Washington (IraqiNews.com) — JPMorgan Chase plans to establish a branch in Iraq to finance projects executed by US-based businesses, marking an important move by one of the world’s largest banks to expand its presence in the country following talks with Iraqi Prime Minister Ali Al-Zaidi in Washington.
The deal was struck at a meeting between al-Zaidi and officials from the US bank, as Iraq increased its efforts to attract foreign investment and strengthen financial links with the US during the prime minister's visit.
A local JPMorgan office would assist American companies operating in Iraq get funding, as Baghdad seeks to boost investment in energy, infrastructure, industry, and technology via collaborations with international enterprises.
The declaration is one of the clearest indications yet of increased confidence among major international financial institutions in Iraq's investment prospects, as the government pursues banking reforms and strives to make it simpler for foreign corporations to conduct business in the country.
The decision comes after JPMorgan was hired earlier this month to arrange finance for a $1.6 billion urea fertilizer plant in Basra being constructed by Iraq's KAR Electrical Power Plant Production Trading FZE (KEPPT), one of the country’s biggest private industrial projects.
The bank is working with export credit agencies to secure finance for the project, which is estimated to generate 1.15 million tonnes of urea per year, decreasing Iraq's dependency on fertilizer imports while benefiting local agriculture and food security.
Construction is projected to start in 2027, with commercial production scheduled for 2030. KBR, a US engineering firm, recently finished the project’s front-end engineering and design study.