With the support of European Return Fund - Progress by Return

Information on Return and Reintegration in the Republic of Iraq

https://www.cia.gov/library/publications/the-world-factbook/maps/maptemplate_iz.html

Last update January 2012

DISCLAIMER The return-related information contained in this document was collected with great care. However, IOM gives no guarantee as to the accuracy, completeness or correctness of the information, nor does it endorse any views, opinions or policies of organizations or individuals referred to in this document. The depiction and use of boundaries, geographic names, and related data shown on maps included in the document are not warranted to be error free, nor do they necessarily imply official acceptance by IOM. This document does not take any position related to economic, political or security situation in the country. IOM accepts no responsibility for any conclusions made or any results which are drawn from the information provided in this document.

Contents
1. Health Care ......................................................................................................................................... 3 1.1 Throughout Iraq ............................................................................................................................ 3 1.2 Kurdistan Regional Government KRG (Erbil, Sulaymaniyah and Dahouk) .................................... 4 1.3 Medical Treatment........................................................................................................................ 4 1.4 Availability of Medicines ............................................................................................................... 5 1.5 Psycho-Social Support ................................................................................................................... 5 2. Housing ............................................................................................................................................... 5 2.1 Renting or Buying an Apartment or House ................................................................................... 6 3. Education ............................................................................................................................................ 7 3.1 Levels of education ....................................................................................................................... 7 3.1.1 In KRG ..................................................................................................................................... 8 3.2 Accessing Primary and High School or University ......................................................................... 8 3.3 Private Education .......................................................................................................................... 8 3.4 Recognition of Foreign Diplomas .................................................................................................. 9 3.5 Scholarships and Grants ................................................................................................................ 9 3.6 Education for Vulnerable Persons................................................................................................. 9 4. Economic Situation and Employment ................................................................................................. 9 4.1 Employment Opportunities ........................................................................................................ 10 4.2 Requirements for Access to the Labour Market ......................................................................... 11 4.3 Unemployment Assistance ......................................................................................................... 11 4.4 Employment Projects for Returnees ........................................................................................... 12 4.5 The Pension System .................................................................................................................... 12 4.6 Recognition of Foreign Pensions ................................................................................................. 12 5. Banking System and Business Set-up Opportunities ........................................................................ 12 5.1 The Banking System .................................................................................................................... 12 5.2 Barriers to Loans ......................................................................................................................... 13 6. Customs............................................................................................................................................. 14 7. Transport ........................................................................................................................................... 14 8. Telecommunications and Postal Services ......................................................................................... 15 9. Annex ................................................................................................................................................ 17 List of Service providers for trainings, Business development Services and Microfinance .................. 17 2

1. Health Care
1.1 Throughout Iraq
Medical care in Iraq is largely managed publically, although there is currently a push for more private investment in this sector. The Ministry of Healths budget for 2009 was $4 Billion USD. The country has 220 public hospitals and 100 private, of which 33 are located in Baghdad. There are 118 health districts in the country with each district possessing 5 to 10 Health Care Centers per 10,000-45,000 people. There are approximately 2,170 clinics/centres located throughout the country. The distribution of clinics amongst the governorates is uneven, with many rural residents being required to travel up to 30km to reach a clinic. Around half of those clinics are staffed by at least one medical doctor. Nurses and medical assistants staff the rest. Primary and preventative care is provided for free, although clinic services are limited and are affected by power outages and the poor availability of diagnostic equipment. Primary health care includes examinations, investigations, immunization, prenatal care, and health education. Clinic patients usually have 2 to 3 minutes of consultation with the doctor, and documentation is absent in many clinics. As of 2009, there were 22,396 physicians working in the country, including 5,997 specialists, totalling an average of 6.1 physicians per 10,000 people. There remain shortages in anaesthesia, emergency medicine, psychiatry, and family medicine. There are about 1.5 pharmacists and 1.4 dentists per 10,000 people. Life expectancy was 60.6 years as of 2008. 63% of infant deliveries occur in health facilities and 88.5% are attended by a skilled health worker. The leading causes of death are heart diseases, strokes, cancer, respiratory diseases, and diabetes1. There is a lack of health care professionals in Iraq, as many health care workers have fled the country2. The total expenditure on health per capita, USD 167 (EUR 127) in 2009, is lower than average for the region. According to WHO statistics, there are 6.9 physicians and 13.8 nursing and midwifery per 10,000 persons in Iraq. Further, there are 12.7 hospital beds and 0.6 primary health care units and centres for a population of 10,000 persons3. Still, the average household in Iraq is

Much of this information is from http://iraqhealth.net with the rest from the 2010-2014 National Development Plan found at: http://www.iauiraq.org/documents/1159/NDP%20English.pdf . The following document includes tables showing the capabilities of health centres versus hospitals: http://iraqhealth.net/pdf/menu/basic_health_service_package_en.pdf 2 IOM 2011 Review of Displacement and Return in Iraq 3 IOM 2011 Human and physical resources indicators Rate (R) per 10 000 population http://www.emro.who.int/emrinfo/index.aspx

only 20 minutes away from a health facility. In the rural areas, the journey is somewhat longer than the average with approximately 32 minutes4. According to UNDP statistics, the general life expectancy at birth in Iraq is 69 years in 2011. The life expectancy has been increasing since 20075. According to WHO 2009 statistics, the life expectancy at birth is 62 years for males and 70 years for females. This can be compared to the regional average of 64 for males and 67 for females. The mortality rate for children under 5 years is relatively low; 44 per 1000 live births compared to 72 for the region. Adult mortality is higher; for Iraq 222 and for the region 1886.

1.2 Kurdistan Regional Government KRG (Erbil, Sulaymaniyah and Dahouk)

The public sector manages 70-80% of health care services in KRG, and costs range from free to nearly 13 USD for major surgeries. Preventative services are free. The private sector manages 2030% of health care services through private clinics and hospitals. As local and international investment continues, private ownership of health services continues to grow. There are 86 public hospitals, including 18 teaching ones, and 67 private hospitals in KRG, as well as 847 health care centres.

1.3 Medical Treatment

Patients should visit the nearest clinic to be examined by the doctors there. Simple cases can be treated in the clinics that are available in most neighbourhoods, towns and villages. For more complicated cases, patients are usually referred to specialized hospitals where doctors with different specialties examine patients during working days (Saturday to Wednesday), from 8 a.m. to 1 p.m. The fee for a check-up by a doctor, for lab tests, medicines, or for injections or treating wounds is around 1USD. In the Kurdistan Regional Government (KRG), most diseases can be treated and there are public sector centres for cancer treatment. In Baghdad and the southern part of Iraq, few diseases can be treated, because public clinics still suffer from a lack of equipment, medicines, and vital vaccines. There are some territories and some isolated villages, where access to clinics is difficult. In public hospitals, patients may have to wait a long time for surgery, with waiting times sometimes counted in months. Treatment in the private hospitals is a choice for those who want special care and can afford it. There are private hospitals for those who cannot wait for appointments for surgery and where operations can be performed immediately. Specialized doctors who work in hospitals during regular working hours usually have their own private clinics, which they open in the afternoon. These do not have specific working hours or days, though the majority of them do not open on Fridays, and some

Iraq Knowledge Network Essential Services Factsheet, http://www.cosit.gov.iq/english/pdf/2011/ServicesFactsheet-English.pdf 29.12.2011 5 UNDP Life expectancy at birth (years) http://hdrstats.undp.org/en/indicators/69206.html 7.2.2012 6 WHO 2011 Non-communicable diseases country profiles 2011 http://www.who.int/nmh/countries/irq_en.pdf 28.12.2011.

(though fewer) are closed on Thursdays. There are also private clinics for taking MRIs, x-rays, and ultrasound examinations where the necessary equipment is mostly available. People who are suffering from chronic diseases have a medical card. This card is based on doctor's recommendation and each time the patient approaches a certain hospital, where he/she has to use it as the records of previous medicines and illness status noted.

1.4 Availability of Medicines

Most kinds of medication are available in Iraq, but not necessarily in public hospitals. Public hospitals hold medicines bought by the government and patients cannot request medicines by different manufacturers, as is the case in private hospitals and pharmacies. Medicines prescribed by doctors in private clinics or private hospitals can be bought from private pharmacies only. A wide range of medicines made by different manufacturers are available, including Swiss and Indian drugs, as well as those manufactured in Iraq. There is a shortage of cancer medicines in Iraq. These can be obtained from specialized cancer hospitals, which are government-run. However, waiting times for these medicines are known to run into months and, in some cases, even years. Patients usually buy these medicines from other countries, mainly Jordan, where the drugs are available in private pharmacies.

1.5 Psycho-Social Support

Psycho-social support is available in some public hospital departments in the main cities, as well as in private clinics. Urgent treatment and hospitalization of acute cases for a short period is possible, where there are public hospitals that have psychiatric departments, as in Sulaymaniyah, Dahouk and Erbil. For these admissions, the treatment period should not exceed one month and in most cases doctors should only keep the patient in hospital for two weeks. The government has established rehabilitation centers (for female cases only), like Soz Rehabilitation Centre in Tasluja, Sulaymaniyah, for cases with a longer term or permanent need for admission. The centre is located in 30M road, near Dim Dim hotel. It deals with trauma and torture victims and is free of charge. There is an NGO called Rehabilitation Centre for Torture Victims in Erbil. The gover nment is planning to open a branch of the NGO center in Dahouk in the future. Most of the current psychotropic drugs are available in Sulaymaniyah, Erbil and Baghdad.

2. Housing
Iraq is suffering from a housing crisis; since 1982, no public housing projects have been implemented. Estimates on the need for suitable housing units range from 1 million to 3.5 million,

depending on the assumptions used in housing studies. In any case, this constitutes a significant housing shortfall7. Housing has become one of the major problems in the northern part of Iraq, especially after the 2003 events when lots of Iraqis left their homes in the disturbed areas and fled to the KRG (Kurdistan Regional Government) seeking a more secure life. The demand from Internally Displaced Persons (IDPs) for houses to rent or buy increased dramatically and prices soared. The KRG has been trying to tackle housing issues for its residents, especially in the urban areas. In KRG, every head of the family can receive up to 15,000 USD as a loan from the authority in order to build a house provided that he/she owe a piece of land no less than 200 square meters. The applicant only is entitled to have a loan of 7,500 USD, if the land is 100 square meters. Private companies continue to build new houses and sell them in instalments, but the price is not cheap and therefore not every person is able to buy them. Despite the efforts by the authorities the price of land is continuously rising. In the Southern and Central Iraq the government is trying to solve these problems in various ways. They are offering loans for housing of up to 7000 USD. They are also promoting investment in housing by providing land for companies that want to establish housing projects and modern towns. These efforts by the government have been fruitful in terms of increasing the number of housing projects in the northern part of Iraq, but it has not solved the problem of high prices.

2.1 Renting or Buying an Apartment or House

For One Person It is difficult for a single person to find an apartment or house because Iraqi society does not accept single people living with families, especially if there are girls in the household. Moreover, small apartments designed for one person are rare and most of the available apartments and houses are for a family of two or more people. Renting price is between 250 to 500 USD per month depending on the neighbourhood, location, number of rooms, house condition. The purchase price is 40,000 50,000 USD (this is only for small houses) depending on the area For Two Persons It is easier to find an apartment or house suitable for two people. The rent in the main cities would be between 300-500 USD a month. Such an apartment or house would cost between 50,000 -70,000 USD to buy. For a Family Rent for a house of three bedrooms in one of the main cities is between 900- 1,200 a month. The purchase price would be between 70,000-150,000 USD. In order to buy property, a purchaser should have Iraqi Nationality, an ID card and an Iraqi ration card.
7

Iraqi Ministry of Planning: National Development Plan 2010-2014, Baghdad

3. Education
Before 1990 the Iraqi education system was one of the best in the region, both in terms of access and equality.8 Literacy rates have historically been high.9 Since 1987 most adult and non-formal education programmes have stopped and illiteracy rates have grown.10 According to the 2007 Iraq Household Socio-Economic Survey, conducted by the Iraqi Central Organization for Statistics and Information Technology (COSIT), Kurdistan Region Statistics Organization and the World Bank, approximately 23 per cent of the population are illiterate, reaching levels of over 30 per cent in the rural population.11 Also the illiteracy among women is high, reaching levels of almost 30 per cent.12 The survey mentioned above shows that 21 per cent of the population from 6 to 50 years have primary education, while 12 per cent have a secondary education and more. There are also differences between males and females in the level of education. While 24 per cent of all males have primary education and 14 per cent have secondary education and more, the corresponding figures for females are 19 per cent and 10 per cent. 13 The education levels vary also in different parts of the country. In the KRG region there are no major security obstacles for attending school, but in Baghdad and the southern part of Iraq the school system is still affected by the destruction of the buildings during military operations and terrorist attacks. There have however been programmes for reconstruction of schools in place. In the KRG area there are some schools for persons with special needs, whereas there are not such schools available in southern Iraq and in Baghdad.14 The Ministry of Education supervises curriculum development and the planning and implementation of education policy. The Arabic and Kurdish languages are the two official languages of instruction. Each governorate has a General Directorate of Education responsible for delivering services, maintaining facilities, and training and hiring teachers. Higher education is supervised by the Ministry of Higher Education and Scientific Research. Vocational trainings are administered by a variety of other ministries. The school year typically includes 160 days (32 five-day weeks).

3.1 Levels of education

The two years of pre-school education are optional and offered to students ages 4 and 5. Primary education is free and compulsory for children ages 6 to 11 (grades 1 to 6). There are two phases of secondary education for students ages 12 to 17. The first three finish with certificate of intermediate
IOM Returning to Iraq - Country information UNESCO Literacy and Non-Formal Education in Iraq http://www.unesco.org/new/en/iraq-office/education/literacy-nonformal-education/ 30.12.2011 10 UNESCO Literacy and Non-Formal Education in Iraq http://www.unesco.org/new/en/iraq-office/education/literacy-nonformal-education/ 30.12.2011 11 The World Bank Iraq Household Socio-Economic Survey http://siteresources.worldbank.org/INTIRAQ/Resources/ihses_part23.pdf 30.12.2011 12 The World Bank Iraq Household Socio-Economic Survey http://siteresources.worldbank.org/INTIRAQ/Resources/ihses_part23.pdf 30.12.2011 13 The World Bank Iraq Household Socio-Economic Survey http://siteresources.worldbank.org/INTIRAQ/Resources/ihses_part23.pdf 30.12.2011 14 IOM 2009, IRRICO II Returning to Iraq - Country information
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studies. The latter three years divide the students into science and art tracks, or to vocational schools or a teacher training institute. Technical institutes award certificates at the completion of 2 year programs. Most bachelors degrees require 4 years of study at university, with a few requiring 5 years, and medicine requiring 615. 3.1.1 In KRG

There are 18 universities in KRG, 81 public colleges, and 12 private colleges. The student/teacher ratio was 19:1 in 2009. Primary education in Kurdistan incorporates grades 1 to 9. Schools in Erbil, Dahouk, and Sulaymaniyah are under the administration of the Ministry of Education for the Kurdistan Region. The school year typically includes 192 days (32 six-day weeks). The KRG and GOI are working to coordinate their education policies to better serve the needs of students from a wide range of ethnicities and religions. 16

3.2 Accessing Primary and High School or University

Public schools are completely free. Admission to primary school requires an Iraqi state ID. After finishing stage 12 of secondary school, the student will be provided with a booklet and a form containing guidance and the names of all the schools and institutes in Iraq. Usually, the student identifies the colleges or institutes in which he or she would like to enroll in descending order: from those colleges requiring the highest grades to those requiring lower ones. The application form will then go through a computerized system to find which of the chosen colleges best matches the students preferences and grades. There are no restrictions on where or what women can study. There are no faculties or universities only for women.

3.3 Private Education

Private school fees vary substantially from one school to another. They can be as high as 950 USD a year for primary, secondary, or high school. This is just for studying; everything else must be paid by the student. However, in some schools the fees can include transport to and from the school for the students. Some general considerations with respect to private schools:

The quality of staff is likely to be higher in private schools than in public schools; Private schools tend to use a more modern curriculum; Private schools tend to pay more attention to teaching English than public schools; Study hours are longer in private schools; Private schools have more time allocated for entertainment; Private schools run festivals and activities more often;

15

This information came from http://unesdoc.unesco.org/images/0021/002114/211439e.pdfand http://www.iauiraq.org/documents/1159/NDP%20English.pdf. More details about the curriculum plans, including weekly timetables, are available at those sites. 16 Information about Kurdistan came from the above sites as well as http://mhe-krg.org/node/105.

Examination systems are more modern in private schools; Private schools have better buildings and are generally better equipped.

There are public and private universities across the country. Procedures for applying to either type of university are the same. State-run universities are available for free, but private university fees can be from 1,200-20,000 USD per year (for example studying medicine in a private University costs up to 4,000 USD per year), but the fee could be paid per instalments.

3.4 Recognition of Foreign Diplomas

Special committees in the directorates of education evaluate overseas school certificates from grades 1 to 12. These committees are part of the Ministry of Education, but they are mostly located within the General Directorate of Education in the governorates of Sulaymaniyah, Erbil and Dahouk. The certificate must be issued by a university recognized by UNESCO in order to be considered. The Ministry of Education in Baghdad is responsible for recognizing foreign certificates for the southern part of Iraq. These committees follow guidance but, in case the committee is uncertain of the validity of a certificate, it will be forwarded to the Ministry of Education, which will have the final say. The final decision to recognize graduate and post graduate degrees is made by the Ministry of Higher Education and Scientific Research.

3.5 Scholarships and Grants

Some local NGOs, such as the Hiwa Foundation, Chevening and the Rebaz Foundation provide funds for students to complete their education. Some of them allocate small scholarship to students with good grades, who do not have enough money to finish their studies. Also the Ministry of Higher Education has introduced HCDP (Human Capacity Development Program), which gives students with good marks, the option to study (mainly MA and PHD) abroad fully supported by KRG government. This program is based on a competition; students who obtain best marks will be chosen. The main criteria are English language, ability and age.

3.6 Education for Vulnerable Persons

In the KRG, there are special schools for people with special needs. The Ministry of Labour and Social Affairs is responsible for offering vocational training to help these persons to become self-sufficient. There are three centers in Erbil: two of them are in the Questan quarter, called Treska and Dawand, and another one is located in Shorish quarter called Girdmandil. At present, there is no special education available for vulnerable cases in Baghdad and southern Iraq.

4. Economic Situation and Employment

90% of Iraqs operating and investment spending is funded by oil revenues. The GOI estimates that oil production will improve after 2012 based on investment inquiries from foreign companies. GDP is expected to grow at about 9.4% per year. The GOI plans to create no fewer than 3 million new jobs between 2010 and 2014. Unemployment is concentrated among young men. As of 2009, national unemployment figures stood at 18%, with that
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number reaching 28% for men under age 29. The public sector provides for 60% of full-time employment.17 Business Owners Iraq ranks 166 out of 183 economies in ease of doing business. Gross monthly national income is around $300 per month. The majority of businesses operate in the informal economy, although the number of registered businesses grows from single digits in the south to nearly 40% of businesses in Sulaymaniyah in the north. It takes an average of 77 days to complete the 11 procedures to start a business, and small business owners report that costs ranged from 1% to 10% of the initial investment in the business. Sources of loans, credit, and financing are hard to come by. Most entrepreneurs use their own money or borrow from friends to start their business. As of 2008, it took an average of 101 days to import and 102 days to export products in and out of Iraq.18

In KRG Unemployment in KRG stands around 14%, and ranges between 7% in Erbil centre to 24% in rural areas. The KRG is taking steps to decrease unemployment with a goal of creating 100,000 new jobs each year. Almost half of entrepreneurs in Sulaymaniyah perceive construction, as the sector with the biggest growth potential, while around the same number see agriculture as the industry most in decline. The GOI plans to devote 17% of its 2010-2014 development spending in the Kurdistan Region. There are 24 private banks in the region.19

4.1 Employment Opportunities

Employment opportunities are mainly in the public sector, including the police and army; or with mobile phone companies, security corporations and private banks in the private sector. Wages range from about 350 1,500 USD per month depending on skills and education. Employment in the private sector is booming, especially in the three northern governorates of the KRG. The government is supporting the private sector by facilitating its growth. Some of the private sector jobs most often available are in IT, communication engineering, translation, and as security guards. Wages vary from 2,000 -3,000 USD for some critical areas and professions. More generally in the private sector, wages are between 350-1,500 USD per month for lower and middle ranking staff. The below table shows the main sector of economic opportunities per governorate20:

17 18

http://www.iauiraq.org/documents/1159/NDP%20English.pdf http://doingbusiness.org/data/exploreeconomies/iraq/ 19 Information found at the above sites and the KRG regional development strategy. 20 Reintegration of Returnees in Iraq: Local Economy Absorption Capacity and Potential Local Partners, IOM and Altaie Consulting, 2010.

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4.2 Requirements for Access to the Labour Market

At present, Iraqi nationals need to hold an ID card as a formal requirement. Other requirements are defined for individual posts.

4.3 Unemployment Assistance

The state does not pay unemployment assistance at the national level. However, the Government has approved a program in the northern part of Iraq, which has been proposed by the Ministry of Labour and Social Affairs (MoLSA), called the Social Safety Network. The program will support workers with wages of less than one 1 USD per day, as well as unemployed people (both male and female). The Government will pay a salary per individual of at least 130 USD. Family support will be determined by a range of factors, including the number of children and the age of the claimant. This program aims to support handicapped people, vulnerable people, female heads of households and widows. They will receive monthly payments of at least 125 USD, depending on age, and the number of their children, amongst other criteria. Applications can also be made to the MoLSA in Baghdad and Southern Iraq but the bureaucratic process may be long. 11

4.4 Employment Projects for Returnees

Returnees have, in principle, the same access to the employment market as the local population. Returnees do not have priorities; everyone has equal opportunities whether being a returnee or local resident.

4.5 The Pension System

All employees in the public sector enter the pension system, as soon as they are employed by the government. All employees are subject to retirement at the age of 63. The pension is 80% of the basic salary of the employee. There is a social insurance system for people working in the private sector. The government requires companies to pay 17% of each employees salary: 12% comes from the company and 5% from the employee himself. This covers health insurance (1% of the 17%), injuries at work (2% of the 17%) and the rest will be paid to the employee if he loses his job until he finds new work. If the unemployed person opens his own business, he is entitled to receive all of his social insurance in one instalment. The Ministry of Finance administers pensions. Since the war, pensions have been dispensed as regular flat payments ranging between the equivalent of 68 USD per month and 189 USD per month. The GOI and international agencies are currently in the process of revising the pension system21.

4.6 Recognition of Foreign Pensions

Foreign pensions are not recognized in Iraq. Any queries about pensions should be addressed to the MoLSA.

5. Banking System and Business Set-up Opportunities

5.1 The Banking System22
Iraq has banks in both the private and public sectors. In addition to the Central Bank of Iraq, 43 commercial banks are licensed to operate in Iraq, including 7 fully state-owned banks, 8 Islamic banks and 3 branches of foreign banks. The three largest stateowned banks, Rafidain, Rasheed and Trade Bank of Iraq (TBI), account for 85% of banking sector assets. The public sector is fully controlled by the government and follows rules and regulations that have been established for many years. These banks respond more slowly and they are more bureaucratic. So, most people try to avoid the public sector banks for day to day business. However, they have to deal with them at times because all government salaries and government bids go through them. Many people have to put their money in the public banks in order to complete contracts with the government. Iraqi private banks are able to issue credit cards, wire money, accept deposits with interest, and agree on loans.

21

http://siteresources.worldbank.org/IRFFI/Resources/PipelinePension.pdf, http://siteresources.worldbank.org/IRFFI/Resources/PRISTAAnnualReport.pdf 22 Reintegration of Returnees in Iraq: Local Economy Absorption Capacity and Potential Local Partners, IOM and Altaie Consulting, 2010.

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The banking system is still quite underdeveloped, in a country where transactions remain primarily cash based, but it is slowly improving. As Iraq continues to stabilize, its financial system is growing in size, diversity of products and number of suppliers. The restructuring of the two largest stateowned banks has moved forward, and the private banking sector is growing rapidly. This progress has been built on a successful policy to stabilize the Iraqi dinar and contain inflation. The burgeoning private banks are facilitating access to loans; the volume of commercial lending, both corporate and consumer, has nearly doubled since January 2008. Meanwhile, there is also a growing demand for banking services that has yet to be met. Less than 5% of the population has a bank account. Banks typically offer a classic range of deposit accounts and credit products, but access to these remains difficult for most people, owing to restrictive conditions. Consequently, banks are not yet seen as a natural means of borrowing money to start a business.

5.2 Barriers to Loans

Banks are still not perceived as the best way to protect savings. Acquiring land or real estate is the preferred option, hence the attractiveness of government jobs that offer in-kind benefits in the form of land ownership. In addition, part of the population in Iraq is hesitant to place or borrow money with interests due to religious traditions. Another contributing factor is that, in recent years, the Central Bank of Iraq has increased nominative interest rates to counter inflation, therefore attracting high-yielding deposits (for a small portion of the population), but discouraging the majority of people from borrowing, with lending rates sometimes exceeding 20%. As a result, credit to the economy as a proportion of GDP is one of the lowest in the world (3.7% in 2008). Loans are accessible only by people with access to a guarantor with a substantial government salary as collateral, i.e. the middle class. Small loans are instead obtained through family, friends and microfinance institutions (MFIs); there is thus a high potential demand for these kinds of products23.
Transferring Money From Abroad Public banks cannot transfer or receive money from abroad, whilst transfers through the private banks are reliable and fast. Warka Bank, North Bank, Western Union, and Kurdistan International Bank can receive money from abroad or transfer it. Charges for transfers range from 0.5% to 1.5% and have to be paid by the sender or the receiver depending on the previous arrangement between the two. People can also transfer or receive money through private remittance companies which are located in all areas of the country. Micro Credit to Start a Business or Buy Real Estate The government does not provide micro credit for business start-ups, but some private banks can provide micro loans for this. Some banks do not require a house as collateral for loans less than 5,000 USD. A list of service providers for training, business development services and microfinance in seven governorates is included as Annex I.

23

Ibidem

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6. Customs
Customs Regulations The main requirement is to prove Iraqi nationality on return, using an emergency travel document. No problems have been experienced with type S (old) or G (new style) passports. Customs regulations were made by the Iraqi government in 1984, but modifications were later added to adapt to current trade situations. In KRG, customs regulations are only available in the Kurdish language. Special approval by the ministry is needed to obtain a copy of those regulations. There is no limit on bringing money inside the country. Electronic and personal devices are exempt from customs duty; otherwise there is a 5% duty. There are no specific taxes on returnees. Any goods may be brought into the country with the exception of such items that are usually prohibited, such as weapons, drugs, and explosives. The department in Baghdad called the General Committee for Customs is not concerned with individual travellers but with goods in general which are brought into the country on a massive scale by traders.

7. Transport
The Transport System The transport system in South and Central Iraq depends mainly on its roads (cars, buses, and vans). Few public transport facilities exists although there are some train connections between Baghdad and Basra. These are either not yet effective or unreliable. In the future, the line will pass through many of Baghdad's districts so it will serve a huge number of people every day. The project plans have been finalized and are ready for implementation. Recently, the air transport system has been improved. A new airport has been established in Najaf and another will be set up in Karbala province. Transport between Major Cities The cost of taking a bus or van between cities is about 25 USD whilst the air fares are about 250 USD. Generally, people tend to prefer taking a plane, because it is more secure than travelling by land.

Traveling by car (private) From To

Approximate USD

Price

in

14

Erbil Erbil Erbil Erbil Erbil Erbil Erbil Erbil Erbil

Sulaymaniyah Kirkuk Dahouk Mousel Baghdad Koya (Koysnjak) Shekhan Darbandikhan Zakho

110 60 80 60 150 55 70 250 150

Traveling by taxi (with other passengers) From To Erbil Erbil Erbil Erbil Erbil Erbil Erbil Erbil Erbil Sulaymaniyah Kirkuk Dahouk Mousel Baghdad Koya (Koysnjak) Shekhan Darbandikhan Zakho

Approximate USD 14 7 14 7 28 8 8 20 20

Price

in

8. Telecommunications and Postal Services

Post Government postal services are reliable, but they can be slow. As in other countries, the price for a one kilogram package varies according to the country to which it is sent. 7.06 per kilogram is charged for packages for Europe, 5.93 for Arab countries, and 8.76 for countries in the Americas. Private Companies (Aramex, FedEx, DHL and TNT) are reliable and fast, but they are more expensive than the government post office. The cost is about 50 per kilogram.

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Phones Phones (landlines and wireless) are operative and reliable in most of the country, although not in all the villages and towns of the northern part of Iraq.

Mobile Phones Many mobile phone companies operate in the country, such as Iragna, Asia Cell, Ather, Korek, andKalimat. Korek Telecom and Asia cell Company cover the majority of Iraqi territories. Mobitel is a mobile phone company operating in the north.

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9. Annex List of Service providers for trainings, Business development Services and Microfinance
Location Dahouk Name of Service Provider
Al-Aman Centre Al Thiqa

Services Provided
Microfinance Institution Microfinance Institution

Contact
See below Abbas Al Saedi, asaedy@althiqa.org; 130 9834

Additional Information
See below AI Thiqa CMF)) Al Thiqa, meaning "trust" in Arabic, is a +964 770 partner of Tijara and works in northern and central Iraq. Founded in 2004 by Agricultural Cooperative Development International/Volunteers in Overseas Cooperative Assistance (ACDI/VOCA), a US-based

Bright Future Foundation Kurdistan Reconstruction and Development Society (KU.R.D.S)

Microfinance Institution English Courses Computer courses

+964 750-789 6044 Mr.Shawkat Taha Ahmed General Director www.kurds-dohuk.org kurdsdohuk@gmail.com kurds_dohuk@yahoo.com 00 964 750 450 6118 00 964 62 722 4134 Erbil, Ankawa KURDS goal is to help IDPs and returnees get back to their place of origin and to re-engage them in society through reconstruction, rehabilitation and awareness programmes, as well as increasing job opportunities and income generation projects by providin

Mala Lavan

Training centre, English language

WEO

Training centre Microfinance Institution Training Centre Training Centre

See below zd_22266@yahoo.com ah1994_ah1994@yahoo.com

Mala Lawan Mala Lawan is a training centre offering trainings in: (i) computer skills -Windows, maintenance and internet; and (ii) languages -English and Turkish, which are useful for trade in the north. See below

Anbar

Al Takadum Ramadi business Centre Employment training Centre Modern Educational Forum

Training Centre

fareed.zain@yahoo.com

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Erbil

Al Thiqa Bright Future Foundation WEO

Microfinance Institution Microfinance Institution English Courses Computer Courses Public information, awareness raising on entrepreneurship Basic Business Management Training for micro businesses Financial-accounting, training and/or counseling Business management training and/or counseling Business management training and/or counseling Advanced Business management training and/or counseling (for larger enterprises) Specialized Business management training and/or consulting (specific sectors) Dr. Mohammed Salman General Director Mob: 00 964 750 449 3089 Email: visionco308@yahoo.com visionco308@hotmail.com Ms.Dastan Qadir Administrator/Project Manager www.weoiraq.com info@weoiraq.com dastanq@yahoo.com 00 964 750 456 4869 00 964 66 250 0753 Erbil, Ankawa, Marshmuni Women Empowerment Organization (www.weoiraq.com) Women Empowerment Organization (WEO) was initially created to help women acquire business and management skills, but now male trainees are also taken. This training centre has a good reputation. Women Empow

BIP

Business Innovation Programmes (BIPs) is a training centre offering business trainings over a period of seven days.

Vision Company for Consultation and Feasibility

Kurdistan Youth Empowerment Organization (KYEO)

Public information, awareness raising on entrepreneurship Computer courses (internet, Word, Excel, etc.) English courses

Shad M. Ismail, General Director www.kyeo.org info@kyeo.org shad_m_e@hotmail.com 00 964 750 449 7156 00 964 66 259 2767 Erbil, Ankawa, 4th branch, 14/404, Hadiab House No.2 Mr.Ayoub Abdullah Hussain Head of Erbil Office 00 964 750 452 0806 00 964 750 449 2322 www.pao-org.com ayoub_hast@yahoo.com

Public Aid Organization (PAO)

Basic Business Management Training for micro businesses Public information, awareness raising on entrepreneurship Financial-accounting, training and/or counseling

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Sulaymany Al Thiqa ah
Bright Future Foundation SAMA

Microfinance Institution Microfinance Institution Training Centre shadan_kurd@yahoo.com SAMA is a training centre offering courses in management, Human Resources, leadership, strategic planning, secretarial skills, financial management (accounting, auditing), business communication skills, customer services management and IT KEDO is a training centre for entrepreneurship www.chfinternational.org CHF was established in 2003. CHF International's Access to Credit Services Initiative (ACSI) provides small loans to Iraqi families for home improvement or to expand their small businesses. ACSI has become one of the largest microfinance programmes in Ira

KEDO CHF

Training centre Microfinance Institution

Diyala

Al Thiqa CHF

Microfinance Institution

+964 770 130 9834 asaedy@althiqa.org www.chfinternational.org

CHF was established in 2003. CHF International's Access to Credit Services Initiative (ACSI) provides small loans to Iraqi families for home improvement or to expand their small businesses. ACSI has become one of the largest microfinance programmes in Ira

Happy Family

Training centre

+964 770 534 9392 hfordfamily@hotmail.com

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Kirkuk

Al-Aman Centre

Microfinance Institution

imcc_kirkurk@yahoo.com; www.amanfinance.com; 07705105653

AI Aman Centre The Iraqi Al Aman Centre (IAAC) is an MFI NGO providing loans to micro and small businesses. The IzdiharjTijara USAID Provincial Economic Growth Programme has supported Al Aman technically and through funding. Al Aman has one main office in +964 770 130 9834 +964 770 156 3773

Al Thiqa For You Institute Al Thiqa Talafar Economic Development Centre

Microfinance Institution Training centre Microfinance Institution Microfinance Institution

asaedy@althiqa.org

Ninewa

asaedy@althiqa.org tedc_m2007@yahoo.com; 07705236512

+964 770 130 9834 Talafar is a microfinance NCO, working since 2007 to support and develop small enterprises to enhance the living standards of the Western Mosul population. Talafar grants small loans with short terms (six to twelve months) with simple procedures that do n The Al Takadum is an NGO that facilitates access to capital to micro and small business entrepreneurs. It helps to enhance and improve the entrepreneurs' living standards by giving them short-term loans with simple terms and conditions.

Al Tadhamun

Microfinance Institution

tathemn@yahoo.com

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