Iraq News - Local News - Baghdadpost

Foreign investors start to withdraw from Iraq

The Associated Press revealed that foreign investors started to withdraw from Iraq due to the repercussions of the demonstrations taking place in the country and the accompanying acts of violence and sabotage.

The agency said in a report that until now the disturbances did not seriously affect the main artery of the Iraqi economy, which is, oil, that generates 6-7 billion dollars per month, equivalent to 90 percent of the state's income, and oil exports did not face any cuts, according to senior officials of the Ministry of Oil.

The agency added, that production was also not affected by the repeated sit-ins and the closure of roads leading to the major oil fields in the south, where the bulk of Iraq’s oil resources were located, but future investments are now under threat.

The agency quoted "Zap Sethna", one of the founders of "Partners in the Northern Gulf", an investment company with work experience in Iraq, as saying that foreign investors are withdrawing from deals in the energy sector and other sectors as well.

"We had American supporters ready to participate and to pump money into Iraq, but they turned back on their heels," added Sithna.

The agency noted that there are other investors worried about the slow pace of talks to form the new government after the resignation of Prime Minister, Adel Abdul Mahdi under the pressure of protests.

It is expected that the political blocs will name a new consensus candidate during this week to assume the post of prime minister.