Time to invest in Iraqi funds/Stock Exchange?

[amir_j]

Anyone have a view- high risk but potentially huge returns!




British investors will be given their first opportunity to invest in the reconstruction of Iraq this week with the launch of two new funds aimed at financing the country’s development.

MerchantBridge, a boutique investment house, is sending prospectuses for The Mesopotamia Fund to City institutions this week. It is hoping to raise $50 million (£34.5 million). The fund will be listed on the Iraq Stock Exchange and will invest in other listed companies.

Basil al-Rahim, the chief executive of MerchantBridge, said that Iraq was on the cusp of an economic breakthrough and that the Mesopotamia Fund initially would invest in financial services and hotels.

The market capitalisation of the exchange, which reopened after the war in 2004, has doubled to $3.3 billion in the past five years. It has more than 100 companies listed, most of which are small banks, but the Iraqi Government is planning a series of privatisations, including the telecoms sector, next year. Hotels make up another large percentage of the Iraqi market.


http://business.timesonline.co.uk/tol/business/ind...

[Beardy10]

My view is only invest in that what you can afford to lose. I don't even know where to start naming the risks!

I know nothing about MerchantBridge but looking at their website the one obvious thing that is missing is a performance track record....lots of fluff and lacking detail.

[marsred]

Beardy10 said:

I don't even know where to start naming the risks!

You could list the risks associated with investing in the UK or Europe at the moment and then just delete the ones that don't apply to Iraq.