UK Trade and Investment (UKTI) exists to promote UK export business throughout the world while also encouraging high levels of foreign direct investment in the United Kingdom. It operates successfully by using its network of contacts, which are spread across almost 100 overseas markets.
UK Business Secretary Vince Cable said, “UK Trade and Investment has an impressive track record of helping UK firms to work out export strategies, identify opportunities and make international business happen.”
Commercial Opportunities in Jordan and Iraq
Despite continuing lethargic economic growth and volatile domestic security conditions in many parts of the Middle East, UKTI firmly believes that there are business opportunities for UK companies in both Jordan and Iraq.To this end they are organising a trade mission, with a focus on construction and infrastructure, to Amman Jordan in October 2011.
Since the war in neighbouring Iraq and the continuing difficulties in doing business there, the Amman mission will also be an occasion for UK executives to discuss potential opportunities in Iraq with the many senior Iraqi businessmen who have made Amman their commercial headquarters and meeting point for discussions with overseas companies. Alongside the corporate high-flyers there are also estimated to be around 450,000 Iraqi nationals based in the Jordanian capital. For those considering investment in Iraq it's the place to be.
UKTI, while acknowledging that King Abdullah must be proactive in creating better social and economic conditions, is keen to stress Jordan’s relative stability, in comparison to other Near Eastern and North African Arab countries. Jordan’s current application to join the Gulf Cooperation Council (GCC) is seen as a positive step in that process.
The World Bank, in its Proposed Assistance Strategy in Jordan for 2011 - 2014, acknowledge that Jordan continues to be relatively stable but posts a reminder that, “it is sensitive to the economic and political volatility of the region.” The World Bank report continues by emphasising that, “in an effort to minimise the burden on the budget, the government [Jordanian] is looking to leverage private capital for investment in key infrastructure and higher value-added activities.” UKTI and the companies hoping to operate in Jordan will welcome this.
Ease of Doing Business in Jordan
Jordan is ranked number 111 (of 183) in the World Bank’s Doing Business Economy Rankings a position which is calculated using a number of criteria, including: Starting a Business, Dealing with Construction Permits, Getting Credit and Paying Taxes.
Investment in Iraq
Iraq lies at number 166, only one place ahead of Afghanistan, in the World Bank’s Doing Business Economy Rankings, flagging up the much more difficult conditions faced by British companies.
While security in Iraq remains the overriding concern, the World Bank has acknowledged that conducting business there has become easier although to a lesser extent than Jordan and much less for example than Saudi Arabia which leads the region’s, Doing Business has Become Easier rankings.
UKTI highlight some specific construction-orientated opportunities in the country. For example one million housing units are planned throughout Iraq (excluding Kurdistan) and the building and maintenance of a number of sewage plants is another of the potential business ventures available to British companies.
So who might benefit from this trade mission? UKTI say, “construction and infrastructure companies looking to raise their profile, advance into new markets with interest to explore the Jordanian and Iraqi markets and generate sales leads.”
Sources:
The World Bank, Overview of the World Bank Group’s Proposed Assistance in Jordan For 2011-2014, site accessed 28 August 2011
The World Bank, Doing Business, Economy Rankings, site accessed 28 August 2011-08-28
The World Bank, Doing Business 2011 – Iraq, site accessed 28 August 2011
UKTI, Overseas Business Risk – Jordan, site accessed 28 August 2011
UKTI, Jordan/Iraq – Outward Trade Mission (construction), site accessed 28 August 2011
