A deputy reveals the reasons for the Iraqi Finance Minister going to Saudi Arabia and is likely to find “financial understandings” behind him

05/22 2020 13:50

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Baghdad today - private

Member of the Parliamentary Finance Committee, Ahmed Mazhar Al-Jubouri, affirmed on Friday (22 May 2020) that Finance Minister Ali Abdul Amir Allawi will discuss in Saudi Arabia the economic crisis faced by Iraq after the drop in oil prices.

Al-Jubouri said in an interview with (Baghdad today), that "Iraq is going through a stifling financial crisis that needs international and regional support and the visit of the Minister of Finance to the Saudi capital, Riyadh, a step in the right direction towards opening relations with it and normalizing it and returning to the Arab incubator after an absence of more than 3 consecutive decades." Noting that "Riyadh is a difficult number in the international and Arab equation."

He added, "The visit, although its content has not been issued by any official statement, but it is clear that it comes to achieving understandings between Baghdad and Riyadh, especially in the financial field, because we are facing a major crisis," considering the visit "positive and could constitute a support factor for Iraq."

Al-Jubouri pointed out that "Iraq faces a financial crisis, not an economic one, and our dependence for many years on oil as a basic budget resource is a grave mistake. If there was dependence on other resources in order to diversify the sources of budget financing, the financial situation would be better."

He stressed that "oil prices are fluctuating so far, with the need to confirm that the price of oil entering the budget differs greatly from the price of its sale due to production costs by the companies extracted, in addition to impurities that reduce the price per barrel of 7 tigers."

The Prime Minister’s Office announced yesterday that Finance Minister Ali Allawi headed to Saudi Arabia as an envoy from the Iraqi Prime Minister, Mustafa Al-Kazemi, to discuss bilateral relations and economic conditions in the region and encourage investment

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