DINAR REVALUATION REPORT: Iraq's Pursuit of Enhanced Economic and Investment Cooperation in 2024, 13 SEPT

 Iraq's Pursuit of Enhanced Economic and Investment Cooperation in 2024

In 2024, Iraq is demonstrating a strong commitment to enhancing its economic and investment cooperation with global partners, aiming to diversify its economy and reduce dependency on oil. 1 The President of the Republic, Abdul Latif Jamal Rashid, affirmed Iraq's eagerness to strengthen such ties, underlining the country's readiness to provide a conducive environment for strategic development projects. 5

Iraq's Economic Context and Challenges

Iraq, one of the world's most oil-dependent nations, has been grappling with the volatility and rigidity of its oil-centric economy. 1 Despite a gradual recovery from the dual shocks of the oil and COVID-19 crises, the country faces significant unemployment and economic challenges, especially among displaced individuals, returnees, and women job-seekers. 1

Seeking Diversification and Stability

Recognizing the need for economic diversification and stability, Iraq has been actively seeking partnerships to boost non-oil sectors and secure fiscal sustainability. Recent efforts have included discussions with the International Monetary Fund (IMF) on fiscal adjustments and strategies to enable private sector development.  4

Bilateral Cooperation and Investment Opportunities

Iraq has also been engaging in bilateral dialogues to explore investment opportunities and partnerships. A notable example is the Qatari-Iraqi Joint Committee for Economic and Trade Cooperation, which met in July 2024 to discuss avenues for cooperation, particularly in industry, infrastructure, renewable energy, and digital transformation. 6

Political and Economic Agendas

Iraq's Prime Minister, Mohammed Shia al-Sudani, has emphasized the importance of focusing on economic, educational, and people-to-people domains during his visit to the United States.  2 Despite domestic and external pressures, al-Sudani is navigating the country's political and economic agendas with a view to fostering comprehensive bilateral relations. 2

Conclusion

Iraq's initiatives in 2024 reflect a strategic shift towards economic diversification, investment in non-oil sectors, and the strengthening of bilateral relationships. This approach is expected to create a more resilient economy, attract foreign investment, and foster sustainable development in the face of global economic challenges.