NATIONAL INVESTMENT COMMISSION LOOKING FOR

C O N F I D E N T I A L BAGHDAD 002440

SIPDIS

E.O. 12958: DECL: 08/03/2015
TAGS: ECON EINV EFIN
SUBJECT: NATIONAL INVESTMENT COMMISSION LOOKING FOR
EUROPEAN AND REGIONAL INVESTORS

REF: A. BERLIN 1044

B. BERLIN 1001

Classified By: Economic Counselor Todd P. Schwartz for reasons 1.4 (b)
and (d).


1. (C) SUMMARY: Although still not officially confirmed in
his position, National Investment Commission (NIC)
Chairman-designate Ridha continues to court European and
regional investors and insists that he enjoys the PM's full
confidence. End Summary.


2. (SBU) Presumptive NIC Chairman Ahmed Ridha met with
EconCouns and Econoff August 3 at his request. He was eager
to brief us on his recent trip to Europe, where he emphasized
to senior German and Italian trade officials that Iraq "has
changed from a centralized socialist regime to a true market
economy." As security continues to improve, Ridha told the
Europeans, the NIC wants to help the European business access
not just 28 million Iraqi consumers, but also the 200 million
in the wider region. Although none of the investors he met
were prepared to commit at this point, Ridha will seek to
return soon to Europe with a delegation of Iraqi business
leaders who can discuss medium- to longer-term investment
possibilities.


3. (SBU) Closer to home, Ridha described his efforts to
attract regional interest more immediate investment
opportunities. He plans a visit this month to Lebanon, where
there is apparently significant interest in investing in
Iraq's hotel sector, and he also suggested that Emirati and
Kuwaiti investors have expressed an interest in investing in
the hotel, housing and transportation infrastructure sectors.
In response to our questions, Ridha also noted that the NIC
must seek to encourage "legitimate" Iranian investment, both
for economic reasons and because increased business contacts
will help encourage Tehran to foster, rather than undermine,
Iraqi security. EconCouns also suggested that the NIC begin
thinking about engaging actively in seeking to attract
international development planners to partner with Iraqi
construction companies in promoting rapid development in the
housing sector. Ridha noted the hurdles in this area,
including land registration issues, but fully agreed that
promoting investment of this nature would do much to improve
the lives of Iraqis.


4. (C) Comment: Ridha continues to talk a pro-active line.
However, his effectiveness -- particularly in terms of
pushing forward implementing regulations for the new
investment law and other enabling legislation -- remains
hampered because the Council of Representatives has shown
little interest in confirming him as NIC Chairman, and has
made little effort to do so. He assured us that he enjoys PM
Maliki's full confidence, and that he will continue to work
with foreign investors as if he were confirmed. Post will
transmit a comprehensive review of recent investment-related
activity septel.
CROCKER