Iran backed militant groups in Iraq reject Saudi and Qatari investments

Iran and Saudi need to build mutual trust not only between themselves, but also among their local allies. Otherwise, security risks will keep haunting their investments.

Last week, Saudi and Qatar made pledges for expansive investments in Iraq worth billions of dollars. The projects covered by the funding will include energy, agriculture, and infrastructure investments. The investments were welcomed by the Iraqi government and talks are in motion to finalise the necessary plans.

However, Iran-backed militant groups in Iraq have rejected the Saudi and Qatari investments and considered them malign. Particularly, Ashab Alkahaf Brigades deemed the investment plans a security risk and an attempt to revive projects previously rejected.

Allegedly, the area targeted by Saudi investments was used to attack Saudi Arabia with missiles by Iran-backed groups. By investing there, Saudi aims to pacify the area using economic incentives.

Ashab Alkahaf added that it will treat Saudi investments as an occupation and promised to conduct militant attacks against them citing alleged Saudi continued support for IS in Iraq. Notably, this is not the first time such threats were made.

Despite the Saudi Iranian rapprochement, the region remains unready for cross border investments due to inherited hostilities. Previously, a chinese company cancelled an oil exploration deal it signed with the Houthis after objections from Saudi-backed Yemeni government.

Iran and Saudi need to build mutual trust not only between themselves, but also among their local allies. Otherwise, security risks will keep haunting their investments in the region undermining their objectives.