Jordan eyes Iraq reconstruction post-ISIL

Participants at a recent conference in Amman affirmed Jordan's key role in rebuilding Iraq after the destruction it has suffered at the hands of the "Islamic State of Iraq and the Levant" (ISIL).

The three-day Iraq Reconstruction and Investment 2016 conference and exhibition, which concluded May 24th, aimed to present current and future construction projects and investment opportunities in Iraq.

The event was organised by the Federation of Arab Contractors in co-operation with the Jordanian Ministry of Public Works and included Iraqi, Jordanian and Arab officials, economists and representatives of various regional companies.

"Iraq’s rebuilding needs are enormous, particularly in the areas liberated from ISIL in the north and north-west of the country, near the border with Jordan," Iraq’s ambassador to Jordan Safiya al-Suhail told Al-Shorfa on the sidelines of the conference.

The Iraqi army has expelled ISIL from al-Rutbah in Anbar province, she said, and is currently engaged in battles to defeat the group in Fallujah.

"We expect those areas to be soon purged [of ISIL], and the border with Jordan to be reopened very soon," she added.

ISIL has caused a great deal of destruction to Iraq's infrastructure, al-Suhail said, adding that there is a need for schools, health facilities and housing to enable the return of displaced residents.

"Jordan has extensive experience in the construction sector and can play a major role in the rebuilding process," she said. "Rebuilding Iraq is a key tool to fighting terrorism."

Reconstruction opportunities in Iraq

Conference participants reviewed financing opportunities in Iraq and existing and future reconstruction projects, al-Suhail said, noting that the Jordanian private sector plays a vital role in these projects.

They reviewed Iraq's needs in the health and electricity sectors, and presented investment opportunities in the electricity sector.

They also addressed the need to fund municipalities, the role of Iraq’s Central Bank in providing guarantees for loans and possible co-operation with Arab banks, as well as reviewing Iraq’s National Investment Law and legislation related to reconstruction and investment.

"Currently, there are opportunities for investing in projects worth around $22 billion in Iraq in infrastructure and many other fields," said Federation of Arab Contractors president Fahd Mohammed al-Hammadi.

"Arabs need to do more to engage in the process of rebuilding Iraq," he said.

"This event provides a great platform for building partnerships and exchanging ideas," he added, stressing the need for regional financing institutions and banks to take part in the process of rebuilding Iraq by extending necessary financing.

Jordan enjoys a high level of security and political stability and has strong strategic and diplomatic relations with other countries in the region, he said.

Additionally, Jordan is a gateway for Iraqi imports and exports, he added.

Terrorism damaged infrastructure

The construction sector in Jordan has extensive experience in large-scale projects, Minister of Public Works Sami Halaseh told Al-Shorfa, noting that the Jordanian private sector can contribute significantly to rebuilding Iraq.

"We are fully ready to heavily participate in the rebuilding of Iraq and offer all our capabilities and backing in support of these efforts," he said.

This will help Iraq regain stability and security after "terrorism caused significant damage to its infrastructure", he added.

Jordan's construction sector accounts for about 18% of the kingdom's gross domestic product (GDP), Halaseh said.

"Participating in rebuilding [Iraq] will play a vital role in supporting the sector and stimulating economic activity between the two countries," he said.

Commercial activity has been impaired since the closure of Iraq's borders with Jordan after ISIL seized several areas on the Iraqi side last year, he said.

"The conference is an important opportunity to exchange views and look into projects that we can undertake," said Saleem Kutkut, an engineer with a private sector construction company in Amman.

Iraq is on the verge of undertaking massive reconstruction projects, he told Al-Shorfa, as many health, education and energy facilities were damaged in the fight with ISIL, in addition to roads and infrastructure.

"Iraq represents a great opportunity for Arab contractors to participate in rebuilding this country, which is steeped in history and civilisation," he said.