BAGHDAD: Months after declaring victory over extremists, war-battered Iraq hopes to attract billions of dollars from private investors as well as donors to fund its reconstruction.
Baghdad is looking to drum up funds at a reconstruction conference in neighboring Kuwait from February 12 to 14 after announcing the defeat of Daesh at the end of last year.
The country is still reeling from the rise of Daesh and the punishing fightback it took to crush the jihadists, with swathes of its territory in ruins and millions of people displaced.
Authorities in the resource-rich nation say there has been a heavy toll on oil, electricity and manufacturing infrastructure, as well as basic services such as water and sanitation.
Iraq needs to raise $100 billion to rebuild, Prime Minister Haider Al-Abadi has said, after the fight against Daesh and decades of sanctions and war.
“It’s a huge amount of money. We know we cannot provide it through our own budget,” he said at the World Economic Forum in Davos, Switzerland last month.
“That’s why we now resorted to investment,” he said.
Iraq sits on some of the world’s largest crude reserves, which Baghdad puts at 153 billion barrels, but the war against IS and a slump in world prices have diminished its oil revenues.
The Kuwait conference’s second day will be devoted to the private sector’s role in rebuilding Iraq, with more than 2,000 companies and businessmen due to attend, according to the Gulf country.
International organizations are to speak on the first day, while attending donor countries are expected to make announcements on the third.
The US State Department has said that rather than “direct contributions,” Washington has “focused on the private sector. It has teamed up with the US Chamber of Commerce to organize a delegation of over 150 American companies to travel to Kuwait” for the conference.
Iraq — the second largest producer within OPEC after Saudi Arabia — has already called for help from investors worldwide, even as it seeks to ramp up output from its largely untapped reserves.
Kuwait is setting aside its past differences with Iraq to host the summit.
In August 1990, Iraq invaded Kuwait after accusing its neighbor of “stealing” Iraqi oil from a field straddling the border.
That sparked the first Gulf War, which ended after a US-led coalition ousted Iraqi forces from the emirate.
Iraqis have since weathered international sanctions, a US-led invasion in 2003 and the battle against Daesh.
Today, some 2.6 million people remain displaced across the country, the International Organization for Migration has said.
Satellite imagery shows some 26,000 houses are destroyed or seriously damaged, including more than 17,000 in the extremists’ former bastion of Mosul.
“There is huge destruction and a huge need to mobilize support,” said Erfan Ali, Iraq representative of the UN Human Settlements Programme.
Ali said there are big hopes the private sector will play a major role in rebuilding, offering “innovative solutions” to tackle the country’s problems.
Attracting investors will be no easy task in a country ranked as the world’s tenth most corrupt in Transparency International’s 2016 Corruption Perceptions Index.
But Ali said companies and businessmen will have access to a “reconstruction data platform to ensure accountability and transparency.”
Peter Hawkins, representative for the UN children’s fund in Iraq, says reconstruction will be a mammoth task — not just in Mosul, retaken from Daesh last July after several months of fighting, but also elsewhere.
Though much of the battle against IS took place in northern Iraq, its southern provinces have also suffered from government budget cuts during the conflict.
Overstretched schools in the south teach children in two or three shifts, the UNICEF official said.
Iraq — where nearly a quarter of the population survive on less than $2 a day — needs “major investment in health, education, social warfare” and water resources, he said.
Above all, educating young Iraqis is a chief concern, Hawkins said.
“If we do not start to invest in children’s education today, this generation will be lost and will not be able to contribute to the economy and the security of Iraq when they grow up.”
Iraq banks on private sector for post-Daesh reconstruction
Iraq banks on private sector for post-Daesh reconstruction
Egypt’s middle class cuts costs as IMF-backed reforms take hold
- The world lender has long backed measures in Egypt including a liberal currency exchange market and weaning the public away from subsidies
The world lender has long backed measures in Egypt including a liberal currency exchange market and weaning the public away from subsidies.
On the ground, that has translated into an eroding middle class with depleted purchasing power, turning into luxuries what were once considered necessities.
Nourhan Khaled, a 27-year-old private sector employee, has given up “perfumes and chocolates.”
“All my salary goes to transport and food,” she said as she perused items at a west Cairo supermarket, deciding what could stay and what needed to go.
For some, this has extended to cutting back on even the most basic goods — such as milk.
“We do not buy sweets anymore and we’ve cut down on milk,” said Zeinab Gamal, a 28-year-old housewife.
Most recently, Egypt hiked fuel prices by 17.5 percent last month, marking the third increase just this year.
Mounting pressures
The measures are among the conditions for an $8 billion IMF loan program, expanded this year from an initial $3 billion to address a severe economic crisis in the North African country.
“The lifestyle I grew up with has completely changed,” said Manar, a 38-year-old mother of two, who did not wish to give her full name.
She has taken on a part-time teaching job to increase her family’s income to 15,000 Egyptian pounds ($304), just so she can “afford luxuries like sports activities for their children.”
Her family has even trimmed their budget for meat, reducing their consumption from four times to “only two times per week.”
Egypt, the Arab world’s most populous country, is facing one of its worst economic crises ever.
Foreign debt quadrupled since 2015 to register $160.6 billion in the first quarter of 2024. Much of the debt is the result of financing for large-scale projects, including a new capital east of Cairo.
The war in Gaza has also worsened the country’s economic situation.
Repeated attacks on Red Sea shipping by Yemen’s Houthi rebels in solidarity with Palestinians in Gaza have resulted in Egypt’s vital Suez Canal — a key source of foreign currency — losing over 70 percent of its revenue this year.
Amid growing public frustration, officials have recently signalled a potential re-evaluation of the IMF program.
“If these challenges will make us put unbearable pressure on public opinion, then the situation must be reviewed with the IMF,” President Abdel Fattah El-Sisi said last month.
Prime Minister Mostafa Madbouly also ruled out any new financial burdens on Egyptians “in the coming period,” without specifying a timeframe.
Economists, however, say the reforms are already taking a toll.
Wael Gamal, director of the social justice unit at the Egyptian Initiative for Personal Rights, said they led to “a significant erosion in people’s living conditions” as prices of medicine, services and transportation soared.
He believes the IMF program could be implemented “over a longer period and in a more gradual manner.”
’Bitter pill to swallow’
Egypt has been here before. In 2016, a three-year $12-billion loan program brought sweeping reforms, kicking off the first of a series of currency devaluations that have decimated the Egyptian pound’s value over the years.
Egypt’s poverty rate stood at 29.7 percent in 2020, down slightly from 32.5 percent the previous year in 2019, according to the latest statistics by the country’s CAPMAS agency.
But Gamal said the current IMF-backed reforms have had a “more intense” effect on people.
“Two years ago, we had no trouble affording basics,” said Manar.
“Now, I think twice before buying essentials like food and clothing,” she added.
Earlier this month, the IMF’s managing director Kristalina Georgieva touted the program’s long-term impact, saying Egyptians “will see the benefits of these reforms in a more dynamic, more prosperous Egyptian economy.”
Her remarks came as the IMF began a delayed review of its loan program, which could unlock $1.2 billion in new financing for Egypt.
Economist and capital market specialist Wael El-Nahas described the loan as a “bitter pill to swallow,” but called it “a crucial tool” forcing the government to make “systematic” decisions.
Still, many remain skeptical.
“The government’s promises have never proven true,” Manar said.
Egyptian expatriates send about $30 billion in remittances per year, a major source of foreign currency.
Manar relies on her brother abroad for essentials, including instant coffee which now costs 400 Egyptian pounds (about $8) per jar.
“All I can think about now is what we will do if there are more price increases in the future,” she said.
Roadside bomb kills three soldiers in northern Iraq
BAGHDAD: A roadside bomb targeting an Iraqi army vehicle killed three soldiers in northern Iraq on Sunday, police and hospital sources said.
The attack near the town of Tuz Khurmatu, about 175 km (110 miles) north of the capital Baghdad, critically wounded two others.
There was no immediate claim of responsibility for the attack, but Daesh militants are active in the area, said two Iraqi security officials.
Despite the group’s defeat in 2017, remnants continue to conduct hit-and-run attacks against government forces.
Gaza civil defense says 20 dead in Israeli air strikes
- The Gaza health ministry said 43,799 people have been confirmed dead since Oct. 7, 2023
GAZA STRIP: Gaza’s civil defense on Sunday said Israeli air strikes killed at least 20 people, including four women and three children, across the war-torn Palestinian territory.
The deadliest strike killed 10 people in the Bureij refugee camp in central Gaza, said civil defense spokesman Mahmud Bassal.
At least one woman was killed and 10 were wounded in another strike on a house in at the same camp, he added.
Five other people were killed and 11 wounded by a “missile launched by an Israeli drone” Sunday morning in the southern city of Rafah, Bassal said.
Four others – three women and a child – were killed in an overnight strike on a house in the west of the Nuseirat camp in central Gaza, he added.
The Gaza health ministry on Saturday said the overall death toll in more than 13 months of war had reached 43,799.
The majority of the dead are civilians, according to ministry figures, which the United Nations considers reliable.
Hamas's October 7, 2023 attack that sparked the war resulted in the deaths of 1,206 people, mostly civilians, according to an AFP tally of Israeli official figures.
Israel bombs south Beirut after Hezbollah targets Haifa area
- Israeli military spokesman Avichay Adraee on X warned residents near the three target sites to leave
Beirut: An Israeli strike hit south Beirut on Sunday where the military said it targeted Hezbollah, hours after the Iran-backed group said it fired on Israeli bases around the city of Haifa.
A column of smoke rose over the capital’s southern suburbs, AFPTV footage showed, following a warning from the Israeli military for residents to evacuate three areas.
Further south, overnight Israeli airstrikes and artillery shelling hit the flashpoint southern town of Khiam, some six kilometers (four miles) from the border, Lebanon’s state-run National News Agency reported early Sunday.
The bombardment came after Israel’s military reported a “heavy rocket barrage” on Haifa late Saturday and said a synagogue was hit, wounding two civilians.
Israel has escalated its bombing of Lebanon since September 23 and has since sent in ground troops, following almost a year of limited, cross-border exchanges of fire begun by Iran-backed Hezbollah militants in support of Hamas in Gaza.
In the Palestinian territory, where Hamas’s attack on Israel triggered the war, the civil defense agency reported 24 people killed in strikes Saturday.
Police in Israel said three suspects were arrested after two flares landed near Prime Minister Benjamin Netanyahu’s residence in the town of Caesarea, south of Haifa, but he was not home.
The incident comes about a month after a drone targeted the same residence, which Hezbollah claimed.
Israel’s military chief said Saturday Hezbollah had already “paid a big price,” but Israel will keep fighting until tens of thousands of its residents displaced from the north can return safely.
Beirut’s southern suburbs were veiled in smoke Sunday, following repeated Israeli bombardment a day earlier of the Hezbollah stronghold.
The Israeli military said aircraft had targeted “a weapons storage facility” and a Hezbollah “command center.”
Hezbollah fired around 80 projectiles at Israel on Saturday, the military said.
Lebanon rescuers mourned
Israeli forces also shelled the area along the Litani River, which flows across southern Lebanon, NNA said Sunday.
The agency earlier reported strikes on the southern city of Tyre, including in a neighborhood near UNESCO-listed ancient ruins. Israel’s military late Saturday said it had hit Hezbollah facilities in the Tyre area.
In Lebanon’s east, the health ministry said an Israeli strike in the Bekaa Valley killed six people including three children.
Hezbollah said it fired a guided missile that set an Israeli tank ablaze in the southwest Lebanon village of Shamaa, about five kilometers from the border.
Late Saturday, Hezbollah said it had targeted five military bases including the Stella Maris naval base.
In eastern Lebanon, funerals were held for 14 civil defense staff killed in an Israeli strike on Thursday.
“They weren’t involved with any (armed) party... they were just waiting to answer calls for help,” said Ali Al-Zein, a relative of one of the dead.
Lebanese authorities say more than 3,452 people have been killed since October last year, with most casualties recorded since September.
Israel announced the death of a soldier in southern Lebanon, bringing to 48 the number killed fighting Hezbollah.
Imminent famine
In Hamas-run Gaza, the Israeli military said it had continued operations in the northern areas of Jabalia and Beit Lahia, the targets of an intense offensive since early October.
Israel said its renewed operations were aimed at stopping Hamas from regrouping.
A UN-backed assessment on November 9 warned famine was imminent in northern Gaza, amid the increased hostilities and a near-halt in food aid.
Israel has pushed back against a 172-page Human Rights Watch report this week that said its mass displacement of Gazans amounts to a “crime against humanity,” as well as findings from a UN Special Committee pointing to warfare practices “consistent with the characteristics of genocide.”
A foreign ministry spokesman dismissed the HRW report as “completely false,” while the United States — Israel’s main military supplier — said accusations of genocide “are certainly unfounded.”
The Gaza health ministry on Saturday said the overall death toll in more than 13 months of war had reached 43,799.
The majority of the dead are civilians, according to ministry figures, which the United Nations considers reliable.
Hamas’s October 7, 2023 attack that sparked the war resulted in the deaths of 1,206 people, mostly civilians, according to an AFP tally of Israeli official figures.
Demonstrators in Tel Aviv on Saturday reiterated demands that the government reach a deal to free dozens of hostages still held in Gaza.
The protest came a week after mediator Qatar suspended its role until Hamas and Israel show “seriousness” in truce and hostage-release talks.
Israeli military reports soldier killed in battle north of Gaza on Saturday
CAIRO: The Israeli military said on Sunday that a fighter in the Nachshon Regiment (90), Kfir Brigade, was killed in battle north of Gaza on Saturday.
