Jordanian construction firms are planning to form a consortium of 20 companies to enter the growing market of Iraq's Kurdistan region, the sector's top representative.
Ahmad Tarawneh, president of the Jordan Contracting Construction Association (JCCA), told The Jordan Times over the phone that contractors have held talks with the Association of Banks in Jordan and the Jordan Exporters Association to discuss forming the consortium.
According to Tarawneh, the Kurdistan market has become a promising destination for international and regional companies and investors, saying that although there are large-sized construction firms in Jordan, a single company cannot compete in the northern Iraqi region.
Regarding the domestic market, the JCCA head indicated that Jordan's financial straits and economic slowdown in the country have idled local firms.
Noting that there are around 2,000 construction firms in the Kingdom, nearly 150 of which are considered large-sized, Tarawneh said that available schemes in Jordan are only enough for four companies.
Recent reports prepared by international business organisations have described Kurdistan, which is an autonomous region of Iraq, as investor-friendly that looks to attract international investment.
There are a number of major projects already under construction or are being planned.
Oil and gas receipts in Iraq and Kurdistan are growing and enabling the government to increase expenditure on projects, while there is also a need for substantial infrastructure investment.
A stable part of violence-hit Iraq, Kurdistan is considered by international firms as virgin territory for companies looking to expand their business interests, according to Tarawneh.
Jordan Times
4 October
