Gulf pledges $10.5b in Iraq aid, investments
NATIONS HELPING COUNTRY TO REBUILD AFTER WAR AGAINST DAESH
Gulf states led the way with pledges of $10.5 billion to help Iraq rebuild after the gruelling war against Daesh.
Dr. Anwar Mohammad Gargash, UAE Minister of State for Foreign Affairs, announced at the Kuwait conference the UAE’s decision to provide development aid worth $500 million (Dh1.83 billion), and $5.5 billion in investments to assist with international efforts to reconstruct Iraq.
Kuwait’s Emir said his nation will give $1 billion in loans and $1 billion in direct investments to help rebuild Iraq, a stunning donation given that only a generation ago Saddam Hussain had invaded the country. “This large assembly of international communities that are here today is reflective of the large loss that Iraq withstood in facing terrorism,” Kuwaiti Emir Shaikh Sabah Al Ahmad Al Sabah said.
Saudi Arabia’s foreign ministry said the kingdom was providing a $1 billion loan through its Saudi Fund for Development and $500 million in export credit. Qatar announced $1 billion in loans and investments. Gargash explained the UAE support includes $250 million via the Abu Dhabi Fund for Development for infrastructure projects, $100 million to help UAE electricity companies fund projects in Iraq, $100 million to support and promote UAE exports, as well as $50 million to support the humanitarian efforts of the Emirates Red Crescent.
He highlighted the efforts of the UAE’s private sector to reconstruct Iraq, notably a project to develop the Al Rasheed Camp, valued at $5 billion. He also noted DP World’s investment to develop the Umm Qasr Port, which is valued at $500 million, and other private sector projects.
Turkey said it would give Iraq $5 billion in credit lines while Germany said it would provide $350 million in assistance.
Iraq received billions of dollars in credit lines, loans, and investment from Turkey, Gulf Arab allies, Europe, and other countries, their representatives announced at an international conference in Kuwait yesterday. The UAE pledged $500 million (Dh1.83 billion) for rebuilding, and $5.5 billion in investments.
UAE Minister of State Dr Anwar Gargash said in a tweet that the “UAE will support the rebuilding of Iraq with $500 million, and [make] a $5.5 billion investment in the private sector for the Al Rasheed base and Umm Qasr port.”
Turkey said it would give Iraq $5 billion in credit lines.
Saudi Arabia’s foreign ministry said the country was providing a $1-billion loan through its Saudi Fund for Development and $500 million in export credit.
Qatar announced $1 billion in loans and investments.
Germany said it would provide $350 million in assistance.
Britain pledged up to $1 billion annually in export credit over 10 years and Japan said it would contribute $100 million this year to Iraq through UN agencies and international organisations.
Earlier yesterday, Kuwait’s Emir said his nation would give $1 billion in loans and $1 billion in direct investments to help rebuild Iraq, a stunning donation given that only a generation ago Saddam Hussain had invaded the country.
Shaikh Sabah Al Ahmad Al Sabah’s offer shows the deep interest his nation has in making sure Iraq becomes a peaceful, stable country after the war against Daesh and the chaos that followed the 2003 US-led invasion of Baghdad.
“This large assembly of international communities that are here today is reflective of the large loss that Iraq withstood in facing terrorism,” Shaikh Sabah said at the donors’ summit at Kuwait City’s Bayan Palace. “Iraq cannot commence the mission of rebuilding itself without support, which is why we are all here today from all around the world, to stand by Iraq’s side.”
However, the country was still far short of its target of $88.2 billion in donor aid on the last day of an appeal for funding to come forward.
Among the hardest-hit areas in Iraq is the city of Mosul, which Iraqi forces, aided by a US-led coalition, recaptured from Daesh in July 2017. Iranian-backed Shiite militias also participated in the operation, fighting in the villages around the city.
Steep cost
The victory came at a steep cost for Mosul, as coalition air strikes and extremist suicide car bombs destroyed homes and government buildings.
Of the money needed, Iraqi officials estimate that $17 billion needs to go toward rebuilding homes alone, the biggest single line item offered on Monday, on the first day of meetings. The United Nations estimates 40,000 homes need to be rebuilt in Mosul alone.
The war against Daesh displaced more than 5 million people in Iraq, only half of whom have returned to their hometowns. However, officials acknowledge a feeling of fatigue from international donors, especially after the wars in Iraq and Syria.
The United States under President Donald Trump also seems uninterested in directly investing in Iraq’s reconstruction.