Kuwait's ruling emir said today that his oil-rich nation will give USD 1 billion in loans and USD 1 billion in direct investments to help rebuild Iraq, a stunning donation as only a generation ago Saddam Hussein invaded the small, oil-rich nation.
Sheikh Sabah Al Ahmad Al Sabah's offer shows the deep interest his nation has in making sure Iraq becomes a peaceful, stable country after the war against the Islamic State group and the chaos that followed the 2003 US-led invasion of Baghdad. Iraq also still owes Kuwait reparations from its 1990 invasion.
"This large assembly of international communities that are here today is reflective of the large loss that Iraq withstood in facing terrorism," Sheikh Sabah said at a donor's summit at Kuwait City's Bayan Palace.
"Iraq cannot commence the mission of rebuilding itself without support, which is why we are all here today from all around the world, to stand by Iraq's side," he added.
However, the country needs far more donations on Wednesday, the last day of an appeal for funding to come forward at the Kuwait conference. Overall, Iraq is seeking USD 88.2 billion in aid from donors.
Among the hardest-hit areas in Iraq is the city of Mosul, which Iraqi forces, aided by a US-led coalition, recaptured from the Islamic State group in July 2017. Iranian-backed Shiite militias also participated in the operation, fighting in the villages around the city.
The victory came at a steep cost for Mosul, as coalition airstrikes and extremist suicide car bombs destroyed homes and government buildings.
Of the money needed, Iraqi officials estimate that USD 17 billion alone needs to go toward rebuilding homes, the biggest single line item offered Monday, on the first day of meetings. The United Nations estimates 40,000 homes need to be rebuilt in Mosul alone.
The war against the Islamic State group displaced more than 5 million people in Iraq, only half of whom have returned to their hometowns.
Iraq also is OPEC's second-largest crude producer and home to the world's fifth-largest known reserves, though It has struggled to pay international firms running them.
The United States under President Donald Trump also seems uninterested in directly investing in Iraq's reconstruction. The US alone spent USD 60 billion over nine years, some USD 15 million a day, to rebuild Iraq.
Around USD 25 billion went to Iraq's military, which disintegrated during the lightning 2014 offensive of the Islamic State group, which grew out of al-Qaida in Iraq.
US government auditors also found massive waste and corruption, fuelling suspicions of Western politicians like Trump who want to scale back foreign aid.
However, the US is expected to offer an over USD 3 billion package for Iraq from the Export-Import Bank of the United States.
The package will be structured so that the initial amount could rise to as much as USD 5 billion over several years. That money would include loans, loan guarantees and insurance devices to encourage American investment in Iraq Meanwhile, regional tensions may affect how spending comes.
"We need to rely on all our neighbors and friends to help Iraq invest in its future," he said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)