International Finance
Banking

Iraq’s GDP to grow 151% between 2011 and 2020: Report

Banking services, Iraq, ATM, bank branches, foreign banks, Iraq GDP, Sansar Capital Management, World Energy Outlook, IEA, Iraqis
Iraq remains a centre for development of banking services, particularly due to its vast economy and industry challenges such as access to bank branches or ATM machines, say banking experts

Singapore-based Sansar Capital Management issued a comprehensive report, which highlights the International Monetary Fund’s view on Iraq’s GDP rate positioning it under the category: ‘one of the fastest growing economies in the world.’

Sansar reports also mentioned that the IEA in its World Energy Outlook report anticipates Iraq’s contribution to be 45% of the global incremental oil supply in this decade. Overall, IEA forecast predicts Iraq’s GDP will grow 151% between 2011 and 2020.

According to Marcopolis.net, there are nearly 900 bank branches spread across 33mn Iraqis. This means, one branch serves 36,000 individuals. Sabri Al-Khalidi, Iraqi financial analyst told the News Wire “Addressing the Iraqi people’s reluctance to deposit their money into local banks is an issue that needs to be dealt with in a transparent and professional manner.”

It is the responsibility of the government, and measure must be taken for the welfare of Iraq’s financial and economic advancements, Al-Khalidi added.

In a recent Macropolis interview with Chairman of North Bank Nozad Dawood Fattah Al-Jaff said the growth will eventually take place for all the banks to meet targets defined by the Central Bank, mainly due to Iraq’s wide economy. In the near future, several banks will operate in Iraq, and a lot of competition from foreign banks is expected.

“We have given a lot of loans to a variety of sectors in Iraq from agriculture to housing as well as giving bridge loans and loans for fulfilling contracts. We have lot of big loans with the car industry and we have worked successfully with them in importing thousands of cars to Iraq to then sell them to the retailers in the market and to the end users,” Al-Jaff added.

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