For the past few weeks, MarketingVOX has been volleying questions to Ali Yaqoub, marketing manager for Iraqi web portal Baghdad Bazaar. In that time the security situation in Baghdad has gone from better to worse to better, and through the shifts, Yaqoub has remained confident that his business-to-business portal can succeed and help in reconnecting Iraqis to the world and the development it promises. Among other topics, MarketingVOX asked him about the nature and culture of the businessmen who will be responsible for redevelopment, the infrastructure problems that pose challenges and the opportunity for web marketing to bring the unsettled economy to markets it cannot otherwise access.

MarketingVOX: Could you give us a quick overview of the Baghdad Bazaar company, including when it was started, who is behind it and what sort of services you hope to offer?

Ans: First of all let me thank you for this opportunity you gave me to give your readers a glimpse of the IT situation in Iraq. Baghdad Bazaar was founded as the first business directory in Iraq in October 2003. Its mother company, eKur Services, started out as a communications and computer engineering company back in 1986. After the war, it expanded its operations and became a group of companies providing software, hardware and internet solutions to private and government sectors in Iraq and throughout the Middle East. Asides from maintaining the largest business directory in Iraq with well over 2000 Iraqi and foreign companies registered, Baghdad Bazaar provides websites, emails and advertising services to its members, has an online job center, and is going to add an online marketplace in coming days. Our goal is to help all Iraqi businesses and institutions to move to the Internet as fast and as possible, and in doing so, play our role in the reconstruction efforts and promotion of
a free market economy in our country.

MarketingVOX: What is the rough proportion now of people using the site within Iraq versus people from outside Iraq? Do you expect that ratio to change over time, and if so, in what direction?

Ans: About 50 percent of our visitors are from outside Iraq, mainly from the Middle East, the U.S. and Europe, in that order. Most of our visitors are businesses and governmental institutions that are interested in reconstruction projects in Iraq and are looking for partners and opportunities to take part in these efforts. We expect that as the communications infrastructure in Iraq improves and the Internet culture expands in the business and professional community here, the proportion of Iraqis visiting Baghdad Bazaar will be higher.

MarketingVOX: What is the general Internet infrastructure available in Iraq to businesses? We have seen media reports that the previous regime deliberately hindered Internet access so as to exert more information control. How is this, if true, being addressed? And what sort of Internet access might be available (and affordable) to private citizens?

Ans: Since the communications infrastructure was almost totally destroyed during the war, Internet access here has been solely through satellite links. Large companies have their own VSAT systems, but there are companies that have setup these links and sell extensions from their switch to shops and small businesses in their area. Not to mention the outgrowth of more than 300 Internet Cafés in Baghdad alone. During the last couple of months, the telephone lines have been repaired and as a result the internet access is getting easier and less expensive. As far as the restrictions are concerned, in the previous regime only a handful of internet centers were available to the public. But today, since there are no laws governing the internet access or any other IT activity for that matter, you can just go into an Internet Café and connect to the web for about $1.25 an hour.

MarketingVOX: Do you see the Internet as being key in introducing foreign investment into the country? Are there economic sectors in which this is particularly true?

Ans: Definitely. We have had email requests from companies in the U.S. and Europe seeking assistance in finding partners for a joint venture in Iraq. There are other websites providing information about the ways and means of participating in the current reconstruction efforts in Iraq. One of these sites is the Iraqi Business Center (www.iraqibusinesscenter.org) run by the coalition authorities that posts the latest reconstruction tenders and projects. You can find projects for participation and investment in almost all sectors of the economy, but it seems that asides from oil and gas industries, the sectors relating to the infrastructure of the country like telecommunications, electricity, transportation and agriculture are most promising for investment. I should also mention that considering the security situation now in Iraq, using the Internet has become even more important and more practical.

MarketingVOX: Will the Internet play a role in getting an export economy up on its feet in Iraq? Ans: The real challenge has been to change the business culture of Iraqis, particularly that of small businesses, in the direction of utilizing the power of Internet in their favor. We have had great progress so far and a lot of work remains to be done, but the future looks very promising. I am sure that if Iraqi business people realize the marketing powers of the Internet, it will play a crucial role in getting our exports rolling.

MarketingVOX: Do Iraqi business people have preferences in the nationalities of those foreigners they wish to deal with? And, if so, would those preferences be based on location, culture, religion, role in the current conflicts or other factors?

Ans: Iraqi business people are very practical in their dealings. It is naturally more convenient for them to deal with their counterparts in other Arab countries, since they are accessed easier and there is a better understanding of business habits and culture among them. But this is a matter of convenience rather than preference. I think as the political and security situation settles down, we will see normal and healthy business relationships forming between Iraqis and foreigners from all other countries.

MarketingVOX: Has it been difficult to find Iraqis with the required technical expertise to get your business up and running, or is the site served elsewhere?

Ans: There are many bright young Iraqis who have degrees in computer science and seek work in IT companies, and we have had no problem in finding them. The real problem has been the lack of experience. Although the subject is picked up very fast here and Iraqi professionals are quickly catching up to the rest of the world, we have had to rely on Iraqis who have been educated and have worked in the West to start our company. In fact, the staff at eKur Services and Baghdad Bazaar are highly educated and some of them have long working experience in companies like Digital and Texas Instruments. Some have graduated from schools like M.I.T, Berkeley, Amherst, Washington, London and other top universities. This is why it has quickly become the leading Iraqi IT company. As far as our website is concerned, we administer it ourselves, but it is on a server in the U.S. The reason is not the lack of expertise, but rather the lack of a reliable communications and electricity infrastructure that can guarantee a 24/7 uptime for our site. But as the situation gets better, we are thinking of moving our site to a server here.

MarketingVOX: In terms of business model, is there another company or brand out there that offers a good model for you?

Ans: As a business directory, job center and online marketplace, I personally have not seen a single major company or website that could be considered as a complete business model for Baghdad Bazaar. Perhaps we could say something like a combination of eBay, Business.com and Employers online. But I welcome any comments or suggestions from you and your readers in this regard.