Iraqi-American Fund to Finance the Development Road
Iraqi-American Fund to Finance the Development Road
2025/12/03
The government, in cooperation with the American company “Oliver Wyman”, has developed an integrated roadmap for managing and financing the development road project, and is currently working on establishing a joint investment fund with the United States with the aim of attracting American investments and enhancing economic cooperation in this project, which is described as a transcontinental economic artery.
In April 2024, Prime Minister Mohammed Shia al-Sudani signed a four-way agreement that brought together Iraq, Turkey, Qatar and the UAE, to frame the regional partnership in the Development Road project, which is one of the most important strategic initiatives to link the Gulf to Europe via Iraq.
Creating pathways
The head of the Iraq Development Fund, Mohammed Al-Najjar, told Al-Sabah: “Iraq continues to work on creating economic pathways that support the development directions sought by the government and desired by the people, noting that the Iraqi-American Fund for Financing the Development Path aims to open the way for the establishment of American industries in the country that will benefit all parties by taking advantage of the geographical location of the land of the two rivers.”
economic blocs
Al-Najjar added that Iraq is working with new visions that will move the national economy to a new stage that is commensurate with its natural and human capabilities, in partnership with major economic blocs that have a significant impact on global markets.
In a previous press statement, Al-Najjar explained that the development road attracts investments through 8 main components of the project estimated at at least $40 billion, considering that “the project greatly boosts the country’s economy.”
Attracting investments
He pointed out that the task of the Development Road Company begins with the launch of the project and undertakes to negotiate and conclude agreements with companies wishing to invest in the project, while “Elsewedy Electric” will undertake the task of establishing an industrial city to attract investments, with a capital that may reach $400 million, according to Al-Najjar.
Smart investments
Meanwhile, economist Khalid al-Jabri considered the move to establish the “Iraqi-American Fund for Financing the Development Path” as one of the forms of smart investments that can have a positive economic and political impact on Iraq.
Al-Jabri explained to Al-Sabah that among the goals of the fund is creating common interests by combining Iraqi and American capital, indicating that mixing Iraqi and American funds raises the level of economic interdependence and generates common interests. This gives the project higher political and economic protection, reduces risks, and increases the confidence of international parties in the feasibility of the path.
New window
He added that the fund will improve the investment reputation of the Iraqi investor, because joint entry with American financial institutions gives Iraqi investors a new window to increase their investments and improves their image internationally, just as many emerging countries do by relying on joint funds to raise their investment rating and open bigger doors for foreign capital.
International Finance
Al-Jabri believes that the fund itself is excellent and represents a significant step towards attracting huge investments for the development process and transforming it from a government project into a regional economic platform with partners and interests. He noted that the fund’s success depends on the people capable of managing it, relying on expertise in international finance, deep knowledge of joint investment tools, the ability to negotiate with major financial institutions, and an understanding of geopolitical contexts.
Modern leadership
While noting that Iraq still suffers from a lack of specialized expertise, in addition to the continuation of the traditional mentality based on economic models from the 1980s and 1990s, which are incompatible with the requirements of modern investment, he stressed that modern leadership makes the difference.
The success of this approach depends on progressive leadership with modern approaches that can make a big difference by mobilizing capital and increasing foreign investment.
He created a network of mutual interests that would reduce tensions and strengthen relations, stressing that if managed correctly, the fund could become one of the most important tools for linking Iraq to the global economy, and not just a financing project for the path to development.
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