Support for Small and Medium Enterprises in Iraq: New Directives from Prime Minister Muhammad Shia Al-Sudani
On Thursday, Prime Minister Muhammad Shia Al-Sudani introduced a series of initiatives aimed at bolstering small and medium-sized enterprises (SMEs) in Iraq. The primary focus of these directives includes the provision of financial support and incentives, encompassing loans and banking facilities tailored for these businesses.
The Prime Minister’s media office emphasized that these measures align with the government’s overarching strategy for administrative and financial reform, as outlined in the government’s curriculum. The Sudanese vision seeks to streamline administrative and banking processes, enhance electronic payment systems, and promote digital transactions across all government sectors. The ultimate goal is to cultivate a more conducive business environment, thereby facilitating the establishment and registration of companies, specifically those classified as small and medium-sized.
To implement these reforms, Al-Sudani has tasked key organizations—namely the Baghdad Chamber of Commerce, the Federation of Chambers of Commerce, and the Iraqi Industries Union—with expediting the process of automating business operations and advancing digital transformation within a six-month timeframe. This initiative aims to accelerate company registration and improve electronic payment capabilities.
Additionally, the Prime Minister directed that the process of ratifying contracts for SMEs be simplified. He has called for the issuance of confirmation documents from notaries to ensure that these contracts are approved promptly.
Among the directives is a proposal to establish a notary office within the Baghdad Chamber of Commerce. This office would provide necessary support for business incorporation and streamline essential procedures.
Moreover, Al-Sudani outlined that owners of enterprises must open a bank account with a licensed Iraqi bank, with support from the Baghdad Chamber of Commerce. This requirement is a critical component for completing the registration process and obtaining the necessary company identification and establishment certificate.
The Prime Minister further emphasized the importance of integrating electronic transactions and digital payment systems into the evolving business ecosystem. He urged coordination with the Central Bank of Iraq to facilitate account openings for small and medium enterprises by banks.
Additionally, Al-Sudani instructed engagement with the Central Bank to encourage financial institutions to offer banking facilities, including loans and electronic transfer options, to support SMEs. The promotion of digital payments and the adoption of innovative financial technologies were identified as essential components for economic growth in this sector.
To ensure stakeholder awareness of the new procedures, the Prime Minister called for a comprehensive media campaign that would inform citizens and investors about the registration process, the benefits of digital transformation, and the banking opportunities available.
Finally, the Prime Minister proposed the establishment of a specialized committee comprising relevant authorities to monitor the execution of these directives and prepare periodic reports on progress.
Through these initiatives, the Iraqi government aims to significantly enhance the support for small and medium enterprises, recognizing their vital role in driving the national economy forward.
