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| (Photo: NCH) |
Doing
business in Iraq? The time seems ripe now that normality is returning to more
and more places there. A Dutch trade mission left on Saturday to promote one of
Holland’s best-known export products: water management.
“Iraq may
not be the first country an entrepreneur would think of doing business with,”
says Dutch Finance Minister Maxime Verhagen. “The country does, however, have
the potential to become a big economic player in the Middle East. And for Dutch
companies there are opportunities in many fields and areas. Water is just one
of them.”
Test case
The Dutch
trade mission will no doubt serve as a test case for Mr Verhagen’s statement.
More importantly, it will be able to gauge Iraq’s current investment climate.
Experts think Iraq offers many opportunities in the field of water management.
There is a big demand for the construction of new dams and dykes, the
construction and maintenance of irrigation channels, water purification and
other forms of water management.
The mission
is being led by the new Dutch ambassador to Iraq, Jeroen Roodenburg, and
includes representatives of seven Dutch companies that specialise in water
management.
Exploring
the market
After landing
in Baghdad, the delegation will spend three days in Basra, in the south of the
country. Some delegates will stay on to explore the market on their own and
establish contacts with the central government regarding future projects.
Sander
Pielkenrood, the head of family firm that specialises in water treatment, says
the trade mission comes at a good time.
“Due to the
international crisis the markets in Western Europe and the United States are
under a lot of pressure. So it is a good idea to explore the possibilities in
new, emerging markets such as Iraq. In addition, competition in Iraqi market is
fairly limited still, which makes it easier to secure contracts.”
Investment
climate
Another
company that is part of the mission is Libitco, which makes water treatment
plants and synthetic pipes for oil, gas and water transportation. The head of
the company, Guus van Bilsen, sees plenty of opportunities for Dutch companies
in Iraq, which he says is keen to take steps to take charge of its own
development.
“Iraq is a
country with an enormous investment climate, both in the oil and gas industry
as in everything related to drinking water and water purification. Plus there
are lots of opportunities in farming. Currently the country has to import a
great deal of food, especially from Turkey and Syria, and now Iraq is eager to
produce its own food.”
Not a
school trip
The
situation in Iraq may be more stable but the mission is not a school trip
either. There is still a lot of violence, and though it’s not aimed at
foreigners, the Dutch government discourages all non-essential travel to Iraq.
The mission’s delegates are all travelling at their own peril without any
special security measures.
“We are not
being escorted by cars with men carrying heavy machine guns. It’s a low-profile
mission. We are not driving through the town with flashing lights. We’ll be
picked up at the airport and spend the rest of the day visiting several
official bodies.”
Networking
There are
no expectations among the mission of actually signing any contracts. Sander
Pielkenrood says the mission will have succeeded if it allows him just to chart
the Iraqi market. The mission’s main aim is to gather information and make
contacts.
He more
than anyone knows how long it takes before a contract is signed because his
company is already involved in a project in Iraq. “In our line of work between
the offer and the actual contract often a year goes by, and sometimes it takes
two years or even longer. They are all unique projects, tailored to the
client’s needs. So striking a deal overnight—no that’s very likely.”
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