Investor confidence shaken: experts warn of attacks on foreign companies in Iraq
Shafaq News/ Western brands have been globally hit by boycotts and other forms of protest by a largely spontaneous, grassroots campaign over Israel's military offensive in the Gaza Strip that killed more than 36,500 Palestinians, injured about 80,000 others, and caused a humanitarian crisis.
In Iraq, the recent wave of attacks on foreign companies has impacted investor confidence, with strategic experts warning of the broader implications for the country's economy and international relations.
Attacks in Iraq
Earlier this week, Liz Jolie House on Palestine Street and two KFC franchises, one also on Palestine Street and another in the Karrada district, caused damage but no injuries.
The first attack took place when two men on a motorcycle threw a makeshift bomb at a branch of the KFC restaurant in eastern Baghdad's Palestine Street, causing minor damage, police sources said.
On Monday, another KFC Baghdad branch and Liz Jolie House were attacked by a group of masked men who broke into the restaurants and used sticks to smash glass and destroy furniture.
They fled before the arrival of security forces, police sources said.
No group claimed responsibility for the attacks.
Days after, a branch of the American company Caterpillar in Al-Jadiriya neighborhood and the British Cambridge Institute in Palestine Street were both hit with sound grenades at around 1:30 am local time today.
No casualties were reported.
None of the companies commented on the incidents.
Initial investigations showed that the restaurants were targeted over the perceived support of U.S.-based brands for Israel amid the war in the Gaza Strip, police sources said; however, no group claimed responsibility for the attacks.
Iraqi Authorities Reactions
Iraqi Minister of Interior Abdul Amir al-Shammari visited the blast sites on Monday alongside the Baghdad Operations Commander, the Undersecretary of Police Affairs, and other high-ranking officials.
According to an official statement by the ministry, he oversaw the reopening of the restaurants and emphasized the importance of restoring public trust.
The statement said the authorities apprehended a number of suspects in connection with the attacks. "Security forces are reportedly conducting ongoing search and investigation operations based on intelligence, aiming to apprehend the remaining perpetrators."
Minister al-Shammari also ordered disciplinary actions. A brigade commander deemed negligent in his duties was dismissed from his post, detained, and placed under investigation. Additionally, troops serving in the targeted areas, including emergency response units and federal police, were suspended for a month.
After the second series of attacks, al-Shammari dismissed a senior security commander.
A security source told Shafaq News Agency that "the Interior Minister has dismissed the commander of the First Division of the Federal Police and appointed Major General Ahmed Ghader Madi as his replacement."
Iraqi Interior Minister Abdul Amir al-Shammari ordered a swift shakeup within security forces.
According to an official statement by the ministry, al-Shammari oversaw the reopening of the restaurants and emphasized the importance of restoring public trust.
The statement said the authorities apprehended a number of suspects in connection with the attacks. "Security forces are reportedly conducting ongoing search and investigation operations based on intelligence, aiming to apprehend the remaining perpetrators."
On the other hand, the Iraqi Intelligence Council vowed to pursue legal action against those targeting foreign companies and restaurants in the capital, Baghdad, while affirming the security forces' ability to maintain stability in the country.
"The security and intelligence agencies will not allow any entity to obstruct the government's path to development and progress," the council said in a statement received by Shafaq News Agency.
The council added that "the Iraqi government is steadfastly continuing with its construction plans and efforts to attract investments," pledging to "pursue and hold accountable anyone who attempts to undermine national security and social peace."
"Such actions are a desperate attempt to harm Iraq's reputation, the direction of reconstruction, and providing services to citizens," the Security Media Cell said.
After the string of bombings, eyewitnesses revealed to Shafaq News that the Iraqi capital experienced an intense security deployment led by the Baghdad Operations Command on both sides of the city, marking a scene not witnessed in years.
A source explained that the widespread security deployment involved weapon inspections, protection of embassies and diplomatic missions, and safeguarding restaurants and vital areas.
US Condemns
The US embassy in Baghdad on Thursday condemned the recent wave of "violent" attacks on international companies in Iraq, urging the Iraqi Government to bring the perpetrators to justice.
"We condemn recent violent attacks against US and international businesses and urge the Government of Iraq to conduct a thorough investigation, bring to justice those who are responsible, and prevent future attacks," an official statement by the embassy said.
"These attacks endanger Iraqi lives and property and could weaken Iraq's ability to attract foreign investment," it added. "We remain committed to the US-Iraq Partnership to build economic opportunities and prosperity for all Iraqis."
Attacks Undermine Iraqi Government's Credibility
Commenting on these attacks, strategic expert Dr. Ahmed Al-Sharifi stated, "Such operations have a significant impact on the Iraqi Government on the one hand and the Iraqi state on the other. The Government has obligations, and the state has commitments. What happened will greatly affect the performance of the Government, which has promised the United States that it will care for, maintain, and protect American and Iraqi interests."
Al-Sharifi added to Shafaq News Agency, "The first attack might have had an element of surprise, and there was a governmental response and condemnation. The United States considered this response sufficient, which included condemnation and a promise not to repeat such operations, in addition to precautionary measures."
According to Al-Sharifi, the recurrence of such attacks indicates "the Government's inability to deter such operations, as well as the failure of security institutions to safeguard the interests of Iraq's friendly and allied nations, foremost among them the United States. These operations will significantly impact the nature of the relationship between the Iraqi Government and the United States."
Regarding the implications for the Iraqi state, Al-Sharifi warned, "Such operations drive away investor companies and those involved in reconstruction, delaying the activation of the private sector, which requires regional and international interaction to stimulate the economy and attract capital to Iraq."
Attacks Challenge Foreign Investments
In this regard, security expert Mukhlid Al-Durab described the targeting of foreign companies as "acts of defiance and a challenge to the Iraqi state's will, government, and law enforcement agencies, at a time when Iraq seeks to open new horizons with foreign countries and companies to increase investments for the development of the country's infrastructure."
Al-Durab explained to Shafaq News Agency, "Well-known and major companies will not venture anywhere without a secure environment, which the Prime Minister promised when signing memoranda of understanding, whether in Washington or other countries. However, what is happening now sends a negative message to companies interested in investing in Iraq."
The security expert pointed out that "the real intentions behind these operations are to send a negative message about the internal situation in Iraq, which is another form of terrorism. As for the issue of sympathy with Gaza and the claim that these companies are affiliated with the United States, there are other non-destructive options that the world has resorted to, such as boycotts. However, it seems the aim is larger than just American companies, indicating a conflict among armed groups engaging in such activities, with financial or economic issues possibly being part of this struggle."
Meanwhile, the State of Law Coalition, led by Nouri al-Maliki, stated that the Iraqi Government is unable to protect all American companies in Baghdad. "The continuous targeting of American companies in Baghdad is a complex issue. It appears to be an attack on companies supporting Israel as part of the global boycott of these companies. Unfortunately, instead of a boycott, there have been blatant assaults on these companies," Saad Al-Mutlabi, a leader in the coalition, told Shafaq News Agency. He added that these attacks may indicate that "entities are working to harm the Iraqi economy, disrupt investments, and negatively impact Iraqi funds in investments, posing a significant threat to foreign investments. This makes the issue quite complicated." Al-Mutlabi noted that "these operations do not embarrass [Prime Minister] Mohammed Shia Al-Sudani's government, as they happen in countries all over the world," arguing that Israel is "responsible for this due to the massacres it commits in Palestine." "The Iraqi Government cannot protect every American company in Baghdad and elsewhere. The Government aims to provide general protection, but providing specific protection to each company is extremely difficult."
Security Agencies Role
Discussing the role of security agencies in protecting these assets and the consequences of such attacks, Mohammed Al-Muhammadi, a member of the Parliamentary Security and Defense Committee, stated, "There is a keen interest in having international interests in Iraq to ensure there is international protection or that their fate is linked with the country. In stable countries, there are shared interests with other nations, whether through investments or companies generating revenue for their countries via taxes, hence their interest in the stability of the host country."
Al-Muhammadi told Shafaq News Agency, "Iraq has been isolated from the world since 1991 and continues to pay the price for this isolation on cultural, social, and security levels. Iraq can't remain isolated, so we are against any attacks."
The MP pointed out, "Security forces need modern technologies such as sonar devices and cameras. Installing cameras can identify any criminal and those executing these operations. Therefore, we demand real and advanced support for the security agencies without relying solely on street presence through checkpoints."
