OVERVIEWOFTHEIRAQOPPORTUNITYDoingBusinessinIraqAmman,5thJune2003AchmedAl-ShahrabaniMcKinsey&Company,Inc.AGENDA•OverviewIraq•EconomicscenariosforIraq•RequiredinvestmentsAGENDA•OverviewIraq•EconomicscenariosforIraq•RequiredinvestmentsTotalarea:437,000m2Limitedarableland•Arableland:11%•Permanentcrops:1%•Desert:88%Largestgovernates•Baghdad(8.0m)•Nineveh(2.1m)•Basra(2.0m)Varyingclimate(Baghdad)•Summertemp:35-50º•Wintertemp:5-15º•Rainfall:155mm/yearTotalarea:437,000m2Limitedarableland•Arableland:11%•Permanentcrops:1%•Desert:88%Largestgovernates•Baghdad(8.0m)•Nineveh(2.1m)•Basra(2.0m)Varyingclimate(Baghdad)•Summertemp:35-50º•Wintertemp:5-15º•Rainfall:155mm/yearSource:CountryWatch,CIAworldfactbookCartransport•39,000kmpavedroads•765,000privatelyregisteredpassengercars•266,000privatelyregisteredtrucksAir•MajorairportsinBaghdad,BasraandMosulThreemajorrailwayroutes•Baghdad–Kirkuk–Irbil•Baghdad–Mosul–Yurubiyah•Baghdad–Maagal–UmmQasrTelecom•3%penetration,nomobilenetworkUtilities•250watertreatmentfacilities•Powergenerationcapacityof9500(pre1990),currentlyat1800MWCartransport•39,000kmpavedroads•765,000privatelyregisteredpassengercars•266,000privatelyregisteredtrucksAir•MajorairportsinBaghdad,BasraandMosulThreemajorrailwayroutes•Baghdad–Kirkuk–Irbil•Baghdad–Mosul–Yurubiyah•Baghdad–Maagal–UmmQasrTelecom•3%penetration,nomobilenetworkUtilities•250watertreatmentfacilities•Powergenerationcapacityof9500(pre1990),currentlyat1800MWGeographyandclimateInfrastructureThemajorityofIraqischaracterizedbydesertOVERVIEWIRAQIGEOGRAPHYSource:CIAworldfactbook100%=24.2mOthersArabs-ShiaMuslimsKurds–SunniMuslims46212Arabs–SunniMuslims22ESTIMATEPOPULATIONSIZEBYETHNICGROUPShiaMuslimsformIraq’sethnicmajority%AdultliteracyatAdultliteracyat54%(vs.75%in54%(vs.75%inIran)Iran)*From6to23yearsSource:EIUcountryprofileIraq2002675019801998EDUCATIONENROLMENTRATIOFORALLAGES*-1980VS.1998AnincreasingnumberofchildrendoesnotreceiveformaleducationESTIMATESourc...