Iraqi Ports: Plans to establish an industrial zone and large companies at the Grand Faw Port
The Iraqi General Ports Company confirmed on Wednesday that it has reached advanced stages of contracting with an international company to manage and operate the Faw Port. It also indicated that a large package of projects will be announced at the Faw Port, similar to the refinery package.
The Director of the Iraqi Ports Company, Farhan Al-Fartousi, told the Iraqi News Agency (INA): “The fixed portion of the submerged tunnel will soon be 100% completed. It will consist of two outbound lanes and two return lanes connected externally to the highway and internally to the submerged tunnel.” He explained that “the submerged portion consists of 10 concrete blocks, 11 meters high, 34 meters wide, and 126 meters long, weighing 45,000 tons. These blocks were entirely poured into a special basin called the Submerged Tunnel Basin.”
He added, “After the sections were constructed, they were inspected and prepared. Then, the flotation process began, i.e., lifting them with water and transporting them to the designated location. Then, the process of submerging and connecting them to the fixed sections began.” He explained that “our staff and the companies working with us—the Italian company Technical, which supervised the project, the Korean company Daewoo, which implemented the project, and the Dutch company specializing in such work worldwide—were able to connect the first section and place it in place. They opened it to the fixed section, and it became part of the tunnel. We toured and were present at this section, while at the same time, the staff began floating the second section until it was fully formed. After the ten sections are connected, the tunnel will be complete and ready to operate across both banks, whether from Um Qasr to Al-Faw or vice versa.”
Al-Fartousi further explained that “very advanced stages have been reached to contract with a scientific company to manage and operate the port. We are awaiting the consulting company’s opinion on the contracting mechanism, regulations, and other details. After that, the file will be presented to the Supreme Committee for approval, and we will proceed with the contract.”
Al-Fartousi pointed out that “there is a large package of projects, including the naval base project, which will be contracted within a month or a month and a half, followed by the liquefied natural gas (LNG) terminal project. This is in addition to the large project, which is a refinery within the port complex and a petrochemical plant. Contracts have been signed by the Ministry of Oil, and we are following up on this file, which will be operational soon.” He added, “We have a plan to establish an industrial zone, and there are correspondences and companies interested in entering this large project. A large package of projects similar to the refinery package will soon be announced in the port of Faw.”
Iraq is preparing to launch the digital dinar… a step towards a cashless economy!
The Central Bank of Iraq is preparing to launch a national digital currency as part of a gradual shift toward a digital financial system aimed at reducing the use of paper money and enhancing transparency and financial inclusion.
The initiative relies on modern payment technologies and seeks to reduce transaction costs and combat money laundering.
Despite the ambition, experts question the project’s success due to challenges related to weak trust in the banking system and the lack of adequate digital infrastructure. The Central Bank, meanwhile, reiterates its rejection of cryptocurrencies, deeming them illegal, and warns against the activity of fictitious trading companies in the local market. The Governor of the Central Bank of Iraq, Ali Al-Alaq, revealed that the country’s financial and banking system is undergoing fundamental transformations, most notably the gradual decline in the use of paper currency in favor of digital payments.
During his speech at the Ninth Finance and Banking Conference and Exhibition, Al-Alaq confirmed that the Central Bank is working to create its own digital currency, which will be gradually introduced as an alternative to paper currency, following the experiences of several global central banks.
The Central Bank of Iraq announced on December 16 that it would not grant any licenses to stock, metals, and cryptocurrency trading companies, warning against the activity of fictitious companies claiming to have official licenses.
Despite the growing global spread of cryptocurrencies, Iraq doesn’t appear close to entering this high-risk digital world. According to experts, these digital assets do not represent a real addition to the Iraqi economy, which is primarily based on oil exports and dollar transactions in global markets.
Financial affairs expert Mustafa Hantoush told Al-Mada that “Iraq does not have a legislative or economic environment capable of accommodating these currencies. Rather, they could become a tool for speculation and money laundering in the absence of oversight and regulation.”
He pointed out that “dealing in them is limited and informal, via external platforms and offices in neighboring countries, exposing investors to the risk of loss and fraud.”
Furthermore, according to Hantoush, cryptocurrencies are not based on real reserves or bank guarantees, making them highly volatile and unreliable in fragile markets such as Iraq’s. According to economic researcher Ziyad al-Hashemi, the initiative to launch the “digital dinar” is an attempt to eliminate the chronic problems plaguing the monetary system, but its success remains in doubt.
In an interview with Al-Mada, Al-Hashemi explained, “There is a fundamental difference between digital currency and cryptocurrencies. Digital currencies, such as the digital dollar or the digital dirham, are issued and regulated by central banks and are managed within an official regulatory framework. Meanwhile, cryptocurrencies, such as Bitcoin, operate within a decentralized system that is not subject to any regulatory authority and are highly volatile in value due to their dependence on supply and demand.”
Bitcoin was the first cryptocurrency, emerging in 2009 as a response to the global financial crisis. It was designed to operate outside the regulatory framework of central banks, making it an attractive tool for some, particularly in digital circles and criminal networks, due to the privacy and speed of money transfers it provides, free from government restrictions. Transactions in Bitcoin are a legal violation, subjecting perpetrators to the provisions of Anti-Money Laundering and Terrorism Financing Law No. 39 of 2015.
The bank issued an official statement during the recent dollar crisis, emphasizing that trading in cryptocurrencies is prohibited and not recognized in the country. Regarding the anticipated digital dinar, he points out that “the Central Bank of Iraq will be responsible for issuing and circulating it, allowing it to control and monitor financial transactions and contributing to the reduction of financial crimes and money laundering. Unlike cryptocurrencies, this currency will be fully backed by the Central Bank, giving it a degree of stability and making it similar to paper currency in terms of sovereign value, with the difference that its circulation will be electronically only through bank accounts and digital wallets.”
Al-Hashemi believes that “the main goal of this step is to reduce reliance on paper dinars hoarded outside the banking system and advance financial inclusion, as well as to attempt to limit the widespread use of the dollar in local transactions by enhancing confidence in using the digital dinar as an official alternative in daily transactions.”
He adds that “the success of this project depends on providing an appropriate environment and strict implementation. If this is achieved, the digital dinar could effectively contribute to withdrawing stagnant cash, revitalizing banking activity, and stimulating credit, which could positively impact overall economic performance.”
However, Al-Hashemi does not hide his pessimism, emphasizing that The Central Bank of Iraq currently lacks the basic components needed to ensure the success of this initiative, due to the significant flaws in its monetary policies, the lack of public confidence in the banking system, and the recurring political interference in its decisions. He believes that all of these obstacles could make the digital dinar a fragile project, suffering from the same problems as the paper dinar.
He concludes by saying, “Ambition alone is not enough. Without genuine reform of monetary policies, strengthening public confidence in banks, and distancing politics from the economy, the chances of success of the digital dinar remain extremely limited.”
Furthermore, Mazhar Mohammed Saleh, economic advisor to the Prime Minister, believes that “central banks around the world, including the Central Bank of Iraq, are still in the gradual preparation phase for the transition to the world of digital payments as a modern alternative to paper currencies.” This shift, he explains, does not change the essence of money and its basic functions.
Rather, it seeks only to improve the efficiency of dealing with it and reduce associated costs, in addition to strengthening financial oversight tools and reducing financial crime and money laundering.
Saleh confirms to Al-Mada that “this digital transformation in the monetary system does not mean that money will lose its function as a store of value, a means of payment and receipt, or a tool for unit of account and measurement of rights. Rather, these functions will be fully preserved, but within a more transparent, governed, and compliant environment, enhancing the monetary authority’s ability to manage monetary stability using the same monetary policy tools.”
Saleh explains that “digital money can expand the scope of banking services to include the poorest and most vulnerable segments of society by facilitating the opening of digital bank accounts. Digital money will be available to all citizens, from the smallest monetary unit to the largest, allowing for instant settlement of transactions without delay or wasted rights or time.”
He points out that “providing digital liquidity widely within the banking system, with minimal liquidity risk, will enable low-income groups to obtain immediate and affordable digital loans at a lower cost, given that the funds will remain within the banking system and will not require large reserves or financial hedges.
This will optimally leverage the digital credit multiplier, enhancing financing and stimulating economic activity without compromising economic stability or causing monetary inflation, as long as monetary policy tools remain effective.”
The economic advisor emphasizes that “implementing this project requires precise and extensive investments in information technology, such as smartphones and social networks, along with the necessity of an advanced digital infrastructure, most notably a reliable internet network, as it is the backbone of the success of digital payments.
He also emphasizes the importance of a solid legal structure that protects the rights of users and customers and ensures the security of networks from breaches, within a comprehensive cybersecurity framework that aligns with the rapid development of digital services worldwide.”
