Investing in Iraq: a frontier too far? | beyondbrics

Investing in Iraq: a frontier too far? | beyondbrics:



"

There are frontier investment markets, and then there is Iraq. Bombings and fighting killed at least 42 people on Thursday alone, in nine or more separate explosions from Baghdad to Fallujah; yet so commonplace is the violence that the news merited few headlines. After all, at least 24 had died in explosions the previous day.



Yet despite the violence and uncertainty, fund managers and bankers are venturing in to the country, attracted by oil wealth and a surprisingly upbeat outlook for national GDP growth.



On Friday FMG, an emerging market and frontier research group, put out an investment report on Iraq, arguing that: “There is another more promising side to Iraq.”



In the past decade, the report notes, Iraq has tripled its oil production, posted GDP annual growth rates of around 10 per cent, and seen the market capitalisation of its stock exchange almost triple in three years."



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