Oil Cos in Basra Caught in Political Crossfire

He went on, “We are waiting for the central government to change their views concerning economic policy in Basra, so that they may fall in line with the local government. And if not, then we will await the central government that comes in 2014.”

Sulayti asserted that “Basra’s new government is more open than was its predecessor to the economy. It has programs to transform the city into Iraq’s economic capital through legislating a special law on the matter.

"The proposed legislation includes provisions for forming a transportation body, development of the border regions, airports, ports and free[-trade] zones to attract investors, as well as granting broad authorities to the Investment Association in Basra, the formation of a Capital Secretariat in Basra and the granting of wide powers to its directors.”

But a spokesman for the State of Law coalition in Basra expressed his belief that “oil policy is under the jurisdiction of the federal government; it is not subject to the policies of the local governments.”

According to a statement to Al-Monitor from Salem Taqi, “The economic situation in Basra is generally linked to the legal organization that governs investment.” He stressed, “The general conditions prevalent in the country cast a long shadow over the conditions in Basra.”

He added: “Insofar as the governor of Basra has changed, the reigning concepts and visions must change. But it is far too early to issue judgements on the matter.”

He went on to say:  “The governor from the Al-Muwatin bloc are the owners of the 'Basra: Iraq’s Economic Capital' project. And perhaps we will see a change relating to economic visions.”

Omar al-Shaher is a contributor to Al-Monitor’s Iraq Pulse. His writing has appeared in publications including France’s Le Monde, Iraq's Alesbuyia, Egypt’s Al-Ahaly and the Elaph website. He previously covered political and security affairs for Iraq's Al-Mada newspaper.