We need the cooperation of the public and private sectors to promote the oil sector

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Chairman of the Board of Directors of the Development Bank, Ziad Khalaf


Member of the Board of Directors of the Union of Arab Banks and Chairman of the Board of Directors of the Development Bank, Ziad Khalaf, during the conference and exhibition of oil and gas in Iraq, stressed the importance of joining efforts of the public and private sectors in support of the banking system in order to advance the oil sector

Khalaf said, “The conference shows the investment opportunities available today in the oil and gas sector in Iraq, especially investment projects in the infrastructure on the side of oil extraction (upstreaming) and also on the side of refineries and (down streaming), and the importance of cooperation between the central government, the banking sector and companies Global oil to advance this strategic sector, which is very vital for the Iraqi economy .

He said, “Let me go beyond the extension of all the numbers and percentages that show Iraq’s possession of the wealth of oil, gas and other natural resources that Iraq has possessed for decades, and which no occasion has passed without us invoking the wealth of this great country, which unfortunately does not reflect the current reality of the Iraqi economy in When there are countries that do not own part of what we own in our rich country, but have been able to organize an economy that their people can enjoy .

And between behind here must shed light on the current reality of the Iraqi economy and how the sectors can cast a positive shade on this economy, especially the industrial and commercial sectors, whose revenues represent a large part of the GDP. Iraq is a pivotal country in the Middle East region and its oil wealth is classified among the first three countries in terms of the volume of oil reserves in the world, as the oil sector is the main engine and support for the Iraqi economy. In spite of this, the experiences of countries have proven that the rentier economies that depend on oil only and which constitute the bulk of the state’s imports do not have the financial capacity to face the challenges, setbacks and economic crises .

As for the banking business in Iraq, of which we are a part, if we review some financial data in a summary, it becomes clear that the total capital of private banks amounts to twelve trillion Iraqi dinars and the volume of deposits in the private banking sector amounted to eleven trillion Iraqi dinars, confirming that the total Cash credits granted by private banks are about eight trillion Iraqi dinars, or seventy-three percent of the volume of deposits in private banks, which indicates the existence of great opportunities in the private banking sector for its ability to provide financing needs for all segments of society and local and foreign companies and thus expand its contribution to the economy This is reflected in the increase in the percentage of its contribution to the formation of fixed capital, in the real GDP, and in the non-oil GDP, by working to reduce the link of GDP growth with oil exports, reducing dependence on a single source of income, and the trend towards diversification through the restoration ofStructuring the economy to reach an economy that is compatible with the requirements of competitiveness and growth and ensures flexibility in the face of the successive changes at the international level .
 
Khalaf added that pursuing a policy of bank financing instead of relying on development financing on the general budget will contribute in addition to activating the role of specialized financing institutions in a manner that leads to the growth of investments and the development of savings awareness among members of society and the collection of national savings and directing them to develop productive assets in the national economy .
 
He said that there is a newcomer who has been frequently talked about in international and Arab forums in the last three years, known as the Fourth Industrial Revolution. All countries of the world, including the Arab world, have become concerned with developing strategies and implementing the policies and mechanisms necessary to keep pace with this revolution, and work to meet the challenges it poses to economies and the development process, and at the same time, to take advantage of the opportunities provided by this revolution to achieve sustainable development. Realizing the importance of keeping pace with the Digital Revolution , which is an extension of the Information Revolution, as our banks have invested heavily in infrastructure using advanced technologies in line with international trends and practices in the transition towards the digital economy and financial technology, which will provide the detailed collection elements for the transition to e-government    (e-government)  in various parts of the state, especially the oil and energy sectors, as the issue of electronic collection will be strategic for all investors in these two sectors. This is what we worked on in 2019 (two thousand and nineteen) as banks and electronic payment companies in cooperation with the Central Bank of Iraq. As we have acquired an integrated system for collection and collection to provide multiple electronic channels for the Iraqi citizen, in addition to the possibility of linking this system with the database of the concerned government agency, which facilitates the process of automating the collection and thus reducing waste and advancing the reality of the sector .


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