Prepared for publication by: Suad Al-Shammari

Highlights from the second session – “Investment, Renewable Energy, and Finance Conference”.

–          Dr. Saad Naji: The Investment Conference represents a promising start for establishing ambitious partnerships that overcome challenges through practical steps translated into the Iraq Investment Forum.

–          Dr. Saad Naji: Iraq’s infrastructure has witnessed qualitative changes, successive achievements, and significant attention by Mr. Al-Sudani’s government.

–          Al-Baghdadi: Inflation rates in Iraq have dropped to 3.5%, and forecasts indicate a possible decline to less than 3% by 2028.

–          Al-Baghdadi: The Iraqi government has provided support for 126 strategic project opportunities with profits exceeding $30 billion.

–          Al-Baghdadi: With efforts of the Iraqi government, the security situation has become an attractive environment for business, stability, and investment.

–          Al-Shammari: The National Bank of Iraq’s partnership with Capital Bank contributed to an increase in the bank’s profits from 253 to 3.5 trillion Iraqi dinars in 2024.

–          Taha Mansour: Iraq now has more than 10-15 sites of wind energy projects across various Iraqi governorates.

–          Taha Mansour: The Ministry of Electricity has concluded agreements with major companies such as Total, ACWA Power, and Gulf Power to improve service across various Iraqi cities.

–          Al-Darraji: The Iraqi government has established the “Carbon Economics Company” as an executive arm for building and trading with carbon bonds.

–          Al-Darraji: The Central Bank of Iraq will support local investors with repayments in local currency, and the Commercial Bank and the Central Bank will handle the conversion process into the loan currency.

–          Al-Darraji: We have signed agreements with the United Kingdom with a loan ceiling of one billion pounds, and the same ceiling with France, Germany, Italy, and Spain.

–          Taha Mansour: We hope to reach 12,000 megawatts by 2030, and this is a significant plan by all standards.

–          Taha Mansour: The Iraqi Electricity Ministry has initiated an investment project to produce energy from waste treatment at a rate of 3,000 tons per day.

–          Al-Jayousi: We have exceeded some targets in terms of green financing, with financing exceeding 70% and 75% of the project value.

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When free arms unite, when a unique will fuses, minds combine, the impossible vanishes, and the results of hard work yield a promising reality and dazzling pragmatic equations that find a nurturing environment for achievement, blessing every promising idea.

The “Investment, Renewable Energy, and Finance – Towards a Sustainable Digital Future” conference was held on Sunday, February 16^th, 2025, at the Royal Hotel in Amman under the patronage of H.E. Prime Minister Dr. Jaafar Hassan,

The conference was held in partnership and cooperation with the Jordan and Amman Chambers of Industry, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), both affiliated with the World Bank Group, and in cooperation with the Jordan Investment Association, Jordanian Information Technology Companies (INTAJ) participated, along with Their Excellencies the Ministers from Iraq and Jordan, and a group of experts, investors, and decision-makers in vital economic sectors, who contributed to enriching the discussions on investment prospects and sustainable development and enhancing economic cooperation and integration between Iraq and Jordan.

The vital results, with rich proposals, served as a bright space that harnessed all their potential, capabilities, and purely Iraqi ideas to contribute to formulating strategic policies that make a difference, melting and encroaching on all sectors of life that are gradually emerging in Iraq today.

From agriculture to industry, technology, construction, investment, and energy, all of these are stations that compete with one another and outperform each other in refining a pure, productive image produced by the raw materials of fruitful partnerships, proving themselves worthily and struggling above the pyramid of challenges.

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In light of the second session of the “Investment and Renewable Energy Conference” and the rich discussions it presented, which varied among its distinguished guests and were titled:

Carbon Bonds and Investment Opportunities in the Renewable Energy Sector in Iraq.

–          Session Moderator: H.E. Dr. Saad Naji / Vice President of the Iraqi Business Council.

–          H E. Mr. Ibrahim Al-Baghdadi / Chairman of the Iraqi Economic Council.

–          H.E Dr. Haider Al-Darraji / Advisor to the Deputy Speaker of Parliament.

–          Dr. Taha Mansour / Representative of the Iraqi Ministry of Electricity – Renewable Energy Center.

–           The Role of Banks, Their Services, and Financing Mechanisms for Investment Projects.

–          Mr. Aws Al Shammari / Deputy Managing Director – National Bank of Iraq.

–          Mr. Zuhdi Al Jayyousi / Head of Business Development – Jordan-Kuwait Bank.

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Iraq Investment Forum.. promising opportunities and challenges outpacing the impossible.

–          H.E. Dr. Saad Naji: I welcome all distinguished guests and note that this session represents an exceptional beginning, the finalization of which will be followed by practical steps at the “Iraq Investment Forum”, scheduled to be held in Baghdad and organized by the Iraqi Economic Council. This Forum will be dedicated to major investment opportunities presented by the Iraqi Prime Minister.

–          Dr. Saad Naji: Mr. Ibrahim Al-Baghdadi is an influential economic figure in Iraq, well-known for his influential and effective economic activities. How do you view the impact of this conference today and the extension of its proposals to continue constructive work in light of the real launch from Baghdad?

–          Mr. Ibrahim Al-Baghdadi: With the passage of years, there has been an urgent need to strengthen cooperation and meet market needs by creating the best opportunities for cooperation. This was evident in Iraq’s hosting of the “Iraq Investment Forum”, which will be held in Baghdad in April. The Forum will address the requirements of the international and regional investment agenda by presenting investment opportunities, with the support of Prime Minister Mr. Mohammed Al-Sudani. These opportunities include 126 opportunities that will generate profits exceeding $30 billion, most of which are strategic projects ranging from large to medium-sized across all sectors.

The relationship between Iraq and Jordan at the diplomatic, political, and security levels is a very fruitful and interactive one, while the economic relationship has not risen to the level of aspiration and has not been in line with the long history that connects the two countries. While the impact of the security aspect may have created a gap in the possibility of economic interaction, the Iraqi security landscape, with the efforts of the Iraqi government, has become stable and has created an attractive environment for work, stability, and investment.

Iraqi economic indicators.. and promising data on the results.

• Dr. Saad Naji: Mr. Ibrahim, what do you think are the economic factors that could contribute to Iraq’s position as a good investment destination or achieve significant economic positions?

• Al-Baghdadi: Over the past two years, Iraq has achieved significant economic strides, ranking fourth among the top ten emerging market countries achieving economic growth in foreign investment. Iraq’s Foreign Direct Investment Index (FDI) score was 86 out of 100, and its Gross Domestic Product (GDP) reached 2.9%.

The International Monetary Fund’s (IMF) data, which contributed to Iraq’s ranking as the fourth fastest-growing Arab economy in 2025, included a decline in the annual inflation rate and a 28% growth rate in capital expenditures for foreign direct investment, a significant leap. FDI growth reached 73%, then escalated to 95% from 2021 – 2023, exceeding the number of housing units signed in residential city projects over the past two and a half years by approximately one million housing units.

The Energy Sector.. Iraq’s Gateway to Renewable Energy.

• Dr. Saad Naji: Mr. Ibrahim, in the energy sector and Iraq’s leadership in this field, given that it ranks as fifth globally in oil reserves, how do you view Iraq’s role today and its potential to achieve tangible progress in leading this field?

• Al-Baghdadi: Iraq ranks fifth globally in total global reserves, representing 8% of the world’s reserves. It also represents 12% of oil reserves and 17% of proven reserves in the Middle East.

According to the latest estimates, proven oil reserves reached approximately 145 billion by the end of 2023, and Iraq aims to increase them to 160 billion by 2027. The plan is to export 7-8 million by 2028. This represents a major achievement toward achieving leadership and activating various investment opportunities.

Electricity Power Projects… a qualitative leap achieved by Iraq.

• Dr. Saad Naji: Iraq’s agreements on electricity. In your opinion, can they achieve significant strategic solvency for this sector, which has faced stumbling blocks in recent years?

• Al-Baghdadi: Of course, there is no doubt, especially since Iraq has agreed with the United Kingdom to equip the project linking the Iraqi and Saudi grids with equipment worth 1.5 billion, as well as subsidiary equipment worth approximately $100 million allocated for the electricity generation project in Baghdad. Work has also been underway on a waste recycling project and a partnership has been signed in cooperation with a Chinese company. Several investment offers will also be presented at the upcoming forum by other international companies specializing in energy generation from waste recycling.

What is also encouraging and promising about this topic is that the National Investment Commission granted more than 31 licenses for strategic and large projects during the past year, totaling to $63 billion in the energy, residential, and industrial sectors, among others. Investment licenses have also been granted for major residential cities, similar to Bismayah City, such as the Al-Jawahiri Residential City with 40,000 units, the Ali Al-Wardi City with 120,000 units, the Al-Ghazlani City in Nineveh Governorate with 22,000 units, the Karbala River Banks City with 40,000 units, and finally the Al-Janayin City in Babylon with 25,000 housing units.

Baghdad Metro.. the first rain drops in a journey of stalled projects.

–          Dr. Saad Naji: The Iraqi government, represented by its Prime Minister, Mr. Mohammed Shia al-Sudani, and its efforts towards activating strategic service projects; how do you evaluate these efforts and their impact on the immediate reality?

–          Al-Baghdadi: Indeed, the Iraqi government’s efforts are commendable, as it has begun to complete the requirements of 10 strategic projects that had been stalled for many years, including the Baghdad Metro project.

As for improving the investment environment, work has begun to encourage Arab and foreign investment, based on a prior path confirmed by the strategy of the Republic of Iraq’s accession to the 1958 New York Convention on the Recognition of International Arbitration, followed by Iraq’s accession to the Singapore Convention on International Mediation and the conclusion of agreements for the promotion and protection of investment with a number of countries. All these agreements have given Iraq the green light to move forward and implement a secure investment formula with other countries.

Strategic development projects.. enhancing the Iraqi infrastructure.

–          Dr. Saad Naji: It is noticeable that Iraq’s infrastructure has witnessed significant changes, successive achievements, and significant attention from Mr. Al-Sudani’s government. In your opinion, what is the extent of tangible change regarding infrastructure projects currently?

–          Al-Baghdadi: There has been a significant and rapid variation over the past two years. Iraq has witnessed a qualitative shift that may equal or exceed what has been accomplished over the past twenty years. Baghdad and the governorates today represent a major workshop across all sectors. Iraq’s launch of the “Strategic Development Corridor Project”, also known as the “Great Development Road”, is considered one of the most prominent projects launched by the Iraqi government. It is an ambitious project linking the port of Faw with Turkey, and from there to Europe via a network of highways and railways, in addition to launching a campaign to establish infrastructure projects in several sectors.

Baghdad.. the Capital of Arab Tourism.. an opportunity and a deserved entitlement.

–          Dr. Saad Naji: Choosing Baghdad as the Capital of Arab Tourism.. how do we perceive the challenges and obstacles facing Iraq today to qualify it to fulfill this title and maintain this achievement?

–          Al-Baghdadi: It is no secret to everyone that choosing Iraq as the Arab Tourism Capital has posed a real challenge that requires it to live up to this title and achieve it with merit. From this standpoint, Baghdad witnessed the launch of the first package of strategic tourism projects, headed by 126 investment opportunities divided according to packages for different sectors. In the energy sector, 26 investment opportunities will be presented in 14 governorates; 12 opportunities for wind power plants with a capacity of 1,450 megawatts, 8 opportunities for solar power plants with a capacity of 805 megawatts, 7 investment opportunities for waste-to-energy plants with a capacity of 800 megawatts in the oil sector, and a new opportunity for an oil station in Wasit Governorate. The projects also included the inclusion of the heavy and medium industries sector with 22 investment opportunities in 10 governorates; 4 opportunities for chemical and petrochemical industries, 5 opportunities for transformational and construction industries, 13 opportunities for medium, food and pharmaceutical industries, and one opportunity for heavy industries and gas.

In the industrial cities and free zones sector, there are eight opportunities in eight governorates: three opportunities for establishing economic cities, one opportunity for establishing a city in Diwaniyah, and four opportunities as free zones distributed across Anbar, Basra, and Nineveh.

Iraqi Agriculture.. vital opportunities to compensate for deficits.

• Dr. Saad Naji: Will the agricultural and livestock sector receive priority in the forum’s agenda, given the growing and urgent need for this vital sector?

• Al-Baghdadi: Certainly, in this sector, 10 opportunities will be presented in five governorates, four of which will cover livestock production projects in Diwaniyah Governorate, and six agricultural investment opportunities in five other governorates.

In the health sector, there are 11 investment opportunities that will be presented in the forum’s agenda. They will be offered in seven governorates: four of which are opportunities for specialized hospitals, five opportunities for building a university hospital, one opportunity for establishing a specialized surgical hospital, and one opportunity in Basra to build an integrated specialized medical center.

In the field of transportation and ports, there are investment papers related to the construction of a suspended train between Karbala and Najaf and an opportunity to establish a civilian airport, which is the Diwaniyah Airport.

Within the framework of sports and youth sector, eight opportunities will be presented; two for a sports complex, one for a sports city, three for sports facilities, and one for a sports stadium.

In the communications sector, several strategic projects will be presented by the Ministry of Communications, the most important of which is investment in the optical cable extending from northern Iraq to Al-Faw, an opportunity to invest in the Iraqi satellite, in addition to an opportunity to establish a cloud health center and a fiber optic project.

Renewable Energy.. Iraq’s keys to a green world.

–          Dr. Saad Naji: The question is addressed to Dr. Haider Al-Darraji, Advisor to the Deputy Speaker of Parliament and expert in financing against sovereign guarantees:

–          Dr. Haider, in your opinion, what is the mechanism for securing loans and investments through a sovereign government guarantee? Have carbon bonds been used in Iraq as a guarantee for investments other than the oil sector?

–          Dr. Haider Al-Darraji: The Iraqi government’s sovereign guarantee initiative is a promising initiative, occurring for the first time in the history of the Iraqi economy. The government contributes to covering loans granted to the Iraqi private sector to develop industry and agriculture with a sovereign guarantee issued by the Ministry of Finance. The Ministry of Finance has traditionally issued guarantees to cover the activities of any government sector, but this is the first time they have been issued to cover the private sector. They will provide a significant financial boost to local investors who wish to localize industries, especially those that rely primarily on raw materials, which are abundantly available in the country. Therefore, a high-level committee was formed from the Federal Ministry of Finance, the Ministry of Foreign Affairs, the Prime Minister’s Office, the Trade Bank of Iraq, and the Industrial Bank. The responsibilities of this committee were to open channels of communication and dialogue with guarantee organizations from foreign banks and convince them to finance Iraqi investors, the added value here is that the Central Bank of Iraq will assist local investors in the repayment process. All repayments will be in local currency, and the Commercial Bank and the Central Bank will convert them into the loan currency, whether in dollars, euros, or any other currency, to facilitate this initiative.

Multiple Agreements.. and attractive sovereign guarantees.

Dr. Haider Al-Darraji continues to discuss the effective practical formula that has been built on the ground. A number of important strategic agreements have been signed, including an agreement with the United Kingdom with a lending ceiling of up to one billion pounds, and an agreement with the Federal Republic of Germany with a lending ceiling of up to one billion euros. The same ceiling has also been achieved with France, Italy, and Spain. We are currently in the process of signing a number of agreements with Finland and the Czech Republic, and we also have understandings with China, but within specific lending limits that will not exceed $50 million.

The decision of the Iraqi Prime Minister to grant sovereign guarantees enabled us to finance 14 projects, the first of their kind in Iraq, by the private sector. These projects cover glass, pharmaceuticals, and medical supplies, as well as everything related to construction and building, chemicals, petrochemicals, renewable energy, food security, and agricultural projects.

In addition, we have agreements with major banks around the world, such as Commerzbank, Aka Bank, Standard Chartered, as well as Deutsche Bank, Santander, and Uni Credit. Most banks worldwide are now open to cooperation with Iraq, and this has prompted us to request the Prime Minister to allow a group of banks to operate in parallel with the Trade Bank of Iraq (TBI) as facilitating banks in Iraq.

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Will Iraqi oil become a green reality and sustainable growth?

• Dr. Saad Naji: As an oil-producing country, Iraq’s interests require increasing oil exports, and this may conflict with its commitments to the Paris Climate Agreement.

In your opinion, Doctor, can Iraq achieve a balanced strategy in the field of oil production and adhere to international climate agreements?

• Dr. Haider Al-Darraji: it is Iraq’s interest, as an oil-producing country, to increase oil exports, as this will strengthen our budget and domestic resources. However, at the same time, there are international obligations imposed by Iraq’s accession to the Paris Conference in 2021. Through this, we have begun serious work requiring Iraq to obtain grants, aid, and compensation for carbon reduction operations. I believe that Iraqi state institutions now have sufficient awareness to build the legislative, legal, and regulatory infrastructure to benefit from this. This has been demonstrated by the Iraqi Parliament, which is working to vote on the establishment of an independent authority; the “Renewable Energy Authority”, at the same time, the Central Bank of Iraq is contributing significantly to supporting the establishment of a “green bank” in Iraq. At the same time, the Iraqi government has begun establishing the State Company for Carbon Economics, this company will be the executive arm for any bond-building process, which means creating carbon bonds, trading them, and fulfilling Iraq’s commitments regarding reducing emissions, which are still within the natural ceiling.

Carbon Markets.. bright spaces between Iraq and Jordan.

• Dr. Haider Al-Darraji continues his discussion about Iraq’s investment in carbon markets, saying:

• Iraq has significant carbon resources that qualify it to create constructive partnerships with Jordanian expertise.  It is possible to invest and establish a regional carbon platform between Iraq and Jordan, or perhaps between Iraq and other countries, especially since there are understandings and dialogues with the carbon market in Saudi Arabia. However, I believe there is also a promising opportunity for it to serve as a link between Iraq and Jordan in this field.

Clean Energy.. localization in a green homeland.

• Dr. Saad Naji. The question is addressed to Dr. Taha Mansour, representative of the Iraqi Ministry of Electricity and an expert at the Ministry’s Renewable Energy Center:

In your view, Dr. Taha, what successes has the Ministry of Electricity achieved in localizing and transitioning to clean energy, and what opportunities are available to the private sector in this field?

• Dr. Taha Mansour: As Iraq strives to build on the successes achieved by the Ministry of Electricity and amidst the transition to clean energy, the Ministry’s projects and plans, under the patronage of Prime Minister Mohammed al-Sudani and with the keen interest shown by Electricity Minister Ziyad Ali Fadhil, are part of the implementation of a major plan to address all renewable energy sectors.

Given the level of ambition, the impossible is shattered and hopes are rising to reach 12,000 megawatts by 2030, which is a grand plan by all standards. Regarding today’s major projects, the Ministry of Electricity has concluded agreements with several major companies in this field. These are accredited companies with big names in this sector, such as the French company Total and the Saudi company ACWA Power, in addition to the Gulf Power Company, which invests in various locations in Iraq, in addition to projects owned in Iraq that will be implemented by an accredited company, namely the Chinese company Power Channel.

In addition, there are solar energy projects, and all related to wind-energy projects. We have begun planning and studying investment in this sector. With technological advancements, wind turbine technology has become capable of simulating even low speeds. Iraq now has more than 10 to 15 sites across various governorates for investment in wind energy.

Also, regarding waste-to-energy projects, the National Investment Commission recently announced an investment opportunity in Nahrawan area in ​​Baghdad, which will be the first of its kind in Iraq, producing electricity from waste treatment at a rate of 3,000 tons per day.

Banks and financial institutions.. a pivotal role in financing policies.

• Dr. Saad Naji: In light of the urgent need to finance giant projects that are pivotal to Iraq’s development, which circle in the orbit of Iraq’s development, comes the role of banks active in this field. The question here is addressed to Mr. Aws Al-Shammari, Deputy Managing Director of the National Bank of Iraq and an expert in digital transformation strategies and innovations in public and private institutions.

–          Mr. Aws, according to your available work mechanism, what are the transformation and innovation strategies in private sector institutions and banks in Iraq? What are the most important projects funded by the National Bank in this field?

• Mr. Aws Al-Shammari: The National Bank of Iraq was one of the first banks to obtain a license as a private Iraqi bank in 1995. In 2005, a strategic turning point was added to the National Bank of Iraq’s strategy after the entry of an international partner, the Capital Bank.

This strategic partnership gave us a strength factor, with the diversity of expertise and technological services that contributed to the international expansion of banking services. This led to an increase in the National Bank of Iraq’s profits, which approached 253 billion Iraqi dinars in 2024. This was a high percentage, given the volume of deposits, which reached 3.5 trillion Iraqi dinars. The National Bank of Iraq’s capital currently stands at 400 billion dinars, and we have a plan in the coming months to increase it to 520 billion Iraqi dinars.

Jordan-Kuwait Bank.. a Pioneering journey in the field of green finance.

• Dr. Saad Naji: Regarding Jordan-Kuwait Bank’s journey in green financing, we host Mr. Zuhdi Jayyousi, Head of Business Development Department at the bank.

Today, we inquire how Jordan-Kuwait Bank has supported renewable energy projects and what is the bank’s business development strategy?           

• Mr. Zuhdi Jayyusi: We certainly touch upon discussing the early days of Jordan-Kuwait Bank’s journey in green financing, which began in 2014. Jordan-Kuwait Bank was a pioneer in financing multiple projects in renewable energy, energy efficiency, water projects, and wastewater projects. We have been able to finance projects worth more than $250 million.

The bank has proven its ability to meet many sustainability requirements, including financing terms that are aligned with the needs of sustainable energy projects. Crossing certain thresholds means financing has increased to 70% and 75% of the project value.

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New opportunities and aspirations.. to keep up with the critical phase.

The second session of the “Investment and Renewable Energy Conference”, hosted by the Iraqi Business Council, undertook to raise important points that opened promising horizons and innovative financing methods, with the participation of international banks and financing institutions capable of overcoming obstacles facing participants. Their determination crystallized an effective partnership between Iraq and Jordan, harnessing constructive energies and combining expertise to take advantage of all available opportunities. The “Iraqi Investment Forum”, which will be highlighted at the Rashid Hotel in Baghdad on April 10^th and 11^th, will serve as a solid foundation for entering in the midst of an inspirational strategic partnership.

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In conclusion, it is evident that Iraq is in the midst of a giant dynamic workshop rich with construction and achievements..  amidst a challenging energy that smelts potentials, which compete and melt with love, and a desire to harness its capabilities in service of its enthusiastic people, with the government’s relentless endeavors to embrace the efforts of the Iraqi private sector, which represents a bright spot brimming with diversity.. digging the way out of the dark tunnel to an abundance of achievements, as the people and the government are true partners in the homeland.. considering the Iraqi government’s efforts to lead the scene with hard work, enabling it to compete strongly in fields of quality and keeping pace, racing the wheel of modernity, so that Iraq can occupy advanced positions, regaining its effective role and its usual leadership as the best destination for work, excellence, and investment.