Iraq needs $60 billion to revive domestic industry

 

By Ali Kareem

 

Azzaman, January 25, 2006

 

To modernize the country’s industry, investments in the range of $60 billion are needed, said Minister of Industry and Minerals Usama Abdulaziz.

 

The huge sum, he said, was not difficult to raise.

 

“Foreign investment and flow of foreign capital will make the money available,” he added.

 

Otherwise, Iraqi industry will not be able to cope with the rest of the world, he said.

 

He said currently his ministry was receiving only 10% of the actual allocations it needs to modernize the industry.

 

Currently, the industry makes a modest contribution to GDP but exports are negligible.

 

But Abdulaziz said with the necessary investments domestic industry’s contribution should not less than 25%.

 

This will be a boost to the oil sector, currently the country’s sole foreign cash earner.

 

The minister said his companies have signed several contracts with other ministries.

 

He said state fertilizer plants now meet domestic needs.

 

“We have signed a $50 million contract for the construction of four refineries,” he said.

 

The ministry’s pharmaceutical companies meet 50% of the country needs, he said.