Wednesday, October 10, 2007

 

Rotana Hotels to develop $55 mn. property in Erbil

Kurdistan
(PUKmedia news) - Abu Dhabi-based Rotana Hotels said on Tuesday it would develop a $55 million five-star property in Erbil in Iraq’s Kurdish region, which has largely been spared the violence affecting the rest of the country. Rotana, which has 25 hotels across the Middle East, will compete for a growing hospitality business with the Erbil International Hotel; the city's only other five-star property, where a standard twin room costs around $300 a night.
"This is part of our strategic aim to have a property located in every key city in the Middle East," Selim el-Zyr, president of Rotana, said in a statement. The semi-autonomous Kurdish Regional Government is trying to encourage investors to develop Erbil's hotel infrastructure and turn the city into an entry point to Iraq for foreign businesses.
The ministry of tourism last month said three or four times the current numbers of hotels were needed. The city's international airport handled about 170,000 passengers in 2006 and the regional government is building a new airport to handle 1.5 million, according to the London-based Kurdistan Development Corporation.
Austrian Airlines became the first European carrier to resume scheduled flights to Iraq last year when it began twice-weekly services to Erbil from Vienna. Rotana's 205 room Erbil property, scheduled to open in 2009, is owned by Lebanese holding company Malia although potential investors are ‘still welcome’ according to president Jacques Sarraf.

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Thursday, September 20, 2007

 

Malia Holding and Rotana Hotels announce $55 mn. hotel deal in Erbil

Business
(PortAl Iraq) - Malia Holding and Rotana Hotels have announced the signing of a partnership agreement for the management of a five-star hotel with 205 rooms in Erbil. The more than $55 million hotel will be among a series of projects to be launched by Malia Holding through its tourism investment-affiliated company, Hotel Line. Malia's plans to invest in Erbil stem from the city's economic, social and political climate which make it an ideal destination for investments - particularly in tourism, according to the company announcement.
The Kurdistan area of Iraq - where Erbil is located - has gained an international reputation of being a gateway to Iraqi business, a stable and thriving area with an increasingly prosperous population of five million, according to Rotana. The region has two new international airports and a liberal investment law that attracts foreign investors.
Erbil's Rotana Hotel will be built in front of Sami Rahman park and between the convention center and Erbil Exhibition Fair. The property will feature restaurants and complete recreational areas including a health and fitness club and a swimming pool.
Malia President Jacques Jean Sarraf said: "The prospects of the Erbil project will also benefit the people of Iraq through the creation of hundreds of jobs. Malia is enthusiastic about developments in the Kurdistan and keen on taking an active role in shaping the outlook of tourism and helping rebuild a strong and solid economy in Iraq." Rotana Hotels President and CEO Selim El Zyr said: "We are confident that we will introduce a new dimension of hospitality in the country."

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Friday, September 07, 2007

 

Tribes sabotage Kirkuk pipelines

Oil, Tribal
(IWPR) - Despite the presence of special oil ministry units, pipelines around Kirkuk are destroyed and hundreds of tons of oil stolen every day by tribe members from surrounding villages, such as al-Milih, Wadi Zghetun, al-Muradiyya, al-Saduniyya, al-Kanaina and al-Safra. The "oil protection units" were deployed to guard the pipelines after the government cancelled previous failed agreements with tribal forces to protect them. But in spite of this, oil is stolen from pipelines stretching from the al-Riyadh sub-district, 55 km west of Kirkuk, to the al-Fatha area 90 km to the west.
Tribal sheikhs who profit from the stolen oil are likely to obstruct new measures planned by local authorities, including a special protection force, to stop the sabotage of the pipelines. Locals employed to protect the pipes are often from the same groups as those who are stealing the oil. In the first few years after the fall of former Iraqi president Saddam Hussein's government, Sunni insurgents - many of whom as former soldiers had guarded oil routes under the old regime - blew up the pipelines to wreak havoc.
Since then, insurgents have realized that stealing oil is also damaging, and is far more profitable than pure destruction. Today, Kirkuk's oil wealth is evaporating. Qais al-Mifraji, a 34-year-old farmer in the village of al-Safra, 63 km west of Kirkuk, describes how the pipelines are destroyed. "The insurgents usually come at night and plant a bomb to detonate the export pipeline," he said. "But if they want to steal, they just break it and fill their tankers. No one can stop them."
The riddled pipes partially explain why four years after the US invasion, Iraq has not been able to match its pre-war crude production level of 2.5 million barrels a day. In 2006, production averaged 2.1 million barrels per day, mostly from oil fields near Basra in the south, which have not suffered the non-stop sabotage taking place in the north. Kirkuk now produces just 180,000 barrels a day. It could produce at least 400,000 more a day which, at current market prices, would net Iraq seven billion US dollars in revenue per year.
Over the second half of last year, one stretch of pipeline connecting Kirkuk with the Turkish Mediterranean port of Ceyhan - the main outlet for Iraq's northern oil exports - pumped oil for only 43 days. The rest of the time, the pipeline lay idle, leaking crude through dozens of holes drilled along its 320-km run through the Iraqi desert. Another pipeline has been tapped into 39 times so far this year, according to the state-owned Northern Oil Company, NOC, which operates the Kirkuk field.
Qadir Omer Rahman, director of the oil products distribution department in Kirkuk, said that the 80km-long pipeline from Kirkuk to the refinery in Bayji suffered many attacks."Those who protect and guard the oil pipelines are recruited from the people of the villages through which the pipelines pass," he said. "They are the ones committing these acts of terror and smuggling, with the help of other groups." Unemployment and poor living conditions spurred Ayad Hamid al-Ubaidi from Hawdh village, who is in his thirties, to join the gangs who target pipelines and steal oil. "There is no one who can give us our rights," he said. "We have to use our own hands to obtain our rights."
Rahman estimated that three million liters of oil are lost every month because of sabotage, which he said severely affects the provision of petroleum products to Kirkuk and the Kurdistan region's three northern governorates. Each stage of oil production in the north is hampered by criminal activity. It is not only the oil and its products which are stolen by outsiders. Pumps, transformers, generators and other valuable machinery and spare parts are frequently looted.
Oil company workers are coming increasingly under fire from militias. Pipeline repair crews have been shot at and hit by roadside bombs. Sunni insurgents have been dropping leaflets in Kirkuk warning all government employees, including oil company workers, to quit or to face death. Last summer, Adi al-Qazaz, then NOC's director-general, went to Baghdad to visit the oil ministry. After his meeting, he was kidnapped by gunmen on the street, never to be seen again. While some NOC employees are threatened, others are suspected of cooperating in stealing both crude and refined oil.
Truck drivers, as well as managers of fuel stations, are taking their share of the illegal business, draining supplies for Iraqi citizens who struggle to find cooking oil and fuel. A source in the NOC, who spoke on condition of anonymity, said that there is a mafia-like group operating inside the company which smuggles large amounts of oil through pipelines, in cooperation with individuals inside the company. "When an explosion occurs in a pipeline and oil leaks from it, the people in charge neglect it, leaving the leak for several days until a large amount of oil has been taken from it," he said.
Much of the smuggled crude oil is sold to merchants in Erbil through local brokers. They meet to do their deals in a restaurant in the sub-district of al-Gwer, 40 km west of Erbil, according to Ahmed al-Jobouri, an oil tanker driver. At small domestic refineries, the crude is transformed into refined fuel and then sold on the black market. Some will then be smuggled across the border. According to the NOC source, "the revenue from oil smuggled into Turkey is used to support the Turkoman Front in Iraq, and revenue from oil smuggled to Syria is used to support the insurgent groups in Iraq".
Fuel is heavily subsidized in Iraq. Petrol stations receive limited supplies and citizens are given vouchers entitling them to buy a certain amount each week at the official low price. But because there is not enough subsidized fuel, most Iraqis end up buying oil products on the black market. A source in the Bayji refinery near Kirkuk, who spoke on condition of anonymity, told IWPR reporters that some officials from the General Company for Oil Products, which is in charge of issuing paperwork for the subsidies, sells authentic as well as false receipts to merchants.The stolen fuel is then smuggled and sold on the black market, either inside Iraq or across the border in Syria or Turkey.
There is also small-scale smuggling. Salah Ali, who has been working as a tanker driver for six months, said receipts are issued at the Bayji refinery for 36,000 liters per tanker, which is their official load. But they are then filled to their full capacity of 40,000 litres, and the additional 4,000 liters are sold on the black market for five times the price of regular fuel. Similar activities go on at the smaller refinery in Kirkuk, said Irfan Kirkukli, the deputy chief of security on the city council. "Several trucks carrying oil products smuggled from Kirkuk have been seized," he said. "Vehicles have been caught smuggling 160 canisters of cooking gas from Kirkuk to Erbil, for example."
Some petrol station owners, he said, sell their share of state-subsidized fuel to black market dealers. "Many such cases have occurred in Kirkuk and legal action was taken against [the culprits]," he said. "The filling stations weren't given [further] allotments and their owners were fined. "To protect the pipelines and prevent illegal smuggling of fuel, several measures are to be implemented. Kirkukli said a special protection force to guard the pipelines will be formed, consisting of members of the Iraqi army, oil protection forces and the tribes from the areas where the pipelines pass through.Officials in charge of particular pipeline sectors will have to pay fines if their stretches are damaged or oil is stolen. Kirkukli also said that funds have been allocated to support oil infrastructure and to build observation towers along the pipelines in western and southern Kirkuk.
Sami Amin Othman, the Kurdish chief of the oil protection force in Kirkuk, has recently hired 290 new security guards whom he plans to deploy along the pipelines. This, however, has already created unrest among the local Sunni Arab chiefs in the area. They seem to be afraid of losing power because the new guards will be paid directly by the government and not contracted through them. Because the people hired to protect the pipelines are often from the same groups that sabotage the pipes, and tribal bonds are often stronger than national loyalty, the illegal drilling is expected to continue. Sheikh Ziyad Hasan, who formerly served as a contractor protecting the pipelines, confirms that people from the area sabotage the pipelines and profit from the oil. Many locals, he said, lack the motivation to prevent thefts. "They believe that this oil serves the Americans and the new government, and that it does not benefit the people," he said.

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Thursday, September 06, 2007

 

Unemployment in Kurdistan

Kurdistan
(Kurdish Globe) - Foreign laborers being imported into Kurdistan, who gladly work at lower wages than local laborers, are quickly rendering Kurdish workers jobless, elevating the region's jobless rate. Many in this overcrowded city of Erbil don't rake in millions of dinars monthly. In fact, there are some who take delight at the opportunity to earn even a little money, even enough to buy bread.
If you examine the Erbil market, you will see businessmen who work out big deals and count their money inside the shops; contrarily, there are a great number of people waiting outside the stores to enter and spend the little money they have. Ahmad Hama Ahmad, 48, works as a laborer to feed his eight children and pay rent. He took out a handkerchief to clean his wrinkled face after he sat down under a wall, shaded by a lorry, which he and his colleague had just finished unloading.
"I have to do this work however unbearable it is to me. I am old. I can get no other job," said Ahmad. "Getting a good job means you have to have some education or a close relative to help you find suitable work." When asked how much he earns daily, he sighed and said, "It depends on the market and our luck; some days 10 thousand dinars (about $8), some days 15 thousand..."
Due to Kurdistan Region's safe conditions in comparison to other parts of Iraq, the noticeable economic development has produced ample employment opportunities for laborers. However, many Kurdish laborers remain jobless. Most of the companies, contractors, and big markets, and even some governmental sectors, prefer foreign laborers because they work harder and ask for little money. This in turn has narrowed the job marker for native workers.
"The use of foreign workers is not to our advantage; it will raise the unemployment rate throughout the region," said Dr. Hussein Chawshin, assistant professor of Economic and Finance at Salahaddin University. "Apart form this, these laborers are taking a large amount of money out of the region." According to some media reports, Iraq's unemployment rate has risen and approximately 60 % of Iraqi people are jobless. Kurdistan Region in the north, which is undergoing wide economic and construction development, has also been affected by the high rate of unemployment.
Alongside foreign workers, several thousand Arab families fleeing civil unrest, religious conflict, and terror threats in southern and the center of Iraq officially settled in Kurdistan Region. This further decreases work opportunities for Kurds. The stable security situation in Kurdistan and the investment law have been attracting a vast number of foreign companies to come to work and serve people in Kurdistan Region.
"We are mostly in need of production rather than service. The government should start with the small business and little by little develop it for people to work. " In 2006-07, thousands of college students graduated. This came at the same time the Kurdistan Regional Government (KRG) stopped accepting employment. According to KRG statistics, there are over 1,100,000 employees who are paid by the government, but until now there are no exact unemployment statistics released by the region.
"I think there is no real 'joblessness' in Kurdistan; most people have jobs, but the money they are earning is not enough," said Farhan Muhammed Rasoul, head of Erbil's professional training center. "Since 2004 up to now, 11,835 people have enrolled here, but investigations show that most of them have work and are searching for better jobs," Ahmad said.

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Monday, September 03, 2007

 

Asiacell launches service in Erbil

Telecommunications
(Voices of Iraq) - Asiacell has launched its service in the capital of Iraq's Kurdistan region Erbil, the GSM company's subscribers said on Saturday. An Asiacell subscriber said that he is now able to receive phone calls from his family in Baghdad via his mobile phone, while another said that it is not yet possible to call subscribers to other companies.
All Asiacell subscribers now can make and receive calls between Sulaimaniyah and Erbil. AsiaCell, Korek Telecom and MTC Atheer were the three winners in the mobile phone license auction held by the Iraqi goverin the Jordanian capital Amman a few days ago.
Mobile phone services were first launched in Iraq in early 2004 after the collapse of the former Iraqi regime and the Cairo-based Orascom Telecom Holdings, Kuwait's Mobile Telecommunications Co and AsiaCell were the winners in an auction that drew 35 bidders. Asiacell operated in Iraq's Kurdistan region from 1999. Under the then contracts, Orascom's network covered central Iraq, including Baghdad, AsiaCell served northern Iraq, while Atheer Tel (from Kuwait) operated in the south.

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Tuesday, August 28, 2007

 

KRG in discussions with Austrian Airlines to resume flights

Travel
(Kurdistan Observer) - The Kurdistan Regional Government (KRG) and its airport authorities are in discussions with Austrian Airlines, and all are hopeful that the airline will resume flights to Erbil. The KRG was informed by Austrian on 25 August that it would temporarily suspend flights between Vienna and Erbil International Airport.
Austrian took the decision following an alleged incident at Sulaimani International Airport reported by the pilot of Nordic Airways, a Swedish charter airline, earlier this month. After thorough investigation, the KRG has found no evidence of foul play at or in the area surrounding Sulaimani airport. The Erbil International Airport authority understands the concerns that led Austrian to its decision, even though the alleged incident took place at another airport and KRG investigations have found no evidence to substantiate the report.
The airport authorities and the KRG would like to stress that the safety of passengers and crews is their priority. The cities of Erbil and Sulaimani and their international airports are peaceful. Security in and around both airports is the KRG’s highest priority and is maintained to the highest degree. The KRG, Erbil International Airport and Sulaimani International Airport are in discussion with Austrian, and all sides hope and expect Austrian Airlines to continue to operate its very successful and popular flights to Erbil. Meanwhile flights from Frankfurt, Dubai, Istanbul, Amman, Beirut, Tehran, Damascus and other cities to Erbil have maintained their regular schedules. Flights from Munich, Dubai, Amman and other cities to Suleimaniah continue.

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Monday, August 06, 2007

 

Allawi and Barzani to meet for political discussions

Politics
(Voices of Iraq) - Iraq's Kurdistan President Massoud Barzani will meet former Iraqi Prime Minister and Head of the Iraqi National List (INL) Ayad Allawi in Erbil to discuss developments in the Iraqi political process, the head of Barzani's office, Fouad Hussein, said on Saturday. The meeting will take place at the headquarters of the Kurdistan Regional Government (KRG) and cabinet in northeastern the capital city of Erbil, Hussein said. Hussein did not give further details of the meeting, but ruled out a press conference between the two leaders. The meeting comes after the withdrawal of the Iraqi Accordance Front (IAF) from the government and threats by the INL to follow suit. The INL holds 24 seats in the 275-member parliament.

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Wednesday, June 06, 2007

 

Monty Mobile signs agreement with Korek Telecom

Business, Telecommunications
(AME Info FZ LLC) - Monty Mobile is pursuing the extension of its coverage, and has just signed an agreement with Korek Telecom, the first operator in Erbil, the capital of Kurdistan - Iraq. The agreement permits Monty Mobile to develop the MMS coverage of Korek Telecom, and to include a number of new countries to its existing coverage.
Monty Mobile will thus provide Korek Telecom with its hubbing proficiency through its MMS/SMS gateway, covering comprehensive international messaging, and allowing Korek Telecom to benefit from uncovered destinations through one single agreement.
"We can no longer decide on the limits of our network coverage, it is our duty to open up more countries and more continents, and give subscribers the right to choose any destination around the globe", said Mr. Mountasser Hachem, Monty Mobile's CEO. Monty Mobile being a unique MMS aggregator and a member of the GSM association, provides state-of-the-art MMS and SMS Nerworking service supporting the most recently developed technologies and standards.

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Wednesday, April 18, 2007

 

Barzani threatens failure to act on Kirkuk will end in 'disaster'

Kurdistan
(Kurdistan TV) - A conference focusing on the forces of democracy in Iraq was held in Erbil, the capital of Kurdistan, on Tuesday. At the conference, President Masoud Barzani gave a speech in which he stressed that democracy is Kurdistan’s main concern. The Kurds are renown for their tolerance, ability to co-exist with others, and acceptance of other points of view. The Kurds have always respected human rights, in particular women’s issues.
President Barzani stated that any forced unification or division would fail just like the former Czechoslovakia and Germany. He reiterated, “We don’t threaten to interfere in the affairs of other countries and we don’t expect other countries to threaten us.”
President Barzani said the Kurds wanted no part in the current religious and ethnic disputes, adding that they have always regarded themselves as part of the solution as opposed to part of the problem. The president also reiterated that Kurds would never be party to any kind of division of states.
The president continued, “We are not saying Kirkuk should be exclusively for the Kurds, but it is an Iraqi city with a Kurdish identity and all historical facts confirm this. The Kirkuk question is an Iraqi issue and no foreign country has the right interfere. Failure to reach a consensus on Article 140 would spell disaster.” The president extended a hand of friendship to all countries and factions on the basis of mutual respect and common interests.”

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Monday, April 09, 2007

 

France to open embassy in Kurdistan

Kurdistan, France
(Andy Miller, KRG TV) - Jean-François Girault, France’s ambassador to Iraq, last week during his visit to the Kurdistan Region said that his country hopes to open an embassy office in Erbil. Ambassador Girault said he looked forward to taking the first steps towards opening a French embassy office in the near future in Erbil, the Region’s capital, and reiterated France’s support for Kurdistan.
Minister Falah Mustafa, director of the Kurdistan Regional Government Office of Foreign Relations, said, “The KRG welcomes the opening of a French embassy office and we offer our full support and cooperation in making it happen. The embassy office will enhance cultural, economic and business relations. It will also be another step towards building stronger ties with EU countries.”
Minister Falah Mustafa and Ambassador Girault discussed the long history of relations between Kurdistan and France. They also talked about security issues in Iraq and the internally displaced persons fleeing to Kurdistan to escape violence. The ambassador and his delegation visited the Christian community, and shared the KRG’s concerns about political and religious tolerance throughout Iraq.
The French ambassador commended the political stability and security situation he witnessed. He discussed with KRG officials the possibility of increasing participation by French companies in the reconstruction of Kurdistan, as well as enhanced cultural relations and education links.

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