Iraq seeks collaboration with Amazon on data center to facilitate internet access
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International Development opens a new branch in Times Square in Basra
A new strategy to enhance banking services and stimulate investment in southern Iraq
Yesterday, May 13, the International Development Bank opened its second branch in Basra Governorate, in Times Square Mall, to provide its distinguished banking services to citizens and businessmen in this vital region of southern Iraq. This opening comes within the bank's strategy to expand and modernize its effective network of branches, with the aim of providing high-quality and convenient banking services to customers.
Mr. Saad Faeq, Managing Director of the International Development Bank, expressed his happiness with the new step, stressing that this branch will be an important tributary to economic development in Basra and will enhance investment and growth opportunities in the region. He said: "We are committed to providing distinguished banking services that meet the needs of our customers at all times, and we believe in the importance of providing innovative financial solutions to support businesses and projects in Basra."
For his part, Mr. Saad Faeq, the authorized director of the bank, praised the location of the new branch, explaining that it will provide a modern and comfortable banking environment for customers, while providing a wide variety of diverse banking services. He said: “The opening of the branch in Times Square Mall reflects our vision for innovation and excellence in providing banking services, and we are ready to better meet the needs of customers in the region.”
The opening of the new branch in Basra comes as part of the International Development Bank’s continuous expansion plan, which currently includes a network of 28 branches across Iraq, with the aim of strengthening the banking presence and providing innovative financial services to customers throughout the country.
The Minister of Planning chairs a ministerial meeting to review the budget schedules
Today, Wednesday, the Minister of Planning, Muhammad Ali Tamim, chaired a ministerial meeting to review the federal general budget schedules for 2024.
A statement from the ministry received by the Iraqi News Agency (INA) stated, “The Minister of Planning, Muhammad Ali Tami
,
chaired today a meeting of the committee concerned with reviewing the federal general budget schedules for the year 2024, in the presence of the Minister of Oil, Hayan Abdul-Ghani, the Minister of Construction, Housing, and Municipalities, Benkin Rekani, and the Minister of Electricity, Ziad Ali.” Fadel, the head of the Financial Supervision Bureau, Ammar Sobhi, the Prime Minister’s advisors for legal, economic, and strategic affairs, the head of the legal department in the General Secretariat of the Council of Ministers, and also a delegation from the Kurdistan Regional Government, which included the Minister of Finance, the head of the Office of the Regional Council, the Secretariat of the Council of Ministers, and the head of the Coordination Department. And follow up.”
He added, "During the meeting, a number of files on the agenda were discussed, including a discussion of the mechanism for transferring the allocations of the Kurdistan Regional Government within the budget tables, especially with regard to employee compensation, social care, and regional government revenues, and the mechanism for handing them over to the federal government, according to what was stated in the court decision." The Federal Law, the Financial Management Law, and the State General Budget Law.”
He continued, "The meeting also discussed the discussion of maximizing revenues to reduce the percentage of the deficit contained in the general budget by creating legal texts to include electricity sales and local oil sales as revenues in the budget tables."
Prime Minister Geoffrey Pyatt receives
Today, Wednesday, Prime Minister Muhammad Shiaa Al-Sudani received US Assistant Secretary of State for Energy Affairs, Jeffrey Pyatt.
This morning, the US Ambassador to Iraq, Alena Romanowski, met with Bayat, while Romanowski said via her tweet, and the Iraq Observer Agency responded that the important visit began to follow up on the successful visit of the Sudanese Prime Minister to Washington last month, and to strengthen our bilateral cooperation in the field of energy.
She concluded, “Together we can help Iraqis prosper by providing electricity 24 hours a day, 7 days a week.”
Blinken's assistant is in Baghdad to follow up on the outcomes of Al-Sudani's visit to Washington
Today, Wednesday, the US Ambassador to Iraq welcomed the arrival of Jeffrey Pyatt, US Assistant Secretary of State for the Energy Office, to follow up on the outcomes of Sudanese’s visit to Washington and to enhance bilateral cooperation in the field of energy.
https://www.state.gov/assistant-secretary-pyatts-travel-to-jordan-and-iraq/
this is my favorite article for the day I think this study is alredy done and over hahaha
Securities Commission: We are studying the possibility of licensing brokerage companies to trade in shares on international stock exchanges
The Chairman of the Securities Commission, Faisal Al-Haims, confirmed today, Wednesday, that the Commission is studying the possibility of licensing brokerage companies to trade in shares on international stock exchanges.
Al-Haims said in a statement received by the Iraqi News Agency (INA): “The authority has begun studying the licensing of brokerage companies to trade in shares on international stock exchanges through a technical committee within it.”
He added, "The Authority is working seriously to support and develop the stock market by studying the licensing of brokerage companies to enable them to trade in shares on international stock exchanges for the first time in Iraq."
He explained, "This step comes in the context of protecting the rights of citizens to trade through brokerage companies that practice this activity without an official license from the Securities Commission, which seeks to develop the financial markets in the country," noting that "the Commission is working to provide a stimulating and regulated investment environment." “It contributes to enhancing confidence among investors and raising Iraq’s position in global financial markets.”
Adviser to the Prime Minister: A reform process in Iraq begins with the government banking sector
Today, Wednesday, Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, stressed the importance of moving to reform the banking sector in Iraq, while noting that depriving some banks of foreign currency is an opportunity to restructure and organize them.
Saleh told the Iraqi News Agency (INA): “Prime Minister Muhammad Shiaa Al-Sudani has a keenness to protect national capital, in addition to the fact that banking institutions need reform,” indicating that “what happened in depriving some banks of foreign currency is an opportunity to restructure and organize them.” ".
He added, "There is a program to reform the banking sector by starting with the government sector because the government banking sector dominates 85 percent of banking work and the rest of the small emerging markets, even though their capital constitutes 78 percent of the banking system's capital, but they need to be reorganized and restructured to transform into... “Sound market institutions are integrated into the global economic system and have a role in finance and economic development.”
He pointed out that "there is a reform process in Iraq that begins with the government banking sector and then the private sector," pointing out that "the injustice that happened to the banks is an opportunity for reform."
Parliamentary Finance: The Council of Ministers will approve the budget schedules on Sunday
Member of the Parliamentary Finance Committee, Mustafa Al-Karaawi, said this evening, Wednesday (May 15, 2024), that the Council of Ministers will vote to approve, in its special session scheduled for next Sunday, the financial budget schedules for the year 2024.
Al-Karaawi said in a televised statement, followed by “Baghdad Al-Youm,” “The Council of Ministers will vote next Sunday on the budget schedules so that they quickly reach the House of Representatives.”
He warned that "projects may slow down if financial liquidity is not secured for them and must be secured through budget schedules," stressing that "proceeding with a budget with a high deficit is a financial risk."
Al-Karaawi also stressed, “The 2024 budget schedules must be studied carefully and government agencies must be hosted,” noting that “the House of Representatives has the authority to transfer and reduce spending in the schedules and reduce the percentage of the deficit in them.”
He stressed, "We will try to resolve the schedules file during the end of the current legislative term, which was extended for one month so that the government can proceed with the projects," adding, "We are determined to resolve this file in order to give the government full leeway to implement its urban and investment program and plans."
It is noteworthy that Prime Minister Muhammad Shiaa Al-Sudani directed, in the Council of Ministers session yesterday, Tuesday, to hold an extraordinary session of the Council next Sunday, to discuss the federal budget schedules for the year 2024.
(We will not withdraw from Iraq)...an American message that reaches the coordination framework
The series “Removing American Forces from Iraq” has reached its final episode, as observers see that removing them from the country is a slogan circulated by the factions and is inapplicable after an American message carried by the Sudanese to the coordination framework stating, “We will not withdraw now.”
The researcher in military and strategic affairs, Imad Alo, said in an interview with (Al-Mada), “The results of Prime Minister Muhammad Shiaa Al-Sudani’s visit to Washington have not yet appeared, and if we go back to the statements issued by American and Iraqi officials on the issue of removing American forces, they were not There is no indication or research on this issue, and it was confirmed that the two sides are awaiting the results of
the technical committee formed between Iraq and the United States of America to discuss the issue of ending the work of the international coalition that existed at the invitation of the Iraqi government.”
Alou adds, “The file is still under discussion among the technical committees that were formed to study the requirements for military operations, assess the terrorist threat of ISIS, and mechanisms for supporting and developing Iraqi forces in the fields of training, arming, and consulting,” noting that “the media speech issued by both parties does not address the exit of the forces.” "The American coalition is only scheduling an end to the international coalition's mission."
He continues, "The reactions of the coordination framework are not clear, and there is a difference in views about removing the American forces," adding that "the forces of the framework agree to give space to the Sudanese, and we will see what happens at the end of the current world from the results of the technical committee."
In the same context, the head of the Center for Political Thinking, Ihsan Al-Shammari, said in an interview with (Al-Mada), “The Sudanese visit to Washington did not include the issue of the American withdrawal from Iraq, and there was no announcement from the White House that there were arrangements for the withdrawal or scheduling of the withdrawal of American forces.” This shows that the American decision is not to withdraw from Iraq, but rather to remain for a long period through new agreements.”
He added, "The Sudanese visit to Washington revealed the American commitment to remaining in Iraq, and this file may have convinced some political forces that proceeding with the withdrawal has major repercussions on the Iraqi street," pointing out that "the political forces are not now deliberating on the withdrawal of American forces because they are well aware that this issue "It may cause an internal crisis, especially in the absence of a national consensus on their withdrawal."
Al-Shammari continues, “The American message seems very clear and the Sudanese may have conveyed it to the coordination framework and the armed factions that Washington does not want to leave Iraq,” explaining that “removing them from Iraq is the slogan of the anti-American factions and is not applicable.”
Last month, Prime Minister Muhammad Shiaa Al-Sudani visited Washington, DC, on an official visit at the invitation of US President Joe Biden, and met with Secretary of Defense Lloyd Austin, Secretary of State Anthony Blinken, US President Joe Biden, and a number of US officials.
Before his visit to Washington, Al-Sudani said, “The Iraqi government does not want the continued presence of international coalition forces in Iraqi territory,” while he stated that “ISIS does not pose any threat to the security of the state at all.”
Earlier, the spokesman for the Commander-in-Chief of the Armed Forces, Major General Yahya Rasoul, said that the three subcommittees emanating from the Supreme Military Committee to end the tasks of the International Coalition held their meetings in Baghdad, with their counterparts from the International Coalition, to discuss the topics prepared on schedules so that the requirements of the end-of-life plan could be completed. The mission of the international coalition in Iraq.
The Chief of Staff of the Army, Lieutenant General Abdul Amir Rashid Yarallah, also believes that the tasks of the international coalition are limited to air support and that it does not have any combat military forces on the ground.
Golden Gate Ventures obtains the first closing of its new fund in the Middle East and North Africa region, valued at $100 million,
link from Iraq's news
On the left, Michael Lents, partner at Golden Gate Ventures. On the right, Hussein Abdullah, Senior Advisor at Golden Gate Ventures. In the background, Golden Gate Ventures' office in Doha.
Doha, Qatar, May 15, 2024 — Golden Gate Ventures, a Silicon Valley venture capital fund, today announced the establishment of its first US$100 million fund in the MENA region with US$20 million in commitments from... Some of the most prominent families in Qatar: Anchor Investment Company, the multinational company - Al Khor Holding Company with 60 years of history; Al-Attiyah Group, widely known for its tremendous support for the development of local companies, and Sheikh Jassim bin Jabr Al Thani .
The announcement of the first close of the US$100 million MENA Fund I, backed by pillars of Qatar’s private business community, represents a major step towards Golden Gate Ventures’ aspirations to drive innovation and entrepreneurship in the MENA region. The fund combines the overall regional influence of its investors with Golden Gate Ventures' deep startup ecosystem development experience spanning Silicon Valley and Asia. Golden Gate Ventures' MENA venture capital fund is the first international venture capital fund to be established and managed in Qatar. Michael Lents, partner at Golden Gate Ventures, has moved to Qatar, deepening the firm's commitment to the MENA region.
“ We are extremely honored to partner with Al Khor Holding Company, Al Attiya Group and Sheikh Jassim bin Jabr Al Thani on our fund that we have opened in the MENA region. Their collective impact in the region is invaluable, and underscores Qatar’s commitment to the regional startup ecosystem. The region stands out Middle East and North Africa Qatar as a growing hub for innovation, with Qatar emerging as a beacon of progress The combination of a supportive government, progressive economic policies, and a strong focus on diversification and innovation are very important, said Vinny Loria, co-founder of Golden Gate Ventures . “It reminds me of my early days in Singapore in 2011, when Golden Gate Ventures was founded shortly before all the venture capital firms that followed.”
“At Al Khor Holding Company, we strongly support the continued development and expansion of new industries and sectors within the Qatari business landscape. It is with great pride that we announce our decision to become a lead investor in Golden Gate Ventures’ venture capital fund in the MENA region, which represents An important achievement as the first international venture capital fund to be established and managed in Qatar .
Moreover, we are fully confident that our cooperation with Golden Gate Ventures' venture capital fund in the MENA region will bring tangible benefits to the social and economic landscape in Qatar. “By facilitating the emergence of innovative solutions, creating job opportunities, and supporting the national development agenda, we are contributing to achieving Qatar Vision 2030 and building a diversified, knowledge-based economy .”
The announcement comes at a time when Qatar's economic strength and emerging startup ecosystem are being highlighted. The first MENA Fund was unveiled with the Qatar Economic Forum in the background, as thousands of global business leaders gathered in Qatar to discuss the Gulf state’s path on the global stage. Earlier in the year, the Qatar Web Summit attracted the largest gathering of startups in the Middle East, highlighting the region's growing startup scene .
Yousef Mohamed Al-Jaida, CEO of the Qatar Financial Centre, said: “The launch of Golden Gate Ventures in Qatar represents significant progress towards diversifying the venture capital sector. Golden Gate Ventures’ expansion in the region, which was marked by the establishment of its headquarters in Qatar to foster a thriving business environment.” Accelerating entrepreneurship and promoting growth within the startup ecosystem in Qatar .
Maryam bint Khalid Al Attiyah said: “We are pleased to join Golden Gate Ventures’ venture capital fund in the MENA region as a limited partner. It is truly an honor to be part of shaping the venture capital ecosystem in Qatar and the MENA region. We expect The impact this initiative will have on various economies, technological, educational and cultural aspects of our societies.
The US$100 million fund is intended to focus on supporting startups in key sectors such as alternative energy, green technology, B2B artificial intelligence and energy-related deep technology. Supporting innovation in these areas of increasing demand would increase Qatar’s international leadership in liquefied natural gas and alternative energy, strengthening its growing global influence in energy as the world accelerates the implementation of the climate agenda. Other strategic sectors that the first MENA Fund is set to cover include financial technology, health technology, and education technology, which will enhance Qatar’s economic diversification agenda .
“ In line with Qatar’s Third National Development Strategy 2024-2030, I am excited to work with Golden Gate Ventures to launch the first international venture capital fund in Doha. Indeed, we aim to support entrepreneurs, attract talent, create jobs, and attract investments.” Hussein Abdullah, senior advisor at Golden Gate Ventures, said : “ I am deeply grateful to our investors who support our strategy .”
“ Qatar is at an important stage in its development as a global economy, and the MENA Fund will aim to strengthen the startup ecosystem, drawing on the extensive social and financial capital of our investors, in addition to our deep experience in building thriving startup ecosystems,” said Michael Lents, Partner at Golden Gate Ventures : “ We look forward to a long-term partnership that will help put Qatar and leading companies in the MENA region on the global map .”
Announcing Golden Gate Ventures’ first MENA fund, the firm also announced the launch of its introductory guide to Qatar’s startup ecosystem titled “Qatar Rises: Where Ambition and Capital Meet.” As an introductory guide to the industry, it offers insight into how various factors – its strong economic policy, investment landscape, startup ecosystem, talent pool, and cultural influence – have converged in the past decade to position the Gulf nation as a progressive global economy. It would reveal opportunities in key sectors - climate technology, financial technology, retail, and health technology - which are expected to pave the way for rapid expansion in Qatar over the next two decades. Most importantly, the report outlines the reasons why Qatar is a regional hub for any global business .
Before establishing its MENA office in 2023, Golden Gate Ventures spent nearly a decade building deep relationships across the region, establishing the right networks, and organizing a large team with a deep understanding of the region's vast opportunities. By that time, the company had already established itself as a strong contributor to the startup ecosystem, bringing deep experience from Silicon Valley and supporting Singapore's growth as a startup hub on the international map .
Over the past two years, Golden Gate Ventures has seen significant growth: expanding its presence by establishing operations in Vietnam in 2022 to capitalize on its rise as a leading global economy; This coincided with the establishment of an office in the Kingdom of Saudi Arabia in 2023 to take advantage of the opportunities available in the Middle East and Southeast Asian countries. It added an entity in New York in recent months to help portfolio companies raise money from the region .
The persistence of the dollar gap disturbs the Sudanese government’s service successes.. “Newspaper” analysis
An analysis prepared by the “Jarida” newsroom revealed today, Wednesday, that the government of Muhammad Shiaa al-Sudani is treating the gap between the official price of the dollar against the dinar and its parallel price as if it were an ongoing reality.
Observers note that the Sudanese government is active in the field of service to citizens and active in the field of reconstruction and many other fields, including the economic aspect, which began by reducing the exchange rate of the Iraqi dinar against the dollar.
This decision, which aimed to increase the real value of the incomes of Iraqi citizens, even at the expense of the state’s public finances, was something that the Iraqi citizen received with a kind of satisfaction, which quickly dissipated due to the widening of the gap between the official price of the dollar versus the dinar and its equivalent price.
In turn, the government tried, through many of its tools and through the Central Bank, to address the issue of the gap between the two prices, but unfortunately it was not eliminated, as we see that the Sudanese government is now dealing with the issue as if it is an ongoing reality.
The question that arises now is: Has the government surrendered in this file? Is there a treatment that would reduce the gap between the two prices? Which will succeed the government's decision to reduce the exchange rate.
The President of the Republic emphasizes the development of relations between Iraq and Morocco
President of the Republic Abdel Latif Jamal Rashid stressed to Moroccan Prime Minister Aziz Akhannouch the importance of developing relations between Iraq and Morocco in various fields.
The Presidency's Media Department stated in a statement, "The President of the Republic, Abdel Latif Jamal Rachid, received today, Wednesday, at his residence in the Kingdom of Bahrain, on the sidelines of the Arab Summit in its thirty-third session, the Prime Minister of the Kingdom of Morocco, Mr. Aziz Akhannouch."
She added, "At the beginning of the meeting, which was attended by Foreign Minister Fouad Hussein, Aziz Akhannouch conveyed the greetings and appreciation of King Mohammed VI to the President of the Republic, while the President conveyed his greetings and appreciation to His Majesty the King, and the meeting discussed bilateral relations and the general situation in the region."
The President stressed, "The importance of developing relations between Iraq and Morocco and the necessity of working to strengthen them in various fields in a way that achieves the common interests of the two brotherly peoples," noting that "Iraq looks forward to more cooperation and joint coordination on various issues on the regional and international arena, in addition to cooperation in the economic fields." and cultural."
The President pointed out that "the region is facing a number of crises that must be resolved through dialogue and continued consultations and meetings in a way that achieves the common interests of the peoples of the region."
The President of the Republic pointed out "the sinful aggression against the brotherly Palestinian people, noting the necessity of immediately stopping the war in the Gaza Strip, preventing its expansion, and working to provide relief to the Palestinian people."
For his part, Aziz Akhannouch expressed "the Western Kingdom's aspiration to strengthen joint relations with Iraq, praising Iraq's pivotal role in ending crises in the region.
Al-Sudani directs a number of measures to develop the work of the “TBI”
Within the framework of the Iraqi government’s interest in reforming and developing the banking sector, the Prime Minister directed the implementation of a number of measures to develop the work of the Trade Bank of Iraq (TBI) and increase its contributions to the financing and economic development of the country. Among those measures that the Prime Minister directed were the following: -
First: - Forming a joint committee between (the Prime Minister’s Office, the Central Bank, and the Trade Bank of Iraq) that will study and evaluate the loans granted by the bank to the private sector (individuals and companies) and ways to settle defaulted ones through a proposed incentive plan in this regard, provided that the committee will complete its work within a month from now.
Second: Assigning the Iraqi Trade Bank to prepare a study on granting loans and stimulating the private sector to make the most of the credit services provided by the bank, to be submitted within a month.
Third: Implementing the plan proposed by the Central Bank to develop the activities of the Iraqi Trade Bank through:
1. Increasing the number of the bank’s branches in Baghdad and the provinces, especially in provinces with broad economic activity.
2. Facilitating and simplifying the provision of services in all aspects, taking care of the bank’s customers, and defining mechanisms to monitor and follow up on this.
3. Reviewing the system of wages and commissions charged by the bank in order to achieve the greatest possible customer attraction and to help achieve the goal of exchange rate stability and general price stability in the interest of citizens.
Iraq is preparing to launch a new mechanism for paying tickets for mass transit lines using the phone
The General Company for Transporting Passengers and Delegations in the Ministry of Transport announced today, Thursday, the imminent launch of a new mechanism for paying tickets for mass transit lines using the phone, while indicating that this method will be used for the first time in Iraq.
The company's general manager, Karim Kazem Hussein, said, "The mass transit line at the Iraqi University and Al-Karkh University of Science is part of an integrated project, numbering 72 lines, to serve all areas of the capital, Baghdad."
He pointed out, “The line begins operating inside the university campus and will be extended to work from the Al-Amriya intersection towards the university, and then ends in the Abu Ghraib area and returns to the Al-Amriya intersection, so that there will be a completion between the second line that is opened from the Al-Amriya area towards the Bab Al-Muadham area, and thus A large area will be covered by lines from inside Baghdad towards its outskirts.”
He explained, "Payment is done through the POS system on buses, as the mobile phone can now be used to pay directly. It is also possible to use all electronic payment cards such as Visa and MasterCard, or any card used by the citizen, which he can use to pay."
He continued, "These cards can be paper, that is, they are purchased for the amount that the citizen desires, and when their balance runs out, he can swipe them once so that we allow the citizen to reach the place he wants, provided that he fills them out again."
He stated, “The issue of payment through the mobile application or payment from the mobile phone balance are new methods used for the first time in Iraq, and they will be activated within the next few days, as they will be launched in universities and then will be applied in all the streets of the capital, Baghdad.”
He noted that "the phase of its use in universities is an experimental phase, and after its success and the smooth, easy and rapid transfer of funds, it will be implemented on all buses operating in the streets of Baghdad."
The Prime Minister's advisor calls for moving towards banking reform
Yesterday, Wednesday, Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, stressed the importance of moving to reform the banking sector in Iraq, while noting that depriving some banks of foreign currency is an opportunity to restructure and organize them.
Saleh told the Iraqi News Agency (INA): “Prime Minister Muhammad Shiaa Al-Sudani has a keenness to protect national capital, in addition to the fact that banking institutions need reform,” indicating that “what happened in depriving some banks of foreign currency is an opportunity to restructure and organize them.” He added, “There is a program to reform the banking sector by starting with the government sector because the government banking sector dominates 85 percent of banking work and the rest of the small emerging markets, even though their capital constitutes 78 percent of the banking system’s capital, but they need to be reorganized and restructured.” To transform into valid market institutions that integrate with the global economic system and have a role in financing and economic development.” He pointed out that “there is a reform process in Iraq that begins with the government banking sector and then the private sector,” pointing out that “the injustice that happened to the banks is an opportunity for reform.”
The Central Bank of Iraq participates in the Arab Forum for Anti-Corruption Bodies
Information Office
May 16, 2024
Iraq participates in the Arab Forum for Anti-Corruption Bodies and Financial Investigation Units
The head of the Federal Integrity Commission, Judge Haider Hanoun, announced today, Thursday (May 16, 2024), Iraq’s participation in the Arab Forum for Anti-Corruption Bodies and Financial Investigation Units.
The commission’s media stated in a statement received by “Baghdad Today” that “The head of the Federal Integrity Commission, Judge Haider Hanoun, confirmed that the measures taken by the Integrity Commission and the Iraqi government in the field of combating corruption in the year 2023 resulted in growth in the economy, as Iraq recorded an increase in the gross domestic product.” Total".
He added, "In the balance of the money supply until the end of last year, Iraq advanced three places according to the GDP data for each country issued by the International Monetary Fund to come in position (49)."
Hanoun pointed out during the working paper he presented at the Arab Forum for Anti-Corruption Bodies and Financial Investigation Units held in the Kingdom of Saudi Arabia and tagged (Combat Corruption and Its Necessity for Achieving Economic Growth), that “the final statement of the experts of the International Monetary Fund issued on the third of last March on the continuation of economic growth In Iraq, an increase in non-oil revenues, a decline in overall inflation, a decrease in food prices, the implementation of new controls to combat money laundering, and the private sector’s access to foreign currency at official rates for import and travel purposes.”
The head of the authority warned of “the economic effects caused by corruption at the local and international levels,” reviewing “some of these effects, such as reducing investment rates as investors flee from an environment in which corruption is widespread, due to their being forced to pay bribes, and its cause of the exacerbation and deficit of the general budget through tax evasion.” Or attempt to obtain illegal tax exemptions.”
Hanoun added, "Among these effects are the increased cost and operation of projects, the weak efficiency and quality of public facilities, distortion of markets and misallocation of resources by reducing the government's ability to impose oversight and inspection systems, and the government's loss of supervisory control over banks, internal trade, and financial markets."
He pointed out that "corruption leads to increased rates of poverty, poor distribution of income and the enrichment of the few at the expense of the many, which leads to the creation of a state of discrimination, class and injustice among members of society, in addition to causing inflation by increasing the cost of business as a result of the bribes and commissions paid by companies." “This forces the consumer to pay a higher price for the commodity than its actual cost.”
The Chairman of the Authority noted “the necessary measures to combat corruption and achieve economic growth through two important measures: providing the protective environment and developing the institutional environment,” pointing out that “providing the protective environment requires taking several measures and policies, the most important of which is: reducing monopoly of any kind.” Types of economic activities, facilitating government procedures, providing internal and external auditing bodies and supporting them with the powers and information that enable them to continuously follow up on the institutions’ accounts.”
He continued, "The second part of the necessary measures to combat corruption and achieve economic growth is to develop the institutional environment, through the presence of an independent judicial apparatus, the provision of a legislative institution that represents the people, legislates laws and holds the executive authority accountable, and relies on the principles of efficiency and integrity in employing public employees, and attention to improving... Salaries and wages are supported by guarantees and incentives, and an independent auditing body is provided.”
The forum, in which (75) speakers from (25) countries and (12) organizations participate, as well as (600) experts from financial investigation units, anti-corruption bodies, government agencies, international organizations, and financial and academic institutions, aims to chart a clear path for cooperation between bodies. Governmental institutions in the Kingdom of Saudi Arabia, counterpart organizations, and regional and international bodies, and constitutes a strategic opportunity to unify efforts among various institutions. In order to confront the challenges of combating financial crimes, and a platform for presenting and launching practical initiatives with tangible results, while focusing on building capabilities and enhancing cooperation between the relevant authorities working to combat financial crimes, money laundering, and terrorist financing in the Middle East and North Africa region.
The Real Estate Bank announces the application of the electronic collection service
The Real Estate Bank announced the application of the electronic collection service.
The bank stated in a statement received by the Iraqi News Agency (INA), that “based on the directives of the Prime Minister and the Minister of Finance, the Real Estate Bank, and under the direct supervision of the Director General, Abbas Al-Jawahiri, began implementing the electronic collection service, which is considered one of the most important services aimed at simplifying the routine procedures that burden people.” The citizen, through the service of paying borrowers’ monthly dues and installments using the Real Estate Bank’s mobile application, anywhere and at any time, without the need to attend one of the bank’s branches.”
He added, "This great achievement was preceded by a series of achievements in implementing the government program, the first of which was the launch of the electronic payment and collection services project using POS devices in the year 2023 and in more than (6,000) locations spread across all Iraqi governorates, in addition to the bank starting to implement the system." An electronic system within the bank’s branches was developed by the bank’s staff to reach the highest levels of readiness to launch the comprehensive banking system.”
He pointed out that "the Real Estate Bank's electronic services were created to serve the citizen in order to ensure the payment of citizens' monthly loan dues and installments easily and safely."
Ahli Bank opens a branch in Basra
The International Development Bank announced the opening of a new branch in the Times Square Center in Basra Governorate, confirming its adoption of a new strategy to enhance banking services and stimulate investment in southern Iraq. He said in a statement that the second branch was opened in Basra Governorate, in the Times Square Mall, to provide its banking services. For citizens and businessmen in this vital region of southern Iraq.
He stated that this opening comes within the bank's strategy to expand and modernize its effective network of branches, with the aim of providing high-quality and convenient banking services to customers.
The bank's authorized director, Saad Faiq, said: This branch will be an important tributary to economic development in Basra and will enhance investment and growth opportunities in the southern region.
A license for brokerage companies to trade in shares on international stock exchanges
The Securities Commission is studying the possibility of licensing brokerage companies to trade in shares on international stock exchanges.
The head of the authority, Faisal Al-Haims, said in a statement: “The authority has begun studying the licensing of brokerage companies to trade in shares on global stock exchanges through a technical committee within it.”
He added, “The Authority is working seriously to support and develop the stock market by studying the licensing of brokerage companies to enable them to trade in shares on international stock exchanges for the first time in Iraq.”
He explained, “This step comes in the context of protecting the rights of citizens to trade through brokerage companies that practice this activity without an official license from the Securities Commission, which seeks to develop the financial markets in the country,” noting that “the Commission is working to provide a stimulating and regulated investment environment.” “It contributes to enhancing confidence among investors and raising Iraq’s position in global financial markets.”
Wills for payment card holders
With the strong entry of electronic payment methods applications into the space of banking exchanges and transactions, it has become extremely important to spread banking awareness among electronic payment card holders and the general public in the context of the financial inclusion program related to the axis of introducing technologies.
This importance results from the possibility that holders of electronic payment cards will fall between the legal consequences resulting from misuse of cards, and the possibility of being exposed to fraud resulting from the theft of the card or data, as in what is called electronic phishing by obtaining the user’s private information and penetrating the database by cloning the card. Or while using it without caution in paying for services, shopping online, or transferring money between bank accounts.
The Central Bank usually publishes data and warnings in this regard, as the movement of funds is monitored through the national exchange, and the cards and their owners who are suspected of misuse are referred to the Anti-Money Laundering and Terrorist Financing Office, and then to the judicial authorities for the purpose of taking legal measures based on the Anti-Money Laundering Law. Terrorist Financing No. 39 of 2015 and the instructions issued pursuant to it, according to what is stated in the Central Bank’s data.
However, what is important in this matter, with the expansion of the use of electronic payment tools, is to spread awareness among card users to avoid risks to which card holders are exposed, as in the experiences of countries that preceded us in this regard.
Fraud operations often occur in the early stages of applications for electronic payment tools, despite the electronic protection adopted by payment service companies and the continued immunity of data security measures. However, what is consistent, according to the experiences of countries that preceded us, is that payment service companies adopt what is called a “trial and error” strategy. » To solve problems over time in systems and applications that are said to always remain vulnerable to attacks.
Accordingly, it is important for cardholders not to give their secret card numbers to anyone, and not to share their card information via phone, text messages, or e-mail. These platforms are not secure and may lead to the privacy of card holders being compromised. It is also important to change the card no less than six months ago, specifically for those who shop online. The card must not be copied or photographed via duplication devices or mobile phones and shared with others. It is important to ensure that there is a text messaging service to inform you of all exchanges that take place using your cards, whether you are the one making them or someone else.
| Iraqi Forex Market: Fraud networks that launder money and exploit the dreams of young people | |
Iraqi Forex Market: Fraud networks that launder money and exploit the dreams of young people
Financial experts said that Forex trade in Iraq is expanding to hundreds of thousands of dollars annually in Iraq without state control over it. Economic analyst Manar Al-Obaidi said that the volume of Forex trade in Iraq, according to studies conducted, amounts to more than 100 billion dollars annually with money far from state control, marred by fraud, money laundering, and illegal operations that link young people to illusory dreams of quick and easy wealth. Forex, or the foreign exchange market, is a global, decentralized market in which currencies are traded. It is the largest financial market in the world, with trillions of dollars traded every day. Currencies are traded in pairs, for example, Euro/US Dollar (EUR/USD) or British Pound/US Dollar (GBP/USD). When you trade Forex, you buy or sell a currency pair. If you think the value of one currency will rise against another, you will buy that pair. If you think the value of one currency will fall against another, you will sell that pair. There are risks associated with Forex trading, including losses, as you can lose money if currency prices move against you. Leverage can magnify your losses, as well as your profits. Forex trading is not officially regulated in Iraq. This means that there are increased risks associated with trading with unregulated brokerages. In 2023, the Central Bank of Iraq warned investors against dealing with electronic trading companies that offer buying and selling of currencies and gold, as these companies operate outside its regulatory framework. The Iraqi Securities Commission also announced that trading in Forex, oil, commodities and international companies is illegal in Iraq. Al-Obaidi said that Forex trade cannot be ignored around the world, but not legislating and monitoring it by responsible state bodies means heading towards illicit trade that takes place in the corridors of cafeterias and hidden social networking sites, and money smuggled in billions of dollars out of Iraq through fake companies. | |
It will exceed expectations.. The Association of Private Banks announces reaching advanced numbers in the digital transformation process
Today, Thursday, the Association of Private Banks highlighted the benefits of the partnership with the Union of Arab Banks in Iraq, and while announcing the achievement of advanced numbers in the digital transformation process, it expressed its optimism about the return of banks banned from dealing in dollars to their normal work.
The head of the association, Wadih Al-Handal, told the Iraqi News Agency (INA): “The Union of Arab Banks is a global group that is more than 45 years old and present in the region and the world, and our partnership with it will strengthen the position of Iraqi banks at the source of decision-making, whether in the European Union, the Federal Reserve, or the US Treasury.”
He added, "The partnership between the Association and the Union of Arab Banks will draw a road map to simplify matters to reflect positively on Iraq."
Regarding digital transformation, Al-Handal pointed out, “The Prime Minister’s direction after his meeting with the Association, in addition to the Central Bank’s direction toward digital transformation to consolidate the concept of financial inclusion, as the numbers we have reached are very optimistic and advanced,” pointing out that “the numbers in the coming years will exceed "Expectations."
Regarding depriving some banks from dealing in dollars, the head of the Association of Banks stated that “depriving banks is not the first case in Iraq, but there are some banks that have been subjected to sanctions, but they are few,” explaining that “the Prime Minister formed a committee from the Central Bank to follow up on depriving banks after his visit to the United States.” “There is optimism that these banks will return to their normal work.”
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Iraq and Japan are discussing mechanisms for implementing projects financed by the Japanese loan
Deputy Prime Minister and Minister of Planning Muhammad Ali Tamim discussed with the Chargé d'Affairs of the Embassy of Japan, Masamoto Kenichi, the mechanisms for implementing projects funded by the Japanese loan.
A statement from the Ministry of Planning received by Al-Youm Al-Akhbariya said: “Deputy Prime Minister and Minister of Planning, Muhammad Ali Tamim, met today, Thursday, with the Chargé d’Affaires of the Embassy of Japan, Masamoto Kenichi, and his accompanying delegation.”
During the meeting, they "discussed the prospects for joint cooperation between the two friendly countries in a number of fields, especially economic, investment and development, and mechanisms for implementing projects financed by the Japanese loan, including the implementation of the sixth phase of the Basra Refinery Project."
Sudanese advisor announces full repayment of IMF loans
this is all over the news maybe there is a discrepancy? an IMF report came out but it's 68 pages I will not be reading it
Today, Thursday, the Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, outlined the loans provided by the International Monetary Fund to Iraq since 2003, while noting that their total did not exceed 8 billion dollars, confirming that they were repaid in full.
Saleh said, in a statement followed by “Al-Eqtisad News”: “Since 2003, the International Monetary Fund has provided several loans to Iraq that were aimed at supporting macroeconomic stability and implementing financial reforms. Between the years 2003 and 2021, Iraq obtained several financing programs from the International Monetary Fund, "Including emergency loans and relatively long-term financial assistance."
He added, "In the first years after 2003, the Fund provided significant support to Iraq through various programs, including the SBA Credit Readiness Program and the Rapid Financing Instrument. For example, in 2016, the International Monetary Fund approved an SBA Credit Readiness Program worth 5.34 Billions of dollars to support economic reforms in Iraq, and Iraq received two-thirds of the above amount, and it was paid in full within five years.”
Saleh continued, “In 2021, Iraq requested an emergency loan worth $6 billion from the International Monetary Fund, and it appears that the loan was not materialized because it was not linked to one of the Fund’s programs at the time,” noting that “methods of cooperation with the International Monetary Fund have been targeted to support government reforms.” And confronting the economic crises that resulted from the decline in oil prices, which were linked to fluctuations in the balance of payments and its effects on economic activity.”
The Prime Minister’s Advisor for Financial Affairs stated, “Since 2003, the value of the loans and financial aid granted by the International Monetary Fund to Iraq has amounted to several billion dollars, and their total does not exceed 7 to 8 billion dollars, and they have been repaid in full, with a focus when granting loans on implementing programs related to “By supporting macroeconomic stability and implementing the necessary financial reforms.”
The President of the Republic: Iraq categorically rejects violations of its sovereignty under any pretext
The President of the Republic said in his speech during the 33rd Arab Summit in Bahrain: “We meet today in conjunction with the repercussions of the Zionist entity’s aggression against Gaza,” indicating that “what the Zionist entity is doing is genocide by all standards.”
He added, "We renew Iraq's support for the Palestinian people and the establishment of the Palestinian state with Al-Quds Al-Sharif as its capital," calling on "all conflicting parties in Sudan to dialogue in order to resolve the crisis."
He renewed, "Iraq's full support for Lebanon in order to achieve political and economic stability, and its support for any steps for the Yemeni people to achieve stability," calling on "the international community to help countries that have been affected by the climate."
He pointed out, "Iraq rejects the violations affecting its lands or using them to attack others," noting that "Iraq is witnessing a service and industrial revolution led by the government, and we call for investment in the country."
He explained, "The aggression against the Gaza Strip is genocide by all standards," reiterating "Iraq's firm position toward the Palestinian issue."
He called on all conflicting parties in Sudan to resort to dialogue, while reiterating Iraq's standing by the Lebanese people in overcoming the economic crisis.
President Rashid called on "the international community to assist countries affected by natural disasters," expressing "Iraq's rejection of the violations that affect its sovereignty and territory."
He stressed, "Iraq is witnessing today an economic and service revolution adopted by the government," noting that "Iraq will host the 34th session of the Arab Summit in 2025."
Details of the meeting between Al-Sudani and the delegation of the American company KBR for Sustainable Technology Solutions
The Sudanese media office stated in a statement received by {Al-Furat News}, “The meeting reviewed the company’s overall work in Iraq, in cooperation with Iraqi oil companies in the field of oil production, and enhancing the benefit from associated gas.”
The possibility of participating in integrated energy projects and forms of participation and investment were also discussed, in a way that achieves the highest returns and benefits for Iraq from oil wealth.
The Prime Minister referred to "the government's approach to attracting productive partnerships, based on resource development, and providing the necessary and successful investment environment, in addition to the financial, banking and tax reform the government is undertaking, which enhances the possibility of positive participation."
He reaffirmed "Iraq's direction towards expanding petrochemical projects, the production of petroleum derivatives, fertilizer projects, and other promising industrial projects, which welcome foreign expertise and investments, establish a diversified and solid Iraqi economy, and create more job opportunities, which is what the government program emphasized."
Plasschaert: Iraq 2024 is developing rapidly
UN Representative Jeanine Plasschaert during her last briefing at the UN Security Council:
We are witnessing a rising Iraq in the fields of service provision and reconstruction
Plasschaert: There is an urgent need for elections in the Kurdistan region
Plasschaert: The security environment in Iraq has become more stable
The Special Representative of the Secretary-General of the United Nations, Jeanine Plasschaert, confirmed today, Thursday, that Iraq is witnessing a renaissance in the fields of services and reconstruction, while noting that Iraq 2024 is developing rapidly .
Plasschaert said, during the full briefing before the Security Council on the situation in Iraq, followed by “Mail,” that “we are witnessing a rising Iraq in the fields of service provision and reconstruction,” pointing out that “Iraq 2024 is developing rapidly .”
She added, "There is an urgent need for elections in the Kurdistan region," noting that "the security environment in Iraq has become more stable ."
At the beginning of February of this year, United Nations Representative Jeanine Plasschaert gave a briefing to the UN Security Council on the political, economic and security situation in Iraq, while noting that government reforms paint a bright future for Iraqis .
In her speech during the Security Council session, Plasschaert said, “The Iraqi government intends to complete the construction of 1,000 schools by the end of this year .”
She added, “The electronic platform for converting the dollar guarantees financial transparency in Iraq,” noting that “the Iraqi government has made progress in banking and financial reform .”
APIKUR values Geoffrey R. Pyatt’s visit as important, necessary
Association of the Petroleum Industry of Kurdistan (APIKUR) welcomes the visit of the U.S. Assistant Secretary of State to Erbil and Baghdad and confirms the company and the Association members’ will for the oil exports from the Kurdistan region.
Myles B. Caggins III, spokesperson of the APIKUR, in a statement welcomes the visit of Geoffrey R. Pyatt, U.S. Assistant Secretary of State for Energy Resources to Iraq and Kurdistan region as a strong and necessary gesture in order the Iraqi officials and Kurdistan region “to start to achieve their goals which they have set before and restoring the oil exports via the Iraq-Turkey oil”.
Yesterday, May 15, 2024, the U.S. Assistant Secretary of State for the Energy Resources had a meeting with Mohammad Shia Soudani, the Iraqi prime minister, and it is decided that today, 16/05/2024, to visit Erbil to meet up with Masrour Barzani, the prime minister of the Kurdistan region.
Association of the Petroleum Industry of Kurdistan (APIKUR) states the officials meetings with the both of the Prime Ministers Masrour Barzani and Mohammed Shia al-Sudani, “are extending of the discussions that have been in Washington and the Munich Security Conference”.
According to APIKUR’s statement, they have noticed that producing and oil exports are underused in the Kurdistan region, “while it can assist Iraq and the oil ministry so as to obtain its goals immediately in oil exports areas”.
According to Myles Caggins’ statement “APIKUR’s member companies underscore, ready to restoring the oil exports, and that happens with an agreement to assure the past and future payments. In addition to that our economical trading agreement terms are protected. Thus, restoring the oil exports will be beneficial to all Iraqi nationals and the shareholders”.
Per the APIKUR’s spokesperson’s statement, the visit of Geoffrey Pyatt to Erbil the capital city and Baghdad, “the significance of the immediate restoring and cooperative among the relevant parties and shareholders to start restoring the oil exports through the Iraq-Turkey oil pipeline”.
The other part of the announcement emphasizes that “APIKUR’s member companies are keen to resolve this this immobile situation happened as a result of the restoring the oil exports and welcome any official invitation to the participants in the process”.
For further details, since March 25, oil exports from the Kurdistan region have been halted through the Turkish Ceyhan port, per a Paris court order. The oil pipeline that connects the Kurdistan region to Turkey can export 1.4 million barrels of oil. However, so far, this volume has not been exported. Before the halt, only 450 thousand barrels of oil had been exported.
Many time the Turkish foreign ministry announced the pipeline doesn’t have any issues and since 04 of the last October is ready, moreover Turkey has given consent to oil exports and the pipelines are ready, The Iraqi government is not yet prepared to resume exporting oil from the Kurdistan region through the Turkish Ceyhan port. In the meantime, significant damage has occurred to Iraq, the Kurdistan region, and the international oil companies after one year of suspending oil exports.
After suspending oil exports through Iraq-Turkey pipeline for almost 14 months, Iraq's revenue has suffered damages amounting to more than $14.5 billion. This is due to Iraq's non-compliance with the terms and conditions of the agreement, resulting in a daily charge of $800,000.
It is for that reason, more than $400.000.000 APIKUR investment halted, a rate of 60% of the annual income of the oil companies declined, hundreds of people are jobless.
Due to the suspension of 450 thousand oil barrels in daily exports, oil prices have increased. However, energy experts emphasize that suspending oil exports damages Iraq's reputation, hampers investment intentions, and leads to a decline in trade within the country.
The World Bank recommends that Iraq control public wages and gradually abolish compulsory employment
Today, Thursday, the Executive Board of the International Monetary Fund (IMF) concluded Article IV consultations with Iraq and studied and approved the employee evaluation, while recommending the control of public wages and the gradual abolition of compulsory employment.
The report added, “It is expected that the continued financial expansion will enhance growth in 2024, at the expense of further deterioration in financial and external accounts and weak financialIraqIn the face of oil price fluctuations. Without policy adjustment, the risk of medium-term sovereign debt stresses is high and external stability risks could arise. Key downside risks include a significant decline in oil prices or the spread of conflictGazaAndIsrael
The executives agreed, according to the report, “with the thrust of the staff assessment, and welcomed the strong economic recovery, low inflation, and improved domestic conditions that led to the implementation of the first-ever three-year budget. ” Noting that risks are skewed towards the downside, given regional conflicts and high dependence on volatile oil prices, and that significant fiscal expansion could lead to fiscal and external imbalances,
the Directors stressed “the need for sound macroeconomic policies and structural reforms to secure public finances and debt, sustainability “And promoting economic diversification and achieving sustainable and comprehensive growth led by the private sector.”
The directors stressed that “there is a need for gradual, but significant, financial adjustment to achieve debt stability in the medium term and rebuild financial safety margins.” They encouraged the authorities to focus on controlling public wage rolls, phasing out compulsory employment policies, and mobilizing non-oil revenues, while better targeting social assistance.
They agreed that “immediately implement customs and revenue management reforms, fully implement the single treasury account, and strictly monitor and limit The use of extra-budgetary funds and government guarantees are essential to support fiscal consolidation. It is also important to reduce monetary financing and reform the pension system.”
Directors praised the central bank’s efforts to “tighten monetary policy and strengthen the liquidity management framework.” Improving coordination between fiscal and monetary operations would help absorb excess liquidity and enhance monetary policy transmission. The directors agreed that accelerating the restructuring process of large state-owned banks was also necessary. They encouraged further modernization of the private banking sector, including by facilitating the establishment of correspondent banking relationships, reducing regulatory uncertainties, and enhancing the efficiency and competitiveness of private banks.”
The Directors stressed the need for structural reforms to unleash private sector development. They encouraged equal opportunities between public and private jobs, promoting women's participation in the workforce, and reforming education and labor laws. Directors agreed that improving governance and combating corruption were also key, and encouraged further strengthening of the AML/CFT framework, strengthening public procurement and business systems, and addressing deficiencies in the electricity sector. Directors welcomed renewed efforts towards joiningWTO. They also encouraged the authorities to improve the coverage and timeliness of statistics.
The Directors agreed that “close engagement with the Fund, including through ongoing technical assistance, would be beneficial, and welcomed the authorities’ request to establish a policy coordination tool.”
upcoming Article IV consultations are expected to be held withIraqIn the standard course of 12 months.
Iraq: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Iraq
the report is 68 pages but it is easy to read even the charts
ublication Date:
May 16, 2024
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
Domestic stability has improved since the new government took office in October 2022. This has facilitated the passage of Iraq’s first three-year budget, which entailed a large fiscal expansion starting in 2023. The non-oil economy has rebounded strongly in 2023 after stalling in 2022 and was largely unaffected by the ongoing conflict in the region. Nonetheless, Iraq remains highly vulnerable to oil price fluctuations and private sector activity is hindered by the large state footprint—including as an employer of first resort—corruption, red tape, underdeveloped infrastructure, and poor access to credit.
Series:
Country Report No. 2024/128
Subject:
International organization Monetary policy
Frequency:
regular
ENGLISH
Publication Date:
May 16, 2024
ISBN/ISSN:
9798400275357/1934-7685
Stock No:
1IRQEA2024001
Format:
Paper
Pages:
68
In numbers...the International Monetary Fund's expectations regarding Iraq's economy for the current and next years
The International Monetary Fund said on Thursday that the Iraqi economy contracted by 2.2 percent in 2022, expecting it to grow by 1.4 percent in 2024, and 5.3 percent in 2025.
As the Fund expected, the Iraqi budget deficit would expand to 7.6 percent in 2024 from 1.3 percent in 2023.
He pointed out that there is a need for gradual but significant financial adjustment in Iraq to achieve debt stability in the medium term and rebuild financial reserves.
The Executive Board of the International Monetary Fund concluded Article IV consultations with Iraq, and indicated in a statement the improvement of internal stability since the new government took office in October 2022. This facilitated the approval of Iraq's first three-year budget, which required a major financial expansion starting in 2023.
This has supported a strong recovery in Iraq's non-oil economy after a contraction in 2022-23, while Iraq has been largely unaffected by the ongoing conflict in the region.
The Fund said that domestic inflation in Iraq fell to 4 percent by the end of 2023. This reflects the decline in international food prices, the revaluation of the currency starting in February 2023, and the return of trade finance to normal.
But he pointed to the exacerbation of imbalances due to the large financial expansion and the decline in oil prices, expecting that the continued financial expansion will enhance growth in 2024, at the expense of further deterioration in financial and external accounts and Iraq’s vulnerability to oil price fluctuations.
He said: “Without policy adjustment, the risks of medium-term sovereign debt stress are high and risks to external stability could arise. The main downside risks include a significant decline in oil prices or the spread of conflict in Gaza and the Israeli entity.”
The statement indicated that the Iraqi economy contracted by 2.2 percent in 2022, expected to grow by 1.4 percent in 2024 and 5.3 percent in 2025.
He also expected the Iraqi budget deficit to expand to 7.6 percent in 2024 from 1.3 percent in 2023.
He also expected that the Iraqi government's debt would reach 48.2 percent of GDP in 2024 and 54.6 percent in 2025.
In their statement, the Directors stressed that a gradual, but significant, fiscal adjustment is needed to stabilize debt in the medium term and rebuild fiscal safety margins, and encouraged the authorities to focus on controlling the public wage bill, phasing out compulsory employment policies, and mobilizing non-oil revenues, with Better targeting of social assistance.
Directors agreed that the immediate implementation of Customs and Revenue Administration reforms, full implementation of the Single Treasury Account, and strict oversight and limitation of the use of extra-budgetary funds and government guarantees are essential to support fiscal consolidation. It is also important to reduce monetary financing and reform the pension system.
Directors praised the Central Bank's efforts to tighten monetary policy and strengthen the liquidity management framework. Improving coordination between fiscal and monetary operations would help absorb excess liquidity and enhance monetary policy transmission.
They agreed that accelerating the restructuring of large state-owned banks is also essential, and encouraged further modernization of the private banking sector, by facilitating the establishment of correspondent banking relationships, reducing regulatory uncertainties, and enhancing the efficiency and competitiveness of private banks.
The Directors stressed the need for structural reforms to unleash private sector development, and encouraged equal opportunities between public and private jobs, promoting women's participation in the workforce, and reforming education and labor laws.
Directors agreed that improving governance and combating corruption were also key, and encouraged further strengthening of the AML/CFT framework, strengthening public procurement and business systems, and addressing deficiencies in the electricity sector.
Directors welcomed renewed efforts towards accession to the World Trade Organization. They also encouraged the authorities to improve the coverage and timeliness of statistics.
International Monetary Fund: The Iraqi economy will grow by 5.3% in 2025
The International Monetary Fund confirmed today, Thursday, that the Iraqi economy contracted by 2.2 percent in 2022, expecting it to grow by 1.4 percent in 2024, and 5.3 percent in 2025.
As the Fund expected, the Iraqi budget deficit would expand to 7.6 percent in 2024 from 1.3 percent in 2023.
He pointed out that there is a need for gradual but significant financial adjustment in Iraq to achieve debt stability in the medium term and rebuild financial reserves.
The Executive Board of the International Monetary Fund concluded Article IV consultations with Iraq, and indicated in a statement the improvement of internal stability since the new government took office in October 2022. This facilitated the approval of Iraq's first three-year budget, which required a major financial expansion starting in 2023.
This has supported a strong recovery in Iraq's non-oil economy after a contraction in 2022-23, while Iraq has been largely unaffected by the ongoing conflict in the region.
The Fund said that domestic inflation in Iraq fell to 4 percent by the end of 2023. This reflects the decline in international food prices, the revaluation of the currency starting in February 2023, and the return of trade finance to normal.
But he pointed to the exacerbation of imbalances due to the large financial expansion and the decline in oil prices, expecting that the continued financial expansion will enhance growth in 2024, at the expense of further deterioration in financial and external accounts and Iraq’s vulnerability to oil price fluctuations.
He said: “Without policy adjustment, the risks of medium-term sovereign debt stress are high and external stability risks could arise.” The main downside risks include a significant drop in oil prices or the spread of conflict in Gaza and the Israeli entity.”
The statement indicated that the Iraqi economy contracted by 2.2 percent in 2022, expected to grow by 1.4 percent in 2024 and 5.3 percent in 2025.
He also expected the Iraqi budget deficit to expand to 7.6 percent in 2024 from 1.3 percent in 2023.
He also expected that the Iraqi government's debt would reach 48.2 percent of GDP in 2024 and 54.6 percent in 2025.
In their statement, the Directors stressed that a gradual, but significant, fiscal adjustment is needed to stabilize debt in the medium term and rebuild fiscal safety margins, and encouraged the authorities to focus on controlling the public wage bill, phasing out compulsory employment policies, and mobilizing non-oil revenues, with Better targeting of social assistance.
Directors agreed that the immediate implementation of Customs and Revenue Administration reforms, full implementation of the Single Treasury Account, and strict oversight and limitation of the use of extra-budgetary funds and government guarantees are essential to support fiscal consolidation. It is also important to reduce monetary financing and reform the pension system.
Iraq seeks collaboration with Amazon on data center to facilitate internet access
Iraqi Minister of Communications Hiyam al-Yasiri held talks with Amazon representatives on Thursday to explore avenues for collaboration on establishing a data center in the country.
The project, according to a statement from the Ministry of Communications, aims to improve internet affordability and access for Iraqi citizens.
The discussions focused on potential partnerships between the ministry and Amazon, including the possibility of an Amazon data center in Iraq.
"This facility would aim to deliver global internet content at competitive prices to Iraqi users," the statement said.
Minister al-Yasiri reaffirmed the ministry's commitment to partnering with leading technology companies to enhance the quality of services provided to citizens and contribute to Iraq's economic development.
On Monday, Amazon said it will launch data centers in Saudi Arabia in 2026 and plans to invest more than $5.3 billion in the kingdom.
The cloud region will enable customers to securely store content and run workloads while offering higher speed for its users.
Amazon and its cloud competitors Google-parent Alphabet and Microsoft have said they will raise their investments, primarily for data centers, to support the growing adoption of artificial intelligence technologies.
