Worksheet for Industrial Sector in Najaf Province

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For a long time, Najaf industrial activity used to cover only the consumer industries that meet the Najafi people needs. Some of these industries found other market (outside Najaf and outside Iraq), but generally Najaf industries targeted Najaf market and couldn’t meet the foreign market needs since Najaf industrial institutions had a very limited capacities.

 Najaf industrial activities covered only food stuff, fabrics, constructions industries versus retraction the productive industries like (chemical, basic metal and geometrical). If we ask about the reasons for these types of industries, the answer is the general consumer trend and the public intentions to steer the industrial investment towards quick “lucrative” industries.

This intention was created due to the industrial awareness. Also the public sector state companies were affected by the period which followed April 2003; some productions were declined while other factories were closed. It’s important to mention here that Najaf industry has come through very difficult circumstances such as destructive wars and comprehensive economical block aid, that’s why Najaf industry couldn’t go along with the progress that international industry witnessed.

Despite the fact that industrial sector of Najaf is very vital, but it still very slow sector in comparison to construction, contracts, and banks sectors. It is very back warded in the fields of human resources, infrastructure, transformation, technologies, methods of productions, methods of marketing and administrations, failure to compete the imported products, failure to find criteria and basics for promoting the quality of the national products and supporting the competitive ability, the limitation of investments in this sector in addition to the weakness in the process of evaluation related to the technical, financial and marketing aspects.

Najaf industrial sector has all the successful industry potentials which are not really used, these potentials represented by the plenty of raw materials and the plenty of working hands. But Najaf industry features are just like Iraqi industry feature, the same general weakness in the mechanism and operations in addition to following challenges:

 1.       Weakness and lack in the present technical staffs.

2.      Failure to go along with the technological developments that other countries came along with.

3.      Najaf industrial products (just like other provinces industrial products) are incapable of competing imported products neither from prices aspects nor from quality aspects due to the insufficient protection to the local products from one side and failure to find criteria and basis to promote the quality of the national products from the other side.

4.      The fear of investing the industrial sector due to many different obstacles that participate in this.

5.      Ministry of industry doesn’t have that big role in supporting the industrial sector by not providing loans for private industrial projects which lead to the closer of a lot of factories.

First:

Human Resources:

·         To develop a comprehensive program aiming to develop the administrative and industrial technical staffs skills by providing training courses and re qualify them.

·         To establish advanced methods for cooperation between the educational sector with the industrial one so that the industrial sector can find the staff needed.

·         To make reformations to the regulation related to residency issues and make all possible facilitations to bring experts and skilled workers to Iraq but it shouldn’t make additional unemployment.

·         Issuing new mechanisms  that facilitate collisions and merging companies ,factories and local factories with each others or with Arabic or international companies.

·         To make clear and strict regulations for the foreign workers in the province of Najaf that they don’t harm the interests of the Iraqi workers.

Second:

Energy and its Resources:

·         To make a comprehensive survey for the needs of the companies and factories of the private sector of the electricity needed for production. The survey can help specifying the required energy and later to be programmed according to the real need.

·         To establish special independent power plants that produce electricity exclusively for industrial areas and should have nothing to do with the province electricity distribution plans. 

·         To make comprehensive survey for the needs of the companies and factories of the private sector of the fuel and oils and to makeg simple mechanisms for supplying.

Third:

Legislations:

·         To cover the investor with the loyal protection and security and to encourage insurances companies to work in this field.

·         To make clear and fair regulations regarding renting fees of the sand, stone and rocks factories that ensure the balance in the involved parties interests.

·         To activate and amend the investment law by covering the small industries and hand crafts with the privilege of getting a piece of land for their projects.

·         To legislate the two laws of competition and supporting the national products, and prohibiting the dumping to achieve balance.

·         To provide the industrial persons the right of selecting the type of the activity or changing it which will create the atmosphere of the competition and enthusiasm to the industrial persons to increase the production and improve its quality.

·         To exempt all the imported raw materials from customs fees and to deal with them as industrial goods not as commercial goods.

·         To focus on the printing industry and to specify a governmental referential that support this industry and guide it towards good direction.

Fourth:

Industrial Lands:

·         Deeding the industrial projects land instead of renting them and not to oblige the industrial persons to leave their projects.

·         To activate the laws and instructions that organize changing the type of lands.

·         To  make comprehensive survey to the Najafi soil to choose the most suitable land to establish industrial projects on them.

·         Working on selecting the suitable lands that industrial projects could be established on and to deed these lands to the industrial investors with encouraging prices.

Fifth:

Finding and investment:

·         It is important that Najaf industrial sector to be represented in the Najaf investment committee. The mechanism for nominating candidates should be adopted by Najaf Chamber of Commerce.

·         To unify the formulas, procedures of taxations criteria (Clarity, transparency).

·         To facilitate the governmental procedures for the small and medium industrial projects to get credits and loans.

·         To encourage the industrial person to renew their production lines by the governmental and financial support .This support is represented by facilitate opening banks credits.

·         To encourage the industrial persons to participate in local and international exhibitions and industrial festivals by providing them with financial support.

·         To exempt the small and medium private industrial projects from taxes to encourage the investment.

·         To find methods for partial financial support for suspended industrial projects.

·         To coordinate with the concerned parties “to find a stock market” in the province of Najaf.

·         To open a new bank in (Al-Hirafeen Qr.) that deliver bank services to industrial person to decrease time and effort.

Industrial Investments:

Throw geological tests, Najaf land proved to have a lot of minerals and important industrial raw materials, especially at the eastern Najaf which is full of silica’s, lime, glass, mercury,…etc) that have not used before. Najaf land includes also important high ways that connect north Iraq with south Iraq, in addition to the skillfull working hands (Engineers, Technical, Administrative). These factors could be the logical basis to support small, medium and big projects.

The main problems facing the industrial sector in Najaf province:

1.      Lack of power energy ( electricity, fuel)

2.      Lack of management and technical skills for the people who work in the private industrial sector.

3.      There are no real clear mechanisms for a real cooperation among the concerned officials departments.

4.      The old productions lines and machines lead to a low quality product.

5.      The high cost for renewing lines production and the industry infrastructure makes the manufacturer unable to compete.

6.      Old and difficult banks mechanisms.

7.      For Najafi products, there is a lack of mechanisms for qualification and standards determination.

8.      The absence or weak coordination between complementary industries structures and supporter

9.      There is no representation for the industrial sector in Najaf investment commission.

10.  Legal and security protection weakness for the Iraqi and the foreign investor.

11.  Coordination and cooperation absence among the different directions during information and data publication so that’s lead to make it unreadable.

12.  The existence of the financial, managerial and political corruption represents a real problem for the private industrial sector development in Najaf province.

13.  The increased no. of importing products from different origins with low quality and prices put a negative impact on the ability of the local product to compete.

14.  There is no support for the local products from the official departments side when most proposals for supplying these departments depending on the importing products.

15.  There is no support from the state through its’ concerned governmental establishments in facilitating row materials supplying used in industry.

16.  The high cost for industrial and trading exhibitions and Festivals inside and outside Iraq.

17.   Raw materials non exemption from the customs fees.

18.  Printing industry neglecting although they are 60 printers in Najaf , also there is no governmental direction follows them.

 

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