The International Finance Corporation (IFC) has pledged today a $269 million to fund Iraq’s leading mobile network operator and IBBC member Zain Iraq. The fund will aid Zain Iraq increase the capacity and quality of its 3G network and grow its area of coverage to include previously unserved areas. The money will also facilitate further modernisation of its networks and customer service in northern Iraq.

“This financing from IFC and partners will help us strengthen our footprint, modernize infrastructure, and provide a better quality of service to our customers,” said Ali Al-Zahid, the CEO of Zain Iraq. “It will also enhance access to higher quality broadband, a key enabler of broad economic activity, for both consumers and businesses.”

Iraq has significantly less developed telecom capabilities than its middle eastern neighbours, due in part to the ongoing security challenges over the last few years, with the hope being that the investment and security environment is now stable enough for real progress to be made.

“Supporting infrastructure development in Iraq is an essential building block of the reconstruction effort,” said Mouayed Makhlouf, IFC Regional Director for the Middle East and North Africa. “Restoring and enhancing broadband infrastructure can have a substantial multiplier effect on the economy through increased connectivity and reduced transaction costs, enhanced flows of information, and more efficient and effective matching of market players, among many other much needed benefits.”

The news has come at a time of increased confidence in the Iraqi economy and IFC’s commitment to the reconstruction of Iraq will send positive signals to British and UK companies that there is renewed belief in the investment environment.

Zain Iraq has been a leading provider of telecommunications and IBBC member for many years, operating high quality network coverage for large proportions of a country where tech capabilities are increasingly on the rise.

(Source: IFC)