Iraq announces strategic projects with Turkey and potential $100 billion investment from Saudi Arabia

Shafaq News/ Iraqi Prime Minister Muhammad S. al-Sudani announced that there are strategic projects to be launched with Turkiye and that Saudi Arabia can invest up to $100 billion in Iraq.

In a recent television interview with Al-Jazeera Channel, he highlighted that Iraq has the highest population growth rate in the region and that recent appointments have brought the number of employees in the country to five million.

Al-Sudani has announced that Saudi Crown Prince Mohammed bin Salman has pledged to invest $100 billion in Iraq.

Iraq's economy relies heavily on its oil exports, which account for around 90% of its government revenues.

In recent years, Saudi Arabia has increased its investments in Iraq, particularly in the energy and infrastructure sectors. Analysts say it represents a shift in the traditionally strained relationship between the two countries.

Al-Sudani also noted that Iraq spends around eight trillion dinars annually on purchasing gas and about 50$ billion on imported goods and services.

The prime minister stressed that the private sector is essential in driving economic reform in Iraq.

The private sector in Iraq has been hindered by years of war, sanctions, and instability. However, there have been efforts to encourage its growth and development. For example, the recent successive Iraqi governments have been working to attract foreign investment in key sectors of the economy, such as energy and infrastructure. The governments have also been taking steps to streamline bureaucratic procedures and improve the overall business climate in the country, including adopting laws and regulations that provide incentives and protections to investors.

Iraq's most significant economic relations with neighboring countries are Iran and Turkiye. Iraq is a major trading partner of Iran, and the two countries share a long border and have historical ties. However, the United States has imposed sanctions on Iran, which have impacted Iraq's trade with its neighbor.

Iraq has also developed strong economic ties with Turkey, particularly in trade and energy. Turkey is a significant importer of Iraqi oil and has invested heavily in Iraq's energy sector. The two countries have also worked to increase their trade relations, with Turkey exporting various goods to Iraq, including textiles, machinery, and electronics.