Posts Tagged ‘Middle East’

Iranian Investment In Iraq…

Tuesday, June 23rd, 2009

Complex financial and social connections make it nearly impossible for Iranians to extricate themselves from the quagmire that is Iraq.

  • Iran’s government supports firms with a huge stake in the pilgrimage industry, as well as those that renovate and maintain Shi’ite shrines in Iraq.
  • Shamsa, a private Iranian firm, chooses which Iraqi companies to utilize for the pilgrims’ transportation, protection, and accommodation; nearly all these firms are connected with political parties close to Iran.
  • Iranian pilgrims are well-received for their economic support to the shrine-cities. However, many suspect the Iranian government of meddling with Iraqi internal politics.

Facts & Figures

  • In 2005, Iraq agreed to allow entry to 5,000 Iranian pilgrims per day.
  • Karbala receives millions of pilgrims each year, but the city’s hotels have a maximum capacity of only 23,000.
  • Al Kawthar, an Iranian company, is part of a $100 million project to renovate the historic city center of Karbala.

Best Quote

“We are Arabs, we will not accept to be colonized by anyone. We do not take orders from the Iranians.” — Mr Ali al-Hayawi, a hotel owner in Karbala

Iranian Voters Got Money On Their Minds…

Tuesday, June 23rd, 2009

It always boils down to the economy in the end; this classic political adage applies in the Near East as the Iranian economy dominates political issues.

  • In Iran’s 2009 presidential election, the economy — in terms of the inflation rate, unemployment, and how oil revenue is being spent — is of high priority to most voters.
  • Incumbent President Mahmoud Ahmadinejad and his supporters believe that the policies of his first term have improved the daily life of the average Iranian, whereas his three opponents claim that the economy is in a dire situation.
  • Ahmadinejad increased pensions and the wages of federal employees; his rivals say that government money, a huge part of which comes from oil revenue, should have been spent on creating jobs and improving the infrastructure of the country.

Facts & Figures

  • Iran’s economy expanded by 8.0% in 2007 and 4.5% in 2008, but the IMF projects it will expand by only 3.2% in 2009.
  • Unemployment was 10.5% in 2005 and is projected to be 17% in 2009.
  • Current inflation is at 23.6%, according to Iran’s Central Bank.

Best Quote

“The problem is that Ahmadinejad has focused on the distribution of wealth, and what we need is the creation of wealth.” — Mr. Saeed Leyaz, Iranian economist