With considerable growth potential in the Iraqi cement market, the government is not only keen to rehabilitate the old plants but also aims to encourage new investors to enter the country. However, the task is a difficult one because of the continued political instability, the prospects for further unrest and inadequate energy supplies.
Iraq is a nation that has been reborn since the two Gulf wars in the last decade, but there are still many dangerous political undercurrents that threaten to undermine the progress made. The Shi’ite-led government continues to face stern opposition from Sunni factions, and tensions frequently erupt into violence. The Sunnis are also looking to help the insurgent groups take up the fight against President Bashar Al-Assad’s regime in neighbouring Syria as Iraq becomes increasingly involved in the conflict. In addition, there is military tension in the northern Kurdish region where the central government has sent troops to quell ethnic conflict between the resident Kurds and Arabs.
