Business Risk of Operating in the Middle East

1. Iraq is one of the least developed OPEC countries

2. The biggest risks the international oil companies face going into Iraq at this point are posed by
political volatility.
Iraqs parliament has not yet passed a hydrocarbon law and political uncertainties
abound. The parliament claims to have the power to veto any of the agreements
reached by the oil ministry and has indicated that when a law is passed, it may
invalidate any contracts negotiated beforehand.
3. Uncertain security environment
Security situation now may be very differentit may be better, it may be worsein six
months time (based on Iraqis election)
4. Corruption
Conducting business with these businesses requires access to government officials,
which often necessitates the use of third-party agents. Saudi Arabia, which has cracked
down on corruption in recent years, possesses a culture rooted in familial connections
that may present concerns related to potential conflicts of interest.
Cultures in which gift giving is a standard business practice.

References:
Corruption Risk in the Oil and Gas Industry. (n.d.). Retrieved from
http://www.alixpartners.com/en/Publications/AllArticles/tabid/635/articleType/ArticleView/articl
eId/460/Corruption-Risk-in-the-Oil-and-Gas-Industry.aspx#sthash.BoaTj6o2.dpbs
Race for Iraq Oil Stalled by Security Fear | Security Management. (n.d.). Retrieved from
http://www.securitymanagement.com/article/race-iraq-oil-stalled-security-fear-006227
Another good read:
http://startups.co.uk/doing-business-in-the-middle-east/