International companies to develop the Iraq housing plan

Baghdad: Iraq has doubled its goal of building 500,000 housing units after international companies showed a healthy appetite to win the construction contracts.

As a result the war-shattered nation is looking for bidders to build one million new units, valued at an average of $50,000 (Dh183,597) each, for a total value of $50 billion.

Iraq's growing population faces an acute shortage of homes after years of war and sanctions. The government, which hopes to build the one million new homes within three years, estimates it will need about two million new units in the next five years.

More than 100 firms showed interest in the ambitious project including American, UAE, Chin-ese, Turkish and Canadian companies.

They are planning in the next three months to hold discussions with all the companies and when they reach the stage of understanding with any company, they will sign a contract with it immediately.

The government hopes a sharp fall in violence in the last two years and a new investment law allowing foreigners to own land for housing projects will entice foreign developers.

The government had set up favourable terms to lure construction companies.

Iraq signed up global oil companies last year to develop its rich oilfields and hopes to put its petroleum income to work rebuilding the country.

In January the city of Baghdad announced it was looking for planners and builders for a project for 75,000 apartments in the Sadr City slum. They had also signed a contract with a UAE investment firm for a $15 billion housing project in eastern Baghdad, including 65,000 housing units on 2,000 hectares of land.