US report: Weapons outside state control limit guarantees to foreign firms in Iraq

WASHINGTON, United States — A US-based report says Iraq's effort to attract major American companies and investment is being held back by the continued presence of armed groups outside the state structure and Iranian influence within government institutions, calling the parallel challenge the country's most complex problem. The report finds that as Washington seeks a broader economic partnership with Baghdad, the security file remains the largest obstacle, and guarantees offered to foreign companies will have limited effect as long as armed groups keep their military capacity outside the state framework. According to the report, the US administration views the government of Prime Minister Ali Zidi as an opportunity to advance reform and strengthen Iraq's decision-making independence, and expects concrete steps to consolidate weapons under state monopoly and reduce Iranian influence within official institutions. The report notes that while some groups have announced readiness to hand over weapons, welcomed internationally, questions remain about the fate of those weapons and fighters and the mechanism for implementing any plan. The report concludes that Iraq's ability to attract large-scale international investment, particularly in energy, depends on establishing a stable and secure environment and carrying out financial and administrative reforms.