Baghdad: The Development Fund announced on Tuesday that investment opportunities worth an estimated $40 billion are available to manufacture goods domestically instead of importing them.

According to Iraqi News Agency, the Fund’s President, Mohammed Al-Najjar, explained that the money held by the Fund is investment capital and is not intended for use in state budgets. He highlighted that most budget expenditures are expenses that do not generate returns for the state, whereas the Fund’s resources are directed toward investment projects that yield profits and benefits for the government, with those returns subsequently reinvested in additional projects.

Al-Najjar emphasized the importance of the Fund as a critical instrument for sustaining the development of a diversified economy, especially given the absence of an approved budget for the current year, the ongoing war-related challenges facing Iraq, and the suspension of oil exports. He pointed out that while the state budget is focused on spending, the Fund is centered on investment, marking a significant difference in both approach and mindset.

The Fund’s Board of Directors includes the Ministers of Finance, Planning, and Construction and Housing, and is chaired by the Prime Minister. However, the Board has not convened its first meeting since the current government took office, as the previous Board ceased operations following the change in government. The Board is responsible for setting or approving the policies submitted by the Fund’s executive management, which have already been prepared and are awaiting approval at the first meeting. These policies align with the government’s strategy to develop alternatives to the rent-based economy.

Investment opportunities are gauged by the volume of Iraq’s annual imports, with Al-Najjar noting that Iraq currently imports most of its domestic needs. This scenario presents an opportunity to produce a significant share of these goods locally, barring certain products. He stressed that there are investment opportunities worth approximately $40 billion to produce goods inside Iraq instead of importing them.

In conclusion, Al-Najjar stated that replacing these imports with local factories and investments, supported by international investment, will reduce the burden of imports and, more importantly, create jobs and drive genuine economic development. He underscored Iraq’s need for investment across all sectors.