The government received a draft sovereign wealth fund law

December 08 2015

Delivered to the Commission on Economy and Investment Project parliamentary sovereign wealth fund law to the government because of its importance in the state of emergency to avoid an economic crisis.

A member of the committee MP proof Almamori "morning": that the Commission recognized the draft law to the government with all the details of the founded and the extent of its importance to the country if passed. He said the committee met with specialists and international companies in order to contribute to the fund, which manage money well established, warning that if Iraq possessed such a fund because over the current economic crisis. He predicted Almamori get heated arguments and obstacles will face the law, but stressed the Commission to seek approval as soon as possible, calling on the government to earmark funds to set up the fund after the adoption of law, similar to other countries.

Known sovereign wealth fund that is owned by the state and consists of assets such as land and stocks, bonds and other investment services, the Fund represents an entity manages the state surplus funds to invest.

Sovereign funds are not a new phenomenon, but some dating back to 1953 but began excessively active recently acquired within the financial sector alone stakes in giant institutions such as Morgan Stanley and Bear Stearns, Merrill Lynch and Citigroup and "UBS".

He noted economists that the oil revenue is the main source biggest sovereign investment funds in the world of stocks, reminding that in conjunction with the rise in oil prices over the previous year and the increase in imports producing countries ores increased the assets of these funds, as is foreign cash reserves an essential source also.

And see most of the experts that the emergence of these funds and global role a positive sign in the world of financial markets, for example, was quick these funds to pump money into the US economy structure as most investors from the US market have fled due to concerns associated with the potential exposure that the economy of recession and deflation.

But some suggest that there are negative aspects in the work of those private funds in terms of lack of transparency in their work as the most do not disclose the size or activity or returns of its investments and distribution, and therefore these secret let down in the funds Activity shadow on the motives of investment options, some countries express concern about the prospect of a royal states for the funds to exercise political influence on the companies that it acquires and it stuck joints where economic decision.

Al Sabaah 2015