Saudi Arabia and Iraq Strengthen Economic Ties with 12 Investment Projects
Riyadh and Baghdad are set to boost their economic relations with the signing of 12 memorandums of understanding for quality investment projects. The Ministry of Investment in Saudi Arabia announced this agreement with the Iraq Development Fund and Saudi companies will enhance cooperation in various investment projects with Baghdad.
The 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.
According to Iraq’s Ministry of Planning, the memorandums of understanding aim to enhance cooperation in a number of qualitative investment projects in Iraq. This follows a partnership agreement signed between Saudi Arabia and Iraq in December 2023 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 marks the first collaboration between the private sectors of Iraq and Saudi Arabia.
Al-Sudani emphasized that these 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 established a unit with a capital of $3 billion to invest in industries across Iraq. The investment unit aims to explore funding opportunities in infrastructure, mining, agriculture, real estate development, and financial services, among other areas.
In June 2023, Saudi Arabia signed a contract with Iraq to establish a $1 billion commercial project 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, featuring coffee shops, restaurants, commercial offices, 4,000 apartments, and 2,500 villas.