Analysis and Projections of Foreign Direct Investments in Iraq

Authors : Sayed Niyam Alami, Pierre Rostan, Alexandra Rostan

Pages : 166-178

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Publication Date : 2024-06-30

Article Type : Research Paper

Abstract :The objective of the paper is to analyze Foreign Direct Investment (FDI) in Iraq, benchmarked to Saudi Arabia, with historical data and forecasts up to 2100. The findings reveal that FDI in Iraq had a negative and moderate correlation with GDP between 1970 and 2022 (-51%). FDI was not an engine of economic growth. The relationship between these two variables is predicted to reverse in the coming years and reach +86%. Thus, FDI will be a key driver of growth in the Iraqi economy. The story of Saudi Arabia is the opposite. FDI in Saudi Arabia had a positive and moderate correlation with GDP between 1970 and 2022 (+49%). Thus, FDI remained an engine of economic growth. The relationship between these two variables is expected to reverse in the coming years and reach -44%. Finally, the growing economy will be self-sufficient, being able to generate enough cash flows so that the economy no longer depends on FDI for growth.
Keywords : Doğrudan yabancı yatırım, Dalgacık Analizi, Irak, Suudi Arabistan