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An economist urges those in charge of the industrial project financing initiative to take measures that “attract investors”
Economy | Yesterday, 10:59 |
Baghdad today - Baghdad
Economist Manar Al-Obaidi confirmed today, Saturday (December 21, 2024), that the
industrial project financing initiative is one of the main initiatives that aims to support the industrial sector in Iraq and enhance its role in achieving economic development, noting
a package of measures that must be taken to ensure that it is directed in the right way. Serves its national goals "attracting investors."
Al-Obaidi said in a post on the “Facebook” platform, followed by “ Baghdad Today ,” that
“the initiative comes as part of the efforts made to stimulate industrial activity by providing financing on easy terms, including low interest rates, flexible payment periods, and encouraging guarantees,” noting that
“These advantages make the initiative attractive to investors, as it gives them the opportunity to establish industrial projects that support the local economy and reduce dependence on imported goods.” Al-Obaidi added,
“Data from the Central Bank of Iraq showed that the country’s import bill exceeded 100 trillion Iraqi dinars this year, which highlights the urgent need to activate such initiatives to reduce this economic burden,” stressing
“the necessity of setting clear controls and goals for the initiative to ensure its success.” and achieve its goals.” He continued,
"Setting measurable goals helps direct efforts effectively and ensures achieving the desired results.
The general goal of promoting industry, despite its importance, is a broad goal and not subject to precise follow-up," stressing that
"it is necessary to formulate specific goals linked to indicators." Measurable performance, so that the extent to which the initiative achieves these goals can be evaluated.” He stated,
"Unfortunately, Iraq's experience with the Small and Medium Enterprises Financing Initiative shows the importance of this point.
More than 18 trillion Iraqi dinars have been allocated to this initiative,
but a large portion of the funding was directed toward projects not related to supporting the productive economy, such as construction and housing projects." He noted that
“this approach did not achieve the desired goals of the economic initiative and led to a reduction in its effectiveness.” He stated,
“To ensure that the initiative’s funding is directed towards projects that achieve national goals, key criteria must be determined to evaluate projects applying for funding, which include:
1- Reducing the import bill:
One of the main goals of any industrial project is to reduce dependence on imports.
However, it should be noted that some projects may claim to reduce the import bill, but in reality they replace the import of the finished product with the import of raw materials.
This trend does not contribute to reducing the total value of imports, but rather leads to additional losses, such as the state losing customs revenues on imported goods, as imported raw materials are exempt from customs under investment laws.
Therefore, priority should be given to projects that rely on local raw materials or that operate in the field of extractive and recycling industries, compared to manufacturing industries that depend on importing raw materials.
2- Providing job opportunities:
Modern technology has reduced the need for manpower in many industries, as production lines have become semi-automated.
Therefore, funding priority should be for projects that provide significant direct and indirect employment opportunities.
The ultimate goal of strengthening the industrial sector is to create job opportunities for youth and job seekers, and
if the initiative does not achieve this goal, its benefit will be limited.
3- Relying on energy alternatives:
Energy costs are considered one of the biggest challenges facing the local industry in Iraq, as they directly affect the competitiveness of products.
Therefore, projects that rely on alternative energy sources such as solar energy and other clean energy should be encouraged.
Although investment in these alternatives may be high initially, in the long term it can reduce production costs and improve the competitiveness of local products.
4- Encouraging exports:
Most industrial projects in Iraq focus on the large local market, but it is necessary to direct part of production towards export.
Iraq enjoys a strategic location that allows it to benefit from the large volume of trade exchange between the Gulf countries and Turkey, which exceeds 20 billion dollars annually.
Iraq can also benefit from its geographical proximity to Europe and Asia to reduce logistical costs and expand the target market base.
Projects that allocate part of their production to export should receive priority funding.
5- Localization of industries and technical knowledge:
The initiative should seek to encourage the localization of global industries within Iraq, especially in the areas of electronic devices and cars.
Attracting international companies to work inside Iraq will not only strengthen the local industry, but will contribute to the transfer of technical knowledge and encourage foreign direct investment.
Projects targeting the localization of major industries deserve top priority in funding.
6- Additional factors for evaluation
• Future expansion plans for the project.
• The extent of women’s empowerment in the project.
• Environmental impact and waste handling mechanisms.
• The location of the project and the extent of its impact on the geographical distribution of development. He stressed
Initiative implementation mechanism
"the need for financing decisions to be based on a comprehensive evaluation system that goes beyond the feasibility study submitted by investors," stressing
"the need for the evaluation to include clear and specific goals for the state, with relative weights for each goal to determine funding priorities." Al-Obaidi pointed out,
“This system ensures that funding is directed towards projects that achieve the highest added value to the national economy,” noting that
the industrial project financing initiative has great potential to stimulate the industrial sector and promote economic development in Iraq.
[You must be registered and logged in to see this link.]
Economy | Yesterday, 10:59 |
Baghdad today - Baghdad
Economist Manar Al-Obaidi confirmed today, Saturday (December 21, 2024), that the
industrial project financing initiative is one of the main initiatives that aims to support the industrial sector in Iraq and enhance its role in achieving economic development, noting
a package of measures that must be taken to ensure that it is directed in the right way. Serves its national goals "attracting investors."
Al-Obaidi said in a post on the “Facebook” platform, followed by “ Baghdad Today ,” that
“the initiative comes as part of the efforts made to stimulate industrial activity by providing financing on easy terms, including low interest rates, flexible payment periods, and encouraging guarantees,” noting that
“These advantages make the initiative attractive to investors, as it gives them the opportunity to establish industrial projects that support the local economy and reduce dependence on imported goods.” Al-Obaidi added,
“Data from the Central Bank of Iraq showed that the country’s import bill exceeded 100 trillion Iraqi dinars this year, which highlights the urgent need to activate such initiatives to reduce this economic burden,” stressing
“the necessity of setting clear controls and goals for the initiative to ensure its success.” and achieve its goals.” He continued,
"Setting measurable goals helps direct efforts effectively and ensures achieving the desired results.
The general goal of promoting industry, despite its importance, is a broad goal and not subject to precise follow-up," stressing that
"it is necessary to formulate specific goals linked to indicators." Measurable performance, so that the extent to which the initiative achieves these goals can be evaluated.” He stated,
"Unfortunately, Iraq's experience with the Small and Medium Enterprises Financing Initiative shows the importance of this point.
More than 18 trillion Iraqi dinars have been allocated to this initiative,
but a large portion of the funding was directed toward projects not related to supporting the productive economy, such as construction and housing projects." He noted that
“this approach did not achieve the desired goals of the economic initiative and led to a reduction in its effectiveness.” He stated,
“To ensure that the initiative’s funding is directed towards projects that achieve national goals, key criteria must be determined to evaluate projects applying for funding, which include:
1- Reducing the import bill:
One of the main goals of any industrial project is to reduce dependence on imports.
However, it should be noted that some projects may claim to reduce the import bill, but in reality they replace the import of the finished product with the import of raw materials.
This trend does not contribute to reducing the total value of imports, but rather leads to additional losses, such as the state losing customs revenues on imported goods, as imported raw materials are exempt from customs under investment laws.
Therefore, priority should be given to projects that rely on local raw materials or that operate in the field of extractive and recycling industries, compared to manufacturing industries that depend on importing raw materials.
2- Providing job opportunities:
Modern technology has reduced the need for manpower in many industries, as production lines have become semi-automated.
Therefore, funding priority should be for projects that provide significant direct and indirect employment opportunities.
The ultimate goal of strengthening the industrial sector is to create job opportunities for youth and job seekers, and
if the initiative does not achieve this goal, its benefit will be limited.
3- Relying on energy alternatives:
Energy costs are considered one of the biggest challenges facing the local industry in Iraq, as they directly affect the competitiveness of products.
Therefore, projects that rely on alternative energy sources such as solar energy and other clean energy should be encouraged.
Although investment in these alternatives may be high initially, in the long term it can reduce production costs and improve the competitiveness of local products.
4- Encouraging exports:
Most industrial projects in Iraq focus on the large local market, but it is necessary to direct part of production towards export.
Iraq enjoys a strategic location that allows it to benefit from the large volume of trade exchange between the Gulf countries and Turkey, which exceeds 20 billion dollars annually.
Iraq can also benefit from its geographical proximity to Europe and Asia to reduce logistical costs and expand the target market base.
Projects that allocate part of their production to export should receive priority funding.
5- Localization of industries and technical knowledge:
The initiative should seek to encourage the localization of global industries within Iraq, especially in the areas of electronic devices and cars.
Attracting international companies to work inside Iraq will not only strengthen the local industry, but will contribute to the transfer of technical knowledge and encourage foreign direct investment.
Projects targeting the localization of major industries deserve top priority in funding.
6- Additional factors for evaluation
• Future expansion plans for the project.
• The extent of women’s empowerment in the project.
• Environmental impact and waste handling mechanisms.
• The location of the project and the extent of its impact on the geographical distribution of development. He stressed
Initiative implementation mechanism
"the need for financing decisions to be based on a comprehensive evaluation system that goes beyond the feasibility study submitted by investors," stressing
"the need for the evaluation to include clear and specific goals for the state, with relative weights for each goal to determine funding priorities." Al-Obaidi pointed out,
“This system ensures that funding is directed towards projects that achieve the highest added value to the national economy,” noting that
the industrial project financing initiative has great potential to stimulate the industrial sector and promote economic development in Iraq.
[You must be registered and logged in to see this link.]
