Iraq seeks $100bn to reconstruct transport, agriculture and oil sectors

Local residents remove bodies from the rubble in the Old City of Mosul. Cities across Iraq have been destroyed by years of war with as much as $100 billion needed for the reconstruction effort. (Reuters)
Updated 09 February 2018
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Iraq seeks $100bn to reconstruct transport, agriculture and oil sectors

BAGHDAD: Iraq is seeksing around $100 billion in foreign investment in transport, energy and agriculture as part of a plan to rebuild parts of the country and revive the economy after a three-year war on Daesh.
The government’s National Investment Commission published a list of 157 projects it will seek investment for at an International Conference for Reconstruction of Iraq to be hosted by Kuwait Feb. 12 to 14.
Some of these projects are about rebuilding destroyed facilities like Mosul’s airport, while others are new investments to strengthen and diversify the economy away from oil, said an economic adviser to Prime Minister Haider Al-Abadi.
“All together, they cost about $100 billion,” the adviser, Mudhar Saleh, told Reuters. Sixteen projects carry a price tag of $500 million or more, according to the list.
Rebuilding homes, hospitals, schools, roads, businesses and telecommunications is key to providing jobs to the young, to end the displacement of hundreds of thousands of people and put an end to several decades of political and sectarian violence.
Iraq declared victory over Daesh in December, having taken back all the territory captured by the militants in 2014 and 2015. A US-led coalition supported the Iraqi forces, especially in the battle to dislodge them from Mosul, their de facto capital in northern Iraq, in July.
The US government will not contribute funds at the conference but will instead encourage investment from the private sector and Gulf Arab allies, US and Western officials said.
A US official in Baghdad said 100 US companies were participating in the conference.
Three rail projects top the list: A 500-kilometer (311 mile) line from Baghdad to Basra in the south estimated to cost $13.7 billion, a line from Baghdad to Mosul in the north estimated at $8.65 billion and an $8 billion metro for the capital.
Iraq reopened to foreign investment in 2003 after the US-led invasion that toppled Saddam Hussein, but the vast majority of the billions invested went to increasing its oil and gas production.
It has become the second-largest crude exporter of OPEC, after Saudi Arabia, with a daily output of 4.4 million barrels.
At the conference, Iraq will seek investment in the downstream oil industry including in storage tanks, refineries and petrochemical plants to process its crude into plastics and fertilizers.
Saleh said investments in the oil industry and agriculture will probably be easier to attract than other sectors given the country’s vast crude reserves, available land and water wealth.
Total land offered for investments to grow “strategic crops” is nearly 1,500 square kilometers (580 square miles). Iraq, one of the world’s largest wheat importers, aims to achieve self-sufficiency and possibly become a net exporter of the grain.
“We feel there will be support for Iraq, from the Americans, the Europeans, the Arab countries, the United Nations, and humanitarian organizations,” said Saleh.


Gulf stocks extend losses on tanker attacks

Updated 17 June 2019
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Gulf stocks extend losses on tanker attacks

  • Cautious mood among investors as fears of military confrontation rise

DUBAI: Stock markets in the Gulf extended losses on Sunday reflecting a cautious mood among investors following last week’s oil tanker attacks. 

The attacks on the tankers in the Gulf of Oman on Thursday raised fears of a military confrontation in a vital shipping route for global oil supply and heightened tensions between Iran and the US, which have been in a standoff over Iran’s nuclear program. 

The Saudi index had dropped 1.6 percent on Thursday and fell a further 0.6 percent on Sunday after slight gains in early trade. Most Saudi banks were down, despite Sunday’s announcement by Saudi British Bank that its merger with Alawwal Bank was completed. 

HIGHLIGHTS

• Gulf stocks reverse early gains.

• Gulf of Oman tanker attacks dampen investor mood.

• Saudi banks mostly down despite SABB-Alawwal merger.

The two banks have combined to create the country’s third largest lender, becoming a single listed company after regulatory approvals. SABB’s shares shed 0.1 percent. Alinma Bank, however, gained 0.4 percent, and was one of the stocks registering the highest trading volume on Sunday. 

In the UAE, the Dubai and Abu Dhabi indexes fell 0.7 percent and 0.2 percent, respectively. The Dubai market had risen earlier in the day, boosted by DAMAC Properties and Union Properties, which closed up 2.2 percent and 0.5 percent, respectively. But heavyweight Emaar Properties, the largest developer in the emirate, fell 2.5 percent, weighing on the index. 

Dubai’s telecom operator Du (Emirates Integrated Telecommunications Co) shed 0.4 percent, reversing earlier gains, after it said the UAE sovereign wealth fund Emirates Investment Authority had increased its stake by buying 463.3 million shares from Mamoura Diversified Global Holding and General Investments. 

In Abu Dhabi, blue chip companies Aldar Properties, First Abu Dhabi Bank and Abu Dhabi National Oil Company for Distribution, led losses, dragging down the main index. The other Gulf markets were all in the red, except for the Bahrain index, which rose slightly. 

In Egypt, the index gained 0.2 percent, boosted by a 4.5 percent gain by Pioneers Holding Company for Financial Investments. The company said one of its divisions, Arab Dairy Products, had received a letter of intent from a Netherlands based company about a plan to buy it.