Over 200 projects are set to be implemented under the bilateral agreement between China and Iraq, with an estimated $5 billion of Iraqi funds held in China, the Iraqi-Chinese Business Council said on Sunday.

Council President Haider al-Rubaie told Iraqi state newspaper that the Iraqi provinces have submitted more than 200 projects related to the strategic agreement, under which Iraq supplies China with 100,000 barrels of oil, a figure that has since increased to 150,000 barrels.

“These projects are on the Prime Minister's desk, ready for implementation in the upcoming phase,” he said.

Rubaie added that the Iraqi funds in China, accumulated through the execution of the agreement, are estimated at $5 billion. He pointed out that “the Prime Minister has initiated some of these projects to serve the Iraqi people and create job opportunities.”

Al-Rubaie also mentioned that the committee suggested to the Chinese ambassador in Iraq to invite Prime Minister Mohammed Shia’ al-Sudani to visit China to discuss upcoming joint projects between the two sides.

“Several Iraqi banks, including Iraqi Islamic Bank, Al-Mashreq Al-Arabi Islamic Bank, National Islamic Bank, Zain Iraq, Iraq International Bank, Ashur International Bank, and International Development Bank, have expressed interest in opening joint accounts with their Chinese counterparts. The association has sent a message to the Chinese embassy to select one of these banks,” he said.

The Council’s president added that the Iraqi private sector suffers from high-interest rates, up to 5 percent, imposed by banks transferring funds through the Central Bank in renminbi, [Chinese Yuan Renminbi] which increases market prices—a situation not found elsewhere in the world.

Therefore, opening several financial channels would benefit all Iraqi banks and expedite transaction processing and financial transfers.

On November 25, 2023, Iraqi officials launched the Iraqi-Chinese Business Council to boost trade and investment between the companies of the two countries.

The event, attended by Minister of Trade Atheer al-Ghurairi and numerous businessmen, saw 150 Iraqi and 55 Chinese companies participate. Haider al-Rubaie announced a memorandum of understanding with the Chinese Chamber of Commerce.