France and Iraq Strengthen Economic Ties
In a strong show of support for Iraq's transformation, France hosted a high-level France-Iraq Business Forum in Paris, bringing together over 300 business leaders and decision-makers. Organised by Business France, the event aimed to reinforce bilateral economic ties and unlock long-term investment opportunities.
Following the forum, key Iraqi institutions and French companies met over a working lunch to explore tangible, mutually beneficial projects. Discussions focused on structuring cooperation in critical sectors such as infrastructure, energy, and technology.
French officials underscored their commitment to Iraq's economic recovery, with plans for a ministerial visit to Baghdad before July. " Iraq is transforming, and France is here to respond, " said a French representative, highlighting Iraq's strategic advantages and long-term potential.
The forum also addressed challenges facing Iraq's recovery, including security, regulatory frameworks, and financing mechanisms. Both sides emphasised the need for sustained engagement and deeper institutional cooperation.
(Source: Business France)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Iraqi News
6 hours ago
- Iraqi News
Iraq extends electricity supply agreement with Jordan
Baghdad ( – Director General of the National Electric Power Company (NEPCO) Sufyan Batayneh revealed on Sunday that Jordan approved an Iraqi request to extend the agreement for supplying electricity from the country's grid to Iraq for another year. In a press statement following his meeting with Iraqi officials, Batayneh said that the agreement to supply electricity from the NEPCO to Rutba in western Iraq was extended for an additional year following a request from the Iraqi side. In early July, Jordan announced that a project to increase power supplies to Iraq will be completed in August as part of the second phase of the electrical interconnection project between the two countries. Iraq, which is now experiencing a severe power shortage, acquired around 40 megawatts in the first quarter of 2024 after completing the project's initial phase. Batayneh revealed earlier that 99 percent of the project within Iraq's borders is completed, and the facilities will be completely operational by August. Jordan is expected to supply 150 megawatts of electricity to Iraq by the end of August, according to Batayneh. The first phase of the project went into operation in the first quarter of 2024, linking the Risha power plant in Jordan and the Rutba power station in Iraq at a voltage of 132 kilovolts. Iraq and Jordan signed an agreement in February 2024 in the Jordanian capital, Amman, to provide Iraq with 40 megawatts of electricity in the first phase. In the medium run, further connecting phases may raise Jordan's electricity supply to Iraq to 500 megawatts.
Iraqi News
6 hours ago
- Iraqi News
Iraq moves forward with floating LNG transfer system
Baghdad ( – Iraq has made an important step toward improving its energy security by announcing the ongoing development of the floating platform project, which would help the country import liquefied gas from different countries. This measure is part of the government's effort to ensure the country's fuel supply and operate power plants. The Iraqi government and the Energy Ministerial Council recently issued directions outlining the project's execution procedures, which include inviting specialized businesses, organizing technical and administrative committees, and identifying the necessary infrastructure to handle imported gas. The Ministry of Oil announced that it finished vital pipelines to support the project, demonstrating the government's commitment to prepare all essential needs before the floating platform goes operational. These initiatives come at a time when Iraq is suffering tremendous issues with electrical stability. These steps represent a serious shift toward expanding import channels and diversifying supply sources, guaranteeing considerable flexibility in securing liquefied natural gas (LNG) and achieving stability in the electricity grid following years of reliance on a single source. A floating platform serves as a link between the LNG carrier and the shore-based receiving or exporting facilities. According to a recent decision by the Energy Ministerial Council, six foreign corporations were asked to make technical and commercial proposals for this project. The Ministry of Oil established a technical committee to analyze the proposals, in addition to a combined ministerial committee comprised of the Ministries of Oil, Electricity, and Transport. These committees were tasked with assessing bids and making suitable choices while maintaining the greatest standards of transparency. These operations demonstrate Iraq's capacity to effectively handle significant energy projects, as finishing pipelines before the floating platform enters the operational phase is critical to the project's success.
Shafaq News
8 hours ago
- Shafaq News
Iraqi Banking reform: Between necessary change and crippling conditions
Shafaq News Iraq's banking sector is facing one of its most critical junctures in years as the Central Bank of Iraq (CBI) rolls out new reform standards. While the measures aim to modernize the financial system and align it with global practices, economists and lawmakers warn they may be 'impossible to implement' under Iraq's current economic and political conditions. Reform Targets and Investor Reluctance At the center of the new requirements is a mandate for banks to raise their capital to 400 billion dinars (around $306 million) by the end of 2025. The target, however, appears increasingly unrealistic. According to economic expert Ahmad Abed Rabbo, investor reluctance—largely driven by US and international sanctions on dozens of Iraqi banks—makes such capitalization nearly unattainable. Speaking to Shafaq News, Abed Rabbo acknowledged that the reforms contain positive elements but insisted that many conditions require urgent revision. He described the capital increase as 'illogical,' particularly as many banks are barred from dollar transactions, suffer from low market value, and lack robust financial operations. The economist also criticized additional burdens, including $2 million in mandatory service fees for reform consultancy firms approved by the Central Bank. He dismissed the figure as 'exaggerated,' noting that banks had no prior agreement to allocate such sums. Another contested measure is the 10% ownership limit, which he argued deters potential investors, especially when most banks are already loss-making. Abed Rabbo called on the Central Bank to involve private banks in shaping a new reform framework tailored to Iraq's circumstances. Extending the timeline, he said, is essential to prevent forced liquidation or marginalization. 'Reforms are indispensable,' he emphasized, 'but they must be practical and context-driven—not a mechanism for eliminating banks from the financial system.' Strict Standards or Structural Weakness? Economic expert Mustafa al-Faraj described the Central Bank's conditions as 'strict and impossible' in the face of Iraq's fragile financial environment. In comments to Shafaq News, he criticized the lack of direct support from the CBI, saying the institution should prioritize technical and financial assistance, debt rescheduling, lower interest rates, and government-backed incentives before demanding capital hikes or foreign partnerships. He warned that without such support, many banks risk collapse, as the current climate is unsuitable for attracting foreign investors. Instead of strengthening the sector, 'the reforms could accelerate liquidations and forced mergers.' Al-Faraj acknowledged that the Central Bank's intent to reform is genuine but warned the approach is detached from reality: 'If the goal is to establish a resilient banking sector, the starting point must be real support and phased reforms—not measures that paralyze banks before they can recover.' Parliament's Alarm Over Sanctions and Oversight From the legislative side, Kazem al-Shammari, a member of the Parliamentary Economic Committee, pointed to an even deeper problem: sanctions. He revealed that about 30 of Iraq's 70–80 operational banks are currently under sanctions, while most others perform only basic transfer operations rather than comprehensive banking services such as deposits, lending, or financing. Al-Shammari argued that non-sanctioned banks, if properly supervised, could adapt to the reforms. Yet, he cautioned that weak regulatory oversight and political interference remain the biggest obstacles. 'Without effective monitoring, no real results can be achieved,' he said, stressing that government involvement in banking operations contradicts international norms of independence and financial freedom. He further questioned why only Iraqi and Lebanese banks are being penalized for dealings with sanctioned states like Iran, while no other regional institutions have faced similar consequences. 'This issue goes beyond Central Bank policy,' he explained, linking it to broader state-level decisions and political pressure. Between Compliance and Collapse For Al-Shammari, international standards are a double-edged sword. On one hand, compliance could open the door to foreign investment and integration with Gulf and global financial systems. On the other, applying such standards in Iraq's unstable environment risks undermining already fragile institutions. 'If Iraqi banks uphold transparency and integrity, they can attract major global partners and foreign investments,' he predicted, adding that success in this direction could lay the foundation for rebuilding Iraq's financial infrastructure.
