British report: Iraq is making its way on the global investment map with a pragmatic prime minister

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[size=52]British report: Iraq is making its way on the global investment map with a pragmatic prime minister[/size]

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12-13-2023
The British Foreign Direct Investment (FDI) website presented an optimistic picture of the prospects for investments in Iraq, which it described as becoming the focus of attention after two decades of fragile stability and in the presence of a pragmatic government.[/size]
[size=45]The British report specializing in the world of investments, which was published in English, explained that 20 years after the start of the Iraq war, this country is on the road to finding its place on the global investment map.[/size]
[size=45]The report stated that Iraq's economic and social infrastructure was severely damaged due to the invasion and occupation led by the United States, and then due to 4 years of ISIS terrorism, adding that since 2018, this country of 45 million people has suffered from the formation of governments that did not last long. , and political stagnation, before Muhammad Shiaa Al-Sudani assumed the presidency of the government in October 2022.[/size]
[size=45]The report continued that the Sudanese government took power at a time when investors began to move beyond Iraq’s history of conflicts, adding that the data show that foreign direct investment during the first 9 months of this year reached a record high of $24 billion, which is equivalent to more than doubling The previous record was set in 2008.[/size]
[size=45]The report quoted the resident representative of the United Nations Development Program in Iraq, Oak Lootsma, as saying that the country is making a “complete turnaround,” adding that Iraq is “becoming less and less of a crisis state, and more of a country moving forward.”[/size]
[size=45]Pragmatic progress[/size]
[size=45]The report stressed that “Iraq still, without a doubt, represents a difficult business environment,” explaining that oil revenues represent 99% of exports and 85% of its budget during the past decade, according to the World Bank, which makes it vulnerable to fluctuations in energy prices, and it also suffers from Lack of energy, as the phenomenon of power outages continues for up to 12 hours a day, in addition to the fact that it imports 40% of its electricity needs from Iran.[/size]
[size=45]In addition, the report pointed out that investors must deal with a bloated public sector, the socialist legacy left by the Baath Party, fragile financial institutions, an opaque bureaucracy and rampant corruption.[/size]
[size=45]On the other hand, the report stated that the Sudanese, in his first year in power, implemented a strong development agenda aimed at developing energy security, economic diversification, enhancing the role of the private sector in key fields such as natural gas and manufacturing, and combating the phenomenon of corruption, which he described last September as “ Pandemic” and focuses on eliminating it.[/size]
[size=45]The report continued that Siemens moved last January to reach an agreement to continue its work in the energy infrastructure in Iraq, after taking into account the government’s decisive position in its first months.[/size]
[size=45]The report quoted Siemens’ Managing Director in the Middle East, Dietmar Siers Dover, as saying, “If you are looking to invest in the country, there has already been a change, and the government is much more prepared to make progress on matters.”[/size]
[size=45]The report used similar stories from other investors, and quoted Amit Suleiman, CEO of the British-based AAA Fertilizers Group, as saying that the rule of dealing has changed since last September, as it became permissible for fertilizers to be sold directly to farmers. And not through the government, which led to a reduction in the time frames for payment from up to 14 months, to 5 days.[/size]
[size=45]The report also pointed out that the UAE-based Crescent Petroleum Police signed 20-year contracts last February to develop three oil and gas fields, and the group’s initial investment will reach about one billion dollars. The report quoted the company’s CEO, Majed Jaafar, as saying, “There is now a much better consensus between the investor and the government,” adding that the government has realized the need to maintain private investment in key sectors.[/size]
[size=45]After the report pointed out that Iraq is reintegrating itself again on the international scene, and within the Middle East as well, Lootsma, the resident representative of the United Nations Development Program in Iraq, was quoted as saying that “there was interest among the Gulf Cooperation Council countries to re-invite Iraq into the regional economy.” He pointed out that the fact that Iraq is located between Syria and Iran means that it is viewed as a stabilizing factor[/size]
[size=45]While the report referred to cooperation and investment projects with Gulf Cooperation Council countries, such as connecting to the electrical grid, the Qatari “Power International” company, and the UAE being the largest source of foreign direct investment in Iraq, the British report said that Sudanese is seeking with the Turkish government to implement ambitious plans to connect... Their countries through the “Development Road” project, at a cost of $17 billion, in addition to plans for partnership between the public and private sectors that were recently signed between the International Finance Corporation and the government to develop Baghdad Airport.[/size]
[size=45]He continued, saying that one of the issues that represents great symbolism is the long-awaited agreement in April between the government and the French company “Total Energy” regarding a project worth $27 billion, which aims to improve electricity supplies in Iraq and remove carbon from it, recalling what the American government said that This deal “indicates a rapidly improving business climate that will help attract foreign direct investment.”[/size]
[size=45]In addition, the report stated that the war between Israel and Hamas sparked attacks on American targets in Iraq, but it quoted Jaafar, CEO of Crescent Petroleum, who has worked in Iraq for 15 years, as saying, nonetheless, that “the security situation is better than ever.” It has been since 2003,” he explained, explaining that there is “a real sense of vitality, and life has returned in many ways.”[/size]
[size=45]The report concluded by saying that this fragile stability laid the foundations for the government’s development agenda. “It focuses much less on rebuilding after the devastation caused by ISIS, but it focuses more on building the future of the country,” Lootsma was quoted as saying, adding that the investment background has “completely changed” compared to what it was a few years ago.[/size]
[size=45]The report indicated that oil and gas still represent more than half of the declared foreign direct investment in Iraq, adding that the International Finance Corporation expects Iraq to need $233 billion by 2040 to meet its basic development needs.[/size]
[size=45]The report quoted the representative of the Finance Corporation residing in Iraq, Bilal Rabah Saghir, as saying that the private sector has a major role to play in bridging this gap, adding, “Iraq, as we see it, is moving in the right direction.”[/size]
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