‘Fertile Ground’: Baghdad Sees Timid Revival with Investment Drive

Workers rehabilitate a road as part of public works on the outskirts of Baghdad on September 15, 2023. (AFP)
Workers rehabilitate a road as part of public works on the outskirts of Baghdad on September 15, 2023. (AFP)
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‘Fertile Ground’: Baghdad Sees Timid Revival with Investment Drive

Workers rehabilitate a road as part of public works on the outskirts of Baghdad on September 15, 2023. (AFP)
Workers rehabilitate a road as part of public works on the outskirts of Baghdad on September 15, 2023. (AFP)

On a summer evening, Iraqis smoke shisha and go bowling at a sprawling riverside complex in Baghdad, one of the many new investments reviving the capital after decades of turmoil.

"Iraq is fertile ground for investments," said Falah Hassan, the executive director of the complex of restaurants and shops built on the grounds of one of Saddam Hussein's former palaces and named after the famed "One Thousand and One Nights" folktales.

In oil-rich Iraq, the fragile stability since the defeat of the ISIS group in 2017 has paved the way for a building boom in a city that in recent years has mainly made headlines for wars and bloody violence.

Since taking office in October, Iraq's Prime Minister Mohamed Shia al-Sudani has sought to rehabilitate Baghdad's infrastructure, much of which has been left dilapidated by conflict and neglect.

But a World Bank report in July said investors were still hesitant to put their money in Iraq, citing a "lack of business-friendly legislation, a volatile security environment, administrative inefficiencies, and systemic corruption".

Hassan acknowledged investors still faced numerous obstacles, including "the security situation" and "bureaucracy".

"You have to go through 1,000 counters to get a single permit," he said, noting the new "1,001 Nights Park" complex perched on Baghdad's Tigris river was opened in late 2022 by "young investors".

'Epidemic of corruption'

This is a reality authorities say they are committed to changing to attract investors.

In late August, Sudani attended the groundbreaking ceremony for a luxury hotel and residential complex, the first major Qatari investment in Baghdad.

"From the prime minister to the lowest-ranking official, we will stand alongside investors and the private sector to carry out projects in Baghdad and the provinces," the Iraqi leader said.

At the United Nations General Assembly last week, Sudani said "our top priority is the fight against the epidemic of corruption".

But experts say dirty money is behind many of the new developments seen in Baghdad.

"In recent years, Iraq's political elite and their business associates have preferred to invest their wealth in local projects as a safe haven for ill-gotten gains," wrote Hayder al-Shakeri in a piece for the Institute of Regional and International Studies at American University of Iraq, Sulaimani.

"In part to disguise the origins of their illegally obtained funds, the political elite have allegedly taken to investing in upscale residential compounds, malls, private universities, and other real estate ventures, resulting in a 'visible boom' in Baghdad's development," he added.

In less than a year, Sudani has undertaken work to provide improved water and electricity services to Baghdad's informal neighborhoods, construct bridges and redesign the streets of one of the Arab world's most populous cities.

In the 2023-2025 budget passed this year, annual investment expenses are set to hit $37 billion -- three times the amount in 2022, the World Bank reported.

These generous allocations are made possible by Iraq's tremendous oil wealth and foreign reserves, which amount to more than $100 billion.

'No water, no electricity'

In the neighborhood of Kufa on Baghdad's outskirts, a bulldozer digs up the road to install pipes, while a dump truck removes the rubble.

A special unit is working to rehabilitate the many informal neighborhoods of Baghdad "deprived of services for more than 20 years", said Abdel Razzak Abd Mhessein, the project's head engineer.

The unit is made up of people from various ministries, state-owned enterprises as well as engineers from the army and paramilitary network, the Popular Mobilization Forces.

"We have a budget of about 200 billion dinars ($150 million) for infrastructure work for water, sewer systems and more," the engineer told AFP.

"There are more than 1,093 informal neighborhoods in Baghdad -- a plan has been prepared to gradually carry out work there," he added.

The public's reaction to the work so far has been mixed.

"This is what we dreamed of. Paved roads, and services," said Abu Ali al-Bahadli, a 55-year-old day laborer.

"Before, we couldn't go out when it rained. The road was muddy and the sewers overflowed."

His neighbor, Ahmed Radi, is more skeptical, noting work on his street had not brought him adequate electricity or running water.

"Tell me, which official would accept staying even an hour without water," said the 45-year-old civil servant.

"When will they install pavements? Storm water drains?" he asked.

"We come home tired from work. There's no water, no electricity. For how much longer?"



Fire, Smoke Upend Western Canada’s Summer Tourism Season

 A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

 A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."