The quarter ended with a decline in our largest position, Baghdad Soft Drink (loss of 6% in September) followed by a 2% September loss for Bank of Baghdad, being the second largest position. Another large position for the Fund was up 5% for the month.

The important trading volume in Iraq still remains around the $5-600K per day range.  Iraq benefits from an energy starved globe as post-pandemic levels kick in at the same time oil reserves and exploration has been on the decline.

Iraq remains the 6th largest oil exporter in the world, accounting for 4% of global exports.  With increased demand and prices for crude, Iraq benefits with oil revenues of $6 billion+ per month at current price and production levels.

We should see further increases in Iraqi oil export as OPEC agreed in July to boost output by 400,000 barrels per month to start to phase out the 5.8 mill barrels of existing cuts.

An important event coming up in October is the parliamentary elections (10th October), thereafter the often-lengthy negotiations will follow until the new government is a fact.

Domicile: Bermuda
Sources: Reuters, Rabee Securities