During a recent press conference, Egyptian Prime Minister Mustafa Madbouly highlighted the significant economic cooperation between Egypt and Iraq, revealing that contracts with Iraqi companies have surpassed 600 billion dinars, equivalent to approximately $460 million.
In June 2023, 11 memoranda of understanding (MoUs) were initially signed, and this collaboration has grown to encompass around 12 agreements covering various sectors. This expansion occurred during the third session of the Iraqi Supreme Committee, held in Baghdad, where multiple MoUs were ratified, focusing on diverse areas of cooperation.
Key Memoranda of Understanding
The signed agreements include:
- Land Transport MoU: Facilitating the transportation of people and goods between the national transport ministries of both countries.
- Competition and Anti-Monopoly MoU: Strengthening competition oversight by collaborating between the Iraqi Council of Competition Affairs and the Egyptian Competition Protection Agency.
- Cooperation in Local Development: A protocol signed between Baghdad Municipality and Cairo Governorate.
- Cultural Cooperation in Antiquities: A MoU between the Iraqi Ministry of Culture’s General Authority for Antiquities and Heritage and Egypt’s Supreme Council of Antiquities.
- Measurement and Control MoU: Establishing standards in manufacturing and quality control.
- Financial Market Regulation MoU: Strengthening supervision and regulation within financial markets.
- Executive Program: A cultural collaboration between the ministries of culture from both nations, aimed at completing initiatives by 2025.
Additional agreements were also signed between the Iraqi Books and Documentation House and its Egyptian counterpart, along with accords related to communications, information technology, and the construction and maintenance of agricultural storage facilities, in partnership with the respective Chambers of Commerce.
Regulatory and Legislative Insights
Mazhar Mohamed Saleh, President of the Iraqi Cabinet, noted that these memoranda do not require parliamentary approval as they fall under the exclusive domain of the executive authority. This development is not governed by the Law of Agreements and Treaties No. 35 of 2015, which mandates a vote from the House of Representatives.
Saleh emphasized that these agreements are pivotal for fostering robust bilateral relations, positioning Egypt and Iraq as key players in the Middle East and the Arab world. He asserted that Iraq could greatly benefit from Egypt’s experience and stability, cementing the two nations as essential partners in regional economic dynamics.
Economic Implications and Future Prospects
Economist Amer Al-Jawahiri stressed that the successful execution of these MoUs greatly depends on the commitment of both nations to follow through with practical implementation. He highlighted the importance of establishing clear mechanisms to facilitate cooperation between Iraqi and Egyptian companies, encouraging investments in infrastructural and service projects funded by Iraq.
Al-Jawahiri also pointed out that the attractiveness of direct and indirect investments from Egypt to Iraq should be balanced with a realistic understanding of the economic challenges facing Egypt, particularly in financing joint initiatives. He underscored the necessity of creating viable links between businesses in both countries to effectively address and meet mutual needs.
Political Dimensions and Regional Context
Saadoun Al-Saadi, a professor of international relations, indicated that the visit of the Egyptian Prime Minister to Iraq was not solely focused on economic issues but also discussed significant political matters, especially in light of current regional tensions. The discussions encompassed the implications of U.S. policy in the region and coordinated efforts against external pressures.
Moreover, preparations for the upcoming Summit Conference in Baghdad next June were also on the agenda, highlighting ongoing diplomatic engagement amidst broader geopolitical challenges.
Through these comprehensive agreements and dialogue, both Iraq and Egypt seek to reinforce their strategic partnership, paving the way for sustainable development and collaborative growth in the region.