Present day Iraq (historically also known as Mesopotamia) was until the end of W.W. I part of the Ottoman State. During W.W. I it was occupied by British forces, made a Monarchy and placed under British Mandate by the League of Nations. In 1932 the Mandate was terminated when Iraq joined the League of Nations as an independent Monarchy. A violent revolution in 1958 toppled the Monarchy and Iraq became a Republic.

Geographically Iraq is located on the northern tip of the Gulf with an area of over 434,000 square kilometres and a population of over 21 million. Historically Iraq's economy was based on agriculture benefiting from the waters of the two main rivers which pass through it. Early in this century oil was discovered in Iraq which later became a major producers. Iraq was one of the founder members of OPEC. However, in spite of its success in developing significant resources, including substantial proven oil reserves, and an impressive infrastructure, Iraq's economic development was hampered by political instability and major military conflicts.

The last conflict was the invasion of Kuwait with its known devastating effects on the economy and society in Iraq. The imposition of UN sanctions, which still prevail, has had serious consequences, not only by limiting Iraq's oil exports to quantities specified by the UN and allocating the revenue to the purchase of essentials such as food and medicines in accordance with the oil for food UN Resolution, but created very serious economic and environmental problems. Iraq now exports an average of 2.1 million bpd with a revenue of $9.5 billion depending on the price of oil. Rampant inflation is one of the prevailing economic difficulties. The rate of exchange of the Iraqi Dinar was, prior to the Gulf Crisis, $3 to each Dinar. Now it is 2,000 Dinars to the Dollar.

Since the Gulf crisis in Iraq, the socialist economic policies previously implemented, became less stringent and a privatisation programme began especially in agriculture, transport and industry. This could provide trade and management opportunities for specialised companies upon the lifting of sanctions.