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Shafaq News
29-05-2025
- Business
- Shafaq News
From Mogadishu to Madrid: Iraq's forgotten global assets
Shafaq News/ From tea plantations in Vietnam to Mediterranean villas in France, and from the outskirts of Mogadishu to the coastlines of Mozambique, a vast trove of Iraqi-owned properties and investments—valued at no less than $90 billion—has slipped into obscurity. Once key instruments of influence and diplomacy, these assets now lie buried in unarchived files, undocumented contracts, and unnamed holdings. Forgotten Assets Senior diplomatic sources who spoke with Shafaq News reveal that Iraq holds more than 50 properties and foreign investments scattered across Europe, Asia, and Africa. Acquired over decades, this portfolio spans luxury real estate, farmland, banks, office buildings, and industrial facilities. Europe houses a significant portion of Iraq's footprint, with assets in Spain, France, the UK, and Italy. Some properties are situated in prestigious locations, such as Cannes on the French Riviera, a city synonymous with elite allure. Beyond residences, the holdings include financial institutions and commercial offices strategically placed across major cities, originally intended as economic diplomacy outposts. In Asia, the focus shifts to agricultural investments. Iraq's ventures include plantations producing tea, rice, rubber, and tobacco across Malaysia, Sri Lanka, and Vietnam. Africa presents yet another dimension. Iraqi assets comprise tourist islands, agro-processing factories, and agricultural estates in Somalia, Nigeria, and Mozambique. This expansive network of international holdings traces back to policies from the 1970s and 1980s when surging oil revenues fueled Iraq's global investment ambitions. Under the Foreign Investment Law of 1981, the state secured the authority to acquire and manage overseas properties through embassies, commercial attachés, and sovereign investment vehicles. The goal was clear: establish Iraq as a player in global trade and leverage its economic presence abroad. Yet, that vision lost momentum over the years. The 1990s sanctions, the 2003 regime change, and prolonged instability severely disrupted oversight. Some assets fell into undocumented limbo, others became caught in legal grey zones, and several were absorbed into local markets under circumstances still not fully understood. Dormant Oil Plant A vivid example of this forgotten legacy emerged at the recent Arab League summit in Baghdad. Somali President Hassan Sheikh Mohamud brought to light an Iraqi-built oil refinery on the outskirts of Mogadishu that had vanished from official records. Constructed in 1978 through a formal agreement between Iraq and Somalia, the refinery disappeared from Iraq's inventories after Saddam Hussein's fall. For over two decades, its existence remained unacknowledged—absent from registries and erased from institutional memory. Somali officials informed Iraqi Prime Minister Mohammed Shia Al-Sudani that the refinery remains structurally intact and could resume operations with technical rehabilitation. This revelation arrives as Somalia prepares to explore its offshore oil reserves, positioning the plant as a potential regional energy hub. Originally designed to refine imported crude and store petroleum products for domestic and regional use, the facility once processed over 10,000 barrels per day. Beyond its practical function, it symbolized Iraq's Cold War-era economic diplomacy—a strategic energy foothold anchoring Baghdad's influence in the Horn of Africa. In response, Baghdad swiftly organized specialized legal and technical committees to probe Iraq's overseas asset landscape, beginning with Somalia and expanding to other countries hosting similar projects. The Ministries of Oil, Foreign Affairs, and Justice joined efforts to verify ownership, review documentation, and regularize the legal and tax status of each facility. Diplomacy Meets Armed Threat These recovery efforts are not new. In 2012, Iraq initiated one of its earliest serious missions to reclaim overseas properties, sending a delegation to Mozambique to inspect a state-owned asset—reportedly a former palace on a tourist island. What was intended as a routine diplomatic inspection quickly turned precarious. According to a diplomatic source briefing Shafaq News, the delegation encountered no official representatives but instead faced armed threats. An armed group controlling the site forced the Iraqi team to abort their mission and leave the country immediately. This incident epitomizes the broader, intricate challenge Iraq faces in reclaiming its scattered global properties. Similar attempts in Sudan, Chad, and parts of Eastern Europe have met comparable resistance. In many cases, local militias, privatized entities, or reorganized state bodies invoke laws on adverse possession or post-conflict redistribution to justify retaining control over assets Iraq insists are rightfully theirs. A Complex Recovery Preliminary valuations place these foreign holdings between $80 billion and $90 billion—an amount economists view as a vital resource for diversifying Iraq's income. With the 2024 federal budget totaling approximately $152 billion and crude oil exports accounting for 93% of revenues, recovering even 10% of these assets could contribute nearly 6% of the annual budget. Such a boost would provide a critical cushion against oil market volatility. Nonetheless, reclaiming these assets remains a complex endeavor. Legal experts highlight numerous obstacles, including statutes of limitations and protective court rulings that recognize new ownership, given Iraq's prolonged absence from these jurisdictions. Years of neglect have compounded the difficulty. Complicating matters further, Iraq's Parliamentary Integrity Committee acknowledges that a significant portion of ownership records was lost, stolen, or destroyed following the 2003 invasion. During the ensuing chaos, some properties transferred quietly to individuals or front companies linked to the former regime, while others vanished into legal limbo—abandoned, seized without challenge, or entangled in unclear ownership. The situation grows more complicated in countries like Italy and Nigeria, where inheritance claims, local investment restrictions, and debates over whether assets were held directly by the Iraqi state or through now-defunct shell companies create additional hurdles. In weaker judicial systems, forged documents have surfaced, supporting false ownership claims, while legitimate Iraqi cases face bureaucratic delays, political interference, and corruption. Faced with these challenges, Iraq's Anti-Corruption Commission warns that without a centralized, publicly accessible registry of foreign holdings, future recovery attempts risk repeating past failures. To bridge this gap, the Iraqi Foreign Ministry has launched a historical mapping initiative aimed at reconstructing records of foreign assets. This project taps into embassy archives, decades-old trade agreements, and files from the United Nations oil-for-food program. Retired diplomats and senior officials who managed these holdings during the 1980s and 1990s have also been called upon to help unravel the complex ownership puzzle. Legal specialists interviewed by Shafaq News emphasize the need for Iraq to move beyond initial inquiries and behind-the-scenes discussions. They recommend initiating formal legal proceedings before the International Court of Justice, alongside negotiating bilateral treaties with host countries to reaffirm Iraq's ownership claims. Equally important, they note, is the creation of accountability mechanisms to identify and address those who have benefited from or hidden these assets over the years.
Iraq Business
07-04-2025
- Business
- Iraq Business
100% Iraqi-Owned Company to manage Development Road Project
By John Lee. The Prime Minister's Advisor for Transportation Affairs has announced that the Development Road Project will be managed by a new 100% Iraqi-owned company, reporting directly to the Prime Minister. Speaking to the state-run Iraqi News Agency (INA) , Nasser Al-Asadi explained that during a recent meeting of the Higher Committee for the Development Road, a comprehensive study was conducted on the most appropriate legal structure to manage the project. Various options were considered, including establishing a company, authority, or other legal entity. The final decision is to form an independent private company under the Companies Law, which will: Oversee all financial, engineering, economic, and investment aspects of the project; Operate independently of the Ministry of Transport; Have its own laws and regulations; Handle any investment shares related to the project. Al-Asadi underlined the strategic nature of the Development Road, describing it as a global project requiring a dedicated entity to ensure effective and transparent management. (Source: INA) Tags: cg, development road project, featured, Infrastructure
