The Middle East is an enormous market for Germany, a highly specialized export nation. The label Made in Germany enjoys an excellent reputation worldwide, particularly in the Middle East, where it is often understood as a guarantor for high quality. German exports to the Middle East reached 34.33 billion EUR in 2014, growing by over 9% since 2013, despite decreasing exports to Iraq and Yemen. Abdulaziz Al-Mikhlafi, Secretary General of the German-Arab chamber of trade, encourages German companies to perceive the region as a partner and industrial location, instead of reducing it to a mere export market.
"While competitors from China, Japan and Korea are eager to invest, German companies are more hesitant."
The Arab World is a vast market offering promising returns to companies active in the region. Many Arab countries are investing massively in infrastructure, electricity, health, education and the water-sector. One country in desperate need of reconstruction is Iraq. Iraq is facing the challenge to rebuild its economy and to overcome political instability and terror with the help of immense natural resources.
The Iraqi economy is characterized by drastic ups and downs. Between 1840 and 1915 in the latter phase of Ottoman rule, the Iraqi region slowly incorporated into the world’s economy, exporting agricultural products and raw materials. Under British administration, the run for Iraqi oil began, leading to large British investments in this sector. After independence Iraq slowly grew to become a striving middle income country by the 1970s, with high growth rates and sizable foreign assets. Since then Iraq has fallen into debt and chaos facing a series of wars and political upheavals. Correlated to the domestic Iraqi’ economy, German-Iraqi business relations have flourished and ceased to zero.
Iraq, nowadays a country of 35.9 million inhabitants, still holds potential for foreign business. Iraq is estimated to have the third largest oil reserves in the world after Saudi-Arabia and Iran. The concrete number of proven reserves, provided by OPEC is 143,069 mil. barrels. Immediately after the Iraq War, investors from all over the world were on the qui vive to secure themselves a share of the lucrative reconstruction projects. However, the political instability and the poor security situation prevented many German firms from operating in Iraq.
In this book the key drivers behind German-Iraqi commerce will be examined.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Chapter 1: Theoretical Background
- 1.1 Theories of International Trade
- 1.2 World System Theory
- 1.2.1 The Middle East in the World Capitalist System
- 1.2.2 Iraq
- 1.3 Criticism of the World Systems Theory
- Chapter 2: German Trade during the Ottoman Era
- 2.1 Rising European Interest in the Region
- 2.2. German Ventures in the Region during the Ottoman Period
- 2.2.1 Politics
- 2.2.2 Economy
- Chapter 3: Iraq under British Influence
- 3.1 The British Occupation of Iraq
- 3.2. Hashemite Monarchy
- 3.3 British Oil Policy
- 3.4 The End of British Hegemony in Iraq
- 3.5 German-Iraqi Business 1918 - 1958
- 3.5.1 Weimar Republic
- 3.5.2 Third Reich
- 3.5.3 Federal Republic until 1958
- Chapter 4: Baath Regime
- 4.1 Military Rule
- 4.2 The Iraq-Iran War
- 4.3 German-Iraqi Business 1958 - 1991
- Chapter 5: Iraq under American Influence
- 5.1. US Interest in Iraq
- 5.2 The Gulf War I
- 5.3 Sanctions
- 5.4 Iraq War
- Chapter 6: Post War Period
- 6.1 Economic Developments
- 6.2 German-Iraqi Business 2003 - 2013
- 6.3 Perspectives for Germany
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper investigates the historical development of German-Iraqi business relations from the Ottoman era until 2015, examining the impact of various political and economic factors on these relations.
- The influence of international trade theories and world systems theory on German-Iraqi relations.
- The role of oil in shaping German-Iraqi business interactions, particularly during British and American influence.
- The impact of political upheavals and wars on German-Iraqi trade.
- The role of German foreign policy and economic interests in shaping these relations.
- The potential for future business opportunities between Germany and Iraq.
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter introduces the theoretical framework for understanding German-Iraqi business relations, focusing on international trade theories and world system theory. It examines the role of the Middle East, and specifically Iraq, within the global capitalist system.
Chapter 2 explores German trade during the Ottoman era, highlighting the growing European interest in the region. It analyzes the German ventures in the Ottoman Empire, including the Baghdad Railway, and the rivalry between British and German interests.
Chapter 3 examines the period of British control over Iraq from 1918-1958, analyzing the resulting decline of German-Iraqi economic relations. The chapter focuses on British oil policy and its impact on German interests in the region.
Chapter 4 covers the peak of German-Iraqi economic relations from the revolution in 1958 until 1991, including the Iraq-Iran War.
Chapter 5 analyzes the period of US-American influence in Iraq, focusing on the impact of US interests on German-Iraqi trade during the sanctions period, the Oil for Food Program, and the Iraq War.
Chapter 6 examines the post-war period, discussing the economic developments in Iraq and the prospects for German-Iraqi business.
Schlüsselwörter (Keywords)
This paper focuses on the key concepts of German-Iraqi business relations, exploring the interplay of economic interests, political influences, and international trade theories. The paper analyzes the historical development of these relations, with a focus on the roles of oil, colonialism, and the impact of regional conflicts. The study explores the impact of world system theory, the Baghdad Railway, and the British and American interventions in Iraq on German-Iraqi business relations.
- Citation du texte
- Anna Richter (Auteur), 2016, German-Iraqi business relations. A struggle of economic, political and hegemonic interests, Munich, GRIN Verlag, https://www.grin.com/document/416076
