Welcome to the MEC�s latest Iraq Business Update on the major economic developments in Iraq. In this issue, please find news about a gas-powered generators contract with General Electric, the major shake-up of southern oil chiefs and the Iraq Conference in Sweden.

If you would like to learn more about this newsletter or forthcoming events, or would like to suggest an event or article for inclusion in the next edition, please do not hesitate to contact me at info@meconsult.co.uk .

Kind regards,

Luxi Wang

Editor

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Iraqi Minister to keynote US-Arab Economic Forum in Washington D.C. (03/05/08)

The American Middle East Economic Affairs Committee (AMEEAC) is proud to announce today that Iraq’s Minister of Industry and Minerals will be a special guest and keynote speaker at the third biennial US-Arab Economic Forum in Washington, D.C. on May 7-9, at the Hilton Washington.

Boeing and Iraq announce airplane order; discuss support for aviation modernization (06/05/08)

Boeing [NYSE: BA] and the Government of Iraq today announced an order for 30 Boeing 737-800 commercial airplanes, the first step in re-establishing that country’s scheduled commercial aviation operations.

Call for establishment of Iranian banks in Iraq (08/05/08)

Iran-Iraq Chamber of Commerce, Industry and Mines has called for establishment of branches of Iranian banks in Iraq. This would increase the security of trade and foreign currency of the two countries’ tradesmen. By expanding bilateral economic, cultural and social relations, the two countries would witness a boost in relations.

Zain Iraq and Nokia Siemens Networks sign a US $150 million network modernization contract (11/05/08)

Zain Iraq has signed Nokia Siemens Networks for a major upgrade project to expand capacity and improve network capabilities. Under the flagship Zain brand operating in 22 countries spread across Middle East and Africa (MEA), Zain Iraq hopes to consolidate its leadership and increase capacity as this core network upgrade will allow the operation to serve 12 million customers.

Oil Search signs second contract in Iraq (12/05/08)

Oil Search has signed a production-sharing contract in Iraq for an area that has the potential to contain 250 million barrels of oil. In a deal the Kurdistan Regional Government, Oil Search will drill two wells to test the Shakal structure in mid-late 2008.

GE gets deal to supply Iraq gas-powered generators (14/05/08)

Iraq has agreed to a 179 million euro ($275 million) contract with General Electric Co to buy eight natural gas-powered generators. Most of the generators will be in Baghdad, but at least one is expected to be installed in the southern town of Najaf and one in the northern town of Taji.

Turkish company best chosen as foreign business in Iraq (16/05/08)

The public works and development administration of Iraq assessed foreign companies working in Iraq according to their business quality and their business commitments and promises. The organization chose Turkish "Veziroglu" company as the foreign firm that made the best business in Iraq. Veziroglu Company is actually fulfilling three giant projects in Iraq, including a highway project worth 170 million USD, a water project worth 200 million USD and a dam project worth 50 million USD.

Dana Gas investment to top $500mn this year (18/05/08)

UAE-based Dana Gas will boost its investment to over $500 million in projects in Northern Iraq, Egypt and the UAE this year, the company announced on Sunday. The project, which involves gas development, production, processing and pipeline construction, is the largest private sector energy project in Iraq, and is over 80% complete

Iraq to invest $6billion in railways to boost trade and tourism (19/05/08)

Iraq will spend over $6 billion over the next few years to develop its railway infrastructure for passenger and freight services, connecting the whole country via a central hub encircling Baghdad according to the general director of the Iraqi Railroads Company.

Connecting Iraq to the telecommunications world (20/05/08)

"The Center will allow Iraq to connect to the world," summed up an Iraqi engineer overseeing construction at al Mamoon Exchange and Telecommunications Center in Baghdad. Currently the project is 48 percent complete and is scheduled to open at the end of this year.

Iraq to accept more companies to bid for oil deals (20/05/08)

Iraq is planning to issue a new list of pre-qualified international companies to bid for future oil and gas deals to develop the country’s fields, a spokesman for the Iraqi Oil Ministry said. The country is currently in the final stages of striking what are called Technical Services Contracts with oil majors to help boost crude oil production in the country’s largest producing fields.

Iraq aims to increase trade volume with Turkey to $5bln (25/05/08)

Iraq aims to increase the annual trade volume between itself and Turkey to $5 billion from the current level of $3 billion, Iraq trade minister Abd al-Falah al-Sudanihas stated at the third Iraq International Fair, which was organized by the Gaziantep Chamber of Industry (GSO)

Iraq starts repairing refinery pipelines to Baghdad (26/05/08)

Repair teams started working on major oil pipelines connecting Iraq’s largest refinery to Baghdad on Sunday, in a bid to help meet a domestic supply shortfall, a British official overseeing the project said. Despite having the world’s third-largest reserves of crude oil, Iraq suffers chronic fuel shortages and has been plagued by power cuts that have left some regions with less than one hour of electricity a day.

Iraq replaces southern oil chiefs in major shake-up (26/05/08)

The Iraqi government has replaced some of the top officials in state-owned oil companies in southern Iraq, tightening its grip on an industry that fuels the economy but has been outside of its direct control. The shake-up, which has largely escaped public notice, affects industries in the southern oil hub of Basra, where 30,000 government troops were deployed in March to clamp down on Shi’ite militias and criminal gangs that dominated the city.

Iraqi Minister of Electricity inspects Masaood John Brown service center in Jebel Ali (26/05/08)

The Minister of Electricity of Iraq, H.E. Dr. Kareem Waheed Hassan, accompanied by Mr. Esmat Akbd, the General Consol of the Iraqi Embassy in the UAE, has visited the Masaood John Brown service center in Jebel Ali Free Zone to inspect repairs on equipment that the company is carrying out on behalf of the Iraqi Ministry of Electricity.
Masaood John Brown is playing a central role in helping to restore a full power supply to Iraq’s capital city via its handling of repairs to the turbine and compressor rotors of a GE designed, MS9001 gas turbine.

Iraq’s inflation rate soars to 16 percent in April, blamed on rising worldwide prices (26/05/08)

Rising prices of food, energy and other commodities worldwide pushed up Iraq’s inflation rate to 16 percent in April, compared to 11 percent at the beginning of this year, the country’s central bank said Sunday.

Sweden ups security for Iraq conference (27/05/08)

The international community will meet in Stockholm on Thursday to assess the overall situation in Iraq at a conference seen as an important step toward Iraq’s long-term stability, but which is not expected to lead to any major accords.

Iran plays positive role in preparing Irap conference : Sweden (28/05/08)

Iran has played a positive role in preparations for a conference on Iraq here this week at which it was hoped US and Iranian delegates could hold bilateral talks, Swedish Foreign Minister Carl Bildt said Wednesday on the eve of the meeting.

USAID invests $3 million in Iraq’s aquaculture (28/05/08)

The United States Agency for International Development’s (USAID) Inma agribusiness program in Iraq will soon have millions of carp fingerlings ready for delivery to hundreds of fish farms across central and southern portions of the country, thanks to joint efforts with the U.S. military, the State Department, and area Iraqi farmers. Inma is Arabic for "growth."

Iraq conference opens in Sweden (29/05/08)

An international conference on Iraq aimed at assessing progress made in the war-ravaged country opened in Stockholm Thursday, amid calls from Baghdad for more help to stabilize the situation.

Delegates discuss debt and diplomacy (29/05/08)

US Secretary of State Condoleezza Rice on Thursday backed Iraqi Prime Minister Nuri al-Maliki�s appeal for his country’s debts to be cancelled while addressing a global conference in Sweden. Rice also urged the world community and especially Iraq’s Arab neighbours to re-establish diplomatic ties with Baghdad.

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