Iraq will need over $30 billion of foreign direct investment (FDI) per annum to boost economic growth, Frost & Sullivan said in a new report.
The end of war against the ISIS has resulted in healthy foreign international reserves, limited restrictions on cross-border fund transfers and an attractive legal framework that provides greater protection and incentives for foreign investors, leading to the highest rate of returns for investors, it added.
In 2018, governments from over 76 countries, global funds, organizations and investors pledged $30 billion in loans and investment to rebuild Iraq.
“As a national development plan, Iraq aims to boost the economy through privatization and development of oil and gas as well as minerals along the value chain," said Ali Mirmohammad, senior consultant and business development manager, Frost & Sullivan.
"The plan is to not only privatize existing state-owned enterprises but also support SMEs with tax holidays and financial incentives. All in all, FDI inflow is expected to help the Iraqi Government to achieve the target within the next five years,” he added.
Mineral oil, natural gas and phosphate deposits are among the top natural resources in Iraq that call for huge investment opportunities along the value chain.
Lucrative prospects are likely present for private investors such as banking, minerals, renewable energies, telecommunications, landfills, e-commerce, recycling, water and sanitation, food and tourism, the report added.
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