Billions of dollars in foreign investment in Iraq declined
Billions of dollars in foreign investment in Iraq declined
2025-07-02 03:53
Shafaq News/ The Iraq Future Foundation for Economic Studies and Consultations reported on Wednesday a significant decline in net foreign investment in Iraq during the past year and the first quarter of this year.
In a report published today, the Foundation’s chairman and economic expert, Manar Al-Obaidi, said that data released by the Central Bank of Iraq showed that net foreign investment in Iraq in 2024 recorded a deficit of $8 billion, as a result of net foreign investment outflows of $7.6 billion, in addition to Iraqi investments abroad amounting to $400 million.
For the first quarter of 2025, data indicates a continued negative trend, with net foreign investment outflows from Iraq exceeding $1.1 billion. This figure is distributed as follows:
Net outward foreign investment of $1 billion.
Iraqi foreign investments amounted to $133 million, registering a 21% increase compared to the fourth quarter of 2024.
According to Al-Obaidi, despite a 36% decline in net outward foreign investment, the index remains in negative territory, meaning that investments continue to leave Iraq rather than flow into it, reflecting the ongoing challenges facing the local investment environment.
He also pointed out that foreign direct investment—both inward and outward—plays a vital role in the balance of payments. It represents one of the primary sources of foreign currency, alongside oil sales. The higher the investment flows, the less pressure there will be on the local market’s need for dollars and other foreign currencies.
It’s worth noting that the Iraqi government had previously announced attracting $63 billion in foreign investment over the past two years, but these figures were not actually reflected in the balance of payments data.
This is likely due to the fact that these projects have not yet been completed or have not yet entered into actual financial implementation, meaning their monetary impact on the banking and financial system has not been reflected, according to the institution’s report.
shafaq.com
