“Tidbits From TNT” Tuesday 10-17-2023



Tishwash:  Iraq is counting on a “road” with which 10 countries have interacted: it will raise investment by 30% in 7 sectors

The Services Committee in the House of Representatives said today, Monday (October 16, 2023), that the development path will raise investment in seven sectors by 30% in Iraq, while indicating the interaction of ten countries with the project.

The development road, or the dry canal, is an Iraqi project to connect rail and land between Turkey and Europe in the north and the Arabian Gulf in the south, to transport goods between the Gulf and Europe. Its cost reaches 17 billion dollars and will be completed in a record period, starting from the year 2024 until the year 2028, according to the spokesman for the Prime Minister, Muhammad Shiaa Al-Sudani.

Committee member MP Baqir Al-Saadi stated in an interview with “Baghdad Al-Youm” that “the development road is not just a project, but rather a qualitative leap and will bring about a fundamental change in the compass of international transport routes extending from Southeast Asia towards Europe, leading to a reduction in costs by a percentage ranging from 20-20.” 25% and a time of approximately 35%.

He added, “The development path will raise investment in 7 vital sectors in Iraq by no less than 30%, whether housing, industry, or others, pointing out that 10 countries have interacted positively with the project, which will be a qualitative leap for the country in the coming years.”

Al-Saadi pointed out, “The Sudanese government is serious about proceeding with the project despite the challenges because it will create strategic horizons for the country in terms of investing its geographical location in enhancing economic and commercial capabilities.”

According to specialists, this project will allow the transportation of goods between the east and west of the world, as the goods will be shipped on trains and trucks from the port of Al-Faw in southern Iraq to Turkey and from there to Europe via the road and railway network. Goods will also flow from Asia and Europe via Turkey to be transported to the Gulf using this network. The huge number of roads, railways, and the port of Al-Faw, which the Iraqi government is working to develop significantly, to be able to accommodate this volume of global trade.

It is expected that this huge project will provide tens of thousands of job opportunities for Iraqi citizens and Iraqi companies, and will also allow for the exchange of experiences and training. These are the points that the Iraqi Prime Minister always focuses on in his foreign visits.

Most importantly, it will contribute to the development of the southern governorates such as Dhi Qar, Maysan, and Diwaniyah, and will also diversify the sources of income of the Iraqi state. This is what the Prime Minister stressed through his words in which he launched the Iraq 2050 Plan, which aims to reduce dependence on oil as a main source of state resources link


Tishwash:  The Minister of Planning invites Spanish companies to invest in various sectors in Iraq

 Today, Tuesday, Deputy Prime Minister and Minister of Planning, Muhammad Ali Tamim, called on Spanish companies to invest in various sectors in Iraq.

The ministry stated in a statement received by Al-Eqtisad News that “Deputy Prime Minister and Minister of Planning, Muhammad Ali Tamim, received today the Ambassador of the Kingdom of Spain to Iraq, Pedro Martinez, and his accompanying delegation,” indicating that “the meeting was attended by the Director General of International Cooperation, Saher Abdel Kazem Mahdi, and a number of specialists in the Ministry.”

She added, “During the meeting, a number of issues and files related to the development of cooperation and bilateral relations between the two countries were discussed in the economic, investment, and trade fields, including the possibility of Spanish companies contributing to the implementation of the development road project, supporting and developing agriculture, and entering into investments in the sector.” Transport, railways, and renewable energy.

According to the statement, Tamim praised “the level of cooperation provided by the Kingdom of Spain to Iraq,” calling on “Spanish companies to invest in various development sectors and the return of Spanish tourists, in light of security and political stability, and the improvement of the investment environment throughout Iraq.”  

For his part, the Spanish ambassador appreciated “the volume of fruitful cooperation between the two countries,” noting “the presence of a great desire among his country’s companies to obtain investment opportunities in Iraq.

He stressed that “Spain is ready to actively contribute to the implementation of the development road project and support the Iraqi private sector,” pointing out that “Spain has advanced capabilities in the field of agricultural technologies, railways, as well as investment in the energy sector.” link


Tishwash:  Chamber of Commerce: 13 million people are paying the price due to central bank policies

On Monday, the Diyala Chamber of Commerce identified what it called the three failures in stabilizing the parallel market in Iraq. 

The head of the Diyala Chamber of Commerce, Muhammad Al-Tamimi, said in an interview with “Al-Ma’louma” that “the failure to control the rhythm of the dollar exchange rate in the parallel market and the large difference between it and the official price and the presence of smuggling in various ways, in addition to the lack of transparency in distributing the dollar shares to travelers according to In official contexts, they represent the most important failures of the central bank.” 

He added, “The Central Bank is responsible for the dollar file in Iraq, and what is happening represents negative repercussions that must be taken into account and its objective reasons explained,” stressing that “13 million Iraqis suffer from the threat of poverty and are paying the price due to the instability of the price of the dollar because it exerts strong pressure on the prices of materials.” Food and medicines. 

He pointed out that “the continued instability in the currency market calls for structural changes in the central bank that lead to changing currency regulation strategies at the earliest opportunity and reduce the risk of speculation that plunders millions of Iraqis.  link


Tishwash:  Is Iraq able to join the BRICS group?.. A serious warning about Washington’s reaction

 The Iraqi economic expert, Omar Al-Halbousi, confirmed today, Monday (October 16, 2023), that Iraq’s accession to the BRICS group may face many obstacles as a result of the economic and monetary crises that the country is experiencing.

BRICS includes Brazil, Russia, India, China and South Africa, and at a summit in Johannesburg last August, a decision was announced to invite Argentina, Egypt, Iran, Ethiopia, the Emirates and Saudi Arabia to become full members of the organization, starting on January 1, 2024.

Al-Halbousi added, in a press statement followed by “Baghdad Today,” that there are many obstacles standing in the country’s way to join the BRICS, which is Iraq’s lack of an industrial base and the lack of agriculture, which made the economy collapse significantly, amid the confusion of government measures that caused the economic and monetary crises to worsen in the country. Iraq.

He continued: “Iraq cannot join the BRICS group because of Washington’s control over it, especially since Iraqi oil imports are placed in Iraq’s account in Washington, which makes Iraq exposed to a financial setback if Washington lifts protection over Iraqi funds.”

The economic expert pointed out that the United States of America has a lot of evidence of the Iraqi government’s negligence in the continuation of money laundering, terrorist financing, and dollar smuggling operations for the benefit of countries and armed groups punished by the American Treasury. In the event that Iraq joins BRICS, Washington will take a significant package of sanctions, and I do not rule it out. Approval of a law that reduces or restricts the income of the dollar to Iraq, causing a major financial collapse, especially since Iraq has a rentier economy that depends on oil and that oil imports are in America.

Al-Halbousi explained that the United States will not allow Iraq to leave its circle of control and go towards its competing party, and Washington has great pressure cards on Iraq militarily, politically and economically, which makes the statements of Iraqi officials about joining the BRICS group suicidal at all levels for Iraq, and at the same time it cannot Its implementation is due to American obstacles.

In a previous statement, the Iraqi economic expert, Safwan Qusay, spoke, saying: “Iraq is trying to be in the region of economic balance by attracting investments from countries of the East or West, and Russia is a giant industrial country, and Iraq’s openness to the Russian system can be exploited by attracting investments in the agricultural sector, livestock and the agricultural sector.” “Transportation, especially if we manage the investment file in the iron and steel sector to create complementary industries at the level of trains and ships.”

He added: “Iraq is looking forward to exploiting its geographical location and it needs to establish an industrial zone for strategic industries that complement the path of development and the presence of economic powers such as Russia that can contribute to these sectors. I believe that establishing a nuclear reactor to generate electrical energy will support the process of establishing this industrial city and that we will have diversity in Investment sources.

He pointed out that Iraq is looking forward to increasing the capacity of financial transactions with the Russian side outside the “SWIFT” system, so that it can have trade with the East through this system, and this reduces the pressure on financial bottlenecks in some cases.

Regarding the possibility of Iraq joining BRICS in the future and its impact on the region, Qusay said: “The BRICS project is promising, and the organization has a set of conditions for it to join, and I believe that Iraq needs to rehabilitate the economic goals and financial tools in order to be allowed to join the group,” explaining that Iraq is not with An area of attraction alone, but he must build a sectoral investment map so that there is competition in every sector. I believe that the advantage of the corresponding economy is what will determine preference. For example, integration with the Russian economy at the level of agriculture, iron and steel industries, and nuclear energy could be This is the path.”  link