RIYADH: Iraq has unveiled plans to attract Egyptian and Saudi investment for five new cities in Baghdad and other governorates, as part of efforts to address the housing shortage. 

Iraqi Prime Minister Mohammed Shia Al-Sudani presented these projects under the government’s initiative to launch 11 new cities, emphasizing their crucial role in addressing the urban housing challenge, especially for low-income groups, according to an official statement. 

The country has long been affected by political instability, impacting its economy and infrastructure, and faces a significant housing shortage. 

The prime minister highlighted Iraq’s rapid growth and recovery phase, noting numerous promising investment opportunities, particularly in housing and new city projects.  

With a demand for around 3 million housing units, he emphasized the government’s commitment to developing integrated cities that incorporate all sectors, services, entertainment, and commercial facilities, linked to Baghdad through a strong transportation network. 

The prime minister hosted a delegation of Egyptian, Saudi, and Iraqi businessmen, including Hisham Talaat Moustafa, chairman of TMG Holding; Sulaiman Al-Muhaidib, group chairman of Al Muhaidib Group; and businessman Ahmed Talaat Hani. The delegation specializes in real estate development and the establishment of integrated and smart residential cities. The meeting was attended by the Saudi Ambassador to Iraq, Abdulaziz bin Khalid Al-Shammari. 

Al-Sudani urged Egyptian and Saudi company owners to invest in resorts, hotels, and entertainment facilities, highlighting Iraq’s diverse tourist destinations. He emphasized that Iraq’s development and progress align with the economic interests of other Arab countries. 

Earlier this month, Mohammed Al-Khareef, chairperson of the Saudi-Iraqi Business Council, said a new law will protect Saudi investments in Iraq, with trade between the two countries witnessing an annual growth rate of 12 percent. 

Al-Khareef noted that the body is actively working to enhance funding from the Kingdom to Iraq, coinciding with Saudi Arabia’s private and governmental sectors showing interest in investing in the country. 

The new law, set to potentially be enacted in the coming months, aims to bolster economic cooperation between the two countries — with trade between the nations reaching SR5 billion ($1.33 billion), according to Al-Khareef. 

The announcement came during a meeting between Hassan Al-Huwaizi, chairman of the Federation of Saudi Chambers of Commerce, and Shalan Al-Karim, head of the Saudi-Iraqi Friendship Committee in the Iraqi Parliament, as part of an official visit to the Kingdom. 

In April, Saudi Arabia and Iraq signed 12 memorandums of understanding for quality investment projects to further strengthen economic ties.