Govormnt spokesman: The government will provide sovereign guarantees to encourage the investment process

Baghdad - INA 

The Iraqi government spokesman, Bassem Al-Awadi, revealed today, Friday, that the government has issued a decision that would achieve a leap in the investment sector that includes sovereign guarantees for investors. As he explained their details, he touched on the contents of government work supporting the movement of Iraqi capital through the private sector and the entry of foreign funds to support the investment process.

Al-Awadi told the Iraqi News Agency (INA): “Government work in all sectors is clearly visible, and starting from the 2023 budget, more than 20 trillion dinars were spent on the investment budget and the great investment movement in Iraq.”

He added, "The government has sought throughout its period of assuming responsibility during a year and a half until now to establish stability in Iraq, and this factor is important for moving the wheel of investment in Iraq, as it has a political, security, economic, and financial dimension, and wherever there is stability, there is an encouraging environment for investment."

He continued, "It is known that capital is always looking for a quiet place and positive hotspots in which to grow and avoid hotbeds of conflict or tense areas that are believed in the end to not provide very large financial returns," noting, "The government sought to secure the situation inside Iraq." "And give a great impression of establishing stability." He pointed out that "the presence of investment and the movement of private sector projects means adding financial returns to the economy and job opportunities for the people of the country, and these two points were emphasized by the government program, which means adding financial streams that contribute to diversifying the economy."

Al-Awadi pointed out that, “to support this trend, a change was made in the structure and management of the Investment Authority last year, and some laws were codified with the aim of facilitating procedures, which led to the revitalization of the Iraqi private sector and the internal and external private investment sector.”. He stressed, “Last month, the government issued a decision that achieved a leap in the investment sector in which it pledged to provide sovereign guarantees to Iraqi investors, and this is happening for the first time in the country,” noting, “This government decision is very important and very supportive of the private sector and came from the government’s conviction that setting Facilities to support investment are one of the most important points.”

Al-Awadi continued, “The sovereign guarantee for Iraqi investors at home comes with those who agree with the government on factory and laboratory projects that the Iraqi state needs in energy, petrochemicals, and some agricultural and industrial products, as the Iraqi government provides sovereign guarantees, meaning that it agrees with investors for a period of 5 years that buy the product, and thus the investor guarantees that the commodity he produces is insured for purchase for a period of five years, and this process is called the sovereign guarantee.”

He continued his speech, “As for the sovereign guarantee, laws have been codified for Iraqi private sector investors to facilitate the process of importing production lines from any country in the world, provided that this line is in coordination with the ministries and institutions concerned, and there is no parallel in Iraq like this line, and thus it brings the production line to inside Iraq.".

He stated, “The major countries demand guarantees from businessmen or investors when they purchase production lines, and instead of the Iraqi investor going to provide financial guarantees in the billions in order to obtain the production line, the Iraqi government will provide the guarantee to those countries, and this will greatly facilitate the import of lines and the development of the reality of industry in various fields.”.

He added, "The government is working on all paths that support internal and external investment, by codifying laws, moving away from routine, supporting the private sector, and making contact with major international companies to come to Iraq according to a work program that is supported by real facilities and decisions."