08 Apr 2024
RIYADH: Economic ties between Saudi Arabia and Iraq are poised to strengthen further with the signing of 12 memorandums of understanding for quality investment projects.
The Kingdom’s Ministry of Investment announced on ‘X’ that this agreement with the Iraq Development Fund and Saudi companies will enhance cooperation in various investment projects with Baghdad.
These MoUs were signed in the presence of Saudi Minister of Investment Khalid Al-Falih, Iraq’s Deputy Prime Minister and Minister of Planning Muhammad Ali Tamim and Mohammed Al-Najjar, chairman of the Iraq Development Fund.
“The memorandums of understanding signed between Saudi companies and the Iraq Development Fund came with the aim of enhancing cooperation in a number of qualitative investment projects in Iraq,” said Iraq’s Ministry of Planning in a statement.
In December 2023, Saudi Arabia and Iraq signed a partnership agreement to encourage industrial investments in the private sector.
In the same month, Mohammed Shia’ Al-Sudani, the prime minister of Iraq, confirmed the contract between the Iraqi company Al-Diyar and Saudi Arabia’s Northern Region Cement Co.
This partnership in the cement industry also marked the first collaboration between the private sectors of Iraq and Saudi Arabia.
Al-Sudani added that such alliances will foster future cooperation between Iraqi businesses, companies, and their Saudi counterparts.
He highlighted that these initiatives will also strengthen the private sectors of both countries, create more job opportunities, and promote sustainable development.
In May 2023, Saudi Arabia’s sovereign wealth fund created a unit with a capital of $3 billion to invest in industries across Iraq.
The investment unit seeks to explore funding opportunities in infrastructure, mining, and agriculture, as well as real estate development and financial services, among other areas.
In June 2023, Saudi Arabia signed a contract with Iraq to establish a commercial project worth $1 billion in Baghdad.
Dubbed Baghdad Avenue and located near the city’s international airport, the undertaking is expected to become the largest shopping mall in Iraq, encompassing coffee shops, restaurants and commercial offices.
Additionally, it will also house 4,000 apartments and 2,500 villas.