Iraq Shopping Malls

Baghdad Invest - 05/07/2012 Baghdad.
Once a traditionally socialist country, Iraq is witnessing a burgeoning growth in malls, according to a report.

Big malls are being built across the capital, Baghdad, the largest will include a five-star hotel and a hospital, and at one already in operation, a truck arrives each week carrying frozen Big Macs from a McDonald’s in Amman, Jordan, The International Herald Tribune reported on Monday.

On the edge of the upper-class neighborhood of Mansour a huge mall is under construction and will eclipse any of the existing malls. Boutiques will sell Western brands like Ecco shoes, Zara suits and Timberland outdoor apparel, and there are plans for a video game arcade, several cinemas, more than a dozen restaurants and a bowling alley.

“People have to have fun,” said Maythem Shakir, the chief engineer of the $25 million project, which is being underwritten by a group of wealthy Iraqis and built by a Turkish company.

“People have to have the same things as everyone else in the world.”

Lamiya al-Rifaee, 40, a mother and a businesswoman, however, complained that the mall was not as big or as fancy as the ones she had visited in Dubai or Turkey. But for Iraq, she said, it is a good start, and one of the few places where she would let her children out of her sight.

“I can watch my kids playing safely and get whatever I need in the stores.”
While, the construction boom is encouraged and hailed as proof of Iraq’s progress, economists and other experts warn of a dark side. They say that the budding consumer culture covers fundamental flaws in an economy by stifling productive enterprise through the sole dependence on oil profits.

“Basically, Iraq is trying to build a consumer society, not on state capitalism like in China, but on socialism,” said Marie-Helene Bricknell, the World Bank’s representative in Iraq.

The country, mainly dependent on government jobs, also suffers from a patronage system that can quash entrepreneurial and private spirit.

“The state’s payrolls have massively expanded, not with technocrats but with party functionaries, because the state has become a way of funding party loyalty,” said Toby Dodge, a professor at the London School of Economics, at a recent panel discussion in London about Iraq.

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Double-Decker Red Bus in Baghdad

                                      

Common across Baghdad in years past, red double-decker buses are again plying the Iraqi capital's traffic-choked streets after many were ransacked in the years of unrest following the 2003 invasion.

The brand-new red buses with long white and black stripes on their sides began limited operations on Saturday, making halting progress amid masses of taxis and pedestrians in central Baghdad.

They have metal floors and plastic seats that are comfortable enough, though somewhat cramped for taller passengers. Air conditioning keeps the buses cool in spite of the Baghdad heat, which will only worsen in the summer months.

One bus was packed with boisterous Iraqis who were pleased by the features, especially the air conditioning.

"With this comfort, I will stay here enjoying the air conditioning and won't get off until the electricity generators start working in our area," joked Kadhim Karim, a 31-year-old musician.

"The new bus contains all the amenities, including air conditioning and cleanliness," said Kadhim Saba Rasan, 57, a government employee.

Only 70 buses have so far been bought from a Jordanian firm -- 60 double-deckers and 10 single-storey buses -- but 100 more are expected to be added later this year, said Adel al-Saadi, the director general of the state-owned firm responsible for public transport.

Even at its peak before the 2003 US-led invasion, the Baghdad bus network was a limited one. Its 300 buses at the time pale in comparison to the 8,500 that ply London's streets, according to the British capital's public transport authority.

This despite the fact that London's population of seven million is not vastly greater than Baghdad's six million residents.

The firm providing Baghdad with the buses, Jordan-based Elba House, first made its name constructing pre-fabricated buildings, but since 1992 has also built a variety of vehicles, including buses.

Each double-decker bus costs around $205,000.

Tickets for the buses are 500 Iraqi dinars, about 40 cents, offering a far more comfortable alternative to the cramped minibuses that criss-cross the city, and one that is cheaper than the fleets of mustard-yellow taxis.

"The new buses are very successful and better than taxis, which cost at least five or six thousand dinars ($4-$5)," said Mohammed Samir, an 18-year-old policeman.

Security remains a key priority in a city where brutal sectarian bloodshed killed countless residents, partitioned off key neighbourhoods and badly damaged Baghdad's infrastructure in the years following the invasion that ousted dictator Saddam Hussein.

The buses are equipped with cameras that allow the driver to monitor both floors of the interior, and Saadi said that each bus driver will work with an assistant whose role it will be to monitor the vehicle for signs of explosives and to search each passenger getting on the bus.

But while an assistant collecting fares was present on one of the buses, many passengers were not searched.

Samir, the policeman, said that he thought it would be better if they were searched.

Smoking, which is banned on the new buses, is another challenge -- one passenger lit up soon after sitting down on the upper deck of the bus, and the numerous cigarette butts in the trash bin indicated that he was not alone.

In the immediate aftermath of the US-led invasion of Iraq, while many people stayed at home and government buildings were all but shut, the red double-decker buses would still traverse the city from 7:00 am every day.

As worsening violence racked the city, many bus drivers transformed their vehicles into ad hoc taxis, ambulances and hearses. Over time, though, looting and pillaging across Baghdad eventually targeted the city's buses.

Rasan, who said he had ridden Baghdad's old double-decker buses and now on one of the new buses as well, described the style of bus as a fixture of the Iraqi capital.

"These buses are a beautiful means of transport and represent a part of the history of Baghdad," he said

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Baghdad Shopping Mall

Baghdad Invest - 24/04/2012 Baghdad.

A new shopping mall in Baghdad provides for retail therapy needs.

Baghdadis who traditionally flocked to the old bazaars on the streets in the Karrada district will now have their very own shopping mall.

Construction of Baghdad Mall has started and the US$100 million (Dh367.3m) project in the affluent neighbourhood of Al Harthiya will include a shopping centre, a five-star hotel, a state-of-the-art medical centre, a gym and a giant covered parking lot.

The mall is expected to transform the shopping experience in Baghdad, said Haj Mohammed, one of the five private investors at Dar Al Sabah, an Iraq-based contracting firm that entered in a joint venture agreement with the Turkish contractor Tefirom to build the mall.

"In Iraq, retail shops have to manage with power cuts throughout the day, business has also been hurt because of the increased security crackdown, the checkpoints and difficulty with parking space has really lowered the amount of footfall you see in the commercial areas of the city," he says.

"In Iraq, if you just leave your car on the streets security officials would be suspicious that it has a bomb."

Many international retail shops, such as Mango and Zara, have entered the Iraqi Kurdistan region with the arrival of new shopping malls, drawn by the facilities and increased level of security that come with them.

Mr Mohammed expects to see the same level of interest from international brands in central Iraq when the mall is finished, which is due to be by the end of next year.

Baghdad Mall will have 16,000 square metres of leasable space.

"We have already received many inquiries from international shops that already have presence in Erbil, as well as from local shops, particularly jewellers, who would see the opportunity renting space here," Mr Mohammed says.

On completion, Dar Al Sabah expects to hire an international mall operator to manage the day-to-day requirements of the shopping centre and ensure that standards are similar to levels seen in the Gulf.

It will also invite an international hotel chain to manage the hotel.

Many foreign companies that have shown interest in expanding their operations into Baghdad have come across a range of difficulties, such as access to financing, dealing with rampant corruption, and restrictive regulations, Mr Mohammed says.

There are a range of foreign investment initiatives to rebuild the country that require the government to be a partner and this has been seen as a main reason for project delays and why foreign companies are still slow to enter the country.

"Baghdad Mall has been successful only because it was purely a private investor and private sector affair," Mr Mohammed says.

"Laws need to be updated. Right now, you have a liberal government that is open to foreign investment, but laws that date back to the socialist regime."

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