The UK’s official export credit agency ECGD is back ‘on cover’ for Iraq. Due to improvements in both the country’s economy and security, ECGD has decided to allow a limited amount of cover on a first-come-first-served basis as of July 7, 2009.
The ECA has not provided medium-term cover since before Iraq’s invasion of Kuwait in 1990.
Commenting on the decision, the UK minister for trade, investment and business, Lord Davies of Abersoch, comments: “ECGD’s return to cover for Iraq is good news for UK exporters and is a clear sign of significant improvements in the stability of the country.”
He adds: “Iraq represents major opportunity for UK business. The country needs more international investment to generate jobs and economic growth – which will be key to setting Iraq on the path towards long-term prosperity.
“I am pleased that ECGD has now concluded its review, and that British exporters will now be able to trade with Iraq with ECGD support.”
UK businesses have been active in Iraq for sometime, and in 2008, British exports to Iraq increased by 17% to £156mn (US$253mn).
Examples of companies that have secured business in Iraq include engineering firm Foster Wheeler Energy, which was awarded a contract by Southern Oil Company in February this year to provide basic engineering support for new offshore oil export facilities.
Maritime & Underwater Security Consultants also secured an estimated US$200mn contract to survey the seabed and provide pipeline services between refineries and ports and offshore loading points for oil tankers in Basra. Software provider B-Plan information systems is in the process of rolling out a new banking software system at 150 branches of the Iraqi bank, Rafidain Bank, a system that will give 4.5 million account holders access to modern banking services.
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