Saudi PIF allocates $3bn for investments in Iraq, says ambassador

ERBIL (Kurdistan24) – Saudi Arabia’s Public Investment Fund (PIF) has allocated $3 billion for investments in various sectors in Iraq, the country’s envoy in Baghdad said on Wednesday.

Saudi Ambassador to Iraq Abdulaziz Al-Shammari's remarks to the Iraqi state media INA came on the sidelines of a signing ceremony of a partnership agreement in the industrial field.

The Iraq Fund for Development and Saudi PIF are currently exploring areas that require investment in Iraq, the ambassador said, adding his country has allocated $3 billion for investment in various Iraqi sectors, including infrastructure, mining, agriculture, real estate development, and financial services.

The PIF in May this year announced the creation of a new unit under its authority for that purpose.

Baghdad and Riyadh currently enjoy close diplomatic relations following years of Iraq’s isolation from regional engagement.

The bilateral ties have been strengthened by Saudi pledges of investment in various Iraqi sectors, particularly as the fight against the so-called Islamic State waned in 2017.

The neighboring countries experienced rocky relations following the Iraqi invasion of Kuwait in 1990.

In a bid to normalize its damaged ties with regional countries, Iraq has tried to boost its diplomatic engagement, particularly with the two historical Middle Eastern rivals: Iran and Saudi Arabia.

Baghdad had hosted at least five rounds of talks between Riyadh and Tehran before the two former foes officially reconciled through Chinese mediation in March.