Since Iraq’s federal elections on May 12, the country’s newly elected political parties have failed to restore any semblance of trust in the government.
The Iraqi Supreme Court did not ratify the results of the election until August 19, Parliament remained suspended for over two months before it finally met on September 3, and major protests have raged across central and southern Iraq all summer over a lack of basic services.
Iraqis’ trust in the government is unlikely to increase under the next administration; the historically low election turnout, candidates’ heavy reliance on patronage networks, and the previous administration’s public struggle to expel ghost soldiers, sentence officials to prison for embezzlement, and eliminate superfluous government positions attest to that.
Iraq today ranks 168 out of 190 countries on the World Bank’s 2018 Ease of Doing Business Report, down three spots from last year. And SMEs, which constitute about two-thirds of private sector employment in Iraq, are more likely than large firms to view regulations as inconsistent and also report the need to make informal payments to officials during tax inspections. In addition, they face lengthier delays in navigating import/export markets given their comparatively limited access to contacts, finance, market information and intermediaries.
Iraq’s business environment is a challenging landscape for entrepreneurs: limited legal infrastructure; deficits in business education; and a weak track record of independent private business deter both foreign investment and local innovation.
But pioneers willing to brave the uncertainty have already driven change in business regulations, licensing rules and access to education.
One such pioneer is responsible for the passage of the first e-commerce law in his province. Hevi Manmy, the founder of Bazary Online, a Kurdistan-region based delivery service similar to Amazon, encountered difficulties licensing his business given the absence of e-commerce laws and confusing and contradictory regulations governing imports of retail goods. His visit to the local government office in Sulaymaniyah requesting permission to start an e-commerce business in 2014 provided the catalyst for the province’s first e-commerce law.
Other entrepreneurs have worked around Iraq’s weak banking system by developing voucher systems and mobile payment options. For example, Zain Telecommunications, headquartered in Kuwait, launched Zain Cash, a service it describes as a “mobile wallet, money transfer, electronic bill payment, [and] funds disbursement service", in late 2015. Marwan Ahmed and Ammar Ameen, the founders of Mishwar and Miswag, respectively, Baghdad’s first grocery and retail delivery services, similarly navigated the absence of food safety laws and standardised payment terms to develop safe and successful online and mobile businesses.
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Entrepreneurs, investors and educators have formed a small but growing network of training organisations, private equity funds and media platforms. Co-working spaces such as Tech Hub in Erbil and The Station in Baghdad provide workshops and facilities for innovators to bring their ideas to fruition. Five One Labs, Re:Coded and Code for Mosul equip locals and refugees with tech and entrepreneurship skills, while investment and private equity funds such as the Euphrates Fund, Northern Gulf Fund, and AFC Iraq Fund provide investment in return for stakes in Iraqi companies. Platforms such as Noah’s Ark and bite.tech provide online resources, networks and news tailored to Iraq’s entrepreneurial community.
Select universities have even defied the status quo of Iraq’s tertiary education system, which prioritises disciplines that often land students in the public sector, by dedicating funding to support entrepreneurship. The American University of Iraq, Sulaimani, recently inaugurated an entrepreneurship initiative and will offer an interdisciplinary minor in entrepreneurship--an extended course list focused on tech and private sector skills--for undergraduate students in Spring 2019. In Baghdad, Al-Mansour University College established an incubator for students and graduates with the help of Ramin Information Technology Solutions (Rits), the IT company that runs Noah’s Ark.
The problems deterring entrepreneurship are multi-faceted. Weak intellectual property protections, the monopolistic nature of existing private companies and poorly enforced financial reporting requirements allow the embattled public sector to retain its image as a stable and attractive employment option. Likewise, few legal mechanisms by which to penalise criminal activity in business dealings deter partnerships because potential entrepreneurs fear that partners could steal ideas or financial assets with impunity.
Nevertheless, a bloated bureaucracy and increasing awareness of public officials’ drain on public resources has prompted efforts to usurp the idea that public sector employment is the best option after graduation. Entrepreneurs are on track to stimulate the private sector because they operate outside the constraints of patronage networks and ethno-sectarianism that stifle government-led reform efforts.
The next administration would be wise to work with entrepreneurs to reform and update the country’s National Education Strategy, bolster financial literacy and entrepreneurship courses in high schools and universities and follow through on its obligations under the 15-year Private Sector Development Strategy.
The relationship will be a step toward alleviating public debt and distracting from the corruption scandals of recent administrations.
Emily Burlinghaus is a programme officer at the Institute of Regional and International Studies at the American University of Iraq
COMPANY PROFILE
Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends
COMPANY PROFILE
Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)
Kill
Director: Nikhil Nagesh Bhat
Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal
Rating: 4.5/5
The five pillars of Islam
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Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
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Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2
Hili 2: Unesco World Heritage site
The site is part of the Hili archaeological park in Al Ain. Excavations there have proved the existence of the earliest known agricultural communities in modern-day UAE. Some date to the Bronze Age but Hili 2 is an Iron Age site. The Iron Age witnessed the development of the falaj, a network of channels that funnelled water from natural springs in the area. Wells allowed settlements to be established, but falaj meant they could grow and thrive. Unesco, the UN's cultural body, awarded Al Ain's sites - including Hili 2 - world heritage status in 2011. Now the most recent dig at the site has revealed even more about the skilled people that lived and worked there.
The Greatest Royal Rumble card as it stands
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UAE currency: the story behind the money in your pockets
'Nightmare Alley'
Director:Guillermo del Toro
Stars:Bradley Cooper, Cate Blanchett, Rooney Mara
Rating: 3/5
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- Never click on links provided via app or SMS, even if they seem to come from authorised senders at first glance
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Director: Shawn Levy
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Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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Engine: 4.4-litre V8
Transmission: Automatic
Power: 530bhp
Torque: 750Nm
Price: Dh535,000
On sale: Now
SHAITTAN
Director: Vikas Bahl
Starring: Ajay Devgn, R. Madhavan, Jyothika, Janaki Bodiwala
Rating: 3/5
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Date started: March 2019
Founder: Dr Ali Al Hammadi
Based: Abu Dhabi
Sector: AgriTech
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Pox that threatens the Middle East's native species
Camelpox
Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.
Falconpox
Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.
Houbarapox
Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.
Company Profile
Name: Direct Debit System
Started: Sept 2017
Based: UAE with a subsidiary in the UK
Industry: FinTech
Funding: Undisclosed
Investors: Elaine Jones
Number of employees: 8
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
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Manchester City 1 Chelsea 0
De Bruyne (70')
Man of the Match: Kevin de Bruyne (Manchester City)
MO
Creators: Mohammed Amer, Ramy Youssef
Stars: Mohammed Amer, Teresa Ruiz, Omar Elba
Rating: 4/5
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9pm Maiden (PA) Dh70,000 (Dirt) 2,000m
9.30pm Handicap (TB) Dh70,000 (D) 2,000m
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11pm Wathba Stallions Cup – Handicap (PA) Dh70,000 (D) 1,600m
11.30pm Maiden (PA) Dh70,000 (D) 1,400m
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The Witcher - season three
Director: Various
Stars: Henry Cavill, Freya Allan, Anya Chalotra
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COMPANY PROFILE
Company name: Co Chocolat
Started: 2017
Founders: Iman and Luchie Suguitan
Based: Dubai, UAE
Industry: Food
Funding: $1 million-plus
Investors: Fahad bin Juma, self-funding, family and friends
The biog
Name: Timothy Husband
Nationality: New Zealand
Education: Degree in zoology at The University of Sydney
Favourite book: Lemurs of Madagascar by Russell A Mittermeier
Favourite music: Billy Joel
Weekends and holidays: Talking about animals or visiting his farm in Australia
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Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder
Power: 220 and 280 horsepower
Torque: 350 and 360Nm
Transmission: eight-speed automatic
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On sale: now
LEAGUE CUP QUARTER-FINAL DRAW
Stoke City v Tottenham
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All ties are to be played the week commencing December 21.
Scoreline
Australia 2-1 Thailand
Australia: Juric 69', Leckie 86'
Thailand: Pokklaw 82'
The specs
Engine: Single front-axle electric motor
Power: 218hp
Torque: 330Nm
Transmission: Single-speed automatic
Max touring range: 402km (claimed)
Price: From Dh215,000 (estimate)
On sale: September
SPECS
Mini John Cooper Works Clubman and Mini John Cooper Works Countryman
Engine: two-litre 4-cylinder turbo
Transmission: nine-speed automatic
Power: 306hp
Torque: 450Nm
Price: JCW Clubman, Dh220,500; JCW Countryman, Dh225,500
COMPANY PROFILE
Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
$3.6 million led by Global Ventures
Brief scores:
Toss: Nepal, chose to field
UAE 153-6: Shaiman (59), Usman (30); Regmi 2-23
Nepal 132-7: Jora 53 not out; Zahoor 2-17
Result: UAE won by 21 runs
Series: UAE lead 1-0
Recent winners
2002 Giselle Khoury (Colombia)
2004 Nathalie Nasralla (France)
2005 Catherine Abboud (Oceania)
2007 Grace Bijjani (Mexico)
2008 Carina El-Keddissi (Brazil)
2009 Sara Mansour (Brazil)
2010 Daniella Rahme (Australia)
2011 Maria Farah (Canada)
2012 Cynthia Moukarzel (Kuwait)
2013 Layla Yarak (Australia)
2014 Lia Saad (UAE)
2015 Cynthia Farah (Australia)
2016 Yosmely Massaad (Venezuela)
2017 Dima Safi (Ivory Coast)
2018 Rachel Younan (Australia)
Kandahar
Director: Ric Roman Waugh
Stars: Gerard Butler, Navid Negahban, Ali Fazal
Rating: 2.5/5
Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.