World Countries Pledge $30 Billion to Help Rebuild Iraq

On Wednesday, participants at the conference for Iraq's reconstruction held in Kuwait pledged $30 billion to assist in rebuilding the country after the devastation caused by the war with the Islamic State group. However, this amount is significantly less than the $88 billion that Iraq had requested. According to the Associated Press, Turkey pledged the highest amount, committing $5 billion in credit to Iraq. The Emir of Kuwait announced that his country would provide $1 billion in loans and another $1 billion in direct investment to Iraq. Saudi Arabia also promised $1.5 billion in financial aid, and the Arab Financial Fund based in Kuwait announced it would contribute about $1.5 billion over the coming years to help rebuild Iraq's infrastructure. Qatar pledged $1 billion, the United Arab Emirates $500 million, and the Islamic Development Bank also promised $500 million. The German government pledged €500 million, while the European Union will provide €400 million. The U.S. government did not commit any direct financial aid to Iraq at the Kuwait conference but intends to offer $3 billion in loans and other financial facilities to assist American companies' investments in Iraq. The Associated Press notes that Kuwait's financial commitment, a wealthy oil-rich country that was occupied by Saddam Hussein's regime over twenty years ago, is surprising and indicates the country's interest in establishing peace and stability in Iraq after the war against the Islamic State group. Meanwhile, the Iraqi government still owes Kuwait for damages caused by Saddam Hussein's invasion. The foreign aid conference for Iraq concluded on Wednesday, but the amount of foreign aid announced at the conference is far from the $88 billion requested by the Iraqi government. One of the most affected areas during the war with the Islamic State fighters is the city of Mosul. The victory of Iraqi forces in this city came at a heavy cost, with airstrikes from the international coalition and suicide bombings by militants destroying a large number of homes and government buildings. The Associated Press adds that according to the Iraqi government's assessment, one of the main and urgent items for the country's reconstruction is housing, which requires $17 billion in investment. The United Nations states that approximately 400,000 homes need to be rebuilt in Mosul alone. As a result of the war with the Islamic State group, more than 5 million people have been displaced within Iraq, with only half of them having returned to their residences. Iraqi officials acknowledge that the international community is not very eager to provide financial aid to the country, especially since the war in Iraq and Syria has led to the largest migration crisis since World War II. Meanwhile, Iraq is the second-largest oil producer in OPEC and has the fifth-largest oil and gas reserves in the world, although the country has faced challenges in attracting foreign companies for reconstruction and revitalizing its oil industries. The U.S. government under President Donald Trump has shown little interest in direct investment in Iraq's reconstruction. In recent years, the U.S. has spent about $60 billion, equivalent to $15 million per day, to assist in Iraq's reconstruction. Of this amount, about $25 billion was allocated to the Iraqi armed forces, which quickly disintegrated in the face of the Islamic State fighters' onslaught in 2014. At the same time, an examination of U.S. financial aid to Iraq revealed that a large portion of this money has been wasted due to widespread corruption. For this reason, Western leaders, including Donald Trump, are suspicious of the effective use of financial aid to Iraq and want to reduce their contributions. Additionally, regional tensions also affect the level of aid to Iraq. One of these factors is concerns about Iran's increasing influence in Iraq. Arab countries, particularly Saudi Arabia, are suspicious of Iran's influence in Iraq and its gains from the 2015 nuclear agreement. Qatar has also been sanctioned by several Arab countries, including three Gulf Arab states, which has raised questions about the close relations and cooperation of these countries on regional issues. Nevertheless, Iraqi Prime Minister Haider al-Abadi has called on all neighboring countries to assist in rebuilding his country. He stated, 'We need to rely on all our neighbors and friends for investment in Iraq's future.'