DINAR REVALUATION REPORT: Iraq Fund for Development: New Governance Approval 2024, 21 SEPT

 Iraq Fund for Development: New Governance Approval 2024

On September 21, 2024, the Iraq Fund for Development (IFD) announced the approval of a new governance structure, marking a significant milestone in the country's efforts towards economic stabilization and sustainable growth. 1

Economic Outlook and Reforms

The IFD's new governance framework comes at a critical juncture for Iraq's economy. Ongoing contraction in economic activity, due to OPEC+ restrictions on oil production and a halt in Kurdistan's oil exports to Turkey since March 2023, has led to a fall in Iraqi oil production. 1 However, with the phased lifting of quotas between September 2024 and December 2025, Iraq anticipates a gradual increase in production, paving the way for economic recovery and growth by 2025. 1

The government's focus on encouraging investment in the oil and gas sector is evident in the trilateral investment agreement signed in July 2024, worth USD 27 billion over 25 years, between Basrah Oil Company, TotalEnergies, and QatarEnergies. 1 This agreement aims to boost production from the Ratawi oil field in Basra and improve electricity supply by recovering flared gas for power stations.  1

Moreover, the government's commitment to investing in local infrastructure, healthcare, electricity, and education services, as part of the 2023-2025 budget, reflects a strategic move towards inclusive economic development. 1

Sustainable Development and Infrastructure

KBR's recent contract award highlights Iraq's focus on regenerative projects and sustainable growth. The contract, valued at $46 million, tasks KBR with supporting the Ministry of Planning in economic planning, strategy development, feasibility studies, and large-scale project management. 3 KBR's role in enhancing Iraq's energy sector and promoting environmental stewardship aligns with the country's long-term vision for growth. 3

Environmental and Social Resilience

The unveiling of Iraq's National Strategy for Environmental Protection and Improvement (2024-2030) demonstrates the government's commitment to addressing environmental challenges and enhancing social resilience. 5 This strategy, developed in collaboration with national institutions, environmental experts, and civil society, aims to mitigate environmental pressures and support vulnerable populations. 5

Governance and Transparency

The approval of the new governance structure for the Iraq Fund for Development underscores the government's commitment to improving governance and attracting domestic and foreign investors. 6 Efforts to align with international financial standards and enhance transparency are crucial steps in fostering trust and investment in Iraq's development projects. 6

Conclusion

The approval of the new governance for the Iraq Fund for Development in September 2024 signifies a pivotal moment in Iraq's economic trajectory. By focusing on sustainable development, environmental protection, and governance reforms, Iraq is positioning itself for a more resilient and prosperous future.