Economy News – Baghdad
On Thursday, Prime Minister Mohammed Shaya Al-Sudani announced a series of initiatives aimed at bolstering small and medium-sized enterprises (SMEs) in Iraq. A key element of this initiative includes providing these companies with financial incentives such as loans and banking facilities.
The Prime Minister’s Media Office conveyed that these measures align with the government’s commitment to administrative and financial reform, as outlined in its official agenda. As part of Al-Sudani’s vision to streamline banking processes and enhance electronic payment systems, the initiatives will encompass improvements in the registration procedures for companies, thereby fostering a conducive business environment and supporting economic development, particularly for SMEs.
According to the statement, Al-Sudani has tasked the Baghdad Chamber of Commerce, the Federation of Chambers of Commerce, and the Iraqi Industries Union with simplifying processes in collaboration with relevant authorities. This project aims to automate business functions and achieve digital transformation within a six-month timeline to enhance the efficiency of company registration and the implementation of electronic payment systems.
The Prime Minister further emphasized the need for expediting contract ratification for small and medium-sized enterprises by allowing a confirmation letter from notaries and ensuring these contracts are approved without undue delays.
Among the directives is a proposal to establish a notary office within the Baghdad Chamber of Commerce to facilitate company establishment and streamline necessary procedures.
In his directives, Al-Sudani underscored the requirement for company owners to open a bank account with an authorized Iraqi bank, with support from the Baghdad Chamber of Commerce. This step will serve as a prerequisite for completing registration processes and obtaining the company identity and establishment certificate.
The Prime Minister highlighted the importance of integrating electronic transactions and digital payment systems into the new business landscape. Coordination with the Central Bank of Iraq is also essential to facilitate banking procedures for SMEs, which includes providing accessible opening accounts for companies.
Al-Sudani further directed that the Central Bank of Iraq should collaborate with banks to ensure the availability of various banking facilities and financial incentives for businesses, including loans, banking services, and the promotion of electronic transfers, thus fostering the adoption of digital financial solutions.
As part of this initiative, the Prime Minister called for a robust media campaign to educate the public and investors about the new registration processes, the benefits of digital transformation, and the available banking opportunities.
Concluding his directives, Al-Sudani proposed the formation of a specialized committee tasked with monitoring the implementation of these procedures and providing periodic reports on progress achieved in executing these recommendations.
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