Saudi Arabia and UAE commit $6bn to support investments in Iraq

Saudi Arabia and the UAE have committed to allocate $6 billion for expanding international trade and investment in Iraq, reported Iraqi News Agency.

On Sunday, the Federation of Iraqi Chambers of Commerce announced that it also agreed to set up business councils of the Kingdom and the UAE in the country.

“The UAE and Saudi Arabia deposited $3 billion each to support their operations in Iraq, which include trade and investment activities,” said FICC President Abdel Razzak Al-Zouhairy.

He further noted that Iraq’s unique geographical location gives it a competitive advantage to become a key player in global trade, especially in trade routes between Europe and Asia.

According to Al-Zouhairy, Iraq is eyeing to maintain an integrated system for commercial activities to keep pace with the development of global trade, particularly in the customs domain of entry and exit of goods.

Last month, the Saudi Export Development Authority organized a trade mission to Iraq under the theme “Made in Saudi.”

The event showcased the authority’s commitment to developing Saudi non-oil exports and its strategic goal of providing export opportunities to local exporters.

The trade mission saw the participation of over 37 Saudi companies and 100 Iraqi firms from various sectors, including construction materials, food products and packaging.

In June, the Kingdom signed a contract with Iraq to establish a commercial project worth $1 billion in Baghdad.

Iraqi News Agency reported that this project, named Baghdad Avenue, is expected to become the largest shopping mall in Iraq, encompassing coffee shops, restaurants and commercial offices.

Additionally, it will also house 4,000 apartments and 2,500 villas.

In May, the Kingdom’s Public Investment Fund also announced its plan to create a venture with a capital of $3 billion to invest in industries across Iraq.

Muteb Al-Shathri, acting CEO of the Saudi-Iraq Investment Co., had then said that the unit would be headquartered in the Kingdom and would look for funding opportunities in infrastructure, mining, agriculture, real estate development and financial services.

Both countries had also signed a raft of agreements to boost economic cooperation and develop a special economic zone during the fifth session of the Saudi-Iraqi Coordination Council in Jeddah in May.

They also agreed to identify economic opportunities to boost bilateral trade and investments in various sectors.