Economy News – Baghdad
Mohamed Al-Najjar, the Prime Minister for Investment Affairs, has outlined the strategic approach taken by the Iraq Fund for Development to ensure the transparent and efficient execution of projects. During a recent statement, he emphasized the vital role of international auditing firms in this framework.
Al-Najjar indicated that the Iraq Fund for Development has identified six key sectors for investment. These sectors were selected based on their representation of Iraq’s various crises, with a focus on housing, education, digital transformation, smart industry, smart agriculture, and environmental initiatives. He noted that each sector presents significant challenges that the Fund aims to transform into commercial and economic opportunities for investors, ultimately contributing to sustainable solutions.
In assessing projects launched by the Fund, Al-Najjar mentioned several essential criteria, the foremost being the potential for job creation. This includes both short-term employment during project implementation and long-term employment post-operation.
Regarding the manufacturing aspect, he projected that 30% to 40% of the materials used in these projects would be locally sourced. Al-Najjar highlighted the capability to produce a significant portion of iron and a considerable percentage of cement domestically; however, some materials continue to be imported from other regions.
He also detailed the auditing process governing the Fund, which encompasses three main facets. First, an independent entity generates reports separate from executive management to the board of directors, overseen by a global auditing company. Secondly, a different firm audits the Fund’s operational accounting, while a domestic financial supervision bureau conducts local audits of the Fund’s activities.
Al-Najjar pointed out that the Fund operates under global standards and governance principles aimed at positioning itself as a repository for foreign investments in Iraq. He remarked that previous and current Iraqi legislation is inadequate to attract direct investments to state departments due to non-alignment with international standards. The Fund has been structured and governed in accordance with global best practices to address these issues.
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