US source: Gulf countries declined to provide substantial financial support to Iraq in the reconstru

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US source: Gulf countries declined to provide substantial financial support to Iraq in the reconstruction conference

"This figure is not realistic unless oil prices remain relatively stable," said Christian Goose, deputy head of IMF's Middle East Monetary Department. Adding that "the funding gap is increasing significantly if oil prices fall."
However, the results of the conference outweighed many dim forecasts. "This is an important reference to Iraq, through which Abbadi will go to the elections," said Elizabeth Dickinson, chief analyst for the Arabian Peninsula in the International Crisis Group. "This gives us something concrete to return to Baghdad and demonstrate the capacity to support and rebuild the country."
 Many foreign officials at the conference say contributions are expected to be much lower. In early December, some officials said it was difficult to reach the Iraqi government's original standard for raising $ 20 billion from international donors.
"We were strongly encouraged to seriously reconsider this," a Western diplomat told AFP.
The most pressing question is how Iraqis who expected to start a Marshall Plan when the international conference ends with loans and goodwill will explain, not many direct donations. In the end, the government pressed its goal of holding the assembly and renamed it a "donors" conference to the "reconstruction" conference. A large part of this draws attention to the expected shortage of pledged funds.
Much of the fear is due to lack of confidence from countries such as Saudi Arabia and the United Arab Emirates.
In the beginning, the Gulf states were supposed to shoulder much of the burden on Iraqi reconstruction efforts in exchange for a rear seat in military operations against Da'ash. But Saudi Arabia, the United Arab Emirates, Qatar and Kuwait all made $ 5 billion and were expected to do much more.
Western diplomats worry about the possibility of billions sinking, as well as the apparent lack of Gulf spending and the financial crisis they are experiencing. The ongoing war in Yemen has reduced diplomatic and military power in Saudi Arabia and the UAE in particular, not to mention the drop in oil prices that has led to the discontent of Gulf governments.
"I think many are waiting for the post-election period because they want to know who will lead the government first," a senior US official told AFP.
However, the fact that any money comes at all is evidence of an improved Iraqi situation. "The Gulf states, especially Saudi Arabia, Kuwait and the United Arab Emirates, see Abadi as someone who can be dealt with," Dickinson of the International Crisis Group said.
Security concerns remain largely a hindrance to donor and creditor accounts, as well as to private sector companies that had the lion's share of the conference. Although the Da'id organization has been completely defeated in Iraq, the risk of a perceived return is high for donors.




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