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By John Lee.

The International Finance Corporation (IFC), a member of the World Bank Group, in collaboration with the Central Bank of Iraq (CBI), has signed an agreement to develop environmental and social risk management guidelines for the banking sector, and launched a seven-year Sustainable Finance Roadmap and an Environmental, Social, and Governance (ESG) Code to improve sustainable financing for the sector and strengthen the country's financial infrastructure.

The Sustainable Finance Roadmap, which outlines the Central Bank of Iraq's strategic plan for 2023 - 2029, aims to improve the performance of Iraqi banks in areas like environmental and social risk management, encourage the availability of sustainable banking products, and increase the competitiveness of the banking sector. The Plan, which encompasses developing an ESG code, also aims to support financial stability, reduce environmental and sustainable risks, and promote social development.

"The global demand for sustainable financial products highlights the need for banks to consider ESG issues in their risk management framework to attract investments," said H.E. Ali Mohsen Ismail, Governor of the Central Bank of Iraq. "As a Central Bank, we play a key role in sustaining the development, growth, and financial stability of Iraqi banks, ensuring their ESG performance matches international standards."

The new ESG Code sets forth specific standards and practices that Iraqi banks can incorporate into their business strategies and investment decisions, paving the way for greater mitigation for ESG risks across the banking sector.

"This partnership marks a significant milestone in Iraq's strategic approach towards sustainable finance and demonstrates IFC's commitment to partnering with the country's Central Bank and the banking sector to strengthen its financial infrastructure and increase the competitiveness of its banks," said Fawaz Bilbeisi, Regional Manager for IFC in the Kingdom of Saudi Arabia, Iraq, and Lebanon. "This ESG Code will help banks improve their performance on accountability, responsibility, management and resilience, which are critically important for clients, shareholders, investors and Iraq's sustainable development."

This ESG Code was developed according to the relevant Iraqi laws and global best practices issued by financial institutions like IFC, the Organization of Economic Cooperation and Development (OECD), the Basel Committee on Banking Supervision (BCBS), the Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI), the Islamic Financial Services Board (IFSB), and the International Sustainability Standards Board (ISSB) of the International Financial Reporting Standards Foundation.

IFC has been a pivotal driver of private sector development in Iraq, channeling over $1.9 billion since 2005 to fuel the growth of its businesses in the context of diversifying the country's economy. IFC's current committed portfolio stands at around $350 million, invested in dynamic sectors such as energy, telecoms, and banking. IFC has also launched several advisory projects to mobilize private sector investment through public-private partnerships, expand access to finance for local businesses, and support Iraq's entrepreneurial ecosystem. This initiative also reflects how IFC's strategy in Iraq continues to focus on strengthening the Iraqi banking sector via both investment and advisory services, helping pave the way for the country's sustainable development.

Click here to download the full document [Arabic]

(Sources: IFC, CBI)

By John Lee.

Saudi Arabia's Ambassador to Iraq, Abdulaziz Al-Shammari, is quoted as saying that a commercial representation office for Saudi Arabia is being established in Erbil, as part of broader efforts to strengthen trade ties between Saudi Arabia and Iraq.

The office will function under the commercial consulate in Baghdad.

In a statement to the state-run Iraqi News Agency (INA), he added that the Saudi consulate in Basra will soon be reopened.

(Source: INA)

By John Lee.

Egypt's Talaat Moustafa Group (TMG) has informed the Egyptian Stock Exchange that it has started "the necessary legal and technical procedures" to begin projects and investments in Iraq.

In July, company Chairman Hisham Talaat Moustafa was part of a delegation of Egyptian, Saudi, and Iraqi business leaders meeting with Iraqi Prime Minister Mohammed Shia' Al Sudani.

The company is known for real estate investment project, in particular the development of major residential projects, in addition to hotels and resorts.

(Source: Egyptian Stock Exchange)

By John Lee.

The Saudi Arabian Cabinet has approved a Memorandum of Understanding (MoU) with Iraq aimed at tackling money laundering and terrorist financing.

In a statement, the state-run Saudi Press Agency (SPA) reported that agreement involved, "exchanging financial investigations related to combating money laundering and terrorism financing between the Saudi General Directorate of Financial Investigation at the Presidency of State Security and the Iraqi Money Laundering and Countering Financing of Terrorism Office."

(Source: SPA)

By John Lee.

The Kuwait Fund for Arab Economic Development (KFAED) has said it will provide two KWD 35 million (USD 224 million) loans to support the Gulf Electricity Interconnection System Project, which will export electricity from Saudi Arabia to Kuwait and Iraq.

According to a press release from the Fund, the financing constitutes 40 percent of the total cost.

These loans have a 12-year term with a 3-year grace period, repaid in 18 semi-annual installments at a 15.5 percent annual interest rate.

It adds:

"Kuwait stands to gain immensely from this project, with its network capacity boosted by approximately 3,000 megawatts (MW), optimizing operational efficiency. Additionally, the GCCIA will be able to supply 500 MW of electricity to southern Iraq."

The project involves constructing a 300-kilometer 400-kV double-circuit overhead transmission line connecting Saudi Arabia's Al-Fadhili converter station to Kuwait's Al-Wafrah station. It also includes converting an existing double-circuit line between Al-Fadhili and the Al-Zour of Kuwait into a new 25-kilometer 400-kV double-circuit line connecting Al-Fadhili and Al-Wafrah.

Furthermore, the project entails expanding the Al-Fadhili station with electrical circuit breakers to link it to Al-Wafrah, as well as extending overhead lines from Al-Wafrah to Sabah 3 and Sabah 4 stations to integrate with Kuwait's national electrical network.

(Source: Kuwait Fund for Arab Economic Development)

From Amwaj Media. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Will growing Saudi investment in Iraq hit Iranian roadblock?

Gulf Arab investment in Iraq has swelled in recent years, signaling a new and widening rapprochement with Baghdad.

Yet, while Iran and Saudi Arabia last year agreed to normalize relations, it is unclear whether Arab investment in Iraq -- without stoking Iranian ire -- is tenable.

The full article can be viewed here (registration required).

By John Lee.

Iraqi Prime Minister Mohammed Shia' Al Sudani met with a delegation of Egyptian, Saudi, and Iraqi business leaders specializing in real estate development and integrated smart cities.

The delegation included Hisham Talaat Moustafa, Chairman of Egypt's Talaat Moustafa Group (TMG); Suleiman Abdul Qader Al-Muhaidib, Chairman of Saudi Arabian Al-Muhaidib Group, along Essam Abdul Qader, CEO of the group and Raed Ibrahim Al-Mudaheem, Development Director of the group; Yasser Qassem Zghair, Director of Al-Maysarah Group; and businessman Ahmed Talaat Hani.

According to a statement from the Prime Minister's office, the delegates specialise in real estate development and the establishment of integrated and smart residential cities. The meeting was attended by the Saudi ambassador to Iraq, Mr. Abdulaziz bin Khalid Al-Shammari.

Prime Minister Al Sudani invited the business leaders to invest in Iraq's tourism sector, highlighting the country's diverse tourist destinations. He emphasized that Iraq's development aligns with the economic interests of other Arab nations.

He noted that Iraq is undergoing rapid growth and recovery, presenting numerous investment opportunities, especially in housing and new city projects. The country requires approximately three million housing units, and the government is focused on building integrated cities with comprehensive services and amenities, connected to Baghdad by an advanced transportation network.

Al Sudani announced that the government has offered projects for five new cities in Baghdad and other provinces, with plans to launch 11 more cities. These projects aim to address the housing crisis, particularly benefiting low-income groups.

(Source: PMO)

By John Lee.

The Amman Chamber of Industry (ACI)'s exports to Iraq climbed by 9 percent in the first half of 2024.

Total exports to Iraq were 440 million Jordanian dinars [USD 621 million], up from 403 million JD for the same period in 2023.

This put Iraq in fourth place, behind India, the United States of America, Saudi Arabia.

(Source: Petra)

By John Lee.

The Chairman of the Federation of Saudi Chambers, Hassan Al-Huwaizi, has met in Riyadh with the Chairman of the Iraqi-Saudi Parliamentary Friendship Committee, Sheikh Shaalan Al-Karim.

According to a press release from the state-run Saudi Press Agency (SPA), the meeting explored investment and trade prospects and emphasized the importance of legislation that promotes investment.

Additionally, Saudi Gazette reports that the meeting discussed Iraq's preparation to introduce a law to protect Saudi Arabia's investments in the country, which is expected to be approved in the coming months.

The Federation also hosted a meeting of the Saudi-Iraqi Business Forum (Saudi-Iraqi Business Council) with the participation of prominent Iraqi parliamentarians, examining Saudi investment opportunities in Iraq and the challenges confronting investors.

(Sources: SPA, Saudi Gazette)

By John Lee.

The Iraqi Ministry of Communications, under the direct supervision of Minister Dr. Hayam Al-Yasiri, announced the signing of a contract for the deployment of the 2Africa Pearls undersea cable.

The agreement, signed with Gulf Submarine Cables Company owned by Saudi Arabia's STC, aims to route internet capacities from around the world through the Arabian Gulf and Iraq to Europe.

Minister Al-Yasiri highlighted that 2Africa's Pearls cable, which spans 47 global and regional landing stations, will strengthen Iraq's position as a secure transit corridor for international internet and telecommunications.

According to a press release from Iraq's Ministry of Communications, the project involves partnerships with major global companies including STC Saudi Arabia, Vodafone, MTN, Facebook, and China Mobile. 2Africa's website says the consortium includes eight members, namely, CMI, Meta, MTN GlobalConnect, Orange, stc (center3), Telecom Egypt, Vodafone, and WIOCC [West Indian Ocean Cable Company].

Al-Yasiri also announced the fulfillment of promises to enhance Iraq's geographic significance and revenue. The transit internet capacity through Iraq has surpassed one terabit via the Civilizations Pathway project, a significant achievement within just six months.

(Source: Ministry of Communications)