The Iraqi government has received pledges estimated to reach $30bn to help in the country’s reconstruction process in the aftermath of the war with Islamic State in Iraq and Syria (Syria), it was announced on 14 February, the last day of the Iraq reconstruction conference organised by the Kuwait Chamber of Commerce and Industry and the Washington-based World Bank.
Most of the pledges are in the form of loans.
Turkey extended the largest credit line at $5bn. It is followed by the US, which offered $3bn in credit.
Saudi Arabia pledged $1.5bn, while Kuwait pledged $1bn in loans and another $1bn in investments.
Qatar pledged $1bn in loans and investments, while the UAE pledged $500m.
The UAE cited that that it currently has $5.5bn in private sector investments in Iraq, in addition to its pledge.
The pledges from other countries include:
- UK: $1bn (over a 10-year period)
- Germany: $617m
- EU: $494m
- Malaysia: $100m
- Finland: $10m
The Islamic Development Fund pledged $500m and the Arab Fund for Economic and Social Development pledged $1.5bn.
Iran will also participate in the reconstruction, according to Kuwait deputy prime minister Sabah al-Khaled al-Hamad al-Sabah. Iran, however, has not specified its planned contribution to the reconstruction fund.
It is understood Iraq owes its GCC neighbours an estimated $40bn, including reparations from the 1991 Gulf War.
Iraq’s gross credit is estimated at $170bn by end 2016, nearly two-thirds its gross domestic product (GDP).
World Bank has estimated that Iraq needs between $80bn and $100bn for reconstruction following the war with Isis. The immediate need is estimated at $22bn.