THE BASIC CONSIDERATION OF AL-SALAM PROJECT INVESTMENTS

Al-Salam Project has several pillars that ensure its success, namely:

In terms of supply and demand, and according to the estimates of the Chamber of Commerce in Najaf, there are an average of at least 10,000 visitors arrive to the city daily for the purpose of religious tourism. The vast majority of these visitors come from the neighboring countries, such as Iran, the Arab Gulf states and even Europe. However, the hotels in Najaf are insufficient to accommodate the increasing number of religious tourists. In addition, the majority of the rest stops that accommodate these visitors do not meet any standard of hospitality. Furthermore, most of these rest stops, rated as less than one star, work with prior agreements with tourist groups. As a result, visitors who do not join such groups may have difficulty finding a suitable place to stay in Najaf during the period of religious rites.
The project aims to take advantage of the privileges provided to foreign investors in Iraq under Investment Law No. (13) of 2006, which was approved by the Iraqi Council of Ministers, whereby, the lands can be obtained for such projects on the basis of a long-term lease (50-year) that is renewable, in addition to benefiting from ten years of tax exemption from the start of operating the project.
Furthermore, the project intends to benefit from the Arab Investment and Export Credit Guarantee Corporation's insurance coverage in the face of four major categories of investment risks. These risks include the confiscation and nationalization of investment, the prohibition on transferring invested capital or investment returns across borders, insurance against damages caused by wars and civil unrest, and ensuring the implementation of arbitration decisions that favor the investor in the event of contract violation by local authorities.

Percentage of Work Completion

A committee from the Najaf Investment Commission visited the project to determine the percentages of completion and actually match them on the ground. The committee confirmed the following work completion percentages: 99% for the mall, 73% for hotel apartments and 50% for the hotel. At least 40% of the Al Salam Mall stores have been rented and the Ramada Plaza Hotel Suites (Group of Hotel Apartments) will follow.

Projected Revenues during the First Ten Years of Operation

The estimated construction cost of the project is 110 million US Dollars. The project's internal rate of return is 20% and the investment payback period is estimated to be five to six years from the start of operations. The following are the project's expected returns over the first ten years:

The Ramada Plaza Hotel generates 44 million US Dollars in revenue.
Ramada Hotel Suites generates 49 million US Dollars in revenue.
Al-Salam Commercial Mall generates 52 million US Dollars in revenue.

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Bukhamseen Commercial and Hospitality Complex, Near Imam Ali Mosque, Al Rabitah, Al Barrak Area, Najaf IRAQ
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