Baghdad, Iraq – Saudi banks have offered to fund Iraq’s largest housing project, which was previously stalled by South Korea’s Hanwha Company due to a financial dispute with the Iraqi government, the official Iraqi daily Alsabah reported on Thursday.
The Bismaya project had already seen the construction of approximately 30,000 out of the planned 100,000 houses near the capital Baghdad, before work came to a halt due to payment delays from the Iraqi government.
Following the approval of a new agreement with Hanwha by Iraq’s cabinet in September, the National Investment Commission (NIC) has been tasked with securing funds to resume the project. A delegation from NIC recently met with Hanwha representatives in Seoul, where they reached an agreement to restart the project, with Hanwha providing assurances regarding funding.
To facilitate the project’s continuation, efforts are now underway to identify new sources of funding both locally and internationally. Some Saudi banks have expressed their interest in contributing funds, along with several Iraqi banks and foreign investment companies.
Saudi Arabia and Iraq are also developing a $1 billion shopping district in Baghdad as part of measures to enhance economic co-operation.
The Baghdad Avenue project will be built near the capital’s international airport.It will be the biggest shopping district in Iraq, with restaurants, shops and commercial offices, as well as 4,000 apartments and 2,500 villas.