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Iraq broke the ice of relations with Saudi Arabia, and concluded several agreements with it, but there is a question: Will Iraq actually benefit from them? To what extent can it solve the country's crises? and how's that?
The economic advisor to the Prime Minister, Mazhar Muhammad Salih, says to IQ NEWS, “The benefit of Iraq from its economic ties with Arab countries strengthens mutual relations at the common economic and investment levels, as well as showing Iraq's regional role by building bridges of trust, in contrast to the policies of rupture, isolation and tension that are inappropriate for a role. Historical and civilized Iraq among nations. "
Saleh explains, "The agreements with the Saudi side are compatible with the economic power of attraction to achieve economic and investment benefits, whenever the geographical distances between countries converge, especially with the Arab region of Iraq, which leads to strengthening economic power bonds and maximizing competition and common benefits."
An economy linked to developing countries
, economic researcher Dr. Sadiq Al-Bahadli says to IQ News, "The Iraqi economy is linked with developing countries, and its problems are related to the overall supply side, not the total demand, meaning that its production system is not flexible and does not achieve self-sufficiency in goods and services, thus achieving this sufficiency of The use of rentier oil revenues through imports from abroad. "
Al-Bahadli explains, "For these reasons, any economic cooperation agreements in this field achieve the goal and the goal, especially since the agreement between Iraq and Saudi Arabia aims to allocate $ 3 billion to establish an investment fund that may be used for agricultural and industrial projects, which represents the overall supply side, as well as filling the energy shortage." "Electricity, as Iraq is witnessing a shortage of electric power supplies, especially in summer days, as a result of high temperatures that may reach sometimes in summer days up to 50%."
Al-Bahadli points out that "any economic cooperation agreements are in the interest of Iraq, on condition that we follow up on the success of these economic agreements, especially since previous experiences have failed because of failure to follow up, as is the case in the international donors conference in Kuwait, which allocated 30 billion for investment projects in housing, roads and other projects." And services, but on the ground, we did not see any project that was implemented. "
The economic analyst, Malaz Al-Amin, believes that the establishment of an investment fund to support Iraq and the implementation of huge investment projects is an important link to support Iraq economically, as Iraq suffers from a lack of financial liquidity due to the global economic crisis affected by the Corona pandemic, in addition to Iraq's reliance on its oil exports to finance its budget What causes delays in the implementation of mega investment projects.
"This fund will contribute, in agreement with the National Investment Commission, to implement important projects that contribute to the operation of hundreds of thousands of unemployed people and move the local economy, and in terms of the electrical connection with the countries of the Gulf Cooperation Council and Jordan, it comes within the framework of supporting Iraq and supplying it with what it needs," Al-Amin says to IQ News. Of electric energy until he is able to establish electrical generating stations and solar energy stations. "
The two countries signed bilateral agreements, including avoiding double taxation, cooperation in the field of development planning for economic diversification, private sector development, and financing Saudi exports.
It is noteworthy that the agreements between Iraq and Saudi Arabia included the completion of the electrical interconnection project between the two countries, strengthening coordination in the field of mutual support and support within the framework of multilateral diplomacy, enhancing investment opportunities for Saudi companies and calling for them to expand their activities in Iraq and in various fields and in reconstruction efforts, according to the Saudi Press Agency.