Iraq’s push to attract international financial services companies could be undermined by a lack of banking reform that industry insiders say is also hurting the wider economy.
As Baghdad officials pop up in London and other capitals to woo foreign investors to their oil-rich country, the banking industry remains dominated by state banks, still ailing after the Saddam Hussein years.
While the slow pace of reform deters some international financiers, the bigger worry is that it is also choking the oil-rich economy where businesses rely on credit to expand. Without progress on restructuring its banking system, Iraq’s $130bn economy has little hope of competing with its Gulf neighbours.
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