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Unlocking Iraq’s potential for the HVAC sector

Industry representative outlines growth opportunities driven by government investment in construction and restoration projects

| | Nov 13, 2018 | 3:06 pm
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Karakin Herman Haçaduryan, DGM, Sales and Marketing Department, Refkar Heat Exchangers

Baghdad, Iraq, 13 November 2018: Following years of geopolitical turmoil, Iraq has set itself on a path towards restoration, driving comprehensive growth in construction projects, which could provide massive opportunities for HVACR stakeholders with presence in neighbouring countries. “It is the right time for Iraq,” said Karakin Herman Haçaduryan, Deputy General Manager, Sales and Marketing Department, Refkar Heat Exchangers and Co-founder, Reftrade Import and Export. “The Iraqi people are quite loyal to whoever goes there first, especially with equipment and services they need at this moment. Even tomorrow could be too late.”

Stressing how HVAC is dependent on construction, Haçaduryan said that the Iraqi government increased the volume of investments in commercial and residential markets, with 70% of the commercial industry driven by government investment and only 30% of investments made by local or foreign investors. “The government is trying hard to increase the volume of foreign investors in the market with incentives,” he added. Haçaduryan also said that many locals who emigrated to other countries, during the political turmoil, have returned and are further driving investment to support the country in its rebuilding process, pointing to a number of mall projects in Baghdad currently underway. “The private sector is investing in hotels, malls and residential areas, as well,” he said. “Therefore, there is a huge demand for all HVAC equipment, in general.” Haçaduryan added that since most of the industrial facilities were shut down during the war, the ministries are working hard on activating them, to support growing infrastructure.

On whether the potential is cost-competitive or quality-driven, Haçaduryan said that it varies upon the investment, with stakeholders sharing the budget that can be allotted for the equipment. “But considering the climate in Iraq, in general, they mostly pick high-quality equipment for HVAC,” he said. For Turkish manufacturers, he added, there are a lot of opportunities owing to the geographic proximity.

Sharing the companies’ profile of activities in the country and opportunities for stakeholders, Haçaduryan said Refkar Heat Exchanger has signed a contract with Al-Faris State Company, through Al-Omran Energy, to address the growing need for both heat exchanger equipment and the necessary technical expertise. Reftrade, he said, is actively representing the interests of local and foreign companies in the field of construction, including fire and life safety, lighting and solar energy. Haçaduryan said local representatives are needed for government tenders, because quotations need to be submitted personally and only by authorised companies and Reftrade aims to facilitate in this regard.


Hannah Jo Uy is Assistant Editor at Climate Control Middle East magazine. She may be contacted at hannah@cpi-industry.com

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