Several executives have written to us asking if business opportunities in Iraq have made to the list of iProceed growth opportunities. Here are the reasons why we think that Iraq presents an attractive growth opportunity:
- The demand for all kinds of consumer and industrial products is exploding. In fact, we have barely scratched the surface. The real boom will happen when the security situation improves.
- Unlike many other countries with large number of consumers hungry for all kinds of products, Iraq has rich friends. US taxpayers will continue to spend billions of dollars in Iraq since success of Iraq is in America's strategic interest. Other countries with similarly large number of 'hungry' consumers have no such resources.
- When American taxpayers pay, the work has to be done by American companies.
But why are we advising our clients to stay away from Iraq for now?
- The security situation in Iraq is still unstable and there are no indications that it will improve anytime soon.
- When you can not guarantee 100% security for your employees, you have no right to deploy them even if they are willing to risk their lives (for extra money).
- When employees get hurt, it is demoralizing to other staff members.
- While US has committed to spending billions of dollars, hardly any funds have been actually used or any significant number of contracts awarded due to the security environment. The priority is still to have some kind of security so that real reconstruction can begin.
What can you do in the meantime?
- Look for Iraqi partners.
- Start small.
- Develop a footprint now so that you will be positioned to move fast as soon as the situation is ripe for investment.
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