Since the overthrow of Saddam Iraq has seen quite a dramatical improvement in the state of its economic conditions and that of the oil sector as well.
The new administration inherited a debt-laden country with high unemployment, ailing trade sector and almost paralysed state owned industries and a service sector, which is almost non-existence.
Over the past years Iraq went through a huge challenge with constantly quarrelling politicians with opposing agendas, terrorism was at its highest point in the Middle East, disgruntled neighbouring countries bent on keeping Iraq unstable and turbulent, added to that crime levels unseen before in the country.
The government and US authority realised that before you start kick starting the economic regeneration security must be the number one issue to tackle and any sign of lawlessness and militia controls must be eliminated in Iraq if we to have a civil country.
In today’s Iraq the security situation has led to flourishing businesses; a boom in building and reconstruction, more confidence and can forecasted that a growth in Iraq will continue for the next 10-15 years. Iraq has seen 10% growth in 2008 compared with 1.5% in 2007.
Unemployment has gone down from 50% to 15.5% and Iraq is on target to bring it down to less than 5% by end of 2009. Already employers have reported some shortages of workers and skilled staff.
Iraq inflation figures stands at 7.6% which is lower than that in regional countries such as Iran, Turkey, UAE, Egypt & Syria, which averages 10%.
Iraq’s bank reserve on the other hand stood at $40 billion dollars cash surplus, which was not affected by the world financial turbulence due the bank chiefs policy which is not in favour of investing in foreign financial markets.
Average oil outputs in Iraq has gone up from 2 Million barrels a day to 2.4 Million barrels in 2008 (generating 65 Billion Dollars) out of which 1.8 Million barrels are exported and 600 thousands barrels are refined through Iraq refineries.
Iraq is also boosting its refining capacity based on European standards and will be producing unleaded petrol and adding 140,000 barrels a day in Doura refinery and 70,000 in Shouaiba Refinery with new refineries planned in Nasiria (300,000 and Karbala 150,000, Karkuk 150,000 and Emara 150,000).
Iraq decision to increase its Gasoline products prices in line with regional countries has resulted in the government reducing its imports of white oil from neighbouring countries from a massive $3.5 Billion dollars in 2005/06 to $300 million Dollars in 2008. The smuggling of Iraqi refined products to Kuwait, UAE, Syria, Jordan, Turkey and Iran has virtually ceased.
The Oil ministry has been working on developing Iraq production capacity and entering in Service Agreements with International Oil companies to maintain the level of productions and offering them an incentive for increasing the output.
In the second round in December 2008, 35 companies were shortlisted for licensing agreements to work on the world largest oil reserves in Iraq.
Iraq Oil drilling company have bought 20 drilling machines and put orders for more to come on line. Iraq is working to achieve 5 Million barrels a day by 2011.
The future for Iraq new generation will be brighter and more promising.
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