15 September 2008 | Jake Kanter
Purchasers in Iraq want to encourage global vendors to bid for contracts in the country to drive savings and help them to avoid corruption.
Public sector purchasers want to open up contract opportunities to a wider market. It is estimated the Iraqi government and state-owned businesses have up to $90 billion (£51 billion) to spend on third party supplies.
Larry Hales, chief executive and president of US consultancy Larry Hales International, is helping the Iraqi authorities to attract vendors. He said buyers are looking to make savings by increasing competition and avoiding the problems of collusion with domestic suppliers in the country.
"Some organisations are scared of collusion and are opening up the market. This is quite historic - only a few companies land a few deals, but now Iraq wants the money to flow and get more companies involved," he told SM.
"Suppliers in the US and the UK have been looking for a way into the Iraqi market and now they will be able to contact the people who control the money directly."
He added buyers are moving towards securing better quality products. Iraqi organisations used to purchase goods such as generators with a short life span from countries including India and China, but are now looking to invest more money.