Rafidain Bank in a new look: Al-Sudani announces a new banking era in Iraq
Prime Minister Mohammed Shia al-Sudani confirmed on Monday that the government has adopted comprehensive plans for banking reform and contracting with private financial auditing firms, covering all banks. He also indicated that the work of the First Rafidain Bank will be launched with a new look and vision, and in partnership with specialized and well-known banks.
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A statement from the Prime Minister's Office, received by Shafaq News Agency, stated that "Al-Sudani chaired a meeting of the heads of the boards of directors of Iraqi banks, during which the mechanisms for implementing the banking reform plans prepared by the government as part of comprehensive reforms of the economic sector were discussed."
Al-Sudani stressed, according to the statement, that "all state sectors are linked to the existence of an effective and flexible banking system that relies on modern technologies," noting that "the government has adopted comprehensive plans for banking reform and contracted with private financial auditing companies, covering all banks, and has made great strides in implementation." He indicated that "the work of the First Rafidain Bank will be launched with a new look and vision, and in partnership with specialized and well-known banks."
He pointed to "the formulation of a clear roadmap to address the situation of the private banking sector, as a partner in development," stressing "the need for cooperation during the next phase to take effective steps to reform the economy," and affirming "the state's distancing from detailed intervention in sectors and assuming the role of regulator."
Al-Sudani pointed to "working to integrate the private sector and foreign companies in all major projects, as well as supporting local productive sectors and absorbing the imported cash flow into providing domestic goods and services to citizens as an alternative to imports and ensuring support for local investment."
The Prime Minister directed banks to "simplify procedures, participate broadly in the development process, participate as investors in all available opportunities, move toward partnerships with foreign companies, and work to build trust with citizens, which will help ensure they feel secure depositing their money in banks."
For their part, the heads of the Iraqi banks’ boards thanked the government for its support to the banks and its assistance in solving their problems. They confirmed the rise in credit and financial accreditation indicators, and pointed out the rise in trading via electronic payment from (1.7) trillion dinars in 2020 to reach (21) trillion dinars in 2024. They confirmed their readiness to localize the salaries of private sector workers and their commitment to restructuring Iraqi banks and the (Oliver Wyman) plan, as it will be a comprehensive solution to most of the problems that the banking sector suffers from, according to the government statement.
Al-Sudani confirms the continuation of banking reform and directs bank managements to simplify procedures..
Prime Minister Mohammed Shia al-Sudani chaired a meeting on Monday with the chairmen of the boards of directors of Iraqi banks. The meeting discussed mechanisms for implementing the banking reform plans prepared by the government as part of comprehensive economic sector reforms.
Al-Sudani said in a statement received by Al-Eqtisad News that "all sectors of the state are linked to the existence of an effective and flexible banking system that relies on modern technologies." He pointed out that the government has adopted comprehensive plans for banking reform and contracting with private financial auditing companies, which include all banks, and has made great strides in implementation. He indicated that the work of the First Rafidain Bank will be launched with a new look and vision, and in partnership with specialized and well-known banks.
He pointed to "the formulation of a clear roadmap to address the situation of the private banking sector, as a partner in development," stressing the need for cooperation during the next phase to take effective steps in reforming the economy. He emphasized the state's distancing from detailed intervention in sectors and adopting the role of a regulator, indicating the need to work on intervening in all mega projects, as well as supporting local productive sectors, and absorbing the imported cash flow in providing domestic goods and services to citizens to be an alternative to imports, and to ensure support for local investment.
The Prime Minister directed banks to "simplify procedures, participate broadly in the development process, participate as investors in all available opportunities, move toward partnerships with foreign companies, and work to build trust with citizens, which will help ensure they feel secure depositing their money in banks."
For their part, the heads of the Iraqi banks’ boards thanked the government for its “support for the banks and its assistance in solving their problems, and they confirmed the rise in credit and financial accreditation indicators. They also pointed to the rise in trading via electronic payment from (1.7) trillion dinars in 2020, to reach (21) trillion dinars in 2024, and they confirmed the readiness to localize the salaries of private sector workers, and their commitment to restructuring Iraqi banks and the (Oliver Wyman) plan, as it will be a comprehensive solution to most of the problems that the banking sector suffers from.”
Rafidain Bank reassures: The bank's financial position is excellent.
Rafidain Bank confirmed on Monday that its financial position is excellent and that it is committed to fully covering expenses. While noting that the amounts withdrawn by the bank were from its sovereign accounts, it emphasized that all depositors' funds are fully insured.
Ahmed Thamer Al-Ghariri, the bank's director of payments and mutual accounts, told the official agency that "Rafidain Bank has not yet recorded any failure to meet its financial obligations," indicating that "things are proceeding properly."
He added, "The bank's financial position is excellent," noting that "the bank is fully committed to covering customers' expenses and obligations without any obstacles."
He stressed that "the sums withdrawn by the Ministry of Finance are from its own sovereign accounts and have no relation to citizens' deposits," noting that "more than 80% of government department accounts are deposited in Rafidain Bank, which is naturally subject to the policies of the Ministry of Finance, which can use these funds to serve the state's financial policy, leading to a natural increase or decrease in the bank's balance."
He pointed out that "all depositors' funds, which number more than seven million customers, are fully insured, whether in reserves or other balances," explaining that "the bank is fully committed to its customers with all current and future banking products."
Al-Rasheed announces the addition of new branches to the comprehensive banking system application.
Rashid Bank announced today, Monday, the addition of new branches to its comprehensive banking system.
The bank said in a statement monitored by Al-Masry, “Five new branches have been activated within the implementation of the comprehensive banking system, as part of its ongoing efforts to modernize its services and facilitate banking procedures for its customers,” explaining that “the branches included in the system are: (Al-Mamoun Branch / Tuz Khurmatu / Al-Qaim / Al-Mashreq / Al-Faw Branch).”
He added that “the number of branches operating under the comprehensive system has increased to (83) branches, with work continuing to include the remaining branches, which facilitates banking procedures for customers in all branches operating under the comprehensive system.”
He pointed out that "the implementation of the comprehensive banking system aims to improve the quality of banking services by accelerating operations and reducing red tape, enabling customers to conduct their transactions easily and quickly. The system also contributes to unifying data and facilitating access to information across the bank's various branches."
Government advisor: Artificial intelligence is the most powerful driver of the global economy.
Iraq's entry into the world of artificial intelligence requires advanced and diverse technical training, coupled with an advanced physical and digital infrastructure and a legal infrastructure that protects successful operations related to AI-based applications. AI is also one of the most promising technologies for improving productivity and efficiency in several fields. Financial Advisor to the Prime Minister, Dr. Mazhar Mohammed Salih, said: "When we work toward enabling AI to play its role in the renaissance of economies, including the Iraqi economy, this requires specific conditions, foremost among which is the availability of a modern and advanced infrastructure that is compatible with AI applications and that can expand to cover the needs of a wide range of productive sectors."
Reducing errors
Saleh added in an interview with “Al Sabah” “We know that agriculture undoubtedly needs specialized material and human foundations that help artificial intelligence devices to detect desertification, water shortages, agricultural pests and harvest seasons. We find artificial intelligence important in the medical field, especially in improving medical services and analyzing patient data to reduce errors and diagnose diseases early, in addition to its importance in various fields of education, which requires the development of interactive educational content that is compatible with the needs of students and the labor market in our country, which annually receives half a million
New job opportunity.
Oil projects
He pointed to the role of artificial intelligence in developing oil projects and improving efficiency in extraction and refining through data analysis, predicting failures, and other aspects of oil field operations, production, transportation, and distribution.
He stated that Iraq's entry into the world of artificial intelligence requires advanced and diverse technical training preparations, coupled with an advanced physical and digital infrastructure and a legal infrastructure that protects successful operations from the uses arising from artificial intelligence itself. This is what the government's curriculum is rapidly implementing through the development of education and training curricula at various levels and the implementation of legislative adaptations.
Quality and productivity
He pointed out that there will be short-term negative impacts, as many traditional jobs will be replaced by high-quality, productive thinking machines in the short term, which will place a burden on the social protection system on the one hand, and the cost of changing training and development curricula in a technical field, which will enable them to integrate into the highly technological labor market, especially in the long term, which will undoubtedly raise production efficiency and productivity in all areas of work, and is a highly advanced and prosperous development factor that start-ups, the business sector, and others aspire to.
global output
Saleh noted that international indicators confirm that the use of artificial intelligence (AI) is undoubtedly one of the most important and powerful drivers of the global economy in the coming years. Investments in AI are expected to add approximately 17 percent of the value added to global GDP, above traditional levels of that global GDP.
Reducing costs
He explained that artificial intelligence is the major means of supporting entrepreneurship, reducing costs for startups, and significantly accelerating investment opportunities. At the same time, it improves work quality by automating tiring or dangerous tasks to achieve the best outcomes and results, or to make important decisions related to developing functional and productive work.
Production forecasting
For his part, former Undersecretary of the Ministry of Agriculture, Dr. Mahdi Al-Qaisi, said: "Artificial intelligence is one of the most promising technologies for improving productivity and efficiency in the agricultural sector. It is being employed in agriculture through the implementation of agricultural data analysis, including predicting crop yields, reducing the use of pesticides and fertilizers, and investigating, detecting, and controlling plant pests and diseases to improve productivity."
water resources
He explained that artificial intelligence monitors climate change and is also used in precision agriculture, which includes soil analysis and fertility surveys using remote sensing technologies. Artificial intelligence systems are also applied to analyze water consumption and irrigation efficiency, and provide recommendations for water resource management. Dr. Al-Qaisi added that geographic information systems include satellite image analysis, the use of imaging technologies, monitoring changes in agricultural land, land management, and the use of geographic data to improve agricultural land management and plan for the optimal use of space.
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Important laws are expected to be postponed until the next parliamentary session.
Political affairs researcher Qasim Al-Tamimi believes that Parliament needs more time to pass some important laws, as the remaining time of its legislative term will not be sufficient to pass such laws.
Al-Tamimi told Al-Maalouma, “The House of Representatives has tried in the recent period to exert pressure on the government to pass some important laws, especially the law on the Popular Mobilization Forces, retirement, and service for members of the Mobilization Forces, but the government worked to withdraw such laws.”
He added, "The remaining time of Parliament's legislative term will not be sufficient to pass such important laws that require reading and discussion in more than one session and then voting on them, and therefore the important laws will be postponed to the next parliamentary session."
He explained that "the issue of postponing the passage of important laws may not be free of political pressure, especially since the remaining term of Parliament is short and it will not be able to pass laws by holding more than one session during the current month."
The Minister of Finance discusses the budget deficit and the restructuring of Iraqi banks.
Finance Minister Taif Sami announced on Monday (May 5, 2025) that the Iraqi economy recorded a 5% growth in non-oil GDP in 2024.
Sami said in a statement to the official agency, followed by "Baghdad Today," that "a 5% growth was recorded in the non-oil GDP during the past year," announcing that non-oil growth would continue at 4% through 2025.
She added that the fiscal deficit in 2024 reached 5 trillion dinars, deeming it a "low level," and pointing to the need to restructure government banks.
The Finance Minister continued by saying that Iraq will contract with consulting firms to support the Public Debt Department, explaining that the International Monetary Fund has expressed its willingness to provide technical and advisory support to Iraq.
Minister of Finance: The fiscal deficit in 2024 will reach only 5 trillion dinars.
Sami said in a press statement, "A high-level government delegation, including Central Bank Governor Ali Al-Alaq, accompanied us and discussed the latest economic and financial developments in Iraq with an International Monetary Fund delegation during a meeting held in the Jordanian capital, Amman."
She added that "the IMF mission found several positive indicators related to the Iraqi economy, most notably a 5% growth in non-oil GDP in 2024, driven by growth in the agricultural sector and increased public spending," indicating that "expectations indicate continued growth of 4% in 2025."
She added, "The level of oil GDP will remain dependent on OPEC decisions regarding production ceilings and global crude oil prices."
Regarding the fiscal deficit, Sami explained that "the deficit reached 5 trillion dinars in 2024, equivalent to 1.5% of GDP, excluding debt repayments and overdue payments for investment and energy projects," noting that "this is a low level that does not negatively impact the public debt ratio, according to International Monetary Fund estimates."
The Minister of Finance stressed the "need to restructure government banks to enable them to absorb government financing instruments and stimulate the market," noting that "the Ministry of Finance, in cooperation with the International Monetary Fund, will contract with consulting firms to support the Public Debt Department, in addition to appointing new staff with advanced degrees to activate the public debt management and financial analysis system."
She explained that "the International Monetary Fund expressed its readiness to provide technical and advisory support to Iraq, particularly in the areas of public debt management, tax reform, and identifying the most appropriate tax systems for the Iraqi social situation, through the Middle East Technical Assistance Center (METAC)." She explained that "the delegation and the International Monetary Fund emphasized the importance of strengthening relations with foreign correspondent banks in the field of foreign trade financing, as well as supporting the use of the Iraqi dinar in economic transactions to maintain the stability of the local currency."
IFC to help Iraq Develop Industrial Cities
Iraq's Minister of Industry and Minerals, Khaled Battal Al-Najm, met with a delegation from the International Finance Corporation (IFC), a member of the World Bank Group, to discuss potential cooperation in the development of industrial cities and workforce capacity building in Iraq.
The meeting included a presentation by the IFC on its role in supporting industrial projects, attracting private developers, and enhancing the skills of employees working in industrial city initiatives. Discussions also covered state-owned industrial city projects that have partnered with private sector developers, and explored options to jointly develop a strategic vision for Iraq's industrial zones.
Global trends in industrial zone strategy and green zone concepts were also reviewed.
Minister Al-Najm stressed the importance of leveraging such cooperation to enable Iraq's industrial cities to play a greater role in economic development. He instructed the immediate initiation of training programmes for staff at the Industrial Cities Authority, aimed at equipping them with the skills required to keep pace with modern industrial advancements.
The Minister also directed that the IFC delegation be accompanied on a site visit to Najaf Industrial City, to assess the current status and discuss next steps for future collaboration.
Foreign banks under fire: Iraqi economist slams limited role
Foreign banks in Iraq are focused solely on “profiting from money transfers,” offering little to no contribution to the country’s economic development, head of the Iraq al-Mustaqbal Foundation Manar al-Obaidi told Shafaq News on Monday.
“Despite restrictions imposed on some Iraqi banks, money transfers abroad have not declined. The same channels and beneficiaries remain active,” al-Obaidi said.
He rejected claims that continued transfers reflect the superiority of foreign banks over Iraqi ones, asserting instead that these institutions “do not offer any developmental plans for underserved or remote areas. Their activity is concentrated in commercial hubs for the sole purpose of facilitating transfers.”
Al-Obaidi noted that the combined credit portfolios of foreign banks account for less than 30% of the lending provided by Iraqi banks. “There are no real financing programs in place for various economic sectors,” he added.
He also accused staff at some foreign banks of engaging in questionable practices to ease transfers. “Banking decisions are dominated by the managing director or board chairman, with limited institutional oversight,” he said, describing weak governance across several institutions.
In addition to their narrow operational focus, al-Obaidi said the banks lack meaningful digital platforms and have not participated in any vital national projects. “Foreign banks have not contributed to any initiatives like oil refineries or infrastructure,” he said.
He concluded with a warning, “These banks rely solely on their links to US correspondent banks. Their operations are built around generating profit from money transfers. If that avenue is closed, they will pack up and return home with profits in hand.”
Iraq is in the crosshairs of international negotiations. Negotiations by major powers shape the contours of crises or opportunities for a breakthrough.
Political and strategic affairs researcher Muhammad Ali al-Hakim explained on Monday (May 5, 2025) that the ongoing negotiations between the United States and Iran cast a heavy shadow over Iraq, given the direct and influential influence the two countries have on the Iraqi scene.
Al-Hakim told Baghdad Today, "US-Iranian relations are among the most complex international relations, and any shift in their course will have a direct impact on Iraq, whether positive or negative, depending on the outcome of these negotiations."
He pointed out that "the success of the negotiations will have several positive effects on Iraq, including easing regional tensions, which will reduce the risk of a new conflict and enhance the chances of peace. The economic situation will also improve if sanctions on Iran are lifted, which will open the way for Iraq to expand its trade and economic cooperation with Tehran."
He added that "achieving consensus between Washington and Tehran could also lead to increased international support for Iraq from both sides, which would contribute to the country's stability and stimulate development and investment, as well as reduce the severity of the internal political divide and improve Iraqi-American relations, thus enhancing Iraq's chances of receiving more financial and political support."
In contrast, Al-Hakim warned of the repercussions of the failure of the talks, stressing that "it could rekindle tensions in the region, placing Iraq at the heart of new crises, with the potential for its economy to decline due to continued sanctions on Iran and the difficulty of engaging economically with it."
He also warned that "the failure of the negotiations could exacerbate political tensions within Iraq and intensify polarization between forces affiliated with the Iranian axis and those loyal to the United States, potentially opening the door to new internal crises."
Al-Hakim concluded his remarks by saying, "Despite three rounds of indirect talks between Tehran and Washington, mediated by Oman, Iraq's fate remains tied to the outcome of these negotiations. Their success serves Iraq's national security interests, while their failure could bring further crises."
The United States and Iran have been locked in a complex political and economic conflict for years, beginning with the Iranian Revolution in 1979 and culminating with Washington's withdrawal from the nuclear agreement in 2018 and imposing severe sanctions on Tehran.
With tensions escalating in the Middle East, Iraq has become an indirect arena for this conflict, given the presence of US forces and Iran's extensive political and economic influence there.
Despite attempts at calming the situation through international mediation, most notably Omani mediation, negotiations remain at a standstill, with Iraq remaining the country most affected by the fluctuations in relations between Tehran and Washington.
Tehran: We are committed to diplomacy with Washington if it accepts its "single condition."
Iran affirmed its commitment to diplomacy with the United States, after a fourth round of nuclear talks with Washington, scheduled for Rome on Saturday, was postponed "for logistical reasons ."
Iranian Foreign Ministry spokesman Esmail Baghaei said, "We have declared our commitment to continuing the path of dialogue and diplomacy, and we have expressed our full readiness to participate in several rounds of negotiations ."
"Many of the contentious issues can be resolved if the United States is sincere in its sole demand that Iran not possess nuclear weapons, " Baghaei said.
The spokesman added that Tehran is flexible regarding the timing of the talks and is awaiting details regarding the next round of negotiations with the United States from the Sultanate of Oman, which is mediating between the two sides .
"What concerns us is the behavior and positions of the US negotiating team," Baghaei said, adding that contradictory statements by US officials "do not help and will not affect Tehran's resolve to defend its fundamental positions, including its right to enrich uranium domestically ."
He added that Tehran is also prepared to set a new date for a round of nuclear talks with Britain, France, and Germany, after a scheduled round in Italy on May 2 with the European Troika was postponed .
US Secretary of State Marco Rubio said on Thursday that Iran should import enriched uranium for its nuclear program, rather than enriching it domestically .
During his first presidential term in 2018, US President Donald Trump withdrew from the 2015 nuclear agreement between Tehran and world powers .
Trump has threatened to bomb Iran if his administration fails to reach an agreement to resolve a long-standing dispute over its nuclear program, which Western countries say is aimed at producing weapons .
Iran insists that the purposes of its nuclear program are entirely civilian.
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