The Iraqi banking sector and the extent of its contribution to
attracting foreign direct investment
Muhammad Nima Al-Zubaidi
Jinan Muhammad Khudair
Al-Qadisiyah University – College of Administration and Economics
Corresponding Author: Jinan Muhammad Khudair
Abstract : The banking sector is an essential and important pillar in the growth of the Iraqi economy and the
attraction of foreign direct investment. The banking sector consists of the central bank, which is the backbone of the
sector and controls all laws and regulations and controls monetary policy. It also consists of commercial,
governmental, Islamic and foreign banks. The research aims to review the reality of the Iraqi banking sector and
clarify Its indicators and the possibility of advancing the reality and theoretical and conceptual framing of foreign
direct investments, reviewing its reality and indicators, and knowing the relationship between the work of the banking
sector and the contribution to attracting foreign direct investments direct. The research methodology relied on the
descriptive and analytical method, reviewing and analyzing the indicators and data available in this regard to
determine the relationship between the work of the banking sector and the attraction of foreign direct investment. The
research reached a set of conclusions, which are
1-The banking sector needs to develop a currency mechanism to keep pace with regional and international
developments
2-The political, economic and security conditions have clearly affected the working mechanism of the banking sector
The most important recommendations that came out of the research are :
1-The need for the Central Bank to amend the investment law and put some paragraphs that contribute to attracting
foreign direct investment, such as reducing the size of taxes and giving more incentives to investors.
2-The need to provide security for companies and financial institutions that invest in Iraq and to provide legal cover
to protect investors
