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What do investments in Iraq mean politically and economically?
June 24, 2024
Baghdad/Iraq Observer
The high level of Arab and international investment optimism constitutes a new support factor for the economic renaissance in Iraq, while
observers praised the government measures taken to support investment and economic reform together, which is witnessing significant growth after overcoming many obstacles.
Arab and foreign demand for investment in Iraq has shown an acceleration in growth since 2024, with significant Iraqi support being provided in light of political stability in the country.
Economic expert Zaid Al-Naimi said that the mechanism followed by the government to
limit currency smuggling,
stabilize the market, and
provide support to various sectors
contributed significantly to restoring Arab and international confidence in various sectors and their investments, with large amounts of money inside Iraq.
While confirming the correct approach followed by the government of Prime Minister Muhammad Shiaa Al-Sudani, he pointed to the acceleration of economic reform, which reflected positively on other sectors, whether industrial, infrastructure, or in the financial and banking sector, and that investments mean a lot politically and economically and are an important tributary for Iraqis to keep pace with modernity.”
Al-Naimi stated to the Iraq Observer Agency that investment in the economic sector, which is considered the important hand of the Central Bank, has also contributed to developing the private sector and providing advisory services, and that
the near future will witness the expansion of investments throughout Iraq to include a wide range of financial services, as well as the provision of advisory services. “It restores Iraq to Arab and global leadership.”
He attributed the investments to a group of sectors due to their importance, which the Iraqi government participates in, whether in investment in the industrial sectors, or in what is related to the financial sector, both the banking and non-banking sectors, as well as the importance of investing in infrastructure and improving the services provided to the Iraqis.
He pointed out that what is most important at this stage is Encouraging the private sector and working with it.”
Promote growth
In turn, the World Bank expected that Iraq would achieve economic growth of more than 5% in 2026, indicating that the recovery in the oil sector in 2025 would contribute significantly to enhancing this growth.
The bank stated, according to a statement, that “Iraq’s economic growth for the year 2022 reached 7.6%, and in 2023 it decreased to -2.9%.”
He also expected that Iraq's economic growth would decline in 2024 to reach -0.3%, and that it would achieve growth in 2025 of up to 3.8%, and in 2026 to reach 5.3%.
He pointed out that oil-exporting countries outside the Gulf Cooperation Council, such as Iraq and Algeria, will benefit from the expected recovery in the oil sector in 2025, which will help boost economic growth in these two countries.
Million auction
In this context, the bank sold, in its auction today, 273 million, 244 thousand and 330 dollars, which it covered at a base exchange rate of 1,310 dinars per dollar for documentary credits and international settlements for electronic cards, at a price of 1,310 dinars per dollar for external transfers, and at a price of 1,305 dinars per dollar in cash.
Most of the dollar sales went to strengthen balances abroad in the form of transfers and credits, which amounted to 250 million 274 thousand and 330 dollars, an increase of 91% over cash sales amounting to 22 million and 970 thousand dollars.
The number of banks that purchased cash dollars reached three banks, while the
number of banks that responded to requests to enhance balances abroad reached 15 banks, and the
total number of exchange and brokerage companies participating in the auction was 40 companies.
The Central Bank of Iraq's dollar sales amounted to more than 273 million dollars at the currency auction on Sunday. Experts suggested keeping the dollar exchange rates within their current rates.
Spending demand
According to observers, the release of financial amounts for the 2024 budget will increase spending demand in the market, and that operational expenditures in terms of wages and salaries will be fixed and their impact will be constant, while they added,
“The investment budget is important because projects require locally manufactured and imported materials.” They stated:
“Any trend towards locally made materials, such as construction industries such as rebar, cement, sand, wood, etc., which led to their local rise, and so on, are requirements that go towards keeping exchange rates within their rates and not decreasing them.”
Today, selling prices in money exchange shops in local markets in Baghdad were 148,000 dinars for 100 dollars, while purchasing prices reached 146,000 dinars for 100 dollars.
https://observeriraq.net/ماذا-تعني-الاستثمارات-في-العراق-سياسي/
June 24, 2024
Baghdad/Iraq Observer
The high level of Arab and international investment optimism constitutes a new support factor for the economic renaissance in Iraq, while
observers praised the government measures taken to support investment and economic reform together, which is witnessing significant growth after overcoming many obstacles.
Arab and foreign demand for investment in Iraq has shown an acceleration in growth since 2024, with significant Iraqi support being provided in light of political stability in the country.
Economic expert Zaid Al-Naimi said that the mechanism followed by the government to
limit currency smuggling,
stabilize the market, and
provide support to various sectors
contributed significantly to restoring Arab and international confidence in various sectors and their investments, with large amounts of money inside Iraq.
While confirming the correct approach followed by the government of Prime Minister Muhammad Shiaa Al-Sudani, he pointed to the acceleration of economic reform, which reflected positively on other sectors, whether industrial, infrastructure, or in the financial and banking sector, and that investments mean a lot politically and economically and are an important tributary for Iraqis to keep pace with modernity.”
Al-Naimi stated to the Iraq Observer Agency that investment in the economic sector, which is considered the important hand of the Central Bank, has also contributed to developing the private sector and providing advisory services, and that
the near future will witness the expansion of investments throughout Iraq to include a wide range of financial services, as well as the provision of advisory services. “It restores Iraq to Arab and global leadership.”
He attributed the investments to a group of sectors due to their importance, which the Iraqi government participates in, whether in investment in the industrial sectors, or in what is related to the financial sector, both the banking and non-banking sectors, as well as the importance of investing in infrastructure and improving the services provided to the Iraqis.
He pointed out that what is most important at this stage is Encouraging the private sector and working with it.”
Promote growth
In turn, the World Bank expected that Iraq would achieve economic growth of more than 5% in 2026, indicating that the recovery in the oil sector in 2025 would contribute significantly to enhancing this growth.
The bank stated, according to a statement, that “Iraq’s economic growth for the year 2022 reached 7.6%, and in 2023 it decreased to -2.9%.”
He also expected that Iraq's economic growth would decline in 2024 to reach -0.3%, and that it would achieve growth in 2025 of up to 3.8%, and in 2026 to reach 5.3%.
He pointed out that oil-exporting countries outside the Gulf Cooperation Council, such as Iraq and Algeria, will benefit from the expected recovery in the oil sector in 2025, which will help boost economic growth in these two countries.
Million auction
In this context, the bank sold, in its auction today, 273 million, 244 thousand and 330 dollars, which it covered at a base exchange rate of 1,310 dinars per dollar for documentary credits and international settlements for electronic cards, at a price of 1,310 dinars per dollar for external transfers, and at a price of 1,305 dinars per dollar in cash.
Most of the dollar sales went to strengthen balances abroad in the form of transfers and credits, which amounted to 250 million 274 thousand and 330 dollars, an increase of 91% over cash sales amounting to 22 million and 970 thousand dollars.
The number of banks that purchased cash dollars reached three banks, while the
number of banks that responded to requests to enhance balances abroad reached 15 banks, and the
total number of exchange and brokerage companies participating in the auction was 40 companies.
The Central Bank of Iraq's dollar sales amounted to more than 273 million dollars at the currency auction on Sunday. Experts suggested keeping the dollar exchange rates within their current rates.
Spending demand
According to observers, the release of financial amounts for the 2024 budget will increase spending demand in the market, and that operational expenditures in terms of wages and salaries will be fixed and their impact will be constant, while they added,
“The investment budget is important because projects require locally manufactured and imported materials.” They stated:
“Any trend towards locally made materials, such as construction industries such as rebar, cement, sand, wood, etc., which led to their local rise, and so on, are requirements that go towards keeping exchange rates within their rates and not decreasing them.”
Today, selling prices in money exchange shops in local markets in Baghdad were 148,000 dinars for 100 dollars, while purchasing prices reached 146,000 dinars for 100 dollars.
https://observeriraq.net/ماذا-تعني-الاستثمارات-في-العراق-سياسي/
