Wednesday 3 April 2024

Gulf Arab states test waters with Iraq investment | Reuters

Gulf Arab states test waters with Iraq investment | Reuters

In Baghdad's Green Zone, a heavily fortified legacy from Iraq's war-torn years, the glitzy Qatar-financed Rixos hotel is taking shape, highlighting growing investment interest from Gulf Arab states.

The government of Prime Minister Mohammed Shia' Al Sudani hopes to host Gulf Arab monarchs and other Middle Eastern emissaries in Rixos Baghdad's 470 luxury rooms and suites when they arrive for a planned Arab League summit next year.

His government has been pushing for more investment from the region for an economy ravaged by decades of war and instability, but which is benefiting from record oil revenues, helping to spur demand for consumer goods from its rapidly growing population of at least 43 million.

OPEC member Iraq has seen relative calm since defeating Islamic State in 2017, although there has been sporadic violence, including among ruling Shi'ite Muslim factions and more recently attacks from Iran-aligned groups.

The country's top trade partners are currently China, Iran and Turkey.

However, Gulf Arab states, which have had a complicated relationship with Iraq, have pledged a string of investments as they seek to grow soft power in a country where regional rival Iran has unparalleled influence via a powerful network of allies. This has been partially enabled by a detente in ties between Iran and Saudi Arabia.

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