{"id":58463,"date":"2025-10-03T15:54:16","date_gmt":"2025-10-03T15:54:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/58463\/"},"modified":"2025-10-03T15:54:16","modified_gmt":"2025-10-03T15:54:16","slug":"iraqs-cashless-push-gaining-pace-but-much-more-needs-to-be-done-fintech-boss-says","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/58463\/","title":{"rendered":"Iraq\u2019s cashless push gaining pace but much more needs to be done, FinTech boss says"},"content":{"rendered":"

Iraq’s<\/a> shift from a cash-heavy economy to a digital one is gaining momentum, but policy implementation will play a crucial role, the chairman of the country\u2019s largest FinTech company has said. <\/p>\n

The Central Bank of Iraq has announced that all government payments will move to electronic channels by July 2026, part of a broader plan that includes a national instant-payment platform and potentially even a digital dinar.<\/p>\n

\u201cThe ambitions are always there, but the real need is to focus on a well-crafted and a world-class plan and the execution of it,\u201d Bahaa Abdul Hadi, chairman and co-founder of International Smart Card, which owns the Qi Card, told The National. <\/p>\n

Since early 2023, the Iraqi government has introduced financial and economic reforms<\/a>, including the use of electronic payment systems by the government and private sectors. These also include regulations requiring electronic payment providers to tighten anti-money-laundering and cybersecurity rules.<\/p>\n

The Central Bank of Iraq\u2019s cashless mandate, point-of-sale incentives, e-Know Your Customer regulations, as well as other key components of this mandate \u201care all in place\u201d, he said. <\/p>\n

\u201cWhat matters now is astute follow-through at the ministry level so that the Iraqi people actually reap the fruits of the mandate.\u201d<\/p>\n

Many Iraqis tap cards and phones instead of pulling wads of dinars from their pockets, a sign of changing payment habits. However, digital literacy remains the biggest challenge, Mr Abdul Hadi said. <\/p>\n

\u201cTeaching the Iraqi society why a tap or QR code scan is safer than a bundle of banknotes requires patient, empathetic education for millions of unbanked people.\u201d<\/p>\n

He says better incentives are needed to encourage more Iraqis to trust and adopt digital payment. <\/p>\n

\u201cI believe that when people experience real protection, they naturally switch from the banknotes to the digital payment,\u201d he added.<\/p>\n

From the government side, Mr Abdul Hadi said, the hardest challenge is managing timelines. \u201cRegulators are juggling multiple reforms simultaneously, which often causes delays and sets us back to square one.\u201d<\/p>\n

Still, he is \u201cextremely\u201d optimistic about the future. <\/p>\n

\u201cWithin the next five years, you will see a tipping point where digital solutions bridge the cash gap in urban Iraq. However, the rural areas may take about 10 years, but the direction is there and irreversible,\u201d he said.<\/p>\n

Cash could fall below 50 per cent of urban retail spending by 2030 \u201cif the current momentum continues\u201d. The tipping point will be universal QR payment acceptance and real-time open banking, both of which are in the pilot phase. <\/p>\n

\u201cA fully digital ecosystem in Iraq is therefore not a distant goal; it\u2019s the trajectory we are actively pursuing,\u201d Mr Abdul Hadi added.<\/p>\n

From payrolls to fintech<\/p>\n

Launched in 2007 by International Smart Card, the Qi Card began as a service to pay public-sector salaries and pensions electronically. <\/p>\n

Today it claims to have more than 11 million users and a network of 23,000 point-of-sale terminals reaching every Iraqi governorate, including remote villages.<\/p>\n

The company\u2019s services have expanded beyond salary disbursement to retail and bill payments, remittances, buy-now-pay-later (BNPL), micro-savings and a smartphone app that accounts for the majority of transactions. <\/p>\n

\u201cJust five years ago, most Iraqis got to know us at a card terminal,\u201d Mr Abdul Hadi said. \u201cToday, six out of 10 Qi payments start from a personal smartphone wallet or with a QR tap.\u201d <\/p>\n

Qi Card is now exploring expansion in regional markets, including the UAE and Jordan. Its payment gateway application is in the final stages of approval by the Central Bank of the UAE. In Jordan, it has established a back office in Amman, which focuses on risk and compliance standards.<\/p>\n

\u201cOur top priority is serving the Iraqi diaspora in the GCC and Europe,\u201d he said. \u201cBeyond that, we see strong synergies in Jordan and Oman. The Levant is also on our radar, where we are exploring select markets where cash is still king \u2013 subject to the local regulatory approvals,\u201d he added.<\/p>\n

Misuse allegations <\/p>\n

For the government and the central bank, the stakes are high<\/a>. Moving millions of Iraqis from cash to cards and mobile wallets could curb corruption, widen financial inclusion and stabilise the dinar. Yet the same systems could also be exploited if controls fail.<\/p>\n

Whenever our system detects a red flag, we immediately off-board the suspicious account<\/p>\n

Bahaa Abdul Hadi,
chairman and co-founder of International Smart Card, which owns Qi Card<\/p>\n

In May, The Wall Street Journal alleged that Qi\u2019s cards were exploited in dollar arbitrage schemes benefiting Iran-backed groups, allowing local salaries to be converted into hard currency overseas to help Iran circumvent US sanctions. <\/p>\n

The WSJ alleged that cross-border card transactions by the Popular Mobilisation Forces, an umbrella paramilitary movement, surged from $50 million to $1.5 billion monthly between early 2023 and April 2023, generating an estimated $450 million in profits in 2023 alone. <\/p>\n

Some commanders seized subordinates’ payment cards, or created fake identities to obtain additional payouts, it added.<\/p>\n

Mr Abdul Hadi firmly rejected the claims, saying Qi maintains \u201czero tolerance\u201d for any illicit use. <\/p>\n

\u201cWhenever our system detects a red flag, we immediately off-board the suspicious account,\u201d he said, adding that more than 3,000 accounts have been blocked. He did not elaborate. <\/p>\n

\u201cWhere third parties have attempted to exploit the broader card ecosystem for arbitrage, we have actively collaborated with the Central Bank of Iraq, Visa and Mastercard \u2013 taking measures such as freezing accounts, capping cross-border volumes, and blocking thousands of suspicious cards,\u201d he added.<\/p>\n

The company uses biometric authentication, geofencing and real-time monitoring to detect abuse, he said. In June, it also signed a three-year partnership with US consultancy K2 Integrity to strengthen oversight.<\/p>\n

None of the US agencies have contacted Qi Card to date over these allegations, Mr Abdul Hadi said.<\/p>\n

\u201cWe have not received any warning or any enforcement notice,\u201d he said. The company is \u201cfully committed to co-operating with both US authorities and Iraqi regulators, should they request information through lawful channels\u201d.<\/p>\n

However, Qi Card has stopped disbursing salaries for the Popular Mobilisation Forces. \u201cThis decision was made in consultation with our risk and compliance advisers to ensure full alignment with international regulations and to stay away from the US pressure.\u201d<\/p>\n

The US has long warned that the PMF is strengthening Iran\u2019s influence and undermining Iraq\u2019s sovereignty. America has blacklisted several of the group’s senior leaders, including its chairman Falih Al Fayyadh.<\/p>\n

Under pressure from the US and other foreign powers, the Iraqi government also withdrew a contentious draft law for the PMF<\/a> in August, which aimed to widen its powers and elevate its status to be on a par with the rest of the Iraqi military.<\/p>\n

Results<\/p>\n

6.30pm: The Madjani Stakes (PA) Group 3 Dh175,000 (Dirt) 1,900m<\/p>\n

Winner: Aatebat Al Khalediah, Fernando Jara (jockey), Ali Rashid Al Raihe (trainer).<\/p>\n

7.05pm: Maiden (TB) Dh165,000 (D) 1,400m<\/p>\n

Winner: Down On Da Bayou, Royston Ffrench, Salem bin Ghadayer.<\/p>\n

7.40pm: Maiden (TB) Dh165,000 (D) 1,600m<\/p>\n

Winner: Dubai Avenue, Fernando Jara, Ali Rashid Al Raihe.<\/p>\n

8.15pm: Handicap (TB) Dh190,000 (D) 1,200m<\/p>\n

Winner: My Catch, Pat Dobbs, Doug Watson.<\/p>\n

8.50pm: Dubai Creek Mile (TB) Listed Dh265,000 (D) 1,600m<\/p>\n

Winner: Secret Ambition, Tadhg O\u2019Shea, Satish Seemar.<\/p>\n

9.25pm: Handicap (TB) Dh190,000 (D) 1,600m<\/p>\n

Winner: Golden Goal, Pat Dobbs, Doug Watson.<\/p>\n

THE LIGHT<\/p>\n

Director: Tom Tykwer<\/p>\n

Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger<\/p>\n

Rating: 3\/5<\/p>\n

Citizenship-by-investment programmes<\/p>\n

United Kingdom<\/p>\n

The UK offers three programmes for residency.\u00a0The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest \u00a350,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest \u00a32 million, \u00a35m or \u00a310m (the higher the investment, the sooner you obtain your permanent residency).<\/p>\n

All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.<\/p>\n

The Caribbean<\/p>\n

Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate.\u00a0From the date of purchase, it will take between four to five months to receive a passport.\u00a0<\/p>\n

Portugal<\/p>\n

The investment amount ranges from \u20ac350,000 to \u20ac500,000 (Dh1.5m\u00a0to Dh2.16m) in real estate.\u00a0From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.<\/p>\n

\u201cAmong European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,\u201d states Veronica Cotdemiey\u00a0of Citizenship Invest.<\/p>\n

Greece<\/p>\n

The real estate investment threshold to acquire residency for Greece is \u20ac250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.<\/p>\n

Spain<\/p>\n

The real estate investment threshold to acquire residency for Spain is \u20ac500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.<\/p>\n

Cyprus<\/p>\n

Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of \u20ac2m in real estate is required, making it the highest priced programme in Europe.<\/p>\n

Malta<\/p>\n

The Malta citizenship by investment programme\u00a0is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least \u20ac650,000 to the National Development & Social Fund. Spouses and children are required to contribute \u20ac25,000; unmarried children between 18 and 25 and dependent parents must contribute \u20ac50,000 each.<\/p>\n

The second step is to make an investment in property of at least \u20ac350,000 or enter a property rental contract for at least \u20ac16,000 per annum for five years. The third step is to invest at least \u20ac150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.<\/p>\n

Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.<\/p>\n

Egypt\u00a0<\/p>\n

A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.<\/p>\n

Source: Citizenship Invest and Aqua Properties<\/p>\n

House-hunting<\/p>\n

Top 10 locations for inquiries from US house hunters, according to Rightmove<\/p>\n

Edinburgh, Scotland\u00a0
\nWestminster, London\u00a0
\nCamden, London\u00a0
\nGlasgow, Scotland\u00a0
\nIslington, London\u00a0
\nKensington and Chelsea, London\u00a0
\nHighlands, Scotland\u00a0
\nArgyll and Bute, Scotland\u00a0
\nFife, Scotland\u00a0
\nTower Hamlets, London\u00a0<\/p>\n

\u00a0<\/p>\n

Some of Darwish’s last words<\/p>\n

“They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope.” – Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008<\/p>\n

His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian\u00a0poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.<\/p>\n

Our legal columnist<\/p>\n

Name:\u00a0Yousef Al Bahar<\/p>\n

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994<\/p>\n

Education:\u00a0Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers<\/p>\n

Why your domicile status is important<\/p>\n

Your UK residence status is assessed using the statutory residence test. While your residence status \u2013 ie where you live – is assessed every year, your domicile status is assessed over your lifetime.<\/p>\n

Your\u00a0domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally\u00a0the country your father considered his permanent home when you were born.\u00a0<\/p>\n

UK\u00a0residents\u00a0who have their permanent home (“domicile”) outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than\u00a0\u00a32,000 in the tax year and\u00a0do not transfer that gain to a UK bank account.<\/p>\n

A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.<\/p>\n

Conflict, drought, famine<\/p>\n

Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, \u201cseveral government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu\u2019s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a \u201cbiblical famine\u201d and containing graphic images of thousands of people, including children, facing starvation.<\/p>\n

Band Aid<\/p>\n

Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it\u2019s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single\u2019s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.<\/p>\n

Reading List<\/p>\n

Practitioners of mindful eating recommend the following books to get you started:<\/p>\n

Savor: Mindful Eating, Mindful Life by Thich Nhat Hanh and Dr Lilian Cheung<\/p>\n

How to Eat by Thich Nhat Hanh<\/p>\n

The Mindful Diet by Dr Ruth Wolever<\/p>\n

Mindful Eating by Dr Jan Bays<\/p>\n

How to Raise a Mindful Eaterby Maryann Jacobsen<\/p>\n

SPECS<\/p>\n

Toyota land Cruiser 2020 5.7L VXR<\/p>\n

Engine: 5.7-litre V8<\/p>\n

Transmission: eight-speed automatic<\/p>\n

Power: 362hp<\/p>\n

Torque: 530Nm<\/p>\n

Price: Dh329,000 (base model 4.0L EXR Dh215,900)<\/p>\n

UAE currency: the story behind the money in your pocketsNapoleon<\/p>\n

%3Cp%3E%3Cstrong%3EDirector%3C%2Fstrong%3E%3A%20Ridley%20Scott%3Cbr%3E%3Cstrong%3EStars%3C%2Fstrong%3E%3A%20Joaquin%20Phoenix%2C%20Vanessa%20Kirby%2C%20Tahar%20Rahim%3Cbr%3E%3Cstrong%3ERating%3C%2Fstrong%3E%3A%202%2F5%3Cbr%3E%3Cbr%3E%3C%2Fp%3E%0A<\/p>\n","protected":false},"excerpt":{"rendered":"Iraq’s shift from a cash-heavy economy to a digital one is gaining momentum, but policy implementation will play…\n","protected":false},"author":2,"featured_media":58464,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,11721,219,1646,16950,111,139,69,1177,427],"class_list":{"0":"post-58463","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-business-team","10":"tag-economy","11":"tag-fintech","12":"tag-iraq","13":"tag-new-zealand","14":"tag-newzealand","15":"tag-nz","16":"tag-standard","17":"tag-story"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/58463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=58463"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/58463\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/58464"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=58463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=58463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=58463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}