed accomplices.

Yet Dar Es Salaam (known as DES) is thriving as Iraq begins to show signs of life. Profits have grown from about $600,000 in 2004 to more than $16 million. HSBC (HBC), the giant international bank that bought 70% of DES in 2005, feels so confident that it may put its own brand on the banks. “We think the timing is right,” says James Hogan, HSBC’s country manager. “Iraqis are starting to reconnect to the outside world.”

Seven years after the ouster of Saddam Hussein, Iraq has changed. Yes, convoys of SUVs packed with heavily armed security men still roar down Baghdad’s busy streets. Armed gangs still prey on truckers. Iraq’s political class struggles to form a new government. The few expat managers in the country live like prisoners: Every night, HSBC’s Hogan holes up in a walled compound run by a security company.

Ordinary Iraqis, however, are living more normally than they have in years. Shops on Saadoun and Karrada Streets are filled with flat-screen TVs, computers, and clothing from China, Turkey, Iran, and Korea. Pedestrians have to step around the Turkish and Iranian refrigerators and stoves piled outside. At night many Baghdadis relax watching one of the privately owned television channels that have sprung up, or checking the latest Iraqi Web sites.

Oil money from rising production is powering growth, as is pent-up demand for housing and better infrastructure. Now that the government has awarded oil-field contracts worth billions of dollars to BP (BP), ExxonMobil (XOM), China National Petroleum, and others, foreign clients are besieging Hogan for help in financing everything from pipelines to power grids to workers’ camps. Suppliers are following in the majors’ footsteps: Weatherford (WFT) for drilling, Centrilift (CAM) for pumps, Cameron for valves. The International Monetary Fund figures the economy could grow 7.3% in 2010. In 2003 the economy barely had a pulse.

The central bank, buttressed by the IMF, has stabilized the dinar at about 1,170 to the dollar (it was once 1,500) and has lowered inflation to single digits from a peak of 80% in 2006. Foreign reserves stand at about $50 billion. “This definitely gives predictability,” says Marcel Cobuz, Iraq general manager of Lafarge, the French building-materials maker.

Lafarge gained its two Iraqi cement plants, both located near Sulaimaniya in Kurdistan, through its acquisition of Egypt’s Orascom Cement in 2007. From this relatively safe base—Lafarge has never experienced a security incident—Cobuz is expanding into the trickier center and south of the country. Lafarge now sells almost half its 5-million-ton annual output in Iraq to construction companies in the Baghdad area. Figuring demand for cement can only grow, Cobuz may next buy derelict state-owned plants, refurbish them, and boost production. Construction, he reckons, will be up 15% this year.

One by-product of the regime’s fixation on oil is that it has done little to encourage private investment, says Ali Allawi, a former Finance Minister: “[Officials] were raised in a statist environment. They don’t see the connection between private-sector investment and reducing unemployment.” Entrepreneurs who lack the funds to modernize their businesses struggle against better-financed rivals. Thabet Al-Beldawi, 80, owns an aluminum plant in Baghdad. He’s down to 85 employees from 250 since the fall of Saddam Hussein. “There is a growing demand,” he says. “But the market is full of cheap imports.” Sami Al-Araji, chairman of the National Investment Commission, says the government is now “trying to emphasize the role of the private investor.”

The most encouraging thing about Iraq is that outside investors press on. Schlumberger, the oil services company, is quickly moving $100 million into Iraq, in part to build a base camp that will employ 300 workers. Iraq Oil Minister Hussein al-Shahristani, who negotiated with the oil majors last year, thinks the oil fields will eventually generate 100,000 Iraqi jobs. Schlumberger’s top brass are primed to hire: They figure the country is a Saudi-size opportunity and that up to 100 drilling rigs will be needed for what could be the biggest oil boom of all. The Iraqi people are ready.

The bottom line: Foreign direct investment is key to Iraq’s revival, but the IMF figures less than $1 billion came in last year. That number could multiply fast.

With Kadhim Ajrash and Zahraa AlkhalisiReed is London bureau chief for Bloomberg Businessweek.Razzouk is a reporter for Bloomberg News.

Baghdad Politics and the U.S.-Iranian Balance

April 25th, 2010

Baghdad Politics and the U.S.-Iranian Balance

April 20, 2010

Source : STRATFOR
By George Friedman

The status of Iraq has always framed the strategic challenge of Iran. Until 2003, regional stability – such as it was – was based on the Iran-Iraq balance of power. The United States invaded Iraq on the assumption that it could quickly defeat and dismantle the Iraqi government and armed forces and replace them with a cohesive and effective pro-American government and armed forces, thereby restoring the balance of power. When that expectation proved faulty, the United States was forced into two missions. The first was stabilizing Iraq. The second was providing the force for countering Iran.

The United States and Iran both wanted to destroy Saddam Hussein’s Baathist regime, and they collaborated to some extent during the invasion. But from there, their goals diverged. The Iranians hoped to establish a Shiite regime in Baghdad that would be under Tehran’s influence. The United States wanted to establish a regime that would block the Iranians.
The U.S. Challenge in Iraq

In retrospect, U.S. strategy in Iraq was incoherent at base. On one hand, the American debaathification program drove the Sunni community into opposition and insurgency. Convinced that they faced catastrophe from the Americans on the one side and the pro-Iranian government forming in Baghdad on the other, the Iraqi Sunni Baathists united in resistance with foreign jihadists. At the same time the Americans were signaling hostility toward the Sunnis, they also moved to prevent the formation of a pro-Iranian government. This created a war between three factions (the Americans, the Shia and the Sunnis) that plunged Iraq into chaos, shattered the balance of power with Iran and made the United States the only counterweight to the Iranians.
All of this turned what was intended to be a short-term operation into an extended war from which the United States could not extract itself. The United States could not leave because it had created a situation in which the Iranian military was the most powerful force in the Persian Gulf region. Absent the United States, the Iranians would dominate Iraq. They would not actually have to invade (Iran’s military has a limited ability to project force far from its borders in any case) to extract massive political and economic concessions from both Iraq and the Arabian Peninsula.
An unchecked Iran, quite apart from its not-yet-extant nuclear capability, represents a profound strategic threat to the balance of power in the Persian Gulf. Assuming the nuclear issue was settled tomorrow either diplomatically or through attacks, the strategic problem would remain unchanged, as the central problem is conventional, not nuclear.

The United States is set to complete the withdrawal of its combat forces from Iraq this summer, leaving behind a residual force of about 50,000 support personnel. This drawdown is according to a plan former U.S. President George W. Bush laid down in 2008, and that U.S. President Barack Obama has sped up only by a few months. Therefore, this is not a political issue but one on which there has been consensus. The reason for the withdrawal is that U.S. forces are needed in Afghanistan. Even more important, the United States has no strategic reserve for its ground forces. It has fought a two-theater, multidivisional war for seven years. The Army is stretched to the limit, and should another crisis develop elsewhere in the world, the United States would lack the land power to respond decisively.

Avoiding this potential situation requires drawing down U.S. forces from Iraq. But simply abandoning the Persian Gulf to Iranian military and political power also represents a dangerous situation for the Americans. Therefore, the United States must balance two unacceptable realities.
The only hope the United States has of attaining this balance would be to achieve some semblance of its expectations of 2003. This would mean creating a cohesive Iraqi government with sufficient military and security capabilities to enforce its will internally and to deter an attack by an Iranian force. At the very least, the Iraqis would have to be able to hold off an Iranian attack long enough to allow the United States to rush forces back into Iraq and to suppress insurgent elements from all Iraqi communities, both Sunni and Shiite. If Iraq could do the former, the Iranians likely would refrain from an attack. Iranian rhetoric may be extreme, but the Iranians are risk-averse in their actions. If Iraq could do the latter, then they eliminate Iran’s preferred mode of operations, which is covert subversion through proxies.

The issue therefore boils down to how the United States answers this question: Can the Iraqis form a coherent government in Baghdad capable of making decisions and a force capable of achieving the goals laid out above? Both the government and the force have to exist; if either one is lacking, the other is meaningless. But alongside this question are others. Does Iraq have any strategic consensus whatsoever? If so, does it parallel American strategic interests? Assuming the Iraqis create a government and build a significant force, will they act as the Americans want them to?

State vs. Faction
The United States is a country that believes in training. It has devoted enormous efforts to building an Iraqi military and police force able to control Iraq. The Americans have tried to imbue Iraq’s security forces with “professionalism,” which in the U.S. context means a force fully capable of carrying out its mission and prepared to do so if its civilian masters issue the orders. As professionals, they are the technicians of warfare and policing.

But perhaps the fundamental question of any military force, one that comes before training, is loyalty. In some militaries, the primary loyalty is to oneself. In such militaries, one joins to make a living, steal what one can and simply survive. In other militaries, the primary loyalty is not to the state, but some faction of the country, be it religious, ethnic or geographical. No one is going to give his life defending a state to which he is indifferent or even hostile, no matter how carefully trained in handling his weapon or how well-lectured he is on the question of professional responsibility. Neither of these conditions allows for a successful military in the end. A man in it for himself is not going to go into harm’s way if he can help it. A man in the military to protect his clan is not going to die to protect those to whom he has no loyalty.

The U.S. Army has trained tens of thousands of Iraqis. And Americans are great trainers. But the problem isn’t training, it is loyalty. Professionalism doesn’t imbue anyone with self-sacrifice to something alien to him.

And this is the challenge the United States faces in the Iraqi government, which like most governments, consists of many factions with diverging interests. In viable states, however, fundamental values shared by the overwhelming majority lie beneath the competing interests, be they a myth of country or of the moral principles of a constitution. It is simply not apparent that Iraqi factions have a core understanding of what Iraq should be, however, nor is it clear whether they owe their primary loyalty to the state or to some faction of Iraq.

Saddam Hussein held the state together by a complex of benefits and terror. He became the center of Iraq, and in a sense became Iraq. Once he was destroyed, Iraq’s factions went to war with each other and with the United States, pursuing goals inimical to a united Iraq. Therefore Iraq’s reconstituted military and security forces, however intermixed or homogenized they may be, still owe their individual loyalties to their factions, which will call on them to serve their people, a subset of Iraq.

The United States plans to withdraw its combat forces by the summer. Leaving aside how well-protected the remaining 50,000 noncombat troops will be, the question persists on who will hold the country together. The Iranians certainly are not eager to see the Iraqi situation resolved in favor of a government that can block Iran’s ambitions. The Iranians have longstanding relations with any number of Iraqi Shiite groups, and even with some Kurdish and Sunni groups. Iran would have every reason to do what it can to destabilize Iraq above and beyond any indigenous destabilization of Iraq in order to help shape a government it can dominate. In our view, Tehran has to tools to do this effectively.

The American leadership is certainly aware of this. It may hope or even believe that a stable Iraqi government will emerge, and it will certainly not say anything publicly that would decrease confidence in the process. But at the same time, the American leadership must privately know that the probability of a cohesive Iraqi government commanding a capable and loyal security force is far from a slam dunk.

In Search of a Plan B
Therefore, logic tells us that the United States must have a Plan B. This could be a plan to halt withdrawals. The problem with that plan is that there is no assurance that in three months or a year the core divisions of Iraq could be solved. The United States could be left without forces for a strategic reserve without any guarantee that time would solve the problem. A strategy of delay calls for some clear idea of what delay would bring.

Or the United States could complete the withdrawal on the assumption that the Iranians would not dare attack Iraq directly while the residual U.S. force remained. The problem with this strategy is that it is built on an assumption. This assumption is not unreasonable, but it is still an assumption, not a certainty. Moreover, Iran could covertly destabilize Iraq, putting U.S. forces without sufficient combat capability in harm’s way from Iranian-supplied forces. Finally, Iran’s major audience consists of the oil powers of the Arabian Peninsula. Tehran wants to show the Gulf Arabs that the United States will withdraw from Iraq regardless of potential consequences to them, reducing their confidence in the United States and forcing them to contemplate an accommodation with Iran.

Halting the withdrawal therefore poses substantial challenges, and completing the withdrawal poses even more. This is particularly the case if the United States completes the withdrawal without reaching some accommodation with Iran. But negotiating with the Iranians from a position of weakness is not an attractive option. The Iranians’ price would be higher than the United States wants to pay. Therefore, the United States would have to make some show of power to the Iranians that will convince the Iranians that they are at risk. Bombing Iran’s nuclear facilities could fit the bill, but it has two drawbacks. First, the attacks might fail. Second, even if they succeeded, they would not have addressed the conventional problem.

Washington’s way forward depends upon what the American government believes the probabilities are at this point for a viable Iraqi government and security force able to suppress insurgencies, including those fomented by Iran. If the Americans believe a viable Iraqi government is a possibility, they should roll the dice and withdraw. But it is not clear from our point of view what Washington is seeing. If it believes the probability is low, the United States not only will have to halt the withdrawal, it will have to reverse it to convince the Iranians that the Americans are hypercommitted to Iraq. This might cause Tehran to recalculate, opening the door for discussion.
It is now April, meaning we are four months from the deadline for the completion of the withdrawal of U.S. combat forces from Iraq. In the balance is not only Iraq, but also the Iranian situation. What happens next all comes down to whether the mass of parties in Baghdad share a common foundation on which to build a nation – and whether the police and military would be loyal enough to this government to die for it. If not, then the entire edifice of U.S. policy in the region – going back to the surge – is not merely at risk, but untenable. If it is untenable, then the United States must craft a new strategy in the region, redefining relationships radically – beginning with Iran.
As with many things in life, it is not a
matter of what the United States might want, or what it might think to be fair. Power is like money – you either have it or you don’t. And if you don’t, you can’t afford to indulge your appetites. If things in Baghdad work themselves out, all of this is moot. If things don’t work out, the Obama administration will be forced to make its first truly difficult foreign policy decisions.

IYAD ALLAWI WINS IRAQ ELECTION BY 2 SEATS

March 27th, 2010
Allawi begins Iraq coalition talks
Allawi’s Iraqiya bloc won two more seats than al-Maliki’s State of Law Alliance [AFP]

Iyad Allawi, the former Iraqi prime minister, has begun talks to form a government after narrowly edging out incumbent Nouri al-Maliki in Iraq’s parliamentary elections.

Allawi’s secularist Iraqiya coalition won 91 seats in the 325-member Council of Representatives while al-Maliki’s State of Law Alliance won 89 seats, the independent electoral commission said on Friday.

“There must be a strong government, capable of taking decisions which serve the Iraqi people, and bring peace and stability to Iraq,” Allawi told a press conference on Saturday.

“There have been some talks, but they were only talks. Now, the negotiations begin,” Allawi said.

Rafa al-Essawi, the current deputy prime minister and a member of the Iraqiya alliance, has been appointed to lead negotiations over coalition formation.

Al-Maliki refusal

Al-Maliki has refused to accept the results from the March 7 poll, insisting figures released on Friday night by the election commission remained “preliminary”.

Kurdistania, consisting of the autonomous Kurdish region’s two long-dominant blocs – the Kurdish Democratic Party and Patriotic Union of Kurdistan, won 43 seats.

in depth
What next after Iraq’s election results?
Any complaints are laid before the Electoral Judicial Panel. This is a sub-committee of the Federal Supreme Court of Iraq. Any person or party has three days to appeal the results. The EJP has 10 days to investigate/adjudicate on these complaints
If there are no rulings in the complainants’ favour, and perhaps even if there are, the EJP sends the result to the Federal Supreme Court for ‘final certification’. This could take up to two weeks
The Council of Representatives (COR) - in its new 325-seat form – is convened and they have to elect a speaker and two deputies. Then the COR has to elect a new president by a two-thirds majority
The new president turns to the job of asking someone to try to form a government
If the president’s first pick cannot form a coalition of at least 163 seats, then the president turns to the second on the list and asks them. Now in theory, each ‘team’ has a 15 day limit on the amount of time they can spend trying to form that coalition

Al Jazeera’s Anita McNaught, reporting from Baghdad, said Allawi would be given “a first shot” to form a government which must hold at least a majority of 163 seats in the council.

According to the Iraqi constitution, if Allawi fails to do so within 30 days, the Iraqi president, who is elected by parliament, will designate the leader of another political list to form a coalition government.

Following the results announcement, Allawi pledged to “work with all sides” to form a coalition government.

However, in a press conference carried by Iraqi networks, al-Maliki said that the election results announced were “not final” and rejected the outcome.

“We still insist for a manual recount of votes … We cannot accept these results while we suspect them,” al-Maliki said.

“We want to build our country on a clear and transparent elections therefore the electoral commission must seriously respond to our demand.”

Abdel Bari Atwan, the editor of al-Quds al-Arabi newspaper, told Al Jazeera that the election had shown changes in the country’s political makeup: “The Sunnis voted for Allawi who is a Shia. They want a real Iraqi identity. They want to put an end to the Iranian influence which is spreading in the country.

“Also they want a secular government, they are fed up of this sectarianism. They want to have an Iraq they aspire to, to have stability, democracy, human rights, equality. And they don’t want those religious people at the top of their authority.”

The US congratulated Iraq for carrying out a successful election, and noted both international and domestic observers had reported no signs of widespread or serious fraud.

“This marks a significant milestone in the ongoing democratic development of Iraq,”  PJ Crowley, the state department spokesman, said.

The US embassy in Iraq also issued a statement supporting the election results and calling on all political factions to work together.

“We support the findings of international and independent Iraqi observers, who have affirmed their confidence in the overall integrity of the election and have found that there is no evidence of widespread or serious fraud,” the statement said.

Source: Al Jazeera and agencies

Iraq: Parliament Comes Into Focus

March 24th, 2010

Stratfor » March 19, 2010 | 1602 GMT

Iraq’s Alsumaria News, citing the latest results from the country’s election commission, on March 19 showed what appears to be the first breakdown of seats in the Iraqi parliament after the March 7 elections.  Iraqi Prime Minister Nouri al-Maliki’s State of Law (SoL) coalition won 91 seats.  Former interim Prime Minister Iyad Allawi’s Iraqiya List is a close second, with 88 seats. A Shiite sectarian coalition, the Iraqi National Alliance (INA), is in third place with 68 seats, while the Kurdistani Alliance (KA) garnered 39 seats.

The biggest development was the rise of Allawi’s non-sectarian Iraqi nationalist coalition, which swept the polls in the Sunni provinces of Anbar, Ninawa and Salah ad Din, and has performed strongly in the ethnically mixed provinces of Diyala and Kirkuk and Baghdad.

While the Sunnis largely rejected sectarian forces, the Shiite vote remained in favor of sectarian forces – albeit divided between SoL and INA. Meanwhile, the main Kurdish bloc appears to have seen a substantial (though expected) drop in their parliamentary strength for two reasons: Sunni participation in the election and the rise of smaller Kurdish parties.

Intense negotiations among the various winning blocs are under way. The biggest question is whether Allawi’s bloc, which now represents the Sunnis, can be part of a grand coalition government. SoL, INA and KA have more than the required 163 seats to form a government. But that would put the Sunnis’ representatives in the opposition – an outcome that translates into instability in the country. Also, given his bloc’s performance, Allawi will make many demands in any power-sharing negotiations, especially since al-Maliki will want to retain the prime ministerial post since his party has the most seats and he has a post-electoral alliance understanding with the INA.

It is clear that the Shia need to include Allawi in the next government, but it is too early to say how it will happen. The United States would like to see Allawi and al-Maliki work together and contain Iranian influence in Iraq. But the Iranians are well aware of the Shiite divide between SoL and INA and got the two blocs to agree to a post-electoral alliance well before the vote. Tehran also knew that Iraq’s Sunnis would participate in the election in full force this time and has been operating accordingly. This is why the Iranians will try to get a SoL-INA-KA grand alliance to negotiate with Allawi’s Iraqiya List in order to contain the Sunnis.

Iraq: Stops Importing Fuel, First Time Since 2003

March 23rd, 2010

Iraq: Stops Importing Fuel, First Time Since 2003

March 20, 2010
For first time since the 2003 U.S. invasion, Iraq produced enough fuel to meet all its domestic needs, Azzaman.com reported March 20, citing Iraq’s Oil Ministry. The ministry’s statement said Iraq has reached a state of self-sufficiency in fuel products, adding that no fuel products were imported in the last three months.
Source : Stratfor – Global Intelligence

Iraq PM Maliki in tight race with rival Allawi

March 17th, 2010

Iraq PM Maliki in tight race with rival Allawi

Poster of Iyad Allawi in Baghdad

Mr Allawi’s alliance has a narrow overall lead for the first time

The latest results from Iraq’s parliamentary poll show a tight race emerging between Prime Minister Nouri Maliki and his main rival, Iyad Allawi.

With 80% of votes counted, the secular Shia-Sunni Iraqiya coalition led by Mr Allawi, a former prime minister, has a narrow overall lead for the first time.

But Mr Maliki’s State of Law alliance remains ahead in Baghdad and Basra.

The BBC’s Andrew North, in the capital, says the picture could well change by the time all the votes are counted.

Results from refugee voters outside Iraq, and special pre-election voting by Iraqi security forces have still to be announced, and they could dramatically affect the outcome of the parliamentary poll, our correspondent says.

With neither coalition able to win an overall majority, it is likely to mean talks on forming a new government will be long and difficult, he adds.

Minority Sunnis

Mr Allawi’s Iraqiya coalition is ahead in five of Iraq’s 18 provinces, and his nationwide lead is only 9,000 votes.

It is proving popular among minority Sunni Muslims resentful of the dominance of Shia religious parties since 2003.

Mr Maliki’s State of Law alliance is meanwhile ahead in seven provinces.

Source – BBC