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http://www.usatoday.com/money/world/2011-07-19-foreign-investment-iraq-investors-business_n.htm

By Jim Michaels, USA TODAY

The amount of new foreign investment deals is on track to double this year, according to a report by Dunia Frontier Consultants, which specializes in emerging markets. In the first half of this year, Iraq attracted .6 billion in foreign investment, about billion more than all of last year, the report says.

The rush of investment this year reflects a new confidence in Iraq’s stability and a reduction in risk, analysts say. “This is money talking,” stated Campbell Harvey, professor of finance at Duke University in North Carolina.

U.S. companies have been slow to get in on the investment opportunities in Iraq, even lagging behind countries that opposed the war, such as France.

Last year, French companies represented 9.9% of the foreign investment in Iraq, compared with 4.7% for American companies, the Dunia report says.

“U.S. companies tend to be more risk-averse than their European counterparts and certainly their regional counterparts,” stated Nicholas Skibiak, emerging markets director at Dunia.

The U.S. Chamber of Commerce has been urging American companies to think about investments in Iraq and actuation the U.S. government to more aggressively represent the interests of American businesses in the country.

“We have invested a lot in Iraq over the last decade in blood and treasure, and it is really unfortunate if we permit our trading partners to sort of capitalize on that investment to our disadvantage,” stated Lionel Johnson, vice president of Middle East affairs at the U.S. Chamber of Commerce.

Skibiak stated there is an “almost perverse irony” in that the United Says was accused by war critics of going to war to exploit Iraq’s oil and other resources and “yet as a country we have very tiny to show for it.”

This year, U.S. companies have shown more of an appetite for investing in Iraq. In the first six months of this year, U.S. companies represented 6.4% of the foreign investment in Iraq.

‘Re-evaluate the Iraqi market’

U.S. business interest is growing. Iraq’s commercial attaché office in Washington received 2,251 applications to do business in Iraq in the first half of this year, compared with 1,369 in the same period last year.

Still, Naufel Alhassen, Iraq’s commercial counselor in the U.S., stated public perception of Iraq remain out of date.

“American business needs to re-evaluate the Iraqi market with a vision of 2011 — not with eyes of 2006 and 2007,” he said.

He stated Iraq’s market is growing fast and that U.S. businesses risk missing opportunities. “If you keep inactivity you are going to miss it,” Alhassan said.

South Korea was the largest foreign investor this year, representing 24% of the foreign money flowing into Iraq, according to the report.

Businesses in the rest of the world seemed poised to exploit the market’s growth. Foreign investors’ confidence grew and foreign dollars flowed in after Iraq’s political landscape stabilized. Following months of political fighting after national elections last March, Iraqi political leaders concurred on a government in December.

Nouri al-Maliki remained as prime minister and Oil Minister Hussain al-Shahristani was kept in the government as deputy prime minister for energy. Investors saw the continuity as a positive sign. “A lot of people through 2010 were sitting on sidelines watching the national elections,” Skibiak said.

This year they came off the sidelines.

Many needs and much money

After decades of war and sanctions, Iraq’s needs are great, and it has money to spend. Iraq ranks fourth in the world in proven oil reserves, and the rising price of oil has buoyed its cash reserves.

Iraq has been issuing contracts to develop its oil fields and has sought help to rebuild its decrepit electrical grid in an effort to keep up with skyrocketing demand as people purchase TVs, air conditioners and other appliances.

Iraq is also covering a housing shortage. Last year, Iraq announced it was awarding a contract of .28 billion to a Turkish consortium to help rebuild Sadr City, a sprawling Shiite slum in Baghdad, according to the Dunia report.

The contract calls for building 75,000 homes, in addition to schools and mosques in a slum where sewage puddles in the streets and families are crammed in aging buildings.

Analysts caution that Iraq remains a risky place to invest. Corruption remains a problem, and there is always the risk of renewed violence and political instability. “The level of risk is still high,” Harvey said.

Investment method gains

Money that is kept on your bank accounts is innocuous and wise thing to do especially if it’s bearing an earning interest at rates but sometimes you have to think about the other method of garnering money in order to secure your future to a greater extent, that’s how investing will accede your income. Don’t infer yourself on where you can find investment company that will serve you, you are in the right place to learn how to earn.

There is always a risk in anything you do; with proper research you can minimize that risk. Introducing variety of Investment Company can help, if you know what you’re doing it will lessen your worry and you can now decide on how much return of wealth you need to make.

In terms of strategy, some people use mutual funds to spread their investment to get a nice range or stocks without having to do a lot more exploration. You don’t need to be knowledgeable in everything in order for you to invest. You can still make an investment with firms that can help you with your worries online. That is one important choice you could make for yourself.

If you’re really unsure of it, it is superior to take the guidance of someone who has been doing it for years or take the following steps t proper investing method to manage your savings properly.

1.       Evaluate your investor type or investment company. It is good to know the personality, plans and strategies of your saint party. Make sure that both troupe will engaged your investing terminology and willingly to discuss with you their strategies.

2.       Comprehend the doable risk. There is always a risk especially with it comes to financial discussions, it can be confusing and fearful, but the longer you are associate with your marketing team, the higher the doable return of your reward.

3.       Choose funds appropriate for your investment options. Find funds with a stable management team, and refrain funds with huge turnover. Always remember that the higher fund-assessed will cut into your returns.  Weigh all your options carefully to select the right funds for your allocation.

4.       Monitor your investments. It is usually forgotten but it is really important. Some funds are often added or remove from your plan options. Regular evaluation will help everything in equilibrise and it ensures you to have the most appropriate choice for your situation.

With time and patience, you can make a good decision to move toward your investment goals.  It is more effective to plan your future now.

Telekinitex International

More Investing Articles

 Here are some points to ponder that might help narrow your starting point choices for the

 most viable and realistic investments.

 In todays marketplace there are endless investment options to select from. When trying

 to choose, its ideal to discuss and examine some of the basic pitfalls of each.

 Keep in mind the many risk management factors and be sure to perform proper due diligence.

 If you select using advice from an investment counselor, the same rules still apply … until the

 investment advisor has proven their worth. Then, ofcourse, its your own view as to what

 has worth and value verses whats drivel, to you.

 I would advocate obtaining at least 3 different  ” eligible ” views even if the investment risk is

 very slight. However, another train of thought is, If you keep doing the same type of investment

 and keep losing the minor amounts of money,  you will have lost both the time AND the money.

 So its kind of a difficult situation finding a comfortable equilibrise for how much time is spent verses

 how much money is at risk. Doing extensive research  will chew up tons of time very quickly. And possibly

simply confuse the issue even more.

 Maybe people should think about the term, ‘value investing’. What is ‘investing’ if

it is not the act of exploring to seek out value at least adequate to justify the amount

of money paid ? If people consciously pay more for a stock than its actual calculated value

– in the hope that it can soon be sold for a still-higher price – this should be tagged as

 speculation (which is neither illegal, immoral nor – in our view – financially fattening).

Whether appropriate or not, the term ‘value investing’ is openly used. Typically, it

connotes purchasing of stocks having characteristics and attributes such as a low ratio of

price to book value, a low p.e. ratio (price-earnings ratio), or a high dividend yield.

Unfortunately, such characteristics, even if they appear in combination, are far from the

total truth for determining as to whether an investor is indeed buying something for what

it is worth and is therefore truly operating on the principle of obtaining value in his

investments. Then, alternatively, opposite characteristics – a high ratio of price to book

value, a high price-earnings ratio, and a low dividend yield – are in no way inconsistent

with a ‘value’ purchase. Therefore, Buffett’s definition of investing is the best

definition of value investing there is. Value investing is purchasing a stock for less than

( sometimes MUCH, MUCH less than ) its calculated value.

 If we hope to effectively reduce or absolutely dismiss ALL risk, we are only dreamers.

 However, if someone has substitute options of which i am NOT aware of, please share.

 i.e. The market and marketplace changes day to day and /or by the minute, or second, right ?

Future value (FV) is the value that will come in the future, the present sum of money deposited in escrow subject of interest. Future value is one of the major tools dealt with in finance theory, which include the choice between alternatives of investment or financing.

Finding the future value of the present amount, the interest adds an incremental amount until a future date. Mathematically, it doubles the current amount, and in order to find the future value of the present amount, it should be considered as accruing interest.

In principle, the FV method is used in investment calculation to assess an investment’s profitability. It is closely related to the value approach, but instead of calculating the investment’s value at the time of the investment value it is obtained at the end of its tenure.

The method generates a terminal value, the total value of investment cash flows, discounted from now until the end of its term. It is obtained by the calculation of the interest rate of all cash flows, the interest rates as cost of capital.

The future value method is less common in the literature than the present value approach, and it is not used as much in the larger firms. The method is more intuitive than the present value approach, and is often employed by individuals and small businesses. The final value is of course what is expected when saving, thus, it indicates a future grappling value as a result of an investment.

When depositing a fixed amount apiece period, future value can be calculated using the following formula: FV = p \ cdot \ left (\ frac ((1 + r) ^ n-1) (R) \ right). Where p – the amount fixed period, R – interest periodically (monthly, quarterly, yearly, etc.) and n – number of interest accrual periods. This formula is appropriate to a situation where the fixed periodic interest rate is applied.

An investment is to be judged positively if it has a higher terminal value than the final value, such as the investment of own funds on capital markets or using them for another project. The yield on an opportunity with the discount rate is determined so that an investment is beneficial at the end.

If you want to save a sum of ,000 for a period of five years, with a constant annual interest rate of 4.2%, the savings accrue as follows at the end:
FV = 10000 \ cdot (1 +0.042) ^ 5 = 12283.97. An investment is beneficial for the differential calculus of the end-point, if the additional ?EW final value is positive. The additional final value can be determined also by the net present value (additional initial value), the investment multiplied by (1 + i n) at the end of the investment.

Saving deposits of $ 200 a month on a savings plan of three years, with a nominal annual interest of 4.2%, will at the end accrue as follows: FV = 200 \ cdot \ left (\ frac ((1 + \ frac (0.042) (12)) ^ (36) – 1) (\ frac (0.042) (12)) \ right) = 7659.