Iraq's instability trouble for Lebanese investors
Foreign investments in Iraq are at a standstill amid recent crises, with Lebanon's $3 billion worth of investments in the country set to decline if a political solution is not reached.
The last thing that the business sector in Lebanon needed was the recent worsening of the Iraqi crisis and its repercussions, especially on the security level. It is true that companies operating in Iraq, especially Lebanese ones, are used to security fluctuations and have adapted to them. But recent events are different with their wide geographical breadth and sectarian dimensions, factors that may have long-term implications.
At the beginning of the year, the Iraqi economy looked promising despite the political tension. The International Monetary Fund (IMF) predicted that it would grow by 6% in 2014. Oil production in February exceeded all expectations and reached record levels as it passed the 3.6 million barrels-per-day mark. But this was before the turmoil.
