BAGHDAD: Iraq signed on Saturday investment deals worth USD1 billion in its energy, agriculture and finance sectors with the World Bank’s private sector arm, as the country seeks to build on its economic recovery following years of unrest.
At a ceremony marking two decades of the International Finance Corporation’s presence in Iraq, Prime Minister Mohammed Shia al-Sudani announced the new contracts with his country’s private and public sectors.
In as statement, the IFC announced “USD1 billion in new investments and engagements in energy, infrastructure, agribusiness, and finance”.
“Attracting foreign capital has contributed to supporting Iraq’s economic stability,” Sudani said.
Sudani’s media office said the deals include a USD500 million contract to invest in associated gas — the excess of natural gas released during oil drilling — and development of gas facilities in the southern province of Basra.
Oil-rich Iraq has been trying to move past decades of war and unrest, but it still suffers from poor infrastructure, failing public services, mismanagement and endemic corruption.
It has only recently regained a semblance of stability and authorities hope to attract investments across sectors.
According to the International Monetary Fund, the country’s “non-oil economic growth has been slow, constrained by low productivity, limited investment and an inefficient use of human capital”.
During the ceremony, Sudani praised Iraq’s private sector for implementing projects “despite bureaucratic issues, corruption and security challenges”.
The Washington-based IFC says it has invested and mobilised more than USD2.5 billion for projects in the country since 2005, during the height of the war that began with the US-led invasion.
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