Kuwait offers $2 billion in loans, investments to rebuild Iraq

Kuwait City, Feb 14: Kuwait’s ruling Emir Sheikh Sabah Al Ahmad Al Sabah said on Wednesday that his nation will give $1 billion in loans and $1 billion in direct investments to help rebuild Iraq.

The stunning donation, as only a decade ago Saddam Hussein invaded the small, oil-rich nation, shows the deep interest Kuwait 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 United States-led invasion of Baghdad.

“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 donors' 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 said.

Among the hardest-hit areas in Iraq is the city of Mosul, which Iraqi forces, aided by Iranian-backed Shiite militias and a U.S.-led coalition, recaptured from the Islamic State group in July 2017. Their 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 $17 billion alone needs to go toward rebuilding homes, the biggest single line item offered on 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, only half of whom have returned to their hometowns.

The U.S., under President Donald Trump, also seems uninterested in directly investing in Iraq’s reconstruction.

The U.S. alone spent $60 billion over nine years, some $15 million a day to rebuild Iraq. Around $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. U.S. government auditors also found massive waste and corruption, fueling suspicions of western politicians like Mr. Trump who want to scale back foreign aid.

Meanwhile, regional tensions may affect how spending comes. Iranian Foreign Minister Mohammad Javad Zarif attended the meeting, skipping a group photograph held before.

Meanwhile, Saudi Arabia and other Gulf nations remain suspicious of Iran’s influence in Iraq.