Latest news with #MudherMohammedSaleh
Zawya
11-07-2025
- Business
- Zawya
Iraq needs 3mln homes over 5 years, says government advisor
Iraq must construct between 2.5 and 3 million new housing units over the next five years to address its growing housing deficit, at an estimated cost of $80 to $100 billion, according to Mudher Mohammed Saleh, Financial Advisor to the Iraqi Government. In an interview with Zawya Projects, Saleh said the figures were derived from the 2024 national census and data from the Ministry of Planning, adding that the total cost also includes infrastructure such as roads, water, electricity, and sanitation systems. Population in the OPEC member reached 46.1 million as of February 2025, according to Iraqi Ministry of Planning data. Saleh said the government has initiated 'One Million Housing Units Initiative,' alongside several large-scale residential developments, especially in high population -density governorates like Baghdad, Basra, Najaf, and Nineveh. These projects are being financed through a mix of government allocations, sovereign wealth funds, real estate lending programmes and public-private partnerships (PPPs). He pointed out that the housing programme is complemented by major infrastructure initiatives that include: • Development Road Project: A planned highway and railway multimodal corridor linking the Arabian Gulf to Europe. • Grand Faw Port: A deep-sea port development designed to expand Iraq's maritime trade capacity. To fund its broader infrastructure agenda, Iraq is employing a mix of direct government spending, concessional loans from institutions like the World Bank and JICA, and capital from national entities such as the Iraqi Development Fund. Saleh noted that project delays and inefficiencies remain a key concern, prompting the government to introduce restructuring measures, alternative financing models, and dedicated monitoring committees to improve accountability. Target sectors for foreign investment According to Saleh, Iraq is also ramping up efforts to attract foreign investment in priority sectors including oil, gas, and renewables; logistics and transport; agriculture and food processing; manufacturing; religious and cultural tourism; and information technology. 'To attract investments, the government is offering various incentives such as tax exemptions of up to 10 years, long-term land leases, sovereign guarantees, and capital repatriation rights under Investment Law No. 13 (2006),' he said. (Reporting by Majda Muhsen; Editing by Anoop Menon) (
Shafaq News
15-04-2025
- Business
- Shafaq News
Iraq: over $2B in annual returns from foreign reserves investments
Shafaq News/ Iraq is reaping at least $2 billion annually from investments of its foreign currency reserves, a top financial adviser to the prime minister said on Tuesday. 'These investments are often short-term and directed toward US, European, or British treasury bonds to generate suitable returns,' said Mudher Mohammed Saleh in an interview with Shafaq News, noting that the investment portfolio prioritizes safety and liquidity, allowing assets to be swiftly converted into cash without incurring losses. 'The returns are appropriate and the risk level is low.' Saleh explained to that the earnings from the reserves are categorized into two types: realized income, such as direct interest, and unrealized gains derived from portfolio diversification and potential profits from currency and gold exchange rate fluctuations. Iraq's central bank recently reported that its foreign reserves declined by 10.18% in 2024 to 130.81 trillion dinars ($87.6B) from 145.64 trillion dinars ($97.6B) in the same period of 2023.
Shafaq News
09-04-2025
- Business
- Shafaq News
US dollar leads the pack in Iraq's foreign reserves
Shafaq News/ The US dollar accounts for more than 40% of Iraq's foreign reserves investment portfolio, the Financial Adviser to the Prime Minister, Mudher Mohammed Saleh, revealed on Wednesday. Speaking to Shafaq News agency, Saleh attributed the figure to the fact that the country's oil exports — the main source of state revenue — are settled in dollars. Iraq's foreign reserves, which have remained around $110B or slightly lower, play a crucial role in shielding the national economy from external shocks, with the reserves diversified across various foreign currencies and gold within the national portfolio, he added. According to the Central Bank of Iraq (CBI), the country's foreign reserves include 130.8 trillion Iraqi dinars ($99.408 billion), along with 162.6 tons of gold.
Shafaq News
06-04-2025
- Business
- Shafaq News
Iraq: No threat to salaries despite oil price drop
Shafaq News/ Iraq has secured funding for public sector salaries despite a recent drop in global oil prices, a senior government adviser said on Sunday. According to Mudher Mohammed Saleh, financial and economic adviser to Prime Minister Mohammed Shia Al-Sudani, the salaries for civil servants, retirees, and social protection recipients are fully covered in the 2025 federal budget and will not be affected by fluctuations in oil prices. 'The government's top priority is ensuring the payment of salaries, and they are fully secured for the coming period,' he added. Iraq relies on oil exports for more than 90% of its revenue. A drop in oil prices can significantly impact its budget, prompting concern among economists over the state's ability to meet payroll obligations without borrowing. Analysts have also warned that external pressures, including recent US import tariffs affecting Iraqi goods, could worsen fiscal pressures. Iraq has previously turned to borrowing during similar downturns.
Shafaq News
30-03-2025
- Business
- Shafaq News
Iraq's budget in limbo: Funding woes and oil risks grow
Shafaq News/ Iraq's 2023–2025 budget, approved in June 2023, is the largest in the country's history, allocating around 198.9 trillion dinars ($153 billion) annually. With a focus on infrastructure development, public sector salaries, and fostering economic growth, the budget promises to play a pivotal role in shaping Iraq's future. The Kurdistan Region is set to receive 12.67% of the total budget, amounting to over $12 billion annually. With oil prices projected at $70 per barrel, Iraq expects oil revenues to reach approximately 117 trillion dinars each year. However, despite the budget's expansive scope, its implementation has faced significant obstacles. What was intended to be a smooth, multi-year framework has, instead, transformed into a series of annual plans, delaying progress and creating uncertainty. Still, the government remains committed to ensuring economic stability. Implementation Hurdles Mudher Mohammed Saleh, financial adviser to Prime Minister Mohammed Shia Al-Sudani, reaffirmed that the 2025 budget is legally grounded under Law No. 13 of 2023, which mandates a three-year spending plan. Saleh acknowledged delays in allocations but emphasized that 90% of Iraq's financial operations remain unaffected, stating, "The financial and economic situation is stable, with a high degree of certainty." He underscored the close collaboration between legislative and executive authorities. Nevertheless, slow disbursements have raised concerns. Moein Al-Kadhimi, a member of the Parliament's finance committee, warned that delays in finalizing both operational and investment budgets could harm market liquidity, hinder businesses, and stifle economic growth. 'The key issue isn't just a budget approval, it's funding,' Al-Kadhimi remarked. Although the 2024 budget is in place, funding for regional development and ministries remains stalled, delaying new projects. Al-Kadhimi projected total revenue from oil and non-oil sources at no more than 140 trillion dinars ($107 billion). He also called for a cap on allocations at 150 trillion dinars—127 trillion for operations and 23 trillion for investments—to preserve fiscal stability. The Crude Calculation Iraq's heavy reliance on oil revenues continues to strain the country's finances. The 2023 budget projected oil exports at 3.5 million barrels per day at $70 per barrel. However, actual exports fell to 3.2 million barrels per day, creating a 3 trillion dinar ($2.3 billion) gap. This shortfall has compounded the financial pressure, with oil prices fluctuating between $60 and $80 per barrel. Ahmed al-Jassim, a financial analyst, pointed out, "Oil prices, the backbone of Iraq's budget, remain highly volatile. The government faces mounting pressure to manage expenditures carefully." Looking ahead to 2025, Iraq anticipates a budget deficit of 64 trillion dinars ($48 billion), the same as in 2023 and 2024. While total budget allocations have risen from 198 trillion dinars to 211 trillion dinars, the persistent shortfall raises concerns about the need for increased borrowing, potentially draining foreign reserves and destabilizing the economy. Former Prime Minister Mustafa al-Kadhimi stressed the importance of diversifying Iraq's revenue sources to mitigate these risks. With oil prices potentially falling to $60 per barrel, he emphasized the need to boost non-oil revenues through customs duties, taxes, telecom revenues, utility fees, and state property income. "Current non-oil revenues are below 15 trillion dinars but should reach at least 30 trillion," al-Kadhimi asserted. Despite these challenges, al-Kadhimi remains optimistic. As long as Iraq maintains an export rate of 3.5 million barrels per day, liquidity should remain intact, with a funding ceiling of 50 trillion dinars. However, without significant reforms or a reduction in the deficit, Iraq risks excessive borrowing and depletion of foreign reserves, endangering long-term financial stability. Baghdad-KRG Rift The budget delays have been primarily driven by a long-standing dispute between Baghdad and the Kurdistan Regional Government (KRG). Abdul-Hassan Al-Ziyadi, an economic expert, highlighted the inefficiency of Iraq's budgeting process, which often extends for months, sometimes even a full year. "This uncertainty ripples across both public and private sectors, making strategic planning nearly impossible." At the heart of the deadlock is a revision to Article 12, Section (C), which recalculates the cost of producing and transporting crude oil from the Kurdistan Region. Initially set at $10 per barrel, the cost was raised to $16, sparking disputes that have delayed the 2025 budget submission. The conflict also reflects deeper political and economic rifts. The KRG insists on maintaining control over its oil revenues, a right it claims is enshrined in Iraq's Constitution. However, Baghdad argues for central oversight, citing the national importance of oil revenues. A key point of contention is Article 14 (7), which allows Baghdad to allocate funds directly to KRG provincial governments if the regional administration fails to distribute them fairly. The Kurdistan Democratic Party (KDP) opposes this provision, with spokesperson Shaswar Abdulwahid describing it as 'an unconstitutional power grab' that undermines the Kurdistan Region's authority over its own resources. Baghdad, however, argues that the measure ensures equitable distribution of resources across Iraq. Compounding the crisis is the KRG's growing financial strain, exacerbated by the suspension of its independent oil exports through Turkiye. Since March 2023, a dispute between Baghdad and Ankara over the legality of Kurdish oil exports has shut down the Ceyhan pipeline, severing the region's primary revenue stream. The resulting losses, estimated at $5 billion, have made it increasingly difficult for the KRG to meet its financial obligations, including salary payments. Late Is Better Than Never An official source revealed to Shafaq News that Iraq is preparing to submit its final 2025 budget to Parliament in the coming days. The finalized budget is expected to be delivered either after the Eid al-Fitr holiday on March 31st or by mid-April for legal review. This schedule aligns with the government's financial priorities and requirements. The 2025 budget, projected at around $200 billion, faces a significant deficit. This gap is primarily due to a sharp decline in Iraq's strategic reserves of gold and foreign currency, as well as liquidity shortages. Furthermore, the government's ongoing commitment to large-scale projects requiring substantial funding has put additional strain on Iraq's finances. As a result, the operational budget will see reductions, and the pace of government service projects will slow. Sectors under Siege Public Service Strain The budget crisis has had far-reaching consequences, particularly in the public services sector. Disruptions in funding have left healthcare, education, and social programs in limbo, directly affecting millions of Iraqis who rely on government services. Manar Al-Abidi, executive director of the Iraq Future Foundation, noted, "Each delay not only disrupts contractors and businesses but directly affects citizens. From hospitals to schools, funding interruptions have stalled essential services, straining the systems people depend on." According to the Ministry of Planning, up to 30% of essential public services have been affected. Salary delays for 2.5 million government employees, including teachers and doctors, have fuelled public frustration, while pensioners continue to struggle with delayed payments. The Ministry of Health has warned that 60% of public hospitals are running low on essential medical supplies, forcing patients to seek private care. Meanwhile, more than 7,000 schools have had operations delayed, impacting 2.8 million students and raising concerns about Iraq's long-term educational prospects. Economic researcher Ahmed Eid described the situation as a 'major crisis' that could upend Iraq's economic stability. "A budget isn't just a financial document, it's the backbone of economic growth, job creation, and financial security," Eid emphasized. He warned that continued delays risk stalling progress, scaring off investors, and weakening market confidence. Private Sector Struggles The private sector is also feeling the strain. The Ministry of Planning reports that 42% of key development projects planned for 2024, worth more than $12 billion, have been put on hold. This is particularly evident in the construction sector, where activity has dropped by 20% due to the suspension of government contracts. Businesses dependent on public sector spending are also facing mounting challenges. "This delay is fuelling economic uncertainty," Eid cautioned. "Companies are hesitating to invest, and hiring freezes are spreading across industries." The Federation of Iraqi Industries has reported that 35% of small and medium-sized enterprises have experienced declining revenues, while private sector employment has shrunk by 8% in the first quarter of 2024. As the budget impasse continues, experts are urging a swift resolution. "The budget is not just about numbers—it's about Iraq's future," Eid concluded.
