Investment funds with Gulf countries

by **claud39** Thu Apr 08, 2021 9:35 am

Investment funds with Gulf countries

04/08/2021

Investment funds with Gulf countries 27125

Samir Nasiri *

The initiative of Mr. Al-Kazemi's government to reconnect with the Gulf states, which began with an important and serious visit by Mr. Rless of the Council of Ministers to Saudi Arabia and the UAE, and to declare the intention to visit all Arab countries after an interruption and suspension of the coordination meetings of the Iraqi-Saudi Coordinating Council after the recent visit of the large Saudi delegation, which included ministers and a large number of Government officials and the private sector to Baghdad.

It is an important initiative to return Iraq to its Arab depth and fortune and openness to building balanced political, economic and security relations with brotherly and friendly countries, in particular with the countries of the geographical region, in which the Arab depth of Iraq is the basis and essence.

And that it is a sure evidence of the new foreign relations strategy that Iraq has adopted since 2017, and the first of these relations was the emergence of the Coordination Council with the Saudi side and its first meeting in November 2017 in Saudi Arabia and the signing of memoranda of understanding for the previous government during the visit of the former and former Prime Minister, but the relations did not continue according to The goals and principles agreed upon by the two parties for political, subjective and objective reasons.

To strengthen the Iraqi-Gulf relations in all political, security and economic fields, in particular cooperation in the field of investment and to establish a joint investment fund between Iraq and Saudi Arabia on the one hand, and between Iraq and the UAE on the other hand, by allocating three billion dollars to each fund with the aim of stimulating investment for strategic projects, in particular with regard to electricity, energy and reconstruction.

It is expected that similar investment funds will be established in the next phase in partnership with other Gulf countries, and that activating and promoting the initiation of these projects must be consistent with joint cooperation and communication and strengthening banking relations between Iraq and the Gulf countries, especially in foreign banking transactions, and stimulating and encouraging investment companies to invest in Iraq. Promote financing and investment fields.

Noting that the Iraqi economy is currently going through a critical and complex phase and a stifling financial crisis due to the low revenues from oil, the main source of the public budget, and this coincided with the outbreak of Corona pandemic and its effects on the economies of most countries of the world, including what the Iraqi economy is currently suffering. One of the government's priorities is to overcome the economic crisis and eliminate the epidemic, in addition to the electoral, political and security tasks. Therefore, it requires the government, especially after the wide international, regional, Gulf, and Arab openness to Iraq and the beginning of building new relationships, and in order for the agreements that resulted from the last visit of Mr. Al-Kazemi in the field of investment to be implemented, the House of Representatives is required to discuss and approve the Reconstruction Council law.

What concerns us here is the future of international economic, financial and banking relations in general and with the Arab Gulf states in particular and some Arab countries with an influential economic depth and extending bridges of relationship with them in a way that serves the opening of new horizons for communication and exchange of benefits, encouraging Arab investment in Iraq, developing banking infrastructure and technology, increasing inter-banking transactions and creating New ways of cooperating with sober correspondent banks in those countries.

In conclusion, we call for drawing up a roadmap for communication and joint coordination for the purpose of actually initiating the development of what has been reached from the general guidelines for building and restoring economic, financial and banking relations that were cut off several decades ago. Emphasis on the agreement to develop and open broad horizons for cooperation in the economic and banking fields, correct previous tracks and overcome all obstacles that hinder the building of sound and solid relations.

* An economic and banking advisor

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