Chris Exline acknowledges that the showroom he opened in Baghdad might have been a bit ambitious, but overall he finds his furniture-leasing business in Iraq prospering beyond his expectations.

The 39-year-old owner of Dallas based Home Essentials said business is taking off, despite an economy wracked with terrorist attacks and kidnappings.

The midsized company, which specializes in finding furniture for corporate offices and their staff’s housing, started doing business in Iraq about a year ago.

“I got the idea to expand into Baghdad last year when I saw liberated Iraqis looting the country,” Mr. Exline told The New York Sun.

Mr. Exline, who’s lived in Dallas since graduating from Southern Methodist University in 1987, first visited Baghdad last July after opening a distribution center in Dubai, United Arab Emirates. He said his first contact produced little results.

But, during a second trip to the country in August, the United States Agency for International Development approached his firm to provide furniture for its offices. Since then, Home Essentials has provided furniture for dozens of customers, including the British defense department, various embassies, and private corporations doing reconstruction business in Iraq.

“The enormity of opportunity there is beyond my initial projections,” he said.

Mr. Exline told the Sun that since the handover of power in late June, business has picked up tremendously – especially from private corporations gearing up to make a footprint in the country.

“Everyone understands the opportunity: 23 million people, second largest oil reserves in the world,” he said. “And a lot of people wanted to see how the transition went. Most think the transfer has gone far more smoothly than anyone imagined. The stability of the new government is exceeding many expectations.”

When Home Essentials started doing business in Iraq, there was no way to transfer money in Iraq. Because of the security situation, it was difficult getting funds into Iraq to do business.

“Driving a few hundred thousand dollars into Iraq last year was a risky proposition,” he said.

But, with the banking system rebuilt during the coalition, occupation funds can now be transferred safely.

Getting the furniture into Iraq can still be struggle. “Logistics are one of the more complicated aspects of our business model,” Mr. Exline said with a chuckle. “You’ve got to have a variety of ways to ship products into Iraq.”

Home Essentials uses three methods to delivery furniture to Baghdad. Trucks ship cargo from Dubai to Baghdad, roughly the distance from Dallas to Chicago. Furniture is also delivered by ships from Dubai to the Umm Qasr port in southeast Iraq and then driven by truck to Baghdad.

Other shipments are flown directly into Baghdad aboard chartered cargo planes. Baghdad International Airport sees about 20 private shipping flights a day.

Mr. Exline points to the declining cost of shipping goods into Iraq as a sign that violence – although widely reported – hasn’t hampered the economy.

He said a shipment of furniture in October 2003 cost about $6,000 to ship from Dubai to Baghdad. Today, that same shipment costs around $2,000 to $2,500 – a 60% decline.

“The ‘threat’ of kidnapping or looting is vastly overblown,” he said. “Hundreds, if not thousands, of trucks enter Iraq daily with product of all types. Ironically, the major disruptions come from customs officials and their uncanny ability to surprise us with new policy.”