Iraq ranks seventh among Arab countries with high investment risks.

Iraq is among the countries with high investment risks, according to the latest equity risk premium estimates issued by New York University finance professor Aswath Damodaran.

The “equity risk premium” is one of the most prominent financial indicators that measures the level of risk in countries’ economies, as it represents the additional return that an investor demands in exchange for going to a particular market instead of safe assets. The higher this ratio is, the greater the risk and the lower the investor confidence.

According to estimates, Iraq came in seventh place in the Arab world with a premium of 13.9%, alongside Egypt and Tunisia, reflecting the continued challenges facing the investment environment in the country.

Lebanon and Sudan topped the list in the Arab world with 30.9%, followed by Syria and Yemen at 19.8%, then Somalia at 17.2%, while Bahrain recorded 11.4% and Algeria 10.1%.

Globally, Belarus, Lebanon, Sudan and Venezuela were among the most dangerous with a premium of 30.9%, while Switzerland and Sweden recorded the lowest levels of risk globally at about 4.2%.

Experts believe that Iraq remaining within these medium to high levels of risk means that the cost of attracting foreign investment is still high, which calls for accelerating economic reforms, improving the business environment, and enhancing financial stability.

Experts emphasize that reducing these risks requires practical measures that include diversifying the economy, reducing dependence on oil, and developing infrastructure, which will enhance investor confidence and raise the competitiveness of the Iraqi economy at the international level.

Shafaq.com