Baghdad (IraqiNews.com) — Iraq is pushing on with plans to set up an Energy and Development Fund supported by the Central Bank of Iraq as the government tries to attract regional and international investment to fund significant infrastructure and energy projects.
If approved, the fund will be accessible for public subscription and for investors from throughout the region and beyond, Prime Minister Ali Al-Zaidi stated.
Iraq is planning to invite Saudi Arabia, the United Arab Emirates, and Qatar to join with American and European investment groups and financial organizations in an attempt to bolster economic relations and attract foreign investments.
The fund will act as a long-term funding instrument for critical projects in the electrical, energy, and infrastructure sectors. Iraqi leaders see the initiative as a major step in helping rehabilitation and boosting economic growth.
As part of larger measures to diversify the economy and reduce reliance on oil earnings, the government has put more and more emphasis on luring private investment.
Al-Zaidi has consistently stressed Iraq’s goal to be a regional center for investment and economic cooperation and to forge links with the Gulf nations, the United States, and Europe.
The fund may back electrical projects, energy infrastructure, transport networks, and other development projects that have long battled for financing.
The prime minister also reiterated Iraq’s appeal for a revision of its OPEC production quota, noting that the country’s existing allotment does not reflect Iraq’s population, economic requirements, and the losses it has paid during years of fighting and the battle against ISIS.
Baghdad has lately called for a fairer production quota, saying that levels of oil output should take into account Iraq’s economic and security conditions.
If realized, the Energy and Development Fund might be one of Iraq’s most important economic initiatives in recent years, creating a new vehicle to attract international investment and underpin long-term development projects throughout the country.