$3bn Saudi Fund for Investment in Iraq

By John Lee.

Iraqi Prime Minister Mustafa Al-Kadhimi visited Riyadh on Wednesday on his first official visit to Saudi Arabia.

A session of talks was held between the Prime Minister and His Royal Highness Prince Muhammad bin Salman bin Abdulaziz Al Saud, which dealt with cooperation between the two countries.

The two sides agreed on the following:

  1. Establishing a joint Iraqi-Saudi fund, the capital of which is estimated at three billion dollars, as a contribution from the Kingdom of Saudi Arabia in promoting investment in economic fields in the Republic of Iraq, for the benefit of the Saudi and Iraqi economies, with the participation of the private sector on both sides.
  2. Cooperation in the fields of energy and renewable energy and activating and accelerating the joint action plan under the umbrella of the Saudi-Iraqi Coordination Council, with the need to continue cooperation and coordination of positions in the petroleum field, within the scope of work of the Organization of Petroleum Exporting Countries (OPEC), and the (OPEC+) agreement, with full commitment to the requirements of the agreement, the compensation mechanism, and all the decisions that have been agreed upon to ensure the stability of the global oil market
  3. Completing the electrical interconnection project due to its importance for the two countries.
  4. Enhancing coordination in the field of mutual support within the framework of multilateral diplomacy.
  5. Enhancing investment opportunities for Saudi companies and inviting them to expand their activities in Iraq and in various fields, and in reconstruction efforts.

Bilateral agreements were signed that included:

  1. an agreement to avoid double taxation;
  2. an agreement for cooperation in the field of development planning for economic diversification and private sector development;
  3. a cooperation agreement between the Saudi Contractors Authority and the Iraqi Contractors Union for the reconstruction of Iraq; and,
  4. an agreement for financing Saudi exports to Iraq.

Two memoranda of understanding and cooperation were also signed:

  1. a memorandum of understanding between the Iraqi Media Network and the Saudi Radio and Television Authority; and,
  2. a memorandum of cooperation between the King Abdul Aziz House in the Kingdom and the National Library and Archives in the Republic of Iraq.

(Source: Office of the Iraqi Prime Minister)

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