MEED Insights: Iraq Projects, H2 2018
Summary
With vast oil and gas reserves, a large well-educated workforce, and about $375bn of major projects planned or underway, there is no doubting the huge potential of the Iraq market for anybody looking for new project opportunities in the Middle East. The reality however is that the country’s vast potential has been undermined for decades by war, insurrection and sanctions, leaving it facing major political, economic and capacity challenges.
But an improvement in Iraq’s security situation following its “liberation” from the Islamic State in Iraq and Syria (Isis) in December 2017, combined with an improving economic outlook, means that Iraqis perhaps can look forward to a period of stability during which they can start rebuilding their country. These efforts have been boosted in 2018 by an increase in oil revenues from strengthening oil prices and the relaxation of production caps.
Iraq is in a far better position to benefit from the increase in oil prices than it was five years ago. Oil production capacity has risen by more than 75 per cent since 2013 to almost 4.5 million barrels a day (b/d). Additionally, a petroleum law was passed in March that will allow for better relations between the government and the foreign oil firms it relies on to develop its reserves.
Now that the Isis threat is past, vital assets are being restored and reconstruction plans put back in place. In June, the Oil Ministry announced the restarting of a strategic pipeline transporting crude from Kirkuk in the north to the capital Baghdad. The pipeline is of economic importance to Baghdad as it helps convey crude to refineries and power stations through a fixed asset, instead of the cost-intensive usage of surface transport.
A great deal of infrastructure was damaged by Isis, while ambitious infrastructure programmes were put on hold. In February, Baghdad with the World Bank presented a wish-list of $88bn of projects to investors at a reconstruction conference in Kuwait. About $30bn of pledges were received. In May, the planning ministry announced a $35bn, five-year reconstruction plan for Isis-controlled areas with EU and UN assistance.
while the economic outlook for Iraq has improved, many challenges remain that could hinder its recovery. The most pertinent is the delay in establishing a new government following elections in May. Post-election deal-making is likely to be a distraction for politicians and discussions over policies and key projects could continue to cause delays even after a coalition working majority is formed.
Reasons to Buy
Summary
With vast oil and gas reserves, a large well-educated workforce, and about $375bn of major projects planned or underway, there is no doubting the huge potential of the Iraq market for anybody looking for new project opportunities in the Middle East. The reality however is that the country’s vast potential has been undermined for decades by war, insurrection and sanctions, leaving it facing major political, economic and capacity challenges.
But an improvement in Iraq’s security situation following its “liberation” from the Islamic State in Iraq and Syria (Isis) in December 2017, combined with an improving economic outlook, means that Iraqis perhaps can look forward to a period of stability during which they can start rebuilding their country. These efforts have been boosted in 2018 by an increase in oil revenues from strengthening oil prices and the relaxation of production caps.
Iraq is in a far better position to benefit from the increase in oil prices than it was five years ago. Oil production capacity has risen by more than 75 per cent since 2013 to almost 4.5 million barrels a day (b/d). Additionally, a petroleum law was passed in March that will allow for better relations between the government and the foreign oil firms it relies on to develop its reserves.
Now that the Isis threat is past, vital assets are being restored and reconstruction plans put back in place. In June, the Oil Ministry announced the restarting of a strategic pipeline transporting crude from Kirkuk in the north to the capital Baghdad. The pipeline is of economic importance to Baghdad as it helps convey crude to refineries and power stations through a fixed asset, instead of the cost-intensive usage of surface transport.
A great deal of infrastructure was damaged by Isis, while ambitious infrastructure programmes were put on hold. In February, Baghdad with the World Bank presented a wish-list of $88bn of projects to investors at a reconstruction conference in Kuwait. About $30bn of pledges were received. In May, the planning ministry announced a $35bn, five-year reconstruction plan for Isis-controlled areas with EU and UN assistance.
while the economic outlook for Iraq has improved, many challenges remain that could hinder its recovery. The most pertinent is the delay in establishing a new government following elections in May. Post-election deal-making is likely to be a distraction for politicians and discussions over policies and key projects could continue to cause delays even after a coalition working majority is formed.
Reasons to Buy
- Opportunities and challenges in the IRAQ’s projects market
- Analysis of the pipeline of planned projects and contract awards 2018-2022
- Key policies and drivers shaping the outlook for projects in the IRAQ
- Political and economic background
- The barriers and challenges that may arise
- Sector-by-sector breakdown of future project plans
- Key drivers of projects in each sector
- The IRAQ’s most valuable key projects and major project sponsors.
Table of Contents
Executive SummaryIraq Country Overview
Iraq Projects Market
Oil & Gas
Construction
Transport
Industrial
Power & Water
List of Tables
Table 1: Iraq economic indicators, 2018
Table 2: Biggest megaprojects under construction in Iraq
Table 3: Major projects to be tendered in 2018/19
Table 4: Biggest oil and gas megaprojects under construction in Iraq
Table 5: Major oil and gas projects to be tendered in 2018/19
Table 6: Biggest construction megaprojects under construction in Iraq
Table 7: Major construction projects to be tendered in 2018/19
Table 8: Biggest transport megaprojects under construction in Iraq
Table 9: Major transport projects to be tendered in 2018/19
Table 10: Biggest industrial megaprojects under construction in Iraq
Table 11: Major industrial projects to be tendered in 2018/19
Table 12: Biggest power and water megaprojects under construction in Iraq
Table 13: Major power and water projects to be tendered in 2018/19
List of Figures
Fig. 1: Iraq country map
Fig. 2: GDP by sector, 2017(%)
Fig. 3: Nominal GDP ($bn) versus annual real GDP growth (%)
Fig. 4: Iraq’s current account balance, 2014-2020
Fig. 5: Iraq budget, 2009-2018 (IQD bn)
Fig. 6: Gross Official Reserves, 2014-2019 ($bn)
Fig. 7: Iraq Gross Government Debt, 2014-2020
Fig. 8: Value of all projects planned or underway ($m)
Fig. 9: Projects market, by project status ($m)
Fig. 10: Projects market, by sector (%)
Fig. 11: Value of contract awards by year ($m)
Fig. 12: Value of contract awards by year and sector ($m)
Fig. 13: Biggest clients in Iraq by contracts in execution ($m)
Fig. 14: Biggest contractors in Iraq by contracts in execution ($m)
Fig. 15: Projects planned but unawarded, by status ($m)
Fig. 16: Projects planned but unawarded, by sector ($m)
Fig. 17: Iraq project contract award forecast, 2018-2022 ($m)
Fig. 18: Oil and Gas Projects market, by project status ($m)
Fig. 19: Oil and Gas Projects market, by sub-sector (%)
Fig. 20: Value of contract awards by year ($m)
Fig. 21: Value of contract awards by year and sub-sector ($m)
Fig. 22: Biggest clients in Iraq in oil and gas sector by contracts in execution ($m)
Fig. 23: Biggest contractors in Iraq in oil and gas sector by contracts in execution ($m)
Fig. 24: Projects planned but unawarded, by status ($m)
Fig. 25: Projects planned but unawarded, by sub-sector ($m)
Fig. 26: Construction Projects market, by project status ($m)
Fig. 27: Construction Projects market, by sub-sector (%)
Fig. 28: Value of contract awards by year ($m)
Fig. 29: Value of contract awards by year and sub-sector ($m)
Fig. 30: Biggest clients in Iraq in construction sector by contracts in execution ($m)
Fig. 31: Biggest contractors in Iraq in construction sector by contracts in execution ($m)
Fig. 32: Projects planned but unawarded, by status ($m)
Fig. 33: Projects planned but unawarded, by sub-sector ($m)
Fig. 34: Transport Projects market, by project status ($m)
Fig. 35: Transport Projects market, by sub-sector (%)
Fig. 36: Value of contract awards by year ($m)
Fig. 37: Value of contract awards by year and sub-sector ($m)
Fig. 38: Biggest clients in Iraq in transport sector by contracts in execution ($m)
Fig. 39: Biggest contractors in Iraqin transport sector by contracts in execution ($m)
Fig. 40: Projects planned but unawarded, by status ($m)
Fig. 41: Projects planned but unawarded, by sub-sector ($m)
Fig. 42: Industrial Projects market, by project status ($m)
Fig. 43: Industrial Projects market, by sub-sector (%)
Fig. 44: Value of contract awards by year ($m)
Fig. 45: Value of contract awards by year and sub-sector ($m)
Fig. 46: Biggest clients in Iraq industrial sector by contracts in execution ($m)
Fig. 47: Biggest contractors in Iraq industrial sector by contracts in execution ($m)
Fig. 48: Power and water Projects market, by project status ($m)
Fig. 49: Power and water Projects market, by sub-sector (%)
Fig. 50: Value of contract awards by year ($m)
Fig. 51: Value of contract awards by year and sub-sector ($m)
Fig. 52: Biggest clients in Iraq in power and water sector by contracts in execution ($m)
Fig. 53: Biggest contractors in Iraq in power and water sector by contracts in execution ($m)
Fig. 54: Projects planned but unawarded, by status ($m)
Fig. 55: Projects planned but unawarded, by sub-sector ($m)
