Provinces should look to Dubai for inspiration

Dubai: Iraq's economic revival can and should be based on Dubai's hugely successful model - and provinces which adopt the same free market values can achieve similar prosperity within 20 years, trade experts claimed.

Dr Mohammad Baban, senior economic adviser to the prime minister of KRG - the semi-autonomous Kurdish northern Iraqi province which has its own army and separate government - said the country's ability to breathe new life into an economy decimated by decades of sanctions and war hinged on immediate decentralisation of the financial decision making process.

"For many years there was too much control from one source, which in turn led to discrimination of certain regions and individuals - it's no wonder we find ourselves in this state," he said.

Baban highlighted Dubai's transformation from a simple fishing port and pearl harbour - with few natural resources - to the second largest and arguably the most diversified economy in the Middle East.

"How did Dubai become such a success? Long term ideas and realistic targets, along with the promotion of people from different religions and cultures living in harmony," he told delegates.

As well as encouraging the private sector to take an active role in rebuilding the country, Baban stressed the most crucial step in creating a vibrant economy was training an Iraqi workforce.

"Without investing in human resources we will go absolutely nowhere with these plans," he added.

Following Dubai's lead, KRG has built an international airport and created a $200 billion private investment arm, which Baban said was to act as a catalyst to attract the private sector and not as competition.

Timothy Mills, president of the American Chamber of Commerce in Iraq, one of the conference's organisers, said Dubai's economic model could be applied to every region in Iraq.

"In developing in a similar way to Dubai, provinces can be at a similar stage as the emirate between 15 and 20 years."

OPPORTUNITY
Beyond the violence

Private UAE companies are being urged to look beyond common perceptions of Iraq and focus instead on potential investment opportunities in peaceful areas of the country.

Iraqi provincial leaders and American economic experts based in Iraq say significant returns can be made in sectors including oil and gas equipment, construction materials, health, tourism and IT.

They say Baghdad's almost daily carnage hides the fact that areas including north-western KRG, centrally located Karbala and the southern port of Umm Qasr offer potential for UAE companies looking to invest overseas.

"This is not a simple time to be doing business in Iraq," admitted Andrew Wylegala, counsellor for Commercial Affairs for the US Embassy in Baghdad.

Wylegala said cellular licence holders such as Motorola are earning "handsome rewards" from the Iraqi telecommunications sector - an industry which has experienced investment worth approximately $800 million in the last three years.