The role of sovereign wealth funds in economic development، experiences of countries with the

possibility of benefiting from them in Iraq

Introduction letter to

to Council of the College of Administration and Economics –

 University of Karbala

As part of the requirements for obtaining a master’s degree in

economic sciences

submitted by the student

Sari Hamed Ali Al-Rajhi

Supervisor Prof. Dr

Safaa Abdul-Jabbar Al-Mousawi

Abstract

The research dealt with the issue of sovereign wealth funds and their role in achieving economic development, and the research reviewed two experiences (Norway and Algeria) to stand and verify the developmental role of their sovereign funds, referring to the research problem that through the possibility of knowing whether there is a role for sovereign wealth funds and what is the ratio of that role and its implications for the economy of the two experiences By linking some indicators of the sovereign fund with some indicators of economic development. We also show in our research the extent to which the possibility of benefiting from those two experiences in Iraq is achieved. What is achieved of the advantages of the investments and returns of the funds of both countries can be invested, even partially in Iraq, from the proposal to establish an Iraqi sovereign fund that invests Certain percentages of surpluses obtained from oil revenues in order to support development programs, as this will be evident through the role that we will verify from the experiences of the two countries under study by analyzing the role of the indicators of those funds in some economic development indicators. After the previous presentation, we assume the existence of a role for sovereign wealth funds in development The importance of the study lies in the following: Sovereign wealth funds are among the sensitive topics discussed recently among economic researchers, the increasing role of sovereign wealth funds and their impact on the economies of countries, economic development by Its role in the global financial markets. As for the problematic of the research, it is revealed by asking about the extent of the contribution of sovereign wealth funds in achieving economic development and diversifying sources of income in their countries, which in turn contribute to the prosperity of the economy by strengthening economic development programs?

As for the hypothesis of the research, since economic development is a relative process and the goal of transforming the economy and diversification through fundamental change in economic structures. The use of sovereign wealth funds has an influential and essential role in economic diversification within their countries and the development of their economies. Sovereign wealth funds are also an important tool for various investments and contribute to diversification and financing for all Economic sectors Therefore, there is a relationship between sovereign wealth funds and economic development, and there is a role for these funds in achieving economic development, whether it is a direct role by contributing to the investment of important economic sectors, infrastructure, or an indirect role, such as its contribution to financing the deficit in certain proportions or other tasks of economic stability And hedging against crises, which creates the appropriate atmosphere for economic development programs, and that role varies according to the objectives and functions set by the countries that own the fund.

One of the most important conclusions is that it is advisable for Iraq to establish a sovereign fund or several sovereign wealth funds, in order to benefit from the experiences of the sample countries (Norway and Algeria), because our research provided us with positive results that show and clarify the main role of the sovereign fund through its investments and returns in achieving remarkable progress in the indicators of economic development for those countries despite The different economic conditions of both countries, and this is what encourages us to benefit from the experience of Norway and Algeria in Iraq. This is one of the most important conclusions and recommendations whose impact is reflected in reducing dependence, even partially, on oil.

The role of sovereign wealth funds in economic development، experiences of countries with the possibility of benefiting from them in Iraq

Introduction letter to

to Council of the College of Administration and Economics –

 University of Karbala

As part of the requirements for obtaining a master’s degree in

economic sciences

submitted by the student

Sari Hamed Ali Al-Rajhi

Supervisor Prof. Dr

Safaa Abdul-Jabbar Al-Mousawi

Abstract

The research dealt with the issue of sovereign wealth funds and their role in achieving economic development, and the research reviewed two experiences (Norway and Algeria) to stand and verify the developmental role of their sovereign funds, referring to the research problem that through the possibility of knowing whether there is a role for sovereign wealth funds and what is the ratio of that role and its implications for the economy of the two experiences By linking some indicators of the sovereign fund with some indicators of economic development. We also show in our research the extent to which the possibility of benefiting from those two experiences in Iraq is achieved. What is achieved of the advantages of the investments and returns of the funds of both countries can be invested, even partially in Iraq, from the proposal to establish an Iraqi sovereign fund that invests Certain percentages of surpluses obtained from oil revenues in order to support development programs, as this will be evident through the role that we will verify from the experiences of the two countries under study by analyzing the role of the indicators of those funds in some economic development indicators. After the previous presentation, we assume the existence of a role for sovereign wealth funds in development The importance of the study lies in the following: Sovereign wealth funds are among the sensitive topics discussed recently among economic researchers, the increasing role of sovereign wealth funds and their impact on the economies of countries, economic development by Its role in the global financial markets. As for the problematic of the research, it is revealed by asking about the extent of the contribution of sovereign wealth funds in achieving economic development and diversifying sources of income in their countries, which in turn contribute to the prosperity of the economy by strengthening economic development programs?

As for the hypothesis of the research, since economic development is a relative process and the goal of transforming the economy and diversification through fundamental change in economic structures. The use of sovereign wealth funds has an influential and essential role in economic diversification within their countries and the development of their economies. Sovereign wealth funds are also an important tool for various investments and contribute to diversification and financing for all Economic sectors Therefore, there is a relationship between sovereign wealth funds and economic development, and there is a role for these funds in achieving economic development, whether it is a direct role by contributing to the investment of important economic sectors, infrastructure, or an indirect role, such as its contribution to financing the deficit in certain proportions or other tasks of economic stability And hedging against crises, which creates the appropriate atmosphere for economic development programs, and that role varies according to the objectives and functions set by the countries that own the fund.

One of the most important conclusions is that it is advisable for Iraq to establish a sovereign fund or several sovereign wealth funds, in order to benefit from the experiences of the sample countries (Norway and Algeria), because our research provided us with positive results that show and clarify the main role of the sovereign fund through its investments and returns in achieving remarkable progress in the indicators of economic development for those countries despite The different economic conditions of both countries, and this is what encourages us to benefit from the experience of Norway and Algeria in Iraq. This is one of the most important conclusions and recommendations whose impact is reflected in reducing dependence, even partially, on oil.