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Iraq's Accession To International Financial Institutions Enhances Economic Development Opportunities.
Economic 07/20/2025 Baghdad: Economic Morning As part of its efforts to strengthen its financial presence on the international stage and diversify funding sources for its service and construction projects, Iraq has taken a significant step by joining two of the most prominent multilateral financial institutions: the European Bank for Reconstruction and Development and the Asian Infrastructure Investment Bank.
Although the direct repercussions of this step are still in the developmental stage,economists see it as a prelude to attracting long-term financing, bolstering development efforts in vital sectors such as energy,
infrastructure, and transportation, and opening the doors to international partnerships for Iraq in the post-crisis phase.
Projects And Bridges
Economic expert Dr. Majid Al-Baydani explained to Al-Sabah regarding Iraq’s accession to the Asian Development Bank:
“The projects currently underway in Baghdad, such as bridges and others, have no connection to the Asian Development Bank’s projects, as their funds are allocated by the state in the project budget according to the investment portion of the budget.
The Asian Development Bank has no role in implementing or establishing the aforementioned projects,
as the contractor may be Chinese, the implementing company may be Chinese, or another international nationality.”
He added, "The implementation of projects by the Asian Development Bank is subject to certain conditions, including that the bank selects the implementing companies, along with their own mechanisms and engineering efforts, unlike what some might imagine.
Furthermore, the bank's projects are implemented through loans from the bank and on its own terms."
Long Term
Economic expert Ahmed Makalaf believes that “there has not yet been any direct benefit from Iraq’s joining the Asian Infrastructure Investment Bank.
Rather, the benefit is long-term, not immediate.
The real benefit is in giving Iraq an international standing and a good reputation from an economic perspective.”
“The development road will be a gateway for the Asian Development Bank to enter Iraq with projects,”
the official added in an interview with Al-Sabah.
“It is likely that the country will borrow from the bank to implement projects related to the road, and will likely build cooperation through this bank in financing parts of the activity for major projects related to the development road, contributing to strengthening the economy within the international environment and building strong international relations in the future.”
Membership Shares
For his part, Dr. Mazhar Mohammed Saleh, Advisor to the Prime Minister, stated that as far as the distribution of capital among the participating countries in the Asian Infrastructure Investment Bank is concerned, the bank's total capital amounts to $100 billion, with 20% allocated as paid-in capital and the remainder as callable capital.
Each country is obligated to contribute its share of the paid-in capital upon joining. He added:
Sustainable Development
"The Asian Infrastructure Investment Bank (AIIB) is an international institution that aims to support infrastructure projects and sustainable development in Asia and beyond.
The bank, headquartered in Beijing, provides concessional loans to finance infrastructure projects for member countries. This accession is a strategic step for Iraq to advance its development projects in areas such as transportation, energy, and water."
European Bank
Regarding the benefits of Iraq joining the European Bank, Saleh said:
“There is a positive correlation between building a development strategy, which is embodied today by the government’s philosophy of launching a development initiative with comprehensive sectoral economic links, called the “Development Road” project, which is the corridor and strategic project that links the European Union countries with Asia via Iraq and the Gulf maritime corridors and vice versa, on the one hand,
and the requirements for implementing the various stages of the development road through the role that Iraq’s membership in the European Bank for Reconstruction and Development occupies, on the other hand, especially in terms of the advantages of obtaining European technology and ensuring the role of companies from European Union countries in implementing the development road in all its aspects, whether in infrastructure, industrial production projects, or various logistical services.”
https://alsabaah.iq/117657-.html
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