Month: February 2020

Duhok will soon have its first solar energy park in a major step towards becoming a low-carbon governorate, setting an example on sustainable renewable energy to follow in Iraq.

On 04 February 2020, the United Nations Development Programme (UNDP) signed a letter of agreement with the Governorate of Duhok to establish a pilot solar park that will provide a minimum of two megawatts of electricity within two years.

The European Union (EU) provided US$2 million of funding for this project under the UNDP programme “Supporting Recovery and Stability in Iraq through Local Development.”

Governor of Duhok, Mr. Farhad Atrushi, said:

“Our commitment to take climate action, deliver affordable, clean energy to the citizens and address electricity shortages remains as strong as ever. Under the Duhok Sustainable Energy Action Plan (SEAP), we pledged to reduce greenhouse gas emissions by 2030.

“Establishing the first solar park in Duhok will contribute to achieving this goal and meet the needs of the market. We are grateful to the EU and UNDP for helping to make this happen. We look forward to purposeful partnerships with the private sector for green energy for present and future generations.”

Duhok experiences serious deficits in electricity and has over 1000 electricity generators that are causing chronic air and noise pollution. According to the Sustainable Energy Action Plan that was developed under the Local Area Development Programme (LADP II), Duhok foresees the installation of solar parks to provide up to 40 megawatts of clean electricity by 2030.

Head of the EU Delegation to the Republic of Iraq, H.E. Ambassador Martin Huth, said:

“This intervention will not only improve access to energy for the population in Duhok Governorate but will also ensure that this energy is green. In Europe, we are strongly determined to tackle climate change and succeed in our recently launched green deal, becoming the world’s first climate-neutral continent by 2050. And I am delighted that we are able to support KRI in its own sustainable energy deal”.

Resident Representative of UNDP Iraq, Ms. Zena Ali-Ahmad, said:

“We are encouraged by the Governorate of Duhok’s commitment to reducing its carbon footprint and providing green energy to its citizens. Establishing a solar park will stimulate the economy through private sector investments, create more jobs in green economy, and above all reduce pollution. The project will represent the first introduction of solar energy supply on such a scale in Iraq.”

The programme Supporting Recovery and Stability in Iraq through Local Development aims at contributing to the stability and socio-economic development of Iraq by enhancing democratic governance at the local level. It is working to improve the ability of selected governorates to efficiently manage local government and public services.

Economic growth and job creation are prioritized, with a focus on green projects, involving youth and women, in addition to enhancing the living conditions of returnees and in conflict affected areas.

Source:https://www.iraq-businessnews.com/2020/02/06/duhok-to-establish-first-solar-energy-park/

2019 showed an exciting development for Iraq’s entrepreneurial ecosystem: the investments in two Iraqi tech startups – e-commerce company Miswag, which received investment from Iraq Tech Ventures, and Lezzoo, the first Iraqi startup to join Silicon Valley’s premier accelerator Y Combinator.

In October 2019 Five One Labs hosted its second delegation of regional and international investors to the Kurdistan Region to expand understanding of the Iraqi business environment and startup ecosystem; to build bridges between international and Iraq business communities; and to expose local entrepreneurs to global best practices.

Through conversations with both early- and growth-stage entrepreneurs and discussions with local businesses and government representatives, the group of 17 investors received first-hand information about the business environment and entrepreneurship ecosystem on the ground in Iraq.

We spoke with the investors from the trip and had conversations with Yadgar Merani, co-founder of Lezzoo, and Laura Olivier, Executive Director of Iraq Tech Ventures, to dive into key challenges and opportunities for investment in Iraq, from the investor and entrepreneur perspectives.

Iraq’s lack of market data and challenging regulatory environment make it hard for investors and entrepreneurs to agree on the level of risk and opportunity.

According to Merani, one of the main challenges Lezzoo faced when speaking to investors outside of Iraq was convincing them of the country’s market size and providing them with accurate answers to specific market-sizing questions. Obtaining accurate estimates of the market is of course important for investors as it impacts projections of cash flow and potential valuation.

While data on numbers of pharmacies or schools, for example, are publicly available in other countries, the lack of easily-accessible market data and the reluctance of certain government ministries to provide this data has forced entrepreneurs in Iraq to rely on assumptions when sizing the market. Merani says that while Lezzoo tried to gather this information from various ministries, the team was often told that the information Lezzoo was seeking was either unavailable or confidential.

Additionally, the lack of general understanding of the Iraqi market and the risks of investing in a post-conflict environment mean that entrepreneurs may need to provide potential investors with additional information — and this is a point that has been expressed by a number of Iraqi startups seeking to raise their seed rounds. Merani said that on multiple occasions when trying to raise funds in the US, he was repeatedly asked questions like, “What happens if the internet goes out in the whole country? What would you do?” And this uncertainty or concern over volatility in Iraq may result in lower valuations for startups.

This added scrutiny also extends to the investment itself. The syndicate of investors that invested in Miswag’s seed round (four angel investors and one institutional investor) experienced legal challenges from the outset. When trying to create a special purpose vehicle (SPV) for Miswag in the financial free zone Abu Dhabi Global Market (ADGM), ADGM repeatedly asked for more documentation given the startup was incorporated in Iraq. After several months, the investors eventually decided to invest directly into Miswag’s bank accounts in Iraq rather than through this SPV.

Olivier of Iraq Tech Ventures also mentioned another challenge:

“One difficulty we experienced recently was that many of the investors’ transfers were heavily delayed due to banks needing extra documentation due to the scrutiny that goes into processing transfers to Iraq.”

However, local and regional investors are willing to put in the work, and entrepreneurs are rising to the challenge.

One of the Five One Labs investor trip participants, Anas Elayyan, said:

“Since inception, iMENA Group has been on the lookout for extraordinary founders and startups operating in under-served markets. The new wave of founders and entrepreneurs that we met in Iraq in the last few months are the real assets for Iraq’s future. Those entrepreneurs have been hustling in the system to mark a new digital era for Iraq. We, at iMENA Group, are very excited to be part of that era.”

For Miswag, the success of the syndicate’s investment can likely be attributed in part to the fact that the investors were familiar with the market. Four of the five investors were Iraqis who work in Iraq but live outside of the country. Because of their knowledge of the operating environment, they were willing to invest directly rather than establishing an offshore entity.

Both on the investor and entrepreneur side, there are key innovators who are willing to take higher risks in order to show that high-growth startups can be built and grown in Iraq. “There are so many opportunities for entrepreneurs in Iraq to take the lead,” Merani says, “because Iraq needs so much.”

Looking ahead to 2020, we look forward to seeing more investments in Iraq’s tech startups and to welcoming another delegation of international investors to the Kurdistan Region later this year.

Source:https://www.iraq-businessnews.com/2020/02/06/investing-in-iraq-lessons-learned-from-2-startups/

On Wednesday, 5 February, Christophe Michels, Managing Director, Iraq Britain Business Council (IBBC) and Rasmi Al Jabri, Deputy Chairman, IBBC met with Dr Salar Ameen Acting Chairman of National Investment Commission (NIC).

They discussed the longstanding cooperation between the NIC and IBBC and how to deepen it and made plans for a joint Baghdad conference to be held as soon as a new Government is formed.

Later, Mohanad Al Khattab, Baghdad Office Manager, accompanied them to the British Embassy where they met with John Tucknott the Deputy British Ambassador to Iraq. Beverly Simpson, Director DIT Iraq also attended the meeting. They spoke about the present situation in Iraq and how it affected the business environment and discussed how best to work together in Iraq and in the UK in the month ahead.

In addition to the meetings IBBC held a dinner for its members and guests at the Babylon Hotel in Baghdad on 5th February. The dinner was hosted by Rasmi Al Jabri, Deputy Chairman of IBBC and Christophe Michels, Managing Director of IBBC.

Rasmi Al Jabri gave an opening speech welcoming everyone and spoke about IBBC’s activities in Iraq and UK. The dinner also attended by Dr Salar Ameen, Chairman of the National Investment Commission, H.E. Dr Luay Al Khateeb, Minister of Electricity, Mr Abdul Aziz Shwan A Ahmed, Chief of Staff of DPM Dr Fouad Hussein and Mr Abdulrazzaq Al-Zuhairi, Chairman of the Iraqi Federation of Chambers of Commerce. IBBC member companies in attendance included Al-Burhan Group, Al-Maseer, ENKA, Eversheds Sutherland, G4S, GE, HHP Law, International Islamic Bank, KPMG, Management Partners, Serco Middle East, Shell, Siemens Iraq, SKA International, Standard Chartered Bank and TurnKey LLC.

The evening’s sponsor was Sardar Trading Agencies who displayed their new Range Rover Mild Hybrid Car, Model Year 2020.

The next day the IBBC team visited the offices of International Islamic Bank, HHP Law and Serco at Baghdad air traffic control.

Source:https://www.iraq-businessnews.com/2020/02/07/ibbc-meetings-and-dinner-in-baghdad/

According to the Q3 2019 Bahrain Economic Quarterly report from the Ministry of Finance and National Economy, the private sector grew by 1.6 percent in the third quarter of 2019 from a (revised) 0.3 percent in Q2, while the oil sector contracted by 0.1 percent as production held steady.

The transportation and communication sector, supported by Gulf Air’s route expansion, led growth at 6.4 percent year on year (YoY). The hotels and restaurants sector also grew strongly at 6.3 percent YoY, as did the manufacturing sector at 4.1 percent YoY, bolstered by the launch of Alba’s Line 6.

The report also revealed that the total number of visitors arriving through Bahrain’s International Airport saw a 2.9 percent increase to just over 800,000, while the occupancy rate at 5 and 4 star hotels reached 51 percent and 48 percent, respectively. The average number of stay nights rose to 63 percent.

In terms of infrastructure investments, in Q3 Bahrain welcomed the launch of a national broadband network ‘BNET’, the signing of a $2.9 billion contract with Saudi Arabia for the transitional phase of the King Hamad Causeway, as well as the approval of electricity and water network expansion projects valued at $1.6bn.

The report also highlights the progress made by Bahrain towards accelerating investment-driven development, as outlined in the World Bank’s Doing Business 2020 report, which placed the kingdom among the top 10 improvers globally and second among the Arab states – advancing 19 places to 43rd out of 190 economies.

Additionally, Bahrain was ranked 45th out of 189 countries in the Human Development Index (HDI) in the Human Development Report 2019. The country also improved five spots and ranked 45th out of 141 countries in The Global Competitiveness Report 2019.

Source:https://www.arabianbusiness.com/politics-economics/436942-bahrain-reveals-16-economic-growth-in-q3-2019

Bahrain Fintech Bay (BFB) on Tuesday announced changes to its leadership team, with Khalid Dannish being promoted to the role of CEO, effective from February 1.

The appointment follows the departure of founding CEO Khalid Saad who will be leaving to pursue his own Fintech ventures that aim to further support the ecosystem, a statement said.

Since its launch in February 2018, Bahrain Fintech Bay has brought together over 100 partners and is home to 42 Fintech residents and established a national Fintech talent program, as well as its first acceleration program.

Dannish said: “I have had the privilege to be a part of Bahrain Fintech Bay from our launch, and I am delighted to be given the opportunity to lead the next phase of growth and strengthen our value proposition to our partners, fintechs and the region.

“Together with the Economic Development Board and our founding partners we have built a truly impactful and innovation-led platform to position Bahrain for years to come.”

Khalid Humaidan, chairman of Bahrain Fintech Bay, added: “I would like to thank Khalid Saad for leading Bahrain FinTech Bay since its inception and we wish him all the best in his endeavors. Furthermore, I look forward to working with Khalid Dannish to take this important national initiative forward and strengthen Bahrain’s leadership in Fintech.”

Prior to Bahrain Fintech Bay, Dannish was a vice president at JP Morgan in London.

Bahrain Fintech Bay provides a physical hub to incubate scalable Fintech initiatives through innovation labs, acceleration programmes, curated activities, educational opportunities and collaborative platforms.

Source:https://www.arabianbusiness.com/banking-finance/438787-bahrain-fintech-bay-announces-new-ceo

Construction work on the multi-billion dollar expansion project at Bahrain Petroleum Company (Bapco)’s Sitra oil refinery has reached 40 percent completion and is set to be commissioned by 2022, Bahrain’s Minister of Oil told Arabian Business’ sister website ConstructionWeekOnline in an exclusive interview.

HE Sheikh Mohammed Bin Khalifa Al Khalifa, said the expansion is being handled by a consortium led by Italy’s TechnipFMC, South Korea’s Samsung Engineering, and Spain’s Tecnicas Reunidas, which he described as “three major construction companies”.

Touted as the biggest industrial project in the 90-year history of Bapco, the expansion will increase the refinery’s capacity to 380,000 barrels per day (bpd).

“We’re expanding our one and only refinery, Bapco, which has been operating since 1936. This expansion is well underway, and we have reached 40 percent completion on the project already,” HE Sheikh Al Khalifa said.

The minister also revealed that the firm is working with state-of-the-art process technologies, which would allow products to be produced to market specifications.

He explains: “As of January 2020, International Maritime Organisation has implemented a law saying that all bunker fuel has to be below 0.5 percent sulphur, therefore high sulphur fuel oil is not allowed in the shipping industry.”

“People are observing how compliant shipping companies are, but so far we have seen it in the margins. The price of high sulphur fuel oil has collapsed repeatedly. If you’re not ready with producing products that are on spec, refineries will go out of business.

“This is one of the first milestones in making sure that the BAPCO refinery meets customer demands, and hopefully by 2022, we will see the commissioning of the refinery and the world wide export of its high quality products.”

Source:https://www.arabianbusiness.com/construction/438943-expansion-of-bahrains-only-oil-refinery-nears-40-completion-says-oil-minister

AMAALA, the ultra-luxury development situated along Saudi Arabia’s Red Sea coast, which is focused on integrated wellness and healthy living, has signed a partnership agreement with The Prince Albert II of Monaco Foundation, the Centre Scientifique de Monaco and Oceanographic Institute.

The VIP Signing Ceremony took place at the Oceanographic Institute on the final evening of the Monaco Yacht Show and was attended by HSH Prince Albert II of Monaco, AMAALA Chief Executive Officer Nicholas Naples, the AMAALA Advisory Board, select partners of the brand and esteemed guests. The signing was followed by a VIP dinner prepared by 3-Star Michelin Star Chef Mauro Colagreco.

This follows a framework agreement signed last year at the Monaco Yacht Show to explore areas of mutual collaboration. Together the partners will work on oceanographic and marine life research and conservation initiatives to benefit the world’s oceans with four opportunities identified for joint projects: coral reef management, iconic species protection, Marine Protected Areas (MPA) enforcement, and fighting plastic pollution.

Naples said: “We are very selective with whom we align, as is The Prince Albert II of Monaco Foundation. Their mission to raise awareness of the impact of human activities on the natural environment, encourage more environmentally-friendly behaviour, and promote innovative solutions, makes the Foundation a natural fit for AMAALA. We are committed to fully sustainable development throughout the design, build, and operation phases, which includes being net carbon neutral from the start of operations. We plan to create a coastal oasis that not only flourishes but a place that elevates the role of responsible tourism globally.”

M Bernard Fautrier, Vice President and CEO of the Prince Albert II of Monaco Foundation said: “The impact of human activities on the ocean has been devastating, and through our partnership with AMAALA, we look to come together and raise awareness of that impact, integrating environment preservation and sustainability into the heart of the future. Monaco has long-been committed to the environment, and we look forward to working alongside AMAALA to safeguard the biodiversity of the Red Sea, taking actions for future.”

Professor Patrick Rampal of Centre Scientifique de Monaco added: “We are very pleased to have entered into this partnership with AMAALA, which will allow us to pursue innovative areas of research in a previously undiscovered location. This project will allow us to, collaboratively, better understand the biology of corals in order to better protect their ecosystems. The Red Sea corals offer exceptional characteristics, in particular their resistance to environmental stresses, which will be interesting to explore with Saudi researchers.”

This event marks the first partnership for AMAALA which is anchored around the three pillars of wellness and sports, art and culture, and sun, sea, and lifestyle. The destination of AMAALA, referenced by the press as part of the Riviera of the Middle East, is dedicated to sustainable building practices, with environment preservation and enhancement paramount to the success of the ambitious project.

Developing sustainable yachting practices will also be a goal for AMAALA. Only 2,005 miles from Monaco which equates to six days of cruising on average, AMAALA is the ideal haven for sailors and water lovers to extend the Mediterranean yachting season.

The signing was the culmination of participation in the Monaco Yacht Show where AMAALA also hosted its inaugural Advisory Board Meeting. AMAALA, who participated in the third Monte Carlo Gala for the Global Ocean, welcomed its Advisory Board Members and select guests to the celebration.

This major fundraising event gathers international artists and philanthropists for an exclusive gala in favour of the Foundation’s worldwide initiatives dedicated to a sustainable ocean. Long-time champion for climate change action Robert Redford was honoured for his global environmental contributions.

AMAALA is part of The Red Sea Collection which, alongside NEOM and The Red Sea Project, participated at the Monaco Yacht Show for the second year. The Red Sea Collection showcased the Kingdom’s west coast, one of the world’s pristine paradises, to the superyacht industry and sailing lovers and sponsored two key show events – The Yacht Summit and the Inaugural Awards Gala.

Source:https://www.arabianbusiness.com/travel-hospitality/438988-saudi-luxury-project-amaala-signs-deal-to-protect-marine-environment