Iraqi financial expert calls for sovereign wealth fund to manage oil revenues

BAGHDAD, Iraq — A finance expert has urged Iraq to establish a sovereign wealth fund to manage the country's oil revenues and build sustainable prosperity. Mahmud Dagr, the financial expert, said the proposed fund could preserve and grow Iraqi income while supporting domestic investment. Dagr said successive Iraqi governments have tended to assert central control over public finances, a pattern reinforced by channeling oil revenues directly into the general budget. He argued that a professionally managed fund, overseen by qualified specialists and asset management companies, would direct those resources toward more profitable uses. Holding fund assets abroad, according to Dagr, could also reduce the central government's grip on the budget. He said the structure would safeguard public resources, channel them into investment and allow revenues to grow over time. Sovereign wealth funds are typically set up to convert a share of natural-resource income into long-term investments.