Al-Kazemi’s advisor: Iraq lacks a sovereign fund, and its establishment is still an “idea”

Al-Kazemi’s advisor: Iraq lacks a sovereign fund, and its establishment is still an “idea”

2021-09-06 08:12

Al-Kazemis advisor - Iraq lacks a sovereign fund and its establishment is still an ideaShafaq News/ The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed on Monday that Iraq lacks a sovereign fund, indicating that there is an idea to establish it soon.

Saleh said in an interview with Shafaq News Agency; Iraq does not have a financial sovereign wealth fund, but it has the investment portfolio of the bank responsible for economic stability and currency stability, and it is considered a semi-wealth of a sovereign fund, and there is also the Iraq Fund for Foreign Development that has investments with joint Arab companies of up to 3 billion dollars and receives profits, but It’s not big and it’s a sovereign wealth fund, but it’s simple.”

He explained that “the Gulf countries have formed the largest sovereign wealth funds, in addition to Norway, which has the largest sovereign fund in the world, with an amount of $1.250 trillion, which came from oil revenues,” noting that “Norway builds its budget on the basis of balance and the budget surplus goes to various investments. Income and the fund grows, and when the state needs a budget, the profits of the fund block the budget.”

Saleh pointed out that “the Iraqi government is considering establishing such a fund, but the country has a deficit and not a surplus,” noting that “we have proposals to establish an Iraqi sovereign wealth fund, in which amounts equivalent to the Kuwait war compensation will be deposited after the completion of the payment of these compensations in the coming months. And it is supported by any other assets and at the same time it is an investment for mineral wealth that is not invested or neglected, and its returns go to the fund and we establish the Generations Fund and this is called sustainable development.

a sovereign wealth fund or sovereign funds; It is a state-owned fund consisting of assets such as land, shares, bonds or other investment devices, and these funds can be described as entities that manage state surpluses for investment and promise billions of dollars invested by states in stocks and bonds.