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Iraqi News Wednesday AM 11-11-20

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The White Paper and the Future of the Economy

Wednesday 11 November 2020  35  Ali Suhail   The white paper issued by the Iraqi government shed light on many of the challenges facing the Iraqi economy and the implications for the economic future of Iraq, if the situation continues as it is, but this difficult reality should not reduce the potential of the Iraqi economy, on top of which is an untapped youth force. .

The population of Iraq is more than 40 million, and the average age of the Iraqi individual is 21 years, which makes Iraq one of the smallest countries in the world. This class is not only a force that can be trained and invested for production, and this makes Iraq an attractive market for international companies to serve them as consumers.

It is not possible to rely on the public sector in Iraq only to absorb this young class, and from that the government must aim to empower this class to work in the private sector and encourage them towards entrepreneurship and turn them into a creative energy in supporting this sector, in most cases this approach requires the government Long-term planning and appointment of consultants to develop plans to implement these goals, but the difficult reality forces us to move quickly, and the opportunity may be conducive to reproducing steps that have succeeded in other countries after they have been modified to meet the needs of Iraq.

Here are proposals that can be applied in this regard: Here is an imperative to build programs Professional training for new fields: The modern economy needs non-recognized majors such as software engineering, data, science and financial technology, and it is possible for the government to partner with international education platforms to offer its programs at very low prices, or to pay after employment,

it is also possible to develop educational programs and initiatives to support with Large technology companies, as part of the big contracts are usually programs to develop local capabilities, there are many of these programs around Africa, for example the 4afrika program from Microsoft.

Creating free zones We can follow the footsteps of Dubai and other cities in the Gulf that have established successful free zones, which are usually characterized by facilities around company registration and investment in them, in addition to that, they can make these areas as gatherings of specialized energies and make them sources of innovation and creativity, similar to many similar areas. around the world.

Protecting the rights of investors: Investing in small companies brings great risks to investors globally, and the environment in Iraq poses additional challenges. The government must consider establishing legal provisions and facilities that help protect the rights of investors.

Financial risk reduction tools: The government may start establishing investment funds in Iraqi companies, but to encourage private investment, the government should think more about providing tools to reduce investment risks and provide guarantees to investors.

This is by providing investors with tax exemptions or providing support investments. There are many of these programs. In the United Kingdom, the most common one is a program known as EIS / SEIS, which provides investors with guarantees of 75% of private investment in the form of tax exemptions. Setting laws that regulate the work of investment funds:

One of the most important sources of investment globally are private financial funds. Today, Iraq does not have clear laws to regulate the work of these funds, and this represents an obstacle to encouraging private, regulated investment.   LINK

The Finance Committee completes the discussion of the Fiscal Deficit Financing Act and submits it to a vote

Political  Wednesday 11 November 2020 | 07:12 pm| Views: 11  The Financial Committee, headed by Representative Haitham Al-Jubouri, and the presence of members on Wednesday 11/11/2020, held a meeting in which they completed their discussions on the financing of the fiscal deficit law due to the delay of the government in sending the Federal Budget Law for the year 2020 and the continued decline in crude oil prices, in a manner that guarantees the continuation of financing the salaries of employees and retirees and the social welfare network .

During the meeting, part of which was attended by Deputy Speaker Bashir Haddad and took place at the headquarters of the Finance Committee, the committee completed its discussions on the law after making amendments that oblige the government to make actual reforms to avoid the country such stifling economic crises, as well as not relying on a continuous borrowing policy and burdening the state with debts .

Haytham Al-Jubouri, head of the Finance Committee, confirmed that the loan will enable the government to pay the salaries of employees for the remaining three months of the year 2020, as well as allocate part of the loan for investment projects and the development of regions and governorates, provided that it is distributed fairly among the governorates according to the population ratios and the degree of deprivation in them .

The Finance Committee has identified part of the loan to support the agricultural sector and provide the farmers with fertilizers, seeds and pesticides in order to reach self-sufficiency, in addition to requiring the government to automate customs, approve the biometric card for employees and cancel customs tax exemptions, except for those issued by the investment law and obligate mobile phone companies to pay what they owe. Of sums, fines, and levies on services in order to maximize non-oil revenues and supplement the general budget with them .

In conclusion, the Finance Committee voted on the reform clauses added to the law and submitted it to a vote under the kiss of the House of Representatives.

Marketing news of “outlets” violations … devastating economic effects

Wednesday 11 November 2020  24  Baghdad: Saad Al-Sammak  There are no secrets to talk about the customs situation in and around the border outlets, insofar as delving into the secrets of clearance and customs performance that have reached a “comma” to disperse the transaction and what awaits procedures in port gates, land ports and controls, and the media implications of that on the promising national economy with investments on all Economic and development sectors.

The head of the media department at Imam Jaafar Al-Sadiq University, Dr. Kazem Al-Fartousi, believes that producing competitive content, to frame the content of media messages, is able to address the world with a positive effect, with the aim of convincing it to participate positively to support investments, and this will inevitably result in an influx of foreign capital.

It shows that «the volume of expected investments exceeds $ 500 billion distributed among various economic sectors, in line with the directions of Mustafa Al-Kazemi’s government in providing the requirements for the transformation from a (rentier) state model to a (production) state model, and this includes controlling the sources of rent and investments through media messages Positivity in the discourse directed locally and abroad ».

Dr. Al-Fartousi conveys an eye-witness of the reality of routine procedures in ports and outlets, which in turn has led to the reluctance of many customs clearance, transport and navigation companies to deal with Iraqi ports and go to neighboring countries, but despite this, he provides advice to more than one side that it is necessary to avoid the media framing of violations The customs duties, as this is a negative reflection in the current national media discourse directed at local and foreign public opinion.

Al-Fartousi says: “There are thousands of cases of smuggling and customs violations in all the ports of the countries of the world. The media in their countries did not address them, except for what are rare cases of quality as positive messages.” Satellite channels and various programs aimed at attracting investors to participate in economic development programs.

Al-Fartousi reveals that “70% of the country’s annual imports, which are estimated at about one hundred million tons according to official estimates, come from the ports and outlets of neighboring countries as a result of the high security risks in Basra ports after 2003”, adding that “the media has the main role in convincing companies Shipping by the necessity of using our ports after the elimination of those risks, and the improvement of services provided to ships and the deepening of the shipping lane.  LINK

The stability of the dollar exchange rate in the local markets

Market  Economy News _ Baghdad  The Iraqi Economic Center announced, on Wednesday, the global selling and buying prices of dollars, gold and oil for today.

“The selling price of the dollar is 125,500, while the purchase price is 124,500,” the center said in a statement seen by “Al-Eqtisad News”, noting that “the euro price: 100 euros compared to 118,22 dollars.”

He added, “The price of the sterling: 100 pounds per 132.60 dollars, while the price of the Turkish lira: 100 dollars per 815.26 Turkish lira,” indicating that “the price of an ounce of gold worldwide is $ 1881.98.”

He pointed out that “the price of a barrel of crude oil is $ 44.07, while the price of a barrel of US crude oil is $ 41.80.” Number of observations 49 Date of addendum 11/11/2020

The Iraqi Stock Exchange closed down

Follow-up Wednesday, November 11, 2020 04:17 PM Today, Wednesday, the Iraqi “Stock Exchange” index recorded a decline of 0.34%, stopping at 478.96 points.

Today’s session witnessed a decline in the shares of 7 companies, while the shares of 9 companies rose, and 6 companies maintained their share price.

The number of shares traded reached 1,044,049,287 shares, at a value of 706,606,479 Iraqi dinars, obtained from the conclusion of 411 deals, including 22 joint-stock companies out of 105 companies registered in the stock exchange .   LINK

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