HOT: Gulf States Invest $Billions In Iraq To Counter Iran Influences.

[Luigi1]

Here are numerous articles of Dinarian interests...

Gulf States Invest $Billions in Iraq to counter Iran influences.

Treat as rumors.  Not verified.  Your opine.

 

 

 

 

Bondlady’s Corner:                            Is The Economic Feasibility? An American Website Monitors The Flow Of Billions Of Gulf Dollars Towards Iraq.

ARTICLE:   Highlighted the trend of Gulf funds towards investing in various Iraqi sectors during the past two years, indicating that this trend raises many questions about its economic feasibility.  The website mentioned in a report seen by Shafaq News Agency:

 

Gulf capital has been going to Iraq at an accelerated pace over the past two years, which reflects the attractiveness of Baghdad as a new investment destination for the Gulf Cooperation Council countries.

 

After decades in which Iraq suffered from the scourge of wars & internal violence, Saudi Arabia, Qatar & the UAE entered forcefully through massive economic investments in a country where Iran was able to gain a foothold after the fall of Saddam Hussein’s regime in 2003.

 

Last Friday, the Iraqi Ministry of Planning announced the signing of 12 memorandums of understanding with Saudi Arabia for “specific investment projects,” according to a statement received by Shafaq News Agency.

 

The ministry said that the signed memorandums of understanding “came with the aim of enhancing cooperation in a number of qualitative investment projects in Iraq.”

 

Financial & Political Returns.

But this great Gulf demand for Iraq opens the door to questions about the economic feasibility of these huge investments in a country that has suffered from political and security instability over the past years.

 

Analysts who spoke to the Al-Hurra channel website believe that Iraq has promising investment opportunities that enable the GCC countries to achieve financial and political returns from these projects that flowed in various fields.

Middle East Policy Research Fellow at the International Institute for Strategic Studies, Hassan Al-Hassan, told Al-Hurra website that.

 

 

“Gulf countries often use investments as a tool to achieve financial & political returns at the same time.”

He added, “Through their increasing investments in the energy and real estate sectors in Iraq, the Gulf states are seeking to benefit economically from the developing Iraqi market & expand their influence in Baghdad to compete with Iranian influence.”

 

The Iraqi government is looking forward to attracting more investments from countries in the region with the aim of treating the country’s economy, which has been damaged by decades of wars and unrest, according to Reuters.

 

In this context, Ihsan Al-Shammari, professor of public policy at the University of Baghdad, said that “Iraq is a fertile land for foreign investment,” especially in light of a significant decline in the investment sector, which was affected by several factors, including security unrest, internal violence & the war against ISIS, according to the report. His expression.

 

 

Billion investments:

In 2022, the Saudi Arabia sovereign wealth fund announced the establishment of a new company with a capital of $3 billion to invest in Iraq, which is part of a Saudi program to invest in 5 Arab countries.

 

These investments cover various fields, including infrastructure, mining, agriculture, real estate development & financial services.

 

The UAE, which recently strengthened its investments in Iraq, said that it is “keen” to strengthen its strategic partnerships with Baghdad “in all fields.”

 

Thani Al-Zeyoudi, who holds the position of Minister of State for Foreign Trade in the Emirates, said: “There is a mutual keenness to develop economic relations in a way that serves common interests & provides more opportunities for the business communities & the private sector in both the Emirates & Iraq, which was reflected positively in the trade data.” Non-oil infrastructure & mutual investment flows,” the official Emirates News Agency (WAM) reported.

 

In 2021, Abu Dhabi announced the pumping of investments worth $3 billion into Iraq as part of “a new effort to strengthen economic & investment relations between the two brotherly countries,” according to a joint statement issued by the two countries.

 

 

For its part, Qatari funds flowed into Iraq after a visit by the Emir of the country, Sheikh Tamim bin Hamad Al Thani, to Baghdad in June 2023.

Hours after that trip, 3 Qatari companies and the Iraqi National Investment Authority agreed to develop projects worth $9.5 billion in Iraq, including building two electricity generating plants with a total capacity of 2,400 megawatts, according to Reuters.

 

In July 2023, Qatar entered into a huge deal launched by Iraq with Total Energy Company, worth $10 billion, in a project aimed at generating electricity from solar energy & gas burned in oil fields.

 

Visiting fellow at the European Council on Foreign Relations, Hamza Haddad, who follows Gulf investments in Baghdad, believes that there is “political acceptance” on both sides to pump this money.

 

Haddad told Al-Hurra website that the Gulf countries, for their part, finally accepted the idea of the Iraqi Shiite political system that was formed after 2003, adding that “the Sunnis and Kurds (inside the country) also accepted that and are dealing with it.”  He explained that

these factors contributed to achieving internal security stability in Iraq, which reflected on it as an attractive destination for Gulf investments, especially since the country has a large population.

 

Competition with Iran:

Iraq suffers from dilapidated basic infrastructure and rampant corruption throughout the country, which has a population of 43 million people, a large segment of whom live below the poverty line.

 

Iraq is ranked 154th among 180 countries suffering from corruption in the world during the year 2023, after advancing 6 places compared to 2022, according to a report issued annually by Transparency International.

 

According to the United Nations, a third of Iraqis live below the poverty line despite their country’s large oil resources, which have membership in the Organization of the Petroleum Exporting Countries (OPEC).

 

In this regard, the Saudi writer and political analyst, Saad Al-Hamid, said, “The influx of Gulf capital into Iraq came after suffering from the interference of neighboring countries inside Iraq, which affected the economic & development situation there.” He continued his speech to the Al-Hurra website that “any economic success must come through a stable political situation,” noting that “in light of the relative stability in Iraq now, there are many qualitative opportunities that benefit from Saudi Arabia & the Gulf Cooperation Council countries.”

 

 

 

Goldilocks:                    Comments & Global Economics. 

ARTICLE:   “Credit valuation adjustment is a change to the market value of derivative instruments to account for counter party credit risk.  It represents the discount to the standard derivative value that a buyer would offer after taking into account the possibility of a counter party’s default.”

With so many companies & countries going into bankruptcy these days, I have to look at credit valuation adjustments in order to make some of my trades.

 

Foreign currency is a part of the Derivatives Market. I will know when these actual changes take place. Risk.

 

 

 

 

Goldilocks:                     “This bank, on behalf of the Ministry of Finance, will offer bonds under the name ( Injaz Bonds ) to the public starting from 4/15/2024 until 5 / 15 / 2024”

ARTICLE:   Public bonds help to build the infrastructure of a country’s businesses, and they go a long way in supporting a country’s currency.  Getting public involvement in increasing the value of their own currency will help Iraq maintain a sustainable economy going forward.

 

Public bonds like these help to establish & secure a country’s Sovereignty. This is a part of the process of Iraq reclassifying their currency.  Not long ago the CBI revealed to us that it would begin March 31st, 2024.

 

They said it would be a gradual change.  I copied the article for your review again on this matter.  “Based on the of the Board of Directors of this Bank number (191) of 2003 it was decided to give the mediation companies buying & selling foreign currencies under category (C) a period of time to merge to be classified as (A) or (b) until 3-31-24.”   

 

 

 

Goldilocks:                     “The HKMA has been researching CBDCs since 2017 to understand their benefits & potential applications.  As part of the “Fintech 2025” strategy announced in 2021, the HKMA has placed increased emphasis on strengthening its research work to increase Hong Kong’s readiness in issuing CBDCs at both wholesale & retail levels.”

ARTICLE:  Hong Kong is currently exploring industry standards for their digital money. They are currently on Phase 2 of HKMA’s e-HKD testing initiative.

 

Currently, Hong Kong is in process of developing standards on their ability to exchange information through smart contract designs.  A smart contract ensures money is available on both sides of a trade.

 

These new mechanisms & protocols include sensitive & private information that needs to be protected on the retail side of a transaction.  

 

 

[Luigi1]

Here's a little humor while we wait & wait...now wait a minute here...last week MZ claimed we will go directly to banks to do our exchanges...there are no redemption centers...which is it...it cant be both...

 

 

 

Some highlights by PDK-Not verbatim:

THREAD:

 

Member: Evening Mark & the gang!

Member: good Tuesday Evening…hope everyone had a good day.

Member: I know something that would have made it a really good day…lol….Whats new MarkZ?

MZ: Been quiet on the RV front…quiet from Banks, bonds, Iraq & redemption centers.

MZ: I do have one Iraqi contact that is convinced we are in a day or two. I think he may be premature…but he is convinced it is this week. He does work in the Iraqi government so he may know more than I do. I am hoping he does.

MZ : But  I am keeping an eye on it.

MZ: Bond folks are still looking between the 15th-22nd of April.

MZ: There is some interesting news from Zimbabwe.”Zimbabwe’s new ZIG currency strengthens on the 2nd day of trading. “ It gained .2% overnight . It is gaining strength….& it should being gold/asset backed.

MZ: “The US dollar is doomed-Americans praise Zimbabwe for launching new gold backed currency”  This is from an African publication…..& they are talking about Americans on social media. But yes- the US dollar is doomed without changes. And many economists believe this too.

MZ: “ Oil Market to get extremely tight in 2nd quarter Citadel says”  They are looking for oil to go to $100 dollars a barrel. Now why is this a good thing ?  Iraq. …It is good for the revaluation of the dinar. But we will all feel pain at the gas pump if they do not cross the finish line.

Member: How much more can kicking will it take before they release this thing?

Member: Charlie Ward has always said a Thursday, so cross those fingers for the 11th.

Member: Gotta remember everyone, we’re watching one Hell of a movie! Wish it was over with. I’m tired of this popcorn.

Member: Lord, we are so weary, strengthen our resolve to help make this the world you wanted for us! Lift us up & bless your faithful to go out & be beautiful examples of unconditional LOVE! We are ready!!

[NWGUY]

MZ: Been quiet on the RV front…quiet from Banks, bonds, Iraq & redemption centers.

 

 

I understand it is quiet on the RV front...we are living it, but why at the redemption centers?  I thought we are almost there!   Those redemption centers have to be humming!  I am beginning to not believe little Markie!   

[BETTYBOOP]

@NWGUY... behave !! when did we ever believe Little markie?!

Edited April 10 by BETTYBOOP

[NWGUY]

1 minute ago, BETTYBOOP said:

@NWGUY... behave !! when dis we ever believe Little markie?!

 

Kap opened up mind mind to things I haven't thought about.  Maybe little Markie is Frankie's split personality!   

[BETTYBOOP]

@NWGUY.... come here child !!! You need some therapy!!!!😅

[NWGUY]

16 minutes ago, BETTYBOOP said:

@NWGUY.... come here child !!! You need some therapy!!!!😅

 

I have been told that before...Not by Frankie or Little Markie, but definitely a possibility!  

[BETTYBOOP]

Possibility!!!???? your lack of insight is astounding? Possibility???

Edited April 10 by BETTYBOOP

[BETTYBOOP]

4 minutes ago, NWGUY said:

 

I have been told that before...Not by Frankie or Little Markie, but definitely a possibility!  

Possibility!!!???

[NWGUY]

2 minutes ago, BETTYBOOP said:

Possibility!!!???

 

No I am actually fairly sane!  This investment has started to drive me over the edge!  

[BETTYBOOP]

@NWGUY... hello! Psych nurse here.. I annalise  everybody's posts. Tells me lots about people..... trust me you are like me, nuttier than a fruit cake dear.

[NWGUY]

I was afraid someone would figure that out!  

[Luigi1]

Here's another article related to the above...Iraq has a plan to pay off it's international debts...

 

Tlm724 Administrator Bondlady’s Corner:         Liquidating Iraq's Foreign Debts.

ARTICLE: Following The “Golden Rule”… A Government Advisor Explains How Iraq Can Liquidate Its Foreign Debts.  A government advisor explained how Iraq will liquidate & reduce its foreign loans & debts.

 

 

The financial advisor to the PM, Mazhar Muhammad Saleh, told Al-Furat News Agency,
“A positive indicator of the decline in external obligations & foreign loans in the future will be limited when needed to projects that generate income & employ work.”

 

He stated, “Many of the committed and undrawn external debts have been liquidated,  which means that Iraq follows the {golden rule} in borrowing, which stipulates that the returns from using external loans spent on productive projects exceed the cost of the loan itself & this is what is called {productive external loans}”.

 

Government spokesman Bassem Al-Awadi announced yesterday that “the government took a series of executive measures & adopted a package of financial decisions that resulted in reducing the external public debt by more than 50%, bringing the debt down from $19.729 billion in late 2022, to $15.976 billion.” In 2023, reaching approximately $8.9 billion in the current year.”

 

He stated, “These financial steps, (which included stopping a number of borrowing operations due to their delay &  lack of productivity,  organizing & managing debts & auditing them &  restructuring some debts & directing them to create strategic projects), aim to prevent the Iraqi economy from mortgaging obligations that may affect, in the future, the   political decision.”

 

Or in the   path of national development, which coincides with an urban renaissance &  infrastructure reconstruction, which opens the way to a promising future & a revitalized economy, in which our current and future generations perform best & obtain the greatest opportunities.