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Iraq needs four million houses in the next five years to solve residential crisis

Baghdad University professor underscores high demand for HVACR products; says government to encourage investment in private sector

| | Jan 27, 2019 | 5:28 pm
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Baghdad, Iraq, 27 January 2019: Iraq needs at least four million houses in the next five years to solve the residential crisis facing the country, said Dr Tarik Al-Omran, Professor, Material Sciences, Baghdad University, providing a comprehensive overview of the wealth opportunities the country offers to stakeholders in the construction industry, in view of the rehabilitation programmes spearheaded by the government.

Dr Tarik Al-Omran, Professor, Material Sciences, Baghdad University

In addition to residential units, Dr Al-Omran said there is significant demand for the construction of schools, hospitals, commercial developments, power plants and industrial facilities. Owing to its high-ambient conditions, Dr Al-Omran said, Iraq is also in high demand for HVACR equipment, which, he said provides distributors and manufacturers with the ideal opportunity to take part in the country’s investment activities. Dr Al-Omran named split air conditioners, VRF technology as well as central ACs as those most in demand in the country, adding that beyond the initial price, users consider quality, after-sales services and power consumption as key factors in their purchasing decision. Dr Al-Omran said he thinks Iraq can be the next market for suppliers offering high-quality products that promise a reduction on power consumption and lower opex.

He added that Iraq is also in need of new factories to revitalise the industrial sector and manufacturing facilities for electrical transformers, medical equipment, textile, leather and supporting infrastructure for the food industry. This, he stressed, is also the case for manufacturing facilities for air conditioning equipment, such as air-handling units. Companies looking to invest in Iraq, he said, must first consider establishing assembly lines and, after one or two years, moving to manufacturing all the parts. Such a cooperation, he said, is a valid option offered by the government, especially by the Ministry of Industry.

Dr Al-Omran said the government is largely looking to the private sector to solve the residential crisis and demand for infrastructure. It is seeking the sector’s support by way of financing, and is encouraging banks to offer favourable payment conditions, he further said. “Now, the priority of our government is to encourage investment in Iraq,” he said. “They established a special commission directory for investment in Iraq. It has the power of authority to give license of investment with very easy conditions.” Dr Al-Omran said many hotels, hospitals and industrial factories were approved by the government, many of which have already been completed.

 

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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