South Africa and Iraq to increase trade relations (07/10/05)

South Africa and Iraq have resolved to increase political and trade relations, especially in the oil sector.

Iraq has the second largest oil reserves in the world

This emerged following the first South Africa/Iraq bilateral meeting between Foreign Affairs Deputy Minister Aziz Pahad and his Iraqi counterpart Talib Al-Bayati at the Union Buildings in Pretoria yesterday.

Mr Pahad told reporters that the parties discussed broad economic relations, and in that context, the Iraqi delegation informed them that the Iraqi oil industry had "tremendous" potential for involvement and investment.

Deputy Minister Pahad said Iraq had the second largest oil reserves in the world. He said relevant departments from both sides would look more into the potential of economic relations between the two countries.

Economic trade between South Africa and Iraq increased from over R90 million in 2004 to over R200 million during the first five months of this year - even during years of conflict there.

"There are a lot of Iraqi business people based in [neighbouring] Dubai, Jordan and Kuwait and we think that can become the starting point between the business sector and parastatals," Mr Pahad explained.

Source: AllAfrica