Foreign investment in Iraq skyrockets in 2023
Shafaq News/ The recent Foreign Direct Investment (FDI) report by FDI Intelligence, a leading authority in tracking global foreign investments, has spotlighted the Middle East and Africa's performance.
According to Iraqi economic expert Manar Al-Obaidi, the region witnessed a 19% increase in foreign investments in 2023 compared to 2022, with over 2,600 projects amounting to $249 billion out of a global total of $1.3 trillion.
The distribution of foreign investments by country is led by the United Arab Emirates with 1,279 projects, followed by Saudi Arabia with 359 projects, South Africa with 145 projects, Egypt with 133 projects, and Morocco with 95 projects. Notably, Saudi Arabia saw a 111% increase in investment value compared to 2022, reaching $29 billion.
The top investing countries in the Middle East and Africa include China, with $42 billion, the United Kingdom with $25 billion, Hong Kong with $20 billion, and the United States with $17 billion. Key sectors attracting investment are renewable energy ($100 billion), metals ($23 billion), and oil, gas, and coal ($20 billion).
The report did not provide specific details on Iraq's foreign investments. However, according to the United Nations Conference on Trade and Development (UNCTAD), Iraq experienced a $5 billion outflow of foreign investments in 2023. Several factors contribute to Iraq's low investment appeal despite its potential, including a declining business environment, economic and political instability, weak marketing and promotion of investment opportunities, ineffective government institutions handling investment, and a lack of focus on foreign investments in the 2024-2028 development plan.
While foreign direct investment is crucial for job creation and private sector development in Iraq, the state's adherence to traditional economic management requires comprehensive reforms. Enhancing economic administration, improving collaboration, and addressing regulatory and legislative issues are essential to boost Iraq's standing in the business environment reports.
