Amman, June 9 (Petra) -- Financial and banking experts and representatives of international financial institutions said economic relations between Jordan and Iraq are witnessing steady growth, supported by expanding banking cooperation and increasing interest from international institutions in financing investment and development projects in both countries.

Speaking during a dialogue session held on the sidelines of the 2026 Franchise and Trade Agencies Exhibition, participants stressed that strengthening economic partnerships and expanding financing opportunities for the private sector are key drivers for increasing bilateral trade and creating new investment opportunities.

The session, titled "Financing Mechanisms, Banking Facilities and the Role of International Financial Institutions in Supporting Trade and Investment Exchange Between Iraq and Jordan," highlighted the Iraqi market's potential across infrastructure, energy, industrial, and services sectors.

Marcel Rashid, representative of the International Finance Corporation (IFC) mission in Jordan, said regional economic partnerships are among the most effective tools for promoting growth and stimulating private-sector investment.

He noted that the IFC views Jordan and Iraq as part of an interconnected economic system, making stronger cooperation between the two countries essential to advancing development and generating new investment opportunities.

Rashid said the IFC works through specialized teams in both countries to support private-sector development and finance strategic projects, adding that the institution continues to expand its investments and programs aimed at fostering sustainable economic growth and job creation.

He noted that the IFC has invested billions of dollars in Iraq in recent years to support private-sector initiatives, infrastructure projects, and financial services, while continuing efforts to expand its investment portfolio in the country.

Rashid stressed that sustainable economic development requires close cooperation among governments, the private sector, and international financial institutions. He added that the IFC's role extends beyond financing to include technical and advisory support that helps strengthen project implementation and private-sector competitiveness.

He also highlighted the IFC's collaboration with the Iraqi government on reforms designed to improve the investment climate, facilitate capital flows, and attract additional investment into key sectors.

For her part, Director of the European Bank for Reconstruction and Development (EBRD) office in Iraq Katarina Hansen said Iraq offers significant investment opportunities for local, regional, and international companies across a range of sectors.

She described Iraq as one of the region's most promising markets, noting that companies seeking growth and expansion can benefit from partnerships with the Iraqi private sector and capitalize on opportunities emerging across the economy.

Hansen said infrastructure remains one of the most attractive investment areas, citing opportunities in transportation, logistics, energy, electricity, telecommunications, and other productive and service sectors.

She added that Iraq's strategic geographic location enhances its role as a regional trade and economic hub, increasing its attractiveness to investors and businesses seeking regional expansion.

Hansen said international financial institutions are maintaining ongoing dialogue with the Iraqi government to support development and investment projects, emphasizing that the availability of well-prepared projects accelerates access to financing and implementation.

She noted that the EBRD is working alongside the World Bank Group and other international partners to support Iraq's development priorities and maximize the impact of investment projects.

Hansen also stressed the importance of strengthening economic partnerships and regional integration, saying enhanced cooperation opens new opportunities for investors and companies, supports economic growth, creates jobs, and advances sustainable development.

Meanwhile, Housing Bank Deputy Chief Executive Officer and Head of Corporate and Banking Nasser Abu Zahra said amendments introduced by the Central Bank of Jordan several years ago enabled Jordanian banks to finance projects in Iraq under specific regulations. He noted that previous regulations limited financing to projects within Jordan, but the changes reflected the strategic importance of the Iraqi market to bilateral economic relations.

Abu Zahra said Jordanian banks currently finance projects in the energy, industrial, services, and technology sectors through a range of financing instruments, including letters of credit, helping facilitate trade and strengthen economic cooperation between Jordan and Iraq.

//Petra// AJ

09/06/2026 15:21:21