Iraq’s Investment Commission Says it Cooperates with Neighboring Countries to Improve Investment Law

The head of Iraq’s National Investment Commission, Suha Al-Najjar (Asharq Al-Awsat)
The head of Iraq’s National Investment Commission, Suha Al-Najjar (Asharq Al-Awsat)
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Iraq’s Investment Commission Says it Cooperates with Neighboring Countries to Improve Investment Law

The head of Iraq’s National Investment Commission, Suha Al-Najjar (Asharq Al-Awsat)
The head of Iraq’s National Investment Commission, Suha Al-Najjar (Asharq Al-Awsat)

The head of Iraq’s National Investment Commission, Suha Al-Najjar, said that her country was able to overcome current economic challenges thanks to the strong internal consumption and average income rates, noting that Iraqi and foreign companies in the country were adapted to operate under the most difficult circumstances and political crises.

In an interview with Asharq Al-Awsat, Najjar pointed to cooperation with investment authorities and ministries in Egypt, the UAE, Jordan and Saudi Arabia, with the aim to develop Iraq’s legislative systems and the investment law.

She also emphasized that the Commission has succeeded in reducing the corruption index in projects by 60 percent, which enabled it to attract international investors.

“Our economy is strongly capable of overcoming every challenge, for a simple reason: Iraq is a large market with 40 million people and income rates are medium, not low. This rate is growing with the rise in oil prices and amid financial abundance,” Najjar remarked.

She continued: “The Iraqi people, as well as local and foreign investors operating in Iraq, got used to work under these conditions. Some companies see their profits rise during political crises, when the people resort to buying real estate.”

Najjar stressed that the Iraqi economy was able to face challenges, as the market was growing significantly in terms of population density.

Asked about Baghdad’s expectations from neighboring countries in the Gulf and others, such as Jordan and Egypt, the head of the Commission said: “From an economic point of view, the economic and investment situation in the neighboring countries, whether in the Gulf, Jordan and Egypt, has developed very quickly during the last period. Indeed, they could build successful economies, develop infrastructure and provide the people with services and housing, through investments.”

Najjar noted that Iraq had huge economic potentials that required investments worth hundreds of billions of dollars.

“Iraqi banks cannot provide these amounts,” she said, underlining her country’s need for liquidity, the exchange of expertise, and the development of a suitable legislative and legal environment.

“We have investment gaps, and we have discussed with the Investment Authority in Egypt, and the ministries of Investment in each of the UAE, Jordan and Saudi, our desire to develop the legislative and legal system in Iraq. They have all opened their doors for cooperation,” the senior official told Asharq Al-Awsat.

She added that Iraq would host workshops to come up with an updated investment law in cooperation with neighboring countries.

According to Najjar, investment in her country was, in the past, associated with corruption.

“But today, thank God, we were able to change this idea, with the adoption of stricter procedures,” she said.

Najjar pointed to ongoing projects to address housing needs, including the Rafael City project - the new administrative capital of Iraq - which she said would extend over a large area of 25 square kilometers and would help advance the economy and solve the housing crisis in the capital.

She explained that the Commission completed the first phase by reviving existing projects and granting new investment licenses to investors from Saudi Arabia and the UAE.

“It will be Iraq’s first experience in establishing a new city of this size, similar to the new cities in neighboring countries. It will include housing areas, and recreational and service projects such as universities, hospitals and markets,” Najjar said.

In addition, the head of Iraq’s National Investment Commission highlighted the shift towards solar energy, saying that Iraq was able provide 7,500 megawatts to international companies producing solar energy, namely Total, the UAE’s Masdar, the Norwegian Scatec and POWERCHINA, adding that negotiations were underway with the Saudi ACWA Power.

Asked whether Iraq was able to keep the fight against corruption and rebuild investors’ confidence, despite recent political developments, Najjar said: “With regards to the National Investment Commission, I can say that we were able to eliminate corruption by 60 percent, which enabled us to attract global investors whose main request was to deal only with the Commission.”

She continued that despite the huge powers granted to the commission, “it is a coordinating body and our work depends on all other ministries, and in order to eliminate corruption, it must also be eliminated in other government bodies.”

Najjar stressed that the current Iraqi government was working in this direction, adding that her country’s large market was growing despite all challenges.

On Saudi Arabia’s role in promoting investments in Iraq, she said: “Saudi Arabia, represented by the government and Saudi investors, has been very supportive of Iraq, in building and correcting the economic path... and we thank them for this support, which is done in different ways, by helping to amend legislation and laws related to investment.”



Oil Pares Losses on Tight Supply but Cloudy Demand Caps Gains

FILE PHOTO: Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo
FILE PHOTO: Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo
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Oil Pares Losses on Tight Supply but Cloudy Demand Caps Gains

FILE PHOTO: Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo
FILE PHOTO: Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo

Oil prices inched higher on Wednesday underpinned by signs of near-term supply tightness but held near their lowest in two weeks, a day after OPEC downgraded its forecast for global oil demand growth in 2024 and 2025.
Brent futures rose 14 cents, or 0.2%, to $72.03 a barrel by 0745 GMT, while US West Texas Intermediate (WTI) crude futures gained 13 cents, or 0.2%, at $68.25.
"Crude oil prices edged higher as tightness in the physical market offset bearish sentiment on demand. Buyers in the physical market have been particularly active, with any available cargoes being snapped up quickly," ANZ analysts said in a note.
But falling demand projections and weakness in major consumer China continued to weigh on market sentiment, said Reuters.
"We may expect prices to consolidate around current levels for longer," said Yeap Jun Rong, market strategist at IG, adding the recent attempt for a bounce was quickly sold into.
"The absence of a more direct fiscal stimulus out of China has been casting a shadow on oil demand outlook, coupled with the prospects of higher US oil production with a Trump presidency and looming OPEC+'s plans for an output raise," Yeap added.
In its monthly report on Tuesday, the Organization of Petroleum Exporting Countries (OPEC) said world oil demand would rise by 1.82 million barrels per day (bpd) in 2024, down from growth of 1.93 million bpd forecast last month, mostly due to weakness in China, the world's biggest oil importer.
Oil prices settled up 0.1% on Tuesday following the news, after falling by about 5% during the two previous sessions.
OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd.
The International Energy Agency, which has a far lower view, is set to publish its updated forecast on Thursday.
"The re-election of former President Trump is unlikely to materially affect oil market fundamentals over the near term, in our view," Barclays analysts wrote.
"Drill, baby, drill: this is likely to underwhelm as a strategy to drive oil prices materially lower over the near term" given that the stock of approved permits actually rose under the Biden administration, the analysts said.
However, markets would still feel the effects of a supply disruption from Iran or a further escalation between Iran and Israel, according to Barclays.
Donald Trump's expected secretary of state pick, US Senator Marco Rubio, is known for his hardline stance on Iran, China and Cuba. Tighter enforcement of sanctions on Iran could disrupt global oil supply, while a tougher approach to China could further weaken oil demand in the world's largest consumer.
Two US central bankers said on Tuesday that interest rates are acting as a brake on inflation that is still above the 2% mark, suggesting that the Federal Reserve would be open to further interest rate cuts.
The Fed cut its policy rate last week by a quarter of a percentage point to the 4.50%-4.75% range. Interest rate cuts typically boost economic activity and energy demand.
US weekly inventory reports have been delayed by a day following Monday's Veterans Day holiday. The American Petroleum Institute industry group data is due at 4:30 p.m. EST (2130 GMT) on Wednesday.
Analysts polled by Reuters estimated on average that crude inventories rose by about 100,000 barrels in the week to Nov. 8.