Real estate development and investment opportunities in iraq cityscape 2012

MEED Events

REPUBLIC OF IRAQMinistry Of Construction & Housing

CityscapeDubai

02- 04 October 2012

• Housing units

• Public Buildings

• Roads and Bridges

• State owned companies / contracting

• Design & Consultancy Centres

• Laboratories and Research Centres

Duties and responsibilities


GovernmentPrivate sector

P. ResourcesLoans

Budget

Funds

Banks

S.O.EP. SectorCompanie

s

Housing Fund

Ministries

Investment commissio

n

Housing Providers


Localgovernments

MOCH

Other Organisations

61 continuous Projects

10 new projects Every year

(Ave.600units each )2 Billion $

Budget

7000 units for MoCH staff

Oil contracts

Low cost Housing50000-60000 units

2 Billion$

2012 – 20152012 – 2015

Investment

Total Cost3 Billion $

Housing ProjectHousing Project


HOUSING FUND Capital of 300M$ ( to be increased to 1 Billion $ by 2016(Housing Fund Legislation 2011))

1- 50% Mortgage system •Max. of $30,000•New construction or Extensions only•Management fees of 2%•Repayment period of 25 year


2- 50% investment in Housing project

• Housing projects only:• up to 50% of project value • Finance start after 25% of work program • Partnership (% of profit) • Risk assessment

TWO WAY Partnership with Housing Fund

- Private sector to use Housing Fund money in Housing projects - Private sector to invest their money in Housing Fund (increase

investment capital).


االنبارصفر= المنجزة

= مجمع التنفيذ قيدمجمع4

صفر = نينوى المنجزة=مجمع التنفيذ 3قيداالحالة =مجمع 2قيدمجمع

المثنىصفر= منجزة

=مجمع التنفيذ 3قيدمجمع

النجف المنجزة = االشرف

قيد مجمع1مجم1التنفيذ=ع

البصرةصفر= المنجزة

5قيدالتنفيذ =مجمع= مجمع االحالة 2قيدمجمع

المنجزة= ميسان= صفرمجمع التنفيذ 2قيد

االحالة = مجمع 2قيدمجمع

المنجزة واسطقيد صفرمجمع=

مجم3التنفيذ=ع

م2قيداالحالة=جمع

صفر= ديالى المنجزةقيد مجمع

االحالة = مجمع2التنفيذ= 1قيدمجمع

كركوك 2المنجزه = = التنفيذقيد مجمعصفر

الدين صالحصفر = المنجزة

قيد مجمعمجمع3التنفيذ=

كربالء 1المنجزة= المقدسة

=مجمع التنفيذ 2قيدمجمع

بابل 1المنجزة=2قيدالتنفيذ=مجمعمجمع

قار صفرم=ذي المنجزةقيد جمع

= مجمع3التنفيذ= االحالة قيدمجمع1

بغداد 3المنجزة =قيدالتنفيذ مجمع

صفر=

صفر= الديوانية المنجزة=مجمع التنفيذ 3قيداالحالة مجمع قيد

مجمع1=

توزيع المشاريع االسكانية

في محافظات

العراق

الكلي والمجم ع 65للمشاريع =

مجمع


Typical Housing Projects Prices

wasit

misan

basra

najaf

karb

ela

diwan

ia

semaw

athiqar

babylo

n

ninawa

kirku

k

salah

aldin

dyala

baghdad

anbar

0

50

100

150

200

250

300

185 185

235250

275

150

175165

190

160 160

190

150

240

160

city

Iraq National Housing Policy


1) Land Management• infrastructure expansion in peri-urban areas• create capital from land sale• integrate the urban and peri- urban areas• Electronic land registry• land stamp duty and tax capitation• prepare and provide land in different scales

2) Housing Production• restructuring of Enterprises (public) and encourage affordable housing• integration and partnership of public and private companies• Introduce different designs

3) Housing Finance• Different Housing sources and housing bank to be a secondary source• Support for families with low income• Housing Fund Law

Iraq National Housing Policy


4) Infrastructure for Housing• Improve management•Encourage private sector

5) Housing Management and Maintenance• introduce min. standard• Review of policies for multi families housing• Protection of historical places

6) Housing Construction Materials• facilitate funds for materials producers• Encourage PPP• Encourage local products• Improve quality control

7) Informal Housing• Proper survey and introduce appropriate measures• Fair re-housing

HighTech.

Machine &

Factories

H.Res

L.Mark.

Land&

Loc.

Gov.support

Evaluation

Super Business

OpportunityP.P.P

MoCH companies

Public Private PartnershipPublic Private Partnership

P M Office&

W. B.


State Owned CompaniesREPUBLIC OF IRAQ

Ministry Of Construction & Housing

• Building ( Al Fao )

• Roads ( Ashor - Hamoraby)

• Bridges ( Al Mutasim)

• Infrastructure( Al Farooq )

• Construction Material prod.(Al Rasheed)

• Property Development (Al Mansor )

• Oil upstream services ( Saad )

• Upgrade, expand, and rehabilitate production facilities• Introduce new products• Develop sales and marketing skills • Build capabilities to assess market needs, develop pricing strategy...• Upgrade technical and R&D capabilities• Resize labour force and introduce systematic training• Improve quality control systems• Introduce modern accounting processes and systems

S.O.E needs:S.O.E needs:

• Government support• Assets (land and machineries) • Local market knowledge• Human resources

• Government support• Assets (land and machineries) • Local market knowledge• Human resources

What S.O.E Offer ?



Partnership Methodologies:

• Legislation No. 22 1997 Public 51% min Private 49% max Governmental companies law applies

• Legislation No. 21 1997 Public 24% max Private 76% min Private companies law applies

REPUBLIC OF IRAQMinistry Of Construction & HousingPilot SOE

McKinsey & com. findings

Annual Con. Output


Potential partner will provide:

• Technology (New precast factors)• Technical Knowledge (Improve marketing abilities)• Operational System (Finance, management)• Capital investing (Production lines and equipments)

- No loans - No financial commitments (loans ,bounds guarantees) - No legal disputes - No masked Unemployment

- No loans - No financial commitments (loans ,bounds guarantees) - No legal disputes - No masked Unemployment

Potential Partner wishes a trouble free company:

17

Iraq’s 2010 GDP is expected to double in 2013

165.026.7%

2012

144

2011

115

2010

81

2013

Source: IMF

Iraq GDP (IMF)

US$ billionsNominal dollars

CAGR%






- Direct Investment - Partnership (Housing Fund/ S.O.C) - Deferred payment (Grace Period) - Oil Investment Contract

Your questions and suggestions

P.P.P

Possible Economical Models

Real Estate

Real estate development and investment opportunities in iraq cityscape 2012