Iraq Drafts Law to Bolster Saudi Investments

Iraq is extending an olive branch to Saudi Arabia in the form of a proposed law designed to safeguard Saudi investments within its borders. This move comes amidst a period of burgeoning economic cooperation between the two nations, with bilateral trade experiencing a 12% annual growth spurt.

The news of the legislation was unveiled during a meeting in Riyadh between Hassan Al-Huwaizi, President of the Federation of Saudi Chambers, and Shalan Al-Karim, Chairman of the Iraqi-Saudi Friendship Committee in the Iraqi Parliament. Al-Karim's delegation was on an official visit to Saudi Arabia, and the discussions centered on strengthening economic ties between the countries.

The proposed law is expected to be presented to the Iraqi Parliament for approval in the coming months, following a period of thorough deliberation. This initiative signifies Iraq's commitment to fostering a secure and attractive environment for Saudi businesses. The Iraqi government recognizes the crucial role foreign investment plays in bolstering the nation's economic development, and Saudi Arabia is a key partner in this endeavor.

The burgeoning economic partnership between Iraq and Saudi Arabia extends beyond the proposed law. The two countries recently signed a memorandum of understanding (MoU) aimed at encouraging private sector industrial investments. This MoU underscores a shared vision for a future marked by robust economic collaboration.

Furthermore, in December 2023, Iraq and Saudi Arabia entered into a separate agreement designed to facilitate industrial investments within the private sector. This agreement serves as another building block in the foundation of their deepening economic ties. The partnership was further solidified when a contract was signed between the Iraqi company Al-Diyar and Saudi Arabia's Northern Region Cement Co. , further demonstrating the tangible outcomes of this newfound economic cooperation.

The proposed legislation protecting Saudi investments is a critical piece of the puzzle for Iraq. The nation is eager to attract foreign capital to propel its economic growth, and Saudi Arabia represents a significant source of potential investment. By enacting this law, Iraq aims to create a more predictable and secure environment for Saudi businesses, thereby incentivizing greater investment flows.

This newfound economic cooperation between Iraq and Saudi Arabia signifies a positive shift in their bilateral relationship. The historical ties between the two nations are undeniable, and this burgeoning economic partnership has the potential to pave the way for even closer political and diplomatic relations in the future.

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