Latest news with #MazharMohammedSalih
Rudaw Net
6 days ago
- Business
- Rudaw Net
Iraq eyeing 'sustainable' diversification away from oil: PM advisor
Also in Iraq Diyala council seeks to block Qaratapa district upgrade Iraq's ruling coalition condemns drone attacks on Kurdistan Region Iraqi parliament fails to discuss drone attacks on Kurdistan Region Iraq's top court rejects lawsuits against Kurdish parliament A+ A- ERBIL, Kurdistan Region - Iraq is implementing sweeping reforms aimed at building a sustainable, diversified economy less dependent on volatile oil revenues, a financial advisor to the prime minister said on Tuesday. 'The government has sought to implement a package of fundamental reforms aimed at increasing non-oil revenues and reducing dependence on volatile oil revenues,' Mazhar Mohammed Salih told state media, citing tax reform, service fee adjustments, and customs modernization as key measures. He said Iraq's 'internal stability' is 'a key pillar' of these efforts, creating an improved investment environment supported by positive international credit ratings. "These combined indicators give Iraq a real opportunity to build a more stable and prosperous future,' Salih added, noting that dozens of previously stalled major projects have resumed. The reforms include automating tax collection, combating evasion, revising government service pricing, and digitizing customs and border procedures in cooperation with international bodies such as the United Nations. 'What distinguishes this stability is its superiority over its turbulent regional surroundings,' he said, highlighting Iraq's relative calm amid regional tensions. Iraq is undertaking a significant push to overhaul its economy, aiming to reduce its entrenched dependence on volatile oil revenues and foster sustainable growth. 'The government is working to build a sustainable revenue base that is independent of oil market fluctuations, supports economic growth plans, and enhances the country's financial stability, which is the main goal of prosperity and the essence of economic reform,' Salih explained. Iraq's economy is heavily reliant on its oil sector. It is also among the global nations most vulnerable to the effects of climate change, including food and water insecurity. This winter, Iraq has received just a fraction of the rainfall it saw the year before. Iraq passed its highly-contentious budget bill for the years 2023, 2024, and 2025 in June 2023, which includes a record $152 billion in spending. The massive expenditure sparked concerns of instability should oil prices drop below the $70 per barrel threshold set in the bill. Prime Minister Mohammed Shia' al-Sudani said at the time that the record-high budget was aimed at addressing pressing social needs, enhancing infrastructure development, and fostering economic progress.
Iraqi News
01-06-2025
- Business
- Iraqi News
Iraq aims for banking power with digital finance strategy
Baghdad ( – Iraq's financial sector is showing significant development, with the country ranking third in the Arab world for the number of issued bank cards, a key indicator of growing public and international confidence, Prime Minister's Financial Advisor Mazhar Mohammed Salih announced Saturday (May 31, 2025). This comes as Iraq prepares to fully implement electronic collection (e-collection) systems by mid-2025. Salih stated that the full adoption of e-collection will enhance transparency and professionalism, boosting the confidence of global financial institutions in Iraq's economy. He emphasized this digital shift facilitates non-cash transactions, financial inclusion by bringing more citizens into the formal banking system, and prepares Iraq for fintech investments. Echoing this positive outlook, UN Representative Mohammed Al-Hassan noted on Friday that Iraq is poised to become a 'domestic and international banking power,' with the UN supporting steps to restore trust in its financial sector. These advancements, part of Iraq's national strategy for digital transformation and sustainable development, aim to create a robust digital market, reduce poverty, and facilitate broader economic reforms.
Iraqi News
31-05-2025
- Business
- Iraqi News
Government advisor: Iraq ranks third in the Arab world in terms of bank cards
Baghdad-INA The Prime Minister's financial advisor, Mazhar Mohammed Salih, confirmed on Saturday that Iraq's ranking as third in the Arab world in the number of bank cards issued is an important indicator of the development of the financial sector and the growing community and international confidence in government measures. Saleh told the Iraqi News Agency (INA): "Iraq will fully enter the era of electronic collection by the middle of this year,this will strengthen the confidence of financial institutions and global investment banks that Iraq is moving towards a more transparent and professional economy, using advanced methods that ensure economic prosperity." He added that "electronic collection will also give the impression that the Iraqi financial environment is now more prepared to welcome financial technology solutions and investments in the digital banking and insurance sectors in an attractive and accelerated manner." Saleh noted that "this step reflects the strategic government effort to modernize the financial infrastructure and facilitate cashless transactions." He continued, "Iraq ranked third in the Arab world in the number of bank cards issued, which is an important indicator of the development of the financial sector and the growing community and international confidence in government measures." He indicated that "the government is actively pursuing digital financial transformation to achieve advanced levels of sustainable development, in accordance with the indicators of the National Development Plan 2024-2025 and the current government program." He explained that "the progress achieved by Iraq in the use of digital banking payments undoubtedly indicates the rapid strategic progress achieved in spreading the use of bank cards and the beginning of a structural transformation of the Iraqi economy towards a digital economy." Saleh stated that "utilizing modern technology will enable Iraq to achieve qualitative leaps in financial inclusion, maximize added value in the national economy, reduce poverty and unemployment, and facilitate broader economic reforms." He noted that "this is also a major success for the government's e-governance program and the implementation of an integrated and fundamental digital infrastructure, paving the way for the transition to a digital economy and broad financial inclusion," he continued, "This progress also represents an important foundation for building an integrated digital market in Iraq, where the banking infrastructure becomes capable of handling both international and domestic electronic transfers." He added that "electronic transfers will serve digital financing operations for small projects and develop electronic payment and tax collection systems." He pointed out that "the move toward a carbon market as a new investment tool relies on electronic or digital platforms," while emphasizing that "the increasing number of bank cards means a wider segment of citizens are entering the formal financial and banking system by opening bank accounts, which facilitates the expansion of the use of mobile banking services, digital wallets, and electronic payments for bills, purchases, and other services, in addition to activating electronic government services such as salary payments, support, and social care."
Rudaw Net
23-05-2025
- Business
- Rudaw Net
90 percent of Iraq's money supply held outside banks: PM advisor
Also in ECONOMY Unfinished Stories: Baghdad wants it all US urges Iraq to work with KRG to develop gas production KRG announces major agreements with US companies to boost gas production Syria's debts to World Bank cleared by Saudi Arabia, Qatar A+ A- ERBIL, Kurdistan Region - Nearly 90 percent of Iraq's money supply is held outside the formal banking sector, largely hoarded in homes, a senior financial advisor to the Iraqi premier told Rudaw. The vast 'leakage" of cash poses a serious challenge to the country's financial stability and long-term economic growth. Mazhar Mohammed Salih, advisor to Prime Minister Mohammed Shia' al-Sudani, stated that the hoarding of cash, while historically common, has reached critical levels, with leakage rates between '87 to 90 percent.' He explained that a large portion of the currency in circulation is held outside banks. 'If, for example, we have approximately 100 trillion dinars [approximately $714.3 million] in total currency in circulation today, around 91-92 trillion dinars [approximately $657.15 million] are currently outside the banking system,' Salih elaborated. According to senior financial advisor, the exceptionally high rate of cash held outside banks is largely driven by public distrust in financial institutions. Other reasons include religious and cultural factors – including the fear of engagement of usury (interest) that is prohibited in Islam – and the general unfamiliarity with banking services, Salih added. Pointing to the unbalanced financial landscape, Salih noted that "while the economy has ample liquidity, banks themselves are liquidity-poor. The government faces similar challenges, and meanwhile, the public holds large cash surpluses that are effectively idle.' To reintegrate these hoarded funds into the formal economy, Salih stressed the need for strategic reforms. These measures include strengthening deposit insurance through broader advertising and clearer public communication to reassure Iraqis that their bank deposits are fully insured against any bank failures, the financial advisor suggested. He also advocated encouraging investment in government bonds with strong, clear, and sovereign guarantees, and implementing digital payment solutions that would encourage individuals to maintain bank accounts via electronic cards, thereby fostering digital financial inclusion. The senior financial advisor underscored that a leap in digital financial inclusion is crucial to break the detrimental social habit of hoarding that is disrupting the income cycle and hindering economic investment and growth. Bringing more funds into the regulated financial system, Salih said, would strengthen the overall economy. "The more funds there are inside the banking system, the better the situation is than when they are outside the banking system." However, the issue of cash hoarding is just one symptom of deeper systemic problems in Iraq's banking sector. At its core, the sector suffers from a lack of modernization and persistent structural weaknesses. Most Iraqi banks rely heavily on the Central Bank of Iraq's foreign currency auctions to generate profit, rather than engaging in productive investments that stimulate economic activity. This is further exacerbated by corruption, with repeated allegations that banks are complicit in smuggling money out of the country. Customers often face rigid withdrawal limits - sometimes only allowed in installments - and risk theft not just from criminal actors but potentially from within the banks themselves. Compounding the problem is a weak legal framework. Laws to protect deposits are either lacking or outdated, and restrictive regulations discourage long-term investment and reinforce a dependence on government-linked financial operations. As a result, Iraqi banks offer limited services by international standards and remain largely tied to state-driven 'rentier' activities such as currency exchange, letters of credit, and the distribution of public sector salaries. Although there is a growing interest in digital banking and the Central Bank has launched initiatives to support digital enrollment, progress remains slow due to the absence of essential regulatory frameworks. The infrastructure for electronic payments is still underdeveloped, and most Iraqis continue to convert their digitally paid salaries into physical cash—reinforcing the long-standing 'cash-is-king' mindset that continues to stall the country's financial modernization.
Iraq Business
21-05-2025
- Business
- Iraq Business
Iraqi Dinar Hoarding "Has Reached Critical Levels"
From Rudaw. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News. 90 percent of Iraq's money supply held outside banks: PM advisor Nearly 90 percent of Iraq's money supply is held outside the formal banking sector, largely hoarded in homes, a senior financial advisor to the Iraqi premier told Rudaw. ... Mazhar Mohammed Salih, advisor to Prime Minister Mohammed Shia al-Sudani, stated that the hoarding of cash, while historically common, has reached critical levels. Click here to read the full article.
