Not only has an Egyptian ambassador to Baghdad been named after a four-year vacancy, but also a fully-fledged official delegation from the Ministry of Investment headed to Iraq last week for a three-day visit Led by Minister of Investment Mahmoud Mohieldin, the 82-strong delegation included heads of several authorities affiliated to the ministry as well as representatives of public sector holding companies and private sector companies operating in the fields of pharmaceuticals, building materials, ceramics, fertilisers, petrochemicals, food products, and financial services, Niveen Wahish reports. Mohieldin told Al-Ahram Weekly that despite occasional outbreaks of violence, the situation in Iraq is relatively calm, making this a good time to move into the Iraqi market. Bombings took place in Baghdad during and after the delegation left the capital. Nonetheless, Mohieldin pointed out that the golden rule of investment is that the profit or revenue is proportionate to the risk. "At this stage the revenue should justify the risk -- provided it's a calculated risk." He added that, "we would not encourage hazardous ventures." Mohieldin said that Iraqi officials have given the Egyptian delegation assurances that they will tightly secure areas specified for joint investment. They also said they would guarantee financial compensation in case investments were affected in any way by violence. Mohieldin stressed that already others, such as the Turkish and Gulf investors, are betting on Iraq. He pointed out that opportunities await Egyptians whether in the area of investment or trade. In terms of investment, he said that construction in Iraq holds great potential, be it infrastructure, housing, ports or power-generation plants. Another attractive area is petrochemicals and related energy-intensive industries, seeing that Iraq has one of the largest proven reserves of oil and natural gas. Mining the lands of Iraq is another untapped area, he said. As for trade, the minister said that the Iraqi market could import everything from food and clothing to home appliances and heavy machinery. In fact, he said, some Egyptian companies have expressed their willingness to operate production lines targeted at manufacturing products according to Iraqi specifications. Training is another area where Egypt and Iraq will be cooperating closely, he said. The delegation was received at the highest level on the part of the Iraqis. Mohieldin met with Iraqi Prime Minister Nuri Al-Maliki, Iraqi President Jamal Talabani and Foreign Minister Hoshyar Zebari, who expressed gratitude for Egypt's assistance to Iraq in its reconstruction. Both parties noted the importance of the visit and highlighted the positive impact it would have on enhancing economic cooperation between the two countries. Iraq is the 15th largest investor in Egypt, with stakes in 3,166 Egyptian companies. During the days following the visit, Mohieldin said that contact had been made with Iraqi National Investment Commission Chairman Sami Al-Araji to arrange for visits for companies who did not make it in the first delegation and for follow-up requests by companies who joined the delegation. Among the concrete results of the visit are a number of memoranda of understanding (MOU) and contracts signed by various parties on both sides. These include an MOU between the General Authority for Investment and Free Zones and the Iraqi National Investment Commission. The memorandum will facilitate investment communications, establishment of joint projects and exchange of information regarding investment opportunities, and laws and regulations in both countries. Both Iraq and Egypt will exchange experience and services provided to investors. Another MOU was signed on training and technical cooperation in the fields of non-financial services, such as capital markets, insurance, mortgage finance and financial leasing. A third MOU was signed to exchange insurance and reinsurance legislative and organisational provisions. And the Egyptian Exchange and Baghdad Securities Market signed a cooperative MOU to upgrade legislative, regulatory procedures, and technical and human resources to increase competitiveness of both markets. In addition, several contracts were signed between Egyptian holding companies accompanying the delegation and Iraqis wishing to acquire their goods and services.
