GULF GIVES BILLIONS FOR RECONSTRUCTION OF IRAQ
Loans and investments equal 10 per cent of $88bn needed to rebuild the post-war nation
Arab Gulf countries and institutions have pledged almost 10 per cent of the estimated $88 billion (Dh323.18bn) needed to rebuild Iraq after the country’s three-year war with ISIL.
The pledges came on the final day of an international donor conference in Kuwait where Iraqi officials made the case for foreign investment in what they said would be “a new Iraq”.
The loans and investments will go towards the projected $88bn the World Bank said is needed for reconstruction in Iraq. Vast stretches of territory remain devastated because of damage inflicted by ISIL and in battles against the insurgents.
Pledges were still expected to fall short of the level desired. Officials have earmarked the urgent need for $23bn in shortterm loans, with the remaining $65bn to be gathered over the mid term. Kuwait’s Ministry of Foreign Affairs said $30bn had been secured at the conference. That figure, however, included not only the contributions made by the 76 countries attending but also international organisations and private sector deals. It was also unclear how much of the $30bn represented loans.
Iraq’s public finances remain dependent on oil revenues and the government is also trying to modernise an economy that has long suffered from corruption and bureaucracy. The aim is to attract and absorb private sector foreign investors. Such finance, donor countries said, is necessary to raise the total funds needed for Iraq.
Contributions came in two forms, loans, where countries are giving to Iraq reconstruction projects, and investments from the private and government sectors.
Senior officials told The National the loans made by several of the countries are at low interest rates and given with the presumption of default.
Sheikh Sabah, the Emir of Kuwait and host of the threeday international donor conference, yesterday announced $1bn in loans for reconstruction projects in Iraq and another $1bn of investment to help rebuild areas wrecked by ISIL.
“Iraq is required today to start a comprehensive reconstruction of the infrastructure and facilities that were destroyed.
“It cannot be undertaken alone, which calls on us in the international community to take part of this mission,” he said on the last day of the conference in Kuwait City.
The pledge came as a surprise as Iraq is also set to resume payments to fully meet the $4.6bn still owed to Kuwait in reparations for the destruction of its oil production capabilities during the Gulf War.
Anwar Gargash, Minister of State for Foreign Affairs, said the UAE would pledge $500 million and there would also be $5.5 billion from the UAE in private investment for Iraq
Turkey announced $5bn in loan funds and credit easing, while the Islamic Development Bank announced a contribution of $500 million.
Dr Anwar Gargash, Minister of State for Foreign affairs, said the United Arab Emirates would pledge $500m.
Dr Gargash later tweeted that there would also be $5.5bn from the UAE in private investments in Iraq “in addition” to his country’s pledge, but it was not clear if this was a new announcement.
Saudi Arabia pledged $1.5bn, while the Kuwait-based Arab Fund said Iraq will receive $1.5bn in infrastructure aid in coming years.
Qatar, which has been isolated by a quartet of Arab nations, announced it would contribute $1bn, with Germany pledging another €400m (Dh1.83bn), and the European Union €400m.
Iraq’s Prime Minister Haider Al Abadi said he was looking forward to “real and strategic” partnerships, as well as collaborations with countries in the region.
Mr Al Abadi said the Iraqi vision would rely on the principle of co-operation for Iraq to become a gateway for joint interests. “It was a bloody and tough war – our homes were destroyed, schools devastated, streets turned into battlefields. We tolerated this because not only were we fighting for Iraq but for all humanity,” he said.
Mr Abadi also said Baghdad was seeking to restore confidence in an international community suffering from donor fatigue.
United Nations Secretary General Antonio Guterres urged the international community to address the scope of devastation that the war in Iraq had caused, saying the UN was firmly committed to the reconstruction process in Baghdad, which he reiterated would be a “daunting task ... to ensure a unified nation”.
The UN chief also highlighted the need for an “all-inclusive reconciliation process”, calling on Iraqi authorities to abide by UN Resolution 1325, which addresses the effects of armed conflicts on women.