Industry Trend Analysis - Extensive Risk A Blow to Overall Performance - OCT 2017


BMI View: Iraq places in the bottom three of our Autos Sales RRI du e to poor performance in both Risk s and Reward s . Its biggest obstacle to improved performance in the Risk pillar is its extensive political and operating risks while on the Reward side of our RRI its limited growth opportunit ies and poor competitive landscape will further prevent better performance.

High Risk And Regulatory Headwinds A Significant Obstacle
Iraq & MENA Region - Autos Sales Risk/Reward Index By Component
Note: Scores out of 100; higher score = more attractive market. Source: BMI Autos Sales Risk/Reward Index

Iraq Autos Sales RRI - Global And Regional Ranking

  • Regional rank (out of 17): 15th

  • Global rank (out of 124): 96th

Country Risk Dragging Down Overall Performance
Iraq & MENA Region - Autos Sales Risk/Reward Scores
Note: Scores out of 100; higher score = more attractive market. Source: BMI Autos Sales Risk/Reward Index

Key Features And Latest Updates

  • Iraq's overall Autos Sales Risk/Reward Index (RRI) score of 34.5 out of a possible 100 underperforms the Middle East and North Africa (MENA) regional average of 48.6, and ranks it in the bottom three of our index.

  • On the Reward side of our Autos Sales RRI, Iraq's score of 33.6 out of a possible 100 highlights its weak competitive landscape, its small spending population and the poor quality of its road network (scoring 14.6, 10.6 and 13.0 respectively) which will make it difficult for automakers to enter and grow in the market.

  • Iraq's bright spot, under the Risk pillar of our Autos Sales RRI, is its Industry Risk score of 62.3 out of a possible 100. This is due to its favourable tax environment (87.8) and its high score for new vehicle sales (92.7).

  • Iraq performs especially poorly under the Country Risk pillar with a score of 10.4 out of a possible 100 which indicates that there are extensive country level risks present within Iraq. This highlights the extensive economic, political and operational risk automakers will have to endure if they want to operate in the Iraqi automotive market.