Shafaq News – Baghdad

On Monday, several Iraqi MPs called for the withdrawal of the Iraq-Saudi trade exchange law, labeling it a “colonial law.”

At a press conference in parliament, lawmaker Saud al-Saadi, head of the parliamentary Huqooq (Rights) Bloc, the political wing of Iran-affiliated faction Kataib Hezbollah, questioned why the bill had been placed on the agenda instead of being returned to the government, stressing that the draft was first introduced under former Prime Minister Adel Abdul Mahdi.

He warned that the agreement would transfer millions of dunams in Iraq’s western and southern regions to Saudi Arabia in violation of the Expropriation Law. Al-Saadi urged parliament’s leadership to withdraw the bill and send it back to the cabinet, highlighting that more than 100 MPs had signed a petition opposing its inclusion on the agenda.

According to al-Saadi, Article 11 of the deal allows Saudi Arabia to make financial transfers under the Investment Law without conditions or restrictions, which he said would damage Iraq’s national interests. He added that Article 15 authorizes Riyadh to take financial measures without consulting the Iraqi government.

Iraq and Saudi Arabia signed the trade and investment partnership in December 2023, focusing on private sector industrial projects. At the time, the Saudi ambassador underscored the broad range of investment opportunities under review.

In November 2023, Saudi Investment Minister Khalid al-Falih announced that Riyadh was considering the launch of its first free economic zone with Iraq at the Arar border crossing, expressing hope it would become the Kingdom’s first such zone with a neighboring state, exempt from taxes, fees, and entry visas for investors from both countries.