BUDGET 2025: TOWARDS ECONOMIC DEVELOPMENT AND INCREASING NON-OIL REVENUES IN IRAQ, 18 NOV

 BUDGET 2025: TOWARDS ECONOMIC DEVELOPMENT AND INCREASING NON-OIL REVENUES IN IRAQ

The Iraqi government has begun preparing the 2025 budget schedules, amid aspirations that this budget will be a focus for achieving sustainable development and increasing non-oil revenues, in addition to enhancing the country’s economic stability. The head of the Finance Committee in Parliament, Atwan Al-Atwani, confirmed in a statement to Al-Sabah newspaper that efforts are directed towards completing the infrastructure for next year’s budget, as the requirements for reviewing the budget have been determined, noting that the government hopes to complete some important items to meet national needs. 

 Budget Goals: Comprehensive Development and Economic Stability

Al-Atwani explained that the main objectives of the 2025 budget include achieving economic development and increasing non-oil revenues, through developing means to enhance economic stability. With the operating budget increasingly dependent on available resources, it has become necessary to search for additional resources to boost the economy, where the focus has been on rationalizing consumption as a basic measure to achieve this goal.

Digital transformation and its role in increasing revenues

Al-Atwani pointed out the importance of digital transformation as a means of enhancing non-oil revenues, as he believes that this transformation constitutes an essential structure to support the national economy. This goal will be included in the 2025 budget by expanding the scope of digital transformation in various sectors, which will contribute to increasing revenues and developing financial management methods.

Challenges and financial deficit

Despite the ambitious trends, the Chairman of the Finance Committee indicated that the budget deficit may remain the same compared to 2024, given the government’s commitment to repaying its external debts and directing its resources towards investment projects. These commitments have been reflected in the budget through the financing of development projects and the entry of many of them into service, which has allowed for a significant improvement in economic stability.

Supporting projects in the governorates

In support of the governorates, the government has begun financing projects worth up to 400 billion Iraqi dinars, and is preparing to launch a new financing batch that matches the needs of the ministries and governorates. Al-Atwani stressed that the concerned ministries and governorates will bear the responsibility of paying their financial obligations towards private sector companies, which will enhance the role of the private sector in driving the wheel of development.

MILITIAMAN CC HIGHLIGHTS, 18 NOV

MILITIAMAN CC HIGHLIGHTS

Summary

Investment contracts in Iraq’s strategic industries are on the rise, signaling a shift towards activating the private sector and diversifying non-oil revenue streams.

Highlights

• 📈 Investment Opportunities: Iraq launched 256 investment opportunities confirmed through recent conferences.
• 🏗️ Major Contracts: Contracts signed for refined sulfur production, fertilizers, and glass projects show industrial growth.
• 💰 Japanese Loan: A new loan agreement for refinery development indicates ongoing economic cooperation with Japan.
• 🌍 International Collaboration: Turkish officials are visiting to discuss the vital development road project, enhancing regional connectivity.
• 🚀 Economic Growth: The development road project could create up to a million jobs, significantly boosting the economy.
• 🔄 Non-Oil Revenue Focus: Experts emphasize the need for Iraq to diversify its economy beyond oil dependency.
• 💵 Financial Strategy: The President is advocating for a transparent financial policy to bolster the banking sector and economic stability.

Key Insights

• 🔍 Investment Surge: The signing of multiple investment contracts highlights Iraq’s commitment to attracting foreign investors and enhancing industrial capabilities. This could significantly improve the economy.
• 🌱 Strategic Industries: Focusing on strategic industries like sulfur and fertilizers not only diversifies revenue sources but also strengthens local production capacities.
• 🤝 Japanese Collaboration: The continued partnership with Japan for refinery development supports Iraq’s long-term economic goals, showcasing the importance of international loans for infrastructure projects.
• 🚧 Infrastructure Development: The development road project represents a key strategy for economic integration, linking Iraq with neighboring countries and potentially boosting trade.
• 👷 Job Creation Potential: With projections of up to a million jobs from major projects, Iraq is poised for substantial labor market growth, which is essential for social stability.
• 📊 Diversification Imperative: The push for non-oil revenue streams reflects a broader strategy to stabilize Iraq’s economy and reduce vulnerability to oil price fluctuations.
• 🏦 Financial Modernization: Developing a clear financial strategy with transparency in banking practices is crucial for enhancing investor confidence and economic resilience.

MARKZ: yesterday’s test rates ( test rates popping up on dinar and dong...

GOLD RESERVES BOOST CONFIDENCE IN NATIONAL CURRENCY, 18 NOV

 GOLD RESERVES BOOST CONFIDENCE IN NATIONAL CURRENCY

Baghdad: The pillar of the emirate 

Gold plays a vital role in the monetary reserves of countries for several reasons related to financial stability, hedging against economic risks, enhancing confidence in the national currency, as well as being an effective tool for hedging against inflation. This prompted the Central Bank of Iraq, on several occasions and in successive years, to increase its gold reserves, which reached 148 tons and 305 ounces.  

Regarding the reason that prompted banks to rely on the yellow metal and nothing else, financial expert Mahmoud Dagher explained to “Al-Sabah” that the reason central banks, including the Central Bank of Iraq, increased their purchases of monetary gold is because it is suitable as a reserve compared to industrial gold, indicating that the Chinese Central Bank and the Indian Reserve are among the largest buyers of gold in the world.

TOTAL RESERVES

Dagher added that the Central Bank of Iraq has increased its gold holdings more than once during the past two years, the last of which was in the first quarter of 2024, until the total gold reserves reached 148 tons and 305 ounces after the last deal in May 2024 by 2 tons and 644 ounces. 

BANK ASSETS

He explained that although gold is not the best asset for generating returns when investing compared to currencies, deposits and securities that are permitted to be acquired within the assets of central banks, it is a haven for balance between other assets whose values ​​are affected by the nature of the economic cycle (recession and inflation), noting that the price of gold decreases during recession and increases during inflation, reflecting its balancing role.

GLOBAL TREND

He added that gold is also a haven when currencies fluctuate sharply against each other, as happened in the last two years for the ruble, yuan and rupee, and thus reduces the impact of what is called currency risk, pointing out that the Central Bank of Iraq did not deviate from the global trend in buying gold despite the rise in its price accompanying the global wave of inflation that hit major economies until it approached 10%; because the rule of purchasing assets by central banks is based on the principle of buying the asset when its price falls in the hope of selling it when it rises, which did not happen with gold because expectations during the last two years were towards an increase in gold prices in addition to the continued significant fluctuation of currencies among themselves.

AVOID INFLATION

For her part, the economic affairs specialist, Dr. Ikram Abdul Aziz, said that Iraq is the fourth Arab country in possessing large quantities of gold as an element indicating the soundness of the Iraqi economy, indicating that gold and hard currency reserves become a supportive means and an important framework for hedging and avoiding inflation and rising prices.

Abdul Aziz added, in an interview with “Al-Sabah”: Gold and foreign currency work to preserve the value of money and the resulting interest; therefore, countries seek to own large quantities of gold, noting that owning large quantities of gold reserves in light of the current fluctuations, geopolitical changes and the situation of the Iraqi economy is a safe haven to preserve value and hedge against inflation.

DEVELOPMENT PATHS

She explained that the presence of large quantities of gold at the Central Bank of Iraq is an important element in limiting dollar control and reducing instability, noting that Iraq achieved this increase in its gold reserves to serve development paths.

She added that the Central Bank of Iraq has a variety of reserves, including gold, whose stock is an effective means and a basic pillar for maintaining purchasing power, stressing that the presence of strong reserves and their diversity in the investment portfolio of the Central Bank of Iraq is a basic pillar and a factor that limits the rise in prices and hedges against inflation, and thus confidence in the existing economic system is achieved.

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EVERYTHING TRIGGERED SAT. NIGHT 16 NOV BY WOLVERINE, 18 NOV

 Sat. 16 Nov. 2024 Wolverine

“I’ve had a lot of very positive messages come in that it has either started or was about to start. The Med Beds are coming this week. A Whale received his blessing and it was so emotional for him that he had a heart attack.”

• Tier 4A (Admirals Group) notified on Saturday 16 Nov. with access to funds on Monday 18 Nov. 2024.

• Everything triggered Sat. night 16 Nov.

• Tier 4B and Tier 3 Bond Sellers to be notified on Monday morning before Noon 18 Nov. 2024. We may start Monday afternoon, otherwise Tuesday morning 19 Nov. 2024.

• No more delays, this is the last Call. Christmas before Thanksgiving!

MM&C - IQD News Report - Contracts - Projects - Non Oil Revenue Streams ...

Al-Sudani: Iraqi openness to a comprehensive partnership with Turkey and the development of the trade balance, 18 NOV

 Al-Sudani: Iraqi openness to a comprehensive partnership with Turkey and the development of the trade balance

Prime Minister Mohammed Shia Al-Sudani stressed on Monday the Iraqi government’s openness to strengthen relations with Turkey in various fields, stressing the importance of achieving a serious and real partnership that contributes to the development of the trade balance between the two countries.

The Sudanese media office said in a statement received by {Al-Furat News}, that “the latter received Turkish Trade Minister Omar Bolat, who is visiting Iraq at the head of a large delegation of about 150 businessmen from the Council of Exporters and the Turkish Contractors Union, on a working visit that includes the cities of Baghdad and Basra.”

During the meeting, the Sudanese stressed Iraq’s openness to building a serious and genuine partnership with Turkey in various fields, especially with the economic reforms carried out by the government recently, which contributed to creating a suitable investment environment inside the country. He also stressed the government’s desire to develop the trade balance between the two countries, in conjunction with the rapid growth of the Iraqi industry.

The two sides discussed preparations for the meeting of the Iraqi-Turkish Economic and Trade Committee scheduled to be held over the next two weeks.

For his part, Minister Bolat conveyed the greetings of Turkish President Recep Tayyip Erdogan to the Prime Minister, stressing the importance of growing relations between the two countries as an opportunity to strengthen cooperation, in line with the agreements reached during Mr. Erdogan’s recent visit to Iraq.

Bolat referred to the strategic development path project, stressing Turkey’s readiness to provide all necessary support to move forward in the implementation of this important project for the region and the world.

https://alforatnews.iq/news/السوداني-انفتاح-عراقي-لشراكة-شاملة-مع-تركيا-وتطوير-الميزان-التجاري