Iraqi PM floats joint investment fund for projects with Japan

ERBIL, Kurdistan Region —Iraqi Prime Minister Adil Abdul-Mahdi with Kentaro Sonoura, the special advisor to the Japanese Prime Minister, offered the creation of an investment fund via Iraqi oil exported to Japan in exchange for construction and other projects.

Abdul-Mahdi expressed his country’s national “pride” in the level of relations with Japan in a meeting on Sunday. He said Baghdad was gracious for Tokyo’s support in the “sectors of security, stability, construction projects, and cultural and economic cooperation,” according to a readout from the Iraqi PM’s office.

He explained that Iraq is slowly regaining stability and security, so Japan could be “a perfect partner” in regards to bilateral construction and service projects.

“[Abdul-Mahdi] proposed an initiative for partnership, economic and construction cooperation between the Iraqi and Japanese government that includes initiating a joint fund for construction projects,” added the readout.

The fund would be composed of some revenue from Iraqi oil exports to Japan, while Japan would match investments for Japanese companies working in Iraq.

“The Iraqi government will present a package of projects in a way that ensures the success of the work of Japanese companies, speeding up its efforts and suitability of its work,” added the readout.

Such an initiative would strengthen relations, speed up reconstruction, creation of economic projects and job creation, and diversify sources of revenue for Iraqis.

“The Japanese official expressed his interest in the project, mentioning that he was present back when the head of the Council of Ministers, on [Abdul-Mahdi’s] trip to Japan in during his tenure as the Minister of Oil proposed it,” added the readout.

Iraq will send an outline of the project to Japan’s embassy for review “in a way that could contribute to solidifying cooperation between the two sides.”

He added that the Japanese government wishes to expand ties with Iraq in all fields, supporting stability and economic development, and strengthening democracy in Iraq.

The Japanese special advisor also met with Iraqi President Barham Salih. Both discussed building investment ties, rebuilding infrastructure, providing basic services, and elevating reconstruction and industry.

Salih’s spokesperson, Lukman Faily, previously served as ambassador to Japan. 

Japan has served a key role in helping to improve Iraq and the Kurdistan Region’s aging and overwhelmed infrastructure.