The International Finance Corporation (IFC), a member of the World Bank Group, has announced a substantial investment drive in Iraq exceeding $1 billion, aimed at catalysing growth across the nation’s private sector. The series of deals, unveiled during the IFC Partnerships Day in Baghdad, targets key industries including energy, logistics, and finance, aligning with Iraq’s Vision 2030 for economic diversification and sustainable development. The event was held under the patronage of Prime Minister Mohammed Shia’ al-Sudani, marking two decades of the IFC’s involvement in the country.
A Multi-Sectoral Investment Strategy
The comprehensive investment package is strategically allocated across a diverse range of sectors critical to Iraq’s economic future. The IFC’s plan focuses on fostering partnerships with the Iraqi private sector to build a more resilient and dynamic economy. Key areas of investment include energy, ports, construction materials, real estate, agribusiness, healthcare, and financial services for trade and small businesses.
Bolstering Infrastructure And Energy
A significant portion of the funding is dedicated to large-scale infrastructure projects. The IFC has been mandated by the Basrah Gas Company (BGC) to arrange a syndicated loan of up to $500 million for one of the world’s largest gas flaring reduction projects. In logistics, the IFC is partnering with Aloreen Company for Investment to deploy $120 million for acquiring new equipment and expanding yard capacity at Umm Qasr Port. Additionally, a $200 million investment with Nomu Holding will strengthen the country’s construction materials industry.
Driving Growth In Real Estate And Agribusiness
In the real estate sector, the IFC has committed $65 million for Iraq’s first certified sustainable mixed-use project in Sulaymaniyah, combining housing and retail components. To enhance food security, the IFC is partnering with Tiryaki Agro on a feasibility study aimed at reducing reliance on grain imports by building the capacity of local farmers in modern, sustainable agricultural practices and infrastructure.
Empowering Healthcare and Local Finance
The new investments also target crucial social and financial services. The IFC has joined hands with Ruban Al Safina to assess the development of a 200-plus-bed teaching hospital at the American University of Iraq in Baghdad. To boost commerce, a $10 million trade finance line is being extended to the Bank of Baghdad. Furthermore, a new partnership with First Finance Company aims to unlock opportunities for Iraq’s micro, small, and medium-sized enterprises (MSMEs).
About The International Finance Corporation (IFC)
The International Finance Corporation is a member of the World Bank Group and is the largest global development institution focused exclusively on the private sector in emerging markets. It works to create markets and opportunities in developing countries by leveraging financial resources, technical expertise, and global influence to help end extreme poverty and boost shared prosperity.
Source: Zawya
