Turkish Property to be Boosted by Improving Situation in Iraq

Turkey has recently experienced a loss of trade with Arab countries due to political unrest but it seems likely that some of this shortfall may be taken up by increased trade with Iraq.

Exports to the country increased by 40% in the last two months when compared to last year and were worth $1.1 billion. The Turkish Prime Minister has just finished a visit to the country which was actively designed to look for business opportunities.

Relations between Turkey and Iraq have improved significantly over the past few years. Prior to 2003 exports to Iraq were just about zero, in 2010 exports totalled $6 billion. At this level it is expected that Iraq will replace France as the 4th biggest importer of Turkish goods. There are also good investment opportunities for Turkish firms in Iraq, especially in the construction industry.

It is also likely that as the Iraq economy continues to develop on its own two feet, that Iraqis will begin to make foreign property investments, and with Turkey next door the Turkey property market should see a fair benefit from this.

The president of the Turkish Exporters Assembly (TIM) accompanied the Prime Minister on his trip. He was gratified to witness one Turkish company signing an contract worth $16 million to supply tractors and agricultural equipment. A $300 million contract was signed with the Iraqi Ministry of Agriculture to supply vegetable oil.

Tourism between the two countries is also set to increase. This will require a significant upgrading of the infrastructure in Iraq, which hopes to bring tourism up to 15 million over the next 15 years.

Turkey will also hope to identify investment opportunities and ways to increase trade with Egypt and Tunisia once they have firmed their political feet and hopefully a path to democratic governance.

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