Latest news with #Salih
Iraqi News
6 days ago
- Business
- Iraqi News
Iraq's natural resource value surpasses $16 trillion
Baghdad ( – Iraq's underdeveloped mining industry is a critical component of the country's ambitions to diversify its economy away from oil, which accounts for over 90 percent of the government's revenue. The Prime Minister's financial advisor, Mazhar Salih, confirmed on Wednesday that Iraq is moving towards diversifying its GDP sources by increasing investment in the mining industry. In a statement to the state-run news agency (INA), Salih indicated that the value of Iraq's natural resources exceeds $16 trillion. Geological statistics suggest that Iraq has massive quantities of minerals such as sulfur, phosphate, rock salt, iron, and manganese, some of which are among the largest in the world. According to studies, Iraq has the world's largest reserves of sulfur and silica. The Iraqi government reached deals with major firms to explore natural resources as part of its effort to diversify national revenue and maximize the country's utilization of resources. The Iraqi Prime Minister, Mohammed Shia Al-Sudani, said in April that Iraq is currently the world's greatest producer of sulfur and the second-largest producer of phosphate. Last month, Iraqi Minister of Industry and Minerals Khalid Battal Al-Najm laid the foundation stone for new integrated phosphate fertilizer facilities in the western Iraqi province of Anbar. The move signals the rebirth of Iraq's most significant industrial institutions after years of stagnation and destruction caused by terrorism.
Iraqi News
01-06-2025
- Business
- Iraqi News
Iraq aims for banking power with digital finance strategy
Baghdad ( – Iraq's financial sector is showing significant development, with the country ranking third in the Arab world for the number of issued bank cards, a key indicator of growing public and international confidence, Prime Minister's Financial Advisor Mazhar Mohammed Salih announced Saturday (May 31, 2025). This comes as Iraq prepares to fully implement electronic collection (e-collection) systems by mid-2025. Salih stated that the full adoption of e-collection will enhance transparency and professionalism, boosting the confidence of global financial institutions in Iraq's economy. He emphasized this digital shift facilitates non-cash transactions, financial inclusion by bringing more citizens into the formal banking system, and prepares Iraq for fintech investments. Echoing this positive outlook, UN Representative Mohammed Al-Hassan noted on Friday that Iraq is poised to become a 'domestic and international banking power,' with the UN supporting steps to restore trust in its financial sector. These advancements, part of Iraq's national strategy for digital transformation and sustainable development, aim to create a robust digital market, reduce poverty, and facilitate broader economic reforms.
Rudaw Net
23-05-2025
- Business
- Rudaw Net
90 percent of Iraq's money supply held outside banks: PM advisor
Also in ECONOMY Unfinished Stories: Baghdad wants it all US urges Iraq to work with KRG to develop gas production KRG announces major agreements with US companies to boost gas production Syria's debts to World Bank cleared by Saudi Arabia, Qatar A+ A- ERBIL, Kurdistan Region - Nearly 90 percent of Iraq's money supply is held outside the formal banking sector, largely hoarded in homes, a senior financial advisor to the Iraqi premier told Rudaw. The vast 'leakage" of cash poses a serious challenge to the country's financial stability and long-term economic growth. Mazhar Mohammed Salih, advisor to Prime Minister Mohammed Shia' al-Sudani, stated that the hoarding of cash, while historically common, has reached critical levels, with leakage rates between '87 to 90 percent.' He explained that a large portion of the currency in circulation is held outside banks. 'If, for example, we have approximately 100 trillion dinars [approximately $714.3 million] in total currency in circulation today, around 91-92 trillion dinars [approximately $657.15 million] are currently outside the banking system,' Salih elaborated. According to senior financial advisor, the exceptionally high rate of cash held outside banks is largely driven by public distrust in financial institutions. Other reasons include religious and cultural factors – including the fear of engagement of usury (interest) that is prohibited in Islam – and the general unfamiliarity with banking services, Salih added. Pointing to the unbalanced financial landscape, Salih noted that "while the economy has ample liquidity, banks themselves are liquidity-poor. The government faces similar challenges, and meanwhile, the public holds large cash surpluses that are effectively idle.' To reintegrate these hoarded funds into the formal economy, Salih stressed the need for strategic reforms. These measures include strengthening deposit insurance through broader advertising and clearer public communication to reassure Iraqis that their bank deposits are fully insured against any bank failures, the financial advisor suggested. He also advocated encouraging investment in government bonds with strong, clear, and sovereign guarantees, and implementing digital payment solutions that would encourage individuals to maintain bank accounts via electronic cards, thereby fostering digital financial inclusion. The senior financial advisor underscored that a leap in digital financial inclusion is crucial to break the detrimental social habit of hoarding that is disrupting the income cycle and hindering economic investment and growth. Bringing more funds into the regulated financial system, Salih said, would strengthen the overall economy. "The more funds there are inside the banking system, the better the situation is than when they are outside the banking system." However, the issue of cash hoarding is just one symptom of deeper systemic problems in Iraq's banking sector. At its core, the sector suffers from a lack of modernization and persistent structural weaknesses. Most Iraqi banks rely heavily on the Central Bank of Iraq's foreign currency auctions to generate profit, rather than engaging in productive investments that stimulate economic activity. This is further exacerbated by corruption, with repeated allegations that banks are complicit in smuggling money out of the country. Customers often face rigid withdrawal limits - sometimes only allowed in installments - and risk theft not just from criminal actors but potentially from within the banks themselves. Compounding the problem is a weak legal framework. Laws to protect deposits are either lacking or outdated, and restrictive regulations discourage long-term investment and reinforce a dependence on government-linked financial operations. As a result, Iraqi banks offer limited services by international standards and remain largely tied to state-driven 'rentier' activities such as currency exchange, letters of credit, and the distribution of public sector salaries. Although there is a growing interest in digital banking and the Central Bank has launched initiatives to support digital enrollment, progress remains slow due to the absence of essential regulatory frameworks. The infrastructure for electronic payments is still underdeveloped, and most Iraqis continue to convert their digitally paid salaries into physical cash—reinforcing the long-standing 'cash-is-king' mindset that continues to stall the country's financial modernization.
Iraqi News
12-05-2025
- Business
- Iraqi News
Iraq sees surge in investment spending, eyes economic diversification
Baghdad ( – Iraq is witnessing a significant upswing in business activity, with current investment spending across various sectors reaching approximately 88 trillion Iraqi dinars, a key factor in a 35% boost to the nation's annual GDP. This was confirmed on Thursday (May 8, 2025) by Mazhar Mohammed Salih, the Prime Minister's Financial Advisor. Salih highlighted that an impressive 40% of this total investment originates from the private sector, through independent projects or partnerships with the government. He emphasized Iraq's significant and tangible progress in reactivating investment in its world-class sulfur and phosphate reserves, with negotiations ongoing with major international companies for high value-added exports. This initiative aims to diversify Iraq's economy away from oil dependency. Economic expert Akram Hantoush noted that investment volume has surged from approximately $45 billion before 2017 to around $88-$90 billion today. He projected private sector investments could exceed $500 billion with ongoing reforms in investment laws and policies aimed at developing crucial infrastructure. Iraq is also actively pursuing the recovery of smuggled funds through international cooperation, further strengthening its financial resources.
Iraqi News
08-05-2025
- Business
- Iraqi News
PM's Advisor: 35% GDP Increase Following Rise in Investment Spending Index
Baghdad – INA The Prime Minister's Financial Advisor, Mazhar Mohammed Salih, confirmed on Thursday that the current investment spending index, which amounts to 88 trillion dinars in projects across various sectors, is a positive indicator and a model of growing business activity in the economy and various infrastructure projects. Salih told the Iraqi News Agency (INA): "The current investment spending index on projects across various sectors reaching approximately 88 trillion dinars is a positive indicator that has contributed to achieving a 35% increase in the country's annual GDP." He added that "40% of the total investment spending index was recorded for the private sector through independent projects or in partnership with the government sector." He pointed out that "significant and tangible progress has accompanied the recent years of stability in the country in reactivating investment in the country's two largest raw material reserves globally, namely sulfur and phosphate. Investment in these two raw material reserves is being negotiated with major international companies specialized in exporting them at the highest value-added levels." He explained that "investing in sulfur and phosphate reserves aims to shift the economy away from oil asset cycles and a single source of rent. It also represents the beginning of a process of economic diversification, stabilizing state resources, and achieving diverse sources of income." He added that "government resources and expenditures are the primary and strategic driver of investment in economic and human development throughout the country, in parallel with oil resources." Regarding the recovery of embezzled and smuggled funds, he stated that "the Iraqi Asset Recovery Fund Law No. (9) of 2012, with the first amendment issued pursuant to Law No. (7) of 2019, has provided an opportunity for the Iraqi government to negotiate when concluding economic cooperation agreements with other countries around the world, whether within the texts of the agreements themselves, in the memoranda of understanding concluded, or through friendly consultations." He continued, "This law aims to recover all financial rights of the Republic of Iraq that others (Iraqis and foreigners) have obtained illegally and that have been leaked or smuggled out of the country at various times, and to link joint international cooperation to the recovery of these funds." He explained that "economic agreements are an important tool in the matter of recovering smuggled funds, deposits, and investments in foreign jurisdictions, in order to withdraw them for the benefit of the public treasury and strengthen the country's financial resources." In the same context, economic expert Akram Hantoush confirmed to the Iraqi News Agency (INA) that "the volume of investments in Iraq before 2017 was approximately $45 billion, most of which were investments in the oil and banking sectors, and has increased today to approximately $88 to $90 billion." He added that "the volume of these investments will increase if they include the industrial, agricultural, transportation, and tourism sectors," explaining that "investments in the private sector are expected to reach more than $500 billion if amendments are made to investment laws, monetary policy, and lending policies to create infrastructure for the private sector, such as the establishment of industrial cities, investment roads, investments in the electricity sector, and wholesale markets. The government is working to support their operation by having government institutions purchase the goods offered by these investments."
