It was something not seen in Baghdad since before the 2003 invasion - people publicly welcoming a new year with singing, dancing and general revelry.

The ballrooms of two landmark hotels - the Palestine and the Sheraton - were full of people for the first New Year’s Eve celebrations after four years of violence that has bloodied Iraq.

“This place is now more secure,” said Zahraa, 23, adorned with heavy black eyeliner and red lipstick, sitting with colleagues at the Palestine hotel, which was the target of huge car bombs in 2005. “Yes, we are still afraid, but we need to lighten our moods occasionally.”

Like all those interviewed, she declined to give her last name, however. All cited concerns about their security, indicating worries still exist.

But after years of car bombings, mortar fire and suicide attacks, Iraq’s capital was sufficiently calm to warrant the two high-end parties in the once-posh hotels.

About 200 guests, mostly men, danced to traditional Iraqi music at the large hall in the Palestine, decorated with blue, white and yellow chiffon. A woman in a glittery pink, spaghetti-strap dress sang for the crowd, which alternately hooted and danced.