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Samson: Foreign Minister heads to Kuwait
Foreign Minister Mohammed Ali al-Hakim headed to Kuwait on Saturday to head the work of the joint ministerial committee between the two countries.
The Foreign Ministry said in a statement received by Al-Furat News that "Minister Mohammed Ali al-Hakim left the country heading to the State of Kuwait at the head of a ministerial delegation to preside over the work of the Iraqi-Kuwaiti Joint Ministerial Committee."
He added that "the work of the Committee continues to convene for two days." LINK
Don961: Strategy for establishing a sovereign fund
Saturday, 11 May 2019
Hazem Gry Al Shammari
All the countries that have the money obviously will have influence in the world, and this influence is being cleaned through the so-called national funds or sovereign wealth funds and to know the sovereign wealth fund must know the Fund first is a company that manages the funds of different investors individuals, companies and bodies to achieve greater The sovereign investment fund is also an investment fund and is subject to the same idea as the ordinary fund, but it does not manage money for companies or individuals, but manages state and government funds.
Does every country have a sovereign fund? Definitely the answer absolutely no.
The sovereign fund is created when the state has a surplus of money, in the sense of every country that has transactions with the outside world, sells and buys from it. If the total of the goods it sells are more imported goods if it has a surplus of money and what applies to goods applies to services and investments for heads Money.
For example, if you receive a large number of tourists such as the UAE, if you receive the money of these tourists in return for giving them tourism service on your land, and therefore if you get money through tourism more than your citizens spend in tourism in the outside world, A surplus of financial services in tourism and so in the economy, investment, oil and others, the total of what it exports more than it imports will be a country with a surplus of money, here we want to know where this surplus goes in countries.
The cash surplus often goes to what is known as the monetary reserve supervised by the central bank.
If this reserve is limited, such as Tunisia, Egypt, Morocco, etc., the state puts it aside and uses it in the event of any emergency, or uses it for investments. For example, it buys American debts and gets treatment, wheat or other goods in case of emergency.
But if a country has a very large surplus of cash reserves (Kuwait, UAE, Saudi Arabia, Norway), then this huge money is invested by the Sovereign wealth fund. These funds are a necessary benefit and they do harm to countries. For investments of this country, for example, the UAE or Saudi Arabia 90% of its revenues come from the sale of oil or gas and therefore any decline of oil will suffer budgets of these countries suffering as large as in Iraq, and thus the existence of such a sovereign fund investment over many years can compensate for price disturbances Petroleum This is a great benefit. It also gives them the opportunity to diversify their investments in many different markets and in different sectors that can reduce dependence on the sale of oil.
As for the damage if there is a huge surplus and this surplus was paid in salaries or increase the salaries of the citizens or increase and redundancy to satisfy the citizens, or increase government expenditures, will be the proportion of liquidity more in this country and can become inflation and high and without benefit to the state will be more damage than its benefits, The state is always at risk, as happened in Venezuela and other African countries that own and sell oil, but poverty has hit the citizen and the state together.
The first sovereign fund in the world 1953 Kuwait was the first sovereign fund in the world, followed by a large number of our funds (100) investment funds in the world. There is an institute called the Sovereign Funds Institute. This institute specializes in studying all investments and movements of sovereign funds In the world based in the United States of America.
The last estimate of these funds (8) trillion dollars means a thousand billion dollars and this is a very large number. There is a rise and fall in funds because they invest in corporate bonds and investments in the purchase of companies, factories and media institutions and in lending to countries.
There are large fixed funds such as the Norwegian sovereign fund is the largest fund in the world undisputed is the first company exceeds the ownership of the barrier (trillion dollars) in 2016, and then followed by the funds of some countries Saudi Arabia, the UAE, Kuwait, Qatar and others.
And another arrangement for these funds
Kuwait Fund $ 692 billion, Kuwait Investment Fund $ 500 billion, Hong Kong $ 509 billion, Hong Kong $ 509 billion, China Fund $ 400 billion, Singapore Fund $ 360 billion, Singapore Fund $ 350 billion, a third fund for China called National Council 341 billion and in tenth place the country fund of 320 billion
Of course, Saudi Arabia always keeps one of the top ten but does not send its data to the institute. So it does not have its name in the last ranking. It has two funds. The first one competes in the top 10. Sama fund is worth 550 billion dollars and the second is competing in the 20 with a value of 300 billion dollars.
Half of the funds are owned by oil-exporting countries and the other half have strong economies such as China and Singapore.
China's coffers are growing abnormally. We see in the first ten boxes, three of which are for China, totaling more than 1.7 trillion dollars.
Norway has saved countries in the global economic crisis and saved companies. This is certainly due to big profits. China is a country that has bought American companies in the world. It invests its huge money in all countries of the world. Even Saudi Arabian Gulf countries have money. In the sovereign fund is influential in Western countries regardless of the Arab countries, the UAE and even Kuwait.
Iraq, which does not have the idea of the sovereign fund and the reason is to spend every surplus comes when the rise in the price of oil, causing permanent deficit in most budgets, and makes it vulnerable to any crisis, such as urging and low oil almost torn Iraq, and took advantage of the opportunity that was not fabricated and forced by companies and global banks To borrow and that any significant drop in oil will be caused by a disaster on the Iraqi economy at any time later.
The loans from the World Bank to smart countries such as Japan, which was the largest borrower country in the world is due to borrow interest because it invests this money and pay off profits. As for the consumer countries only, such as Iraq is borrowing to meet consumer needs and then borrow again and find that a large proportion of The budget goes into debt.
If the establishment of a sovereign fund in Iraq becomes a strategic necessity for the future, and this fund is established the least of the surplus oil and support other productive sectors and invest funds of the Fund and the establishment of factories and productive laboratories that achieve self-sufficiency in the right form, and the sovereign fund is far from partisan quotas, It is not logical to manage the shrines in Iraq succeed in investing their money properly and a country can not invest these astronomical figures.
Budget 2013 = 150 billion dollars in Maliki's time
The budget of 2016 = 66.8 billion dollars in the time of Abbadi
The 2018 budget is $ 88.3 billion in the time of Abbadi
The budget for 2019 is $ 108 billion Adel Abdul Mahdi link
Samson: During the year .. Iraq achieves a surplus of 16 trillion after the funding of investment and current budgets
11th May, 2019
Revealed a member of the Finance Committee parliamentary Majida Tamimi, Saturday, the financial data for the period 1-1 / 30-4 / 2019 and the balance remaining after the financing of current and investment budgets.
Al-Tamimi said in a statement received by Mawazine News that "the current budget ratio reached 95.7% and the salary ratio was 65.9%, which is very high." Tamimi added that "the proportion of the investment budget amounted to 4.2%, while the proportion of oil revenues 94.5% compared to 5.4% for non-oil revenues, which means modest contribution of non-oil revenues, which makes the funding of the budget vulnerable to fluctuations resulting from the change in prices Oil ".
Al-Tamimi called for "comprehensive review of the laws legislated after 2003 to review the fairness of the distribution of incomes, as well as activating and supporting the private sector and creating an environment conducive to its development."
Tamimi pointed to "the ministerial platform of the government, which stressed the encouragement and stimulation of the investment environment in all sectors and the trend to market economy," indicating that "the value of the balance of the remaining total income and the balance of the first period and after the financing of current and investment budgets amounted to 16.08 trillion dinars." LINK
Samson: New US-China trade talks in Beijing
China and the United States have agreed to hold more trade talks in Beijing after a round of discussions in Washington, which he described as frank and constructive, Chinese Vice Premier Liu He said on Saturday.
Liu said he did not believe the potential trade deal had "collapsed", adding that small setbacks were inevitable, according to Reuters. He said that America and China have great mutual understandings but there are still differences over "initial issues".
Liu said China could not make concessions on those "principled issues," but he was cautiously optimistic about the future of the trade talks. China strongly opposes the latest increase in US tariffs and should respond to that increase, he said. LINK
Don961: Beijing says three points still raise differences in trade negotiations with Washington
- 3 Hours Ago
BEIJING (Reuters) - Three points still raise differences between China and the United States in trade negotiations in Washington, but the two countries will continue their talks, though.
In response to a question from the Chinese media after two days of negotiations in the United States, Chinese chief negotiator Liu Hee spoke of "three points of contention" that still exist between the two parties.
Chinese and US negotiators wrapped up a new round of talks in Washington on Friday to try to reach an agreement at the height of a trade war between them, which was the exchange of customs duties on their exports.
"If we reach an agreement, the punitive tariffs must be withdrawn," Liu said. "This is the first point."
US President Donald Trump on Friday ordered an increase in customs duties on almost all Chinese imports, less than 24 hours after Washington raised tariffs on Chinese goods worth 200 billion dollars.
The measures are supposed to begin but will not take effect months ago.
Currently, more than $ 250 billion of Chinese imports are subject to punitive customs duties. The fees were raised Friday from 10 percent to 25 percent for $ 200 billion of these goods.
Trump and Chinese President Xi Jinping announced last December a truce in their trade dispute at the end of the G20 summit in Buenos Aires. Beijing has pledged to buy more US products, without specifying their value or size, to reduce the huge trade imbalance between the two countries.
"In the end, what is the figure?" Liu told reporters. He admitted that another dispute between the two countries "can not be changed quickly."
The third sticking point is the final text of a possible agreement. "It has to be balanced," Liu said.
The chief Chinese negotiator confirmed that the trade negotiations would continue in Beijing, however, at an unspecified date.
"The negotiations have not failed, and vice versa (the obstacles) are a natural development in the negotiations and this is a must," he said. "The two sides agreed to meet again in Beijing in the future and to continue pushing forward the negotiations," he said.
Arab Jerusalem link