FDI and Economic Revival Fortifying Iraq and Dinar

FDI and Economic Revival Fortifying Iraq and Dinar

Welfare effect of the foreign direct investment and economic revival is fortifying Iraqi economy and dinar.

 

The phenomenal decrease in violence in Iraq is leading to raising investment and is providing adequate opportunities for the economy to grow and stabilize. Iraq is gradually moving towards being a stable nation, so far the focus was on security which is now moving towards the economic revival and assimilation into the global economic community. Mutual commercial ties with the other nations is assisting Iraq in bridging the sectarian and the cultural gaps, increasing the employment, producing more wealth, facilitating the technology transfer, and motivating the new businesses to adopt the best practices in the industry. Most importantly, this economic revival is providing that feel good factor and a new hope not only to the Iraqi people and its economy, but also to the United States and to the entire world Iraq has fifth largest oil reserves in the world.

Iraq is going through the most critical period of strengthening its economy and taking the right steps towards increasing the dinar investment 2015. Iraq's ally United States Of America is standing firm by all the commitments that the US has made, be it through the Diplomats of US or in the form of assisting the Iraqi economy and the dinar by bringing in the investment from the private sectors around the globe.

Literacy leads to Economic Growth:

One of the aspects of identifying the economic growth of the nation is its literacy rate as it improves the living standard of an individual, society and the country. Iraq has shown significant growth in its literacy rate, this literate population of Iraq becomes the workforce that will drive the Iraqi economy and the dinar towards a bright future.

Iraq is transforming rapidly into a preferred choice of opportunities because of its vast oil reserves and literacy rate of 80% and the manpower availability. Equipped with ever improving self-governance, adept security forces and developing economy, Iraq can become a center of social and economic stability in the Middle East region. The determining factors in achieving this goal will be trade and economic association with the USA and the global community.

FDI and Economic Revival Fortifying Iraq and Dinar

 Decreasing Violence, Increasing oil revenues:

A remarkable seizure of the Baiji oil refinery by winning the battle against the militants has provided the government of Iraq a sigh of relief. The ground security forces have done a significant job and are getting great support from the air strikes by the allies.

A very positive effect of the change in government and the new policy implementation can be seen on the security. It has been over a decade since the downfall of Saddam Hussein and Iraq is on the way of establishing itself as a major oil exporter globally. Iraq is now producing 3 million barrels per day.

In the past it has been mentioned that the crude oil production might go up to 12 million barrels per day, however Mr. Abdul- Mehdi, Iraq's ex Vice president and finance Minister who is now handling the portfolio of Oil Ministry feels that by 2020 Iraq will be able to double its crude oil production. This will help the Iraqi economy to attract remarkable levels in terms of international investment which will be required for drilling new well and developing required infrastructure.
Recent oil and budget agreement between the Iraqi government and Erbil was a much awaited goal and is seen as a significant achievement for Iraq.

Success in Foreign Direct Investment:

In the initial period of US association with Iraq, the private companies of US entered into the business ventures with Iraq through the projects that were funded by the government of USA. But the scenario has drastically changed, Iraq has new laws for investment and these new laws provide favorable circumstances and the tax laws which is encouraging the Foreign Direct Investment in Iraq. The foreign direct investment in Iraq is gaining strength because of the Ministries decision in allocating a huge budget for procurement. Hence as compared to the initial phase, today many firms from the US are making the most of this opportunity by directly investing in Iraq.

Few years down the line the reconstruction and investment task force of Iraq will lay the right foundation for making Iraq a strong economy and fortify the Dinar. The continuous association of Iraq in trade with the global community and the US along with its huge crude oil reserve and the growing literacy rate that will provide the labor force to do justice with the economic development opportunities that Iraq has successfully created besides the turmoil, will result into a economically strong Iraq and a very valuable Dinar.