BADGHDAD'S NIGHTLIFE:

The gaudy orange, green and purple electronic palm trees flashing in the dark alert you that you're getting close to one of Baghdad's bustling nightspots.

The palms, like a mirage, can be seen from way down the darkened streets, lighting up the night and giving a promise of normality in the otherwise bleak and deserted capital, ravaged by four years of insurgency and sectarian strife.

And then, suddenly, you've arrived and the mirage has become an oasis of generator-driven light; a colourful jumble of trendy juice bars, cosy restaurants, fruit shops, roadside eateries and fish vendors, where children play, families dine and lovers meet.

"Even two or three months ago we would have been afraid to come here at night," said 20-year-old Hussein Salah, an off-duty soldier, slurping a milkshake with his wife, Shihad, at the Mishmesha (apricot) juice bar in Baghdad's relatively safe Karrada suburb.

"Now we sometimes sit outside here till one or two in the morning. It is quite safe. The security situation is vastly improved," said Salah, the orange light from a nearby flashing palm alternatively brightening and dimming his clean-shaven face.

Declines in Iraqi civilian casualties and a sharp reduction in bomb and mortar attacks have sparked optimism that the capital is at last starting to revive.