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Stressing the need to carry out an agreement on security cooperation between Iran and Iraq, the foreign ministers of the two countries weighed plans for stronger regional collaboration.

In a telephone conversation on Thursday night, Iranian Foreign Minister Hossein Amirabdollahian and his Iraqi counterpart Fuad Hussein talked about the latest status of bilateral relations between Tehran and Baghdad.

The two senior diplomats emphasized the necessity for the implementation of a security agreement the two neighbors signed in March.

They also stressed the need to promote regional cooperation between the two countries and to increase the capacity of pipelines that transfer natural gas from Iran to Iraq.

Foreign Minister Amirabdollahian also expressed gratitude to Iraq for facilitating the financial and banking transactions related to the Hajj pilgrimage that Iranian pilgrims make to Saudi Arabia this year.

He finally called for efforts to strengthen banking cooperation between Tehran and Baghdad.

Last month, Iraqi President Abdul Latif Rashid paid an official visit to Iran and weighed plans to enhance the political, economic, trade and cultural cooperation between the two nations.

Stressing the need for efforts to promote the relations in various fields and remove the obstacles to mutual cooperation, Rashid said details have been discussed about ways to improve the infrastructures of the two neighbors.

Lauding the recent agreement on the restoration of ties between Iran and Saudi Arabia, the Iraqi president said the rapprochement would contribute to regional security and stability.

(Source: Tasnim, under Creative Commons licence)

By John Lee.

Saudi Arabia's sovereign wealth fund has reportedly capitalised its new Iraq fund with $3 billion.

The Saudi-Iraqi Investment Company, which will have its headquarters in Saudi Arabia, is part of a $24-billion initiative announced last year.

According to Alarabiya, the acting CEO will be Muteb Alshathri.

More here.

(Source: Alarabiya)

By John Lee.

Iraq's Ministry of Oil has issued a "clarification" on its previous statement regarding involvement of Saudi Aramco in the Akkas field in Basra.

On Thursday, the Ministry originally stated that it had an agreement with Saudi Aramco to invest in the field.

Later in the day, it issued a clarification, saying that talks that took place between the Ministry of Oil and the Saudi Ministry of Energy included inviting Saudi companies to invest in the Iraqi oil and gas sector, including an invitation to Aramco to invest and participate in the development of the Akkas field.

It said the Ministry hopes to reach an agreement that enhances the prospects for cooperation between the two countries, and that Aramco is studying cooperation mechanisms in this context.

The ministry indicated that it will "announce the terms and mechanisms of the agreement in case a final agreement is reached."

(Source: Ministry of Oil)

By John Lee.

[Correction: After publication, the Oil Ministry issued a "clarification", stating that Aramco is merely "studying cooperation mechanisms" with regard to Akkas.]

Iraq's Minister of Oil has announced an agreement with Saudi Aramco to invest in the development of the Akkas gas field in Anbar province.

During his participation in the Iraqi-Saudi Coordination Council, Hayan Abdul-Ghani said the field will have a target capacity of up to 400 million standard cubic feet per day.

Rights to the field were originally awarded to a consortium of Kogas and KazMunaiGas (KMG), but KMG pulled out, leaving Kogas as sole investor and operator on new contract terms.

In 2014 it was reported that Kogas was planning to sell its interest in the field.  In 2021 it was rumoured that Saudi Arabia's Delta Oil Company was interested in buying a stake.

In March 2023, the Iraqi cabinet agreed terms for Kogas to surrender its stake in the field.

At the meeting, the Minister also mentioned an initial agreement with Saudi Arabia to contribute to the investment in the giant Nebras petrochemical project, which has been on hold for several years.

(Source: Ministry of Oil)

From the Iraq Britain Business Council (IBBC):

Iraq, Open to the world..an IBBC conference at the Mansion house, celebrating Iraq's return to international engagement.

On 16^th June IBBC are hosting possibly the largest delegation of Iraq businesses and government officials to the UK in recent times. This event is itself an indication of the more internationalist approach Iraqis are taking to business, trade, culture and diplomatic engagement with their neighbours and the world.

You can hear sessions on finance and energy, from leading international speakers, such as BP and Basra Gas, Standard Chartered, TBI and UKEF, GE, Siemens and The Sardar Group, and high-profile speakers on Heritage from the British Museum. And a Tech session with SAP, Mastercard and Iraq's new streaming stars, 1001.Professor Frank Gunter will also be launching the IBBC advisory council's report on Ports and Airport and Mr Laith Al Shaher, Deputy Minister of Oil and

H.E. Dr Haider M. Mekkiyah, Chairman of the National Investment Commission are making keynote speeches.

Since Saddam Hussein's time, Iraq has been a semi closed society, with movement outside the country barred until 2003 and then with limited confidence and resources to travel, Iraqi businesses have largely been marooned by conflict till the defeat of ISIS and terrorism more widely. Since then, Iraq has stabilised, enjoyed high oil prices, higher government income, begun to take its place among regional countries, hosted its neighbours, been open to international investment, (especially interested in UK support) and The PM Mr Al Sudani, has travelled regularly, internationally since his appointment in 2023.

Baghdad and Basrah are bristling with new developments and the country is regularly hosting large business delegations from around the world. Whilst IBBC co-hosted the first UK Iraq Trade Fair in mid-May, large UAE, Saudi, Japanese business delegations were in Baghdad as well as the largest ever German business delegation with over 30 company delegates.

Iraqis are resilient and have always recovered, from Saddam, invasion, ISIS, oil price crashes, now is a golden time.

A diversifying economy. Iraq is still dependent on oil income, and all financial indexes, including income per head and GDP (+4% '23) are all looking good, with 2022 surplus of over $40bn. Other areas of the economy are expanding off the back of this, especially consumer products, telecoms, education, and tourism. KRG has seen a 30% increase in tourists in 2023, this and other areas of Iraq are projected to grow 10% pa to 2027, Healthcare by 19% pa, food market at 4.13 % (largest growth segment is Confectionery & Snacks), beauty and personal care 6%, Household appliances 5.42%, luxury goods 4%, home laundry care 6%.

A modernising govt. Iraq is finding its confidence and has been active with diplomacy and hosting regional conferences, broking relations between Saudi, Iran, and Turkey, while also stimulating infrastructural development, from oil refineries to dry canal and housing projects, new electricity and renewable energy production, airport, and airline travel facilitation. Making access faster with Visas on arrival and travel between Baghdad Basra and Erbil easier. Much of the government's agenda is partly driven by catching up the public and business demands for products and capacity. But initiatives on invention, tech and digital communications differentiate it from previous governments thinking.

Investment. A tangible example of improved stability and diplomacy is the new Saudi Public investment fund (PIF) set to invest in Iraq, and IBBCs Iraq visits to Saudi, while IBBC has more Iraqi members and international companies than ever before.

Stability and security have also paid dividends in Basrah hosting of the Gulf cup which occurred without incident, and the bourgeoning number of tourists at religious and heritage sites.

Still challenges. The international community is still lagging in its view of Iraq, as international travel caution remains from US, EU and UK, and corruption is still prevalent, but on both counts, things are improving as the country moves towards international standards.

Come and meet the key international businesses and officials at our conference on June 16^th, including over 20 private Iraqi banks, where we are exploring these themes with energy companies, educational panels, heritage, tech, infrastructure, the KRG, and significant investment and finance panels.

Click here to register

By John Lee.

Saudi Arabi'a Arab National Bank (ANB) has announced an investment of $38.2 million to create Arab Bank Iraq.

ANB will have a 20-percent stake in the new bank.

The full statement from ANB is as follows:

Arab National Bank announces the approval of the Board of Directors on 14/5/2023 after obtaining the regulatory approvals, for the Bank to invest with the Bank's strategic partner Arab Bank Plc (a related party) to establish "Arab Bank Iraq - Private joint company" in the republic of Iraq at a percentage of 20% of the new Bank's capital equal to 38.2 million American Dollars. Noting that the Arab Bank Plc has obtained a preliminary approval from Central Bank of Iraq to establish the "Arab Bank Iraq - "Private joint company".

Arab National Bank aims from this investment to facilitate and support trade exchange for bank's customers, diversify in income sources and entering into new promising markets for the benefit of the Bank and its shareholders equity. Any major developments will be announced later.

Financial effect: the financial effect can not be determined at present.

Value of the investment: 38.2 M. American Dollars.

Related parties: Arab Bank Plc (strategic partner).

(Source: ANB)

From the Iraq Britain Business Council (IBBC):

IBBC and dignitaries attend first UK-Iraq trade fair at new Al Burhan conference centre.

The new Al Burhan conference centre was the venue for the first UK-Iraq Trade fair. Attended by dignitaries including the Ex Prime Minister Mr Haider Al Abadi, senior aviation advisor to the Prime Minster Mr Naser Al-Asadi and Mr Kamil Al Awadhi, regional Vice President MENA at International Air Transport Association ( IATA), and many IBBC members who were exhibiting and attending the event.

Baroness Nicholson, IBBC President began with a welcoming speech to a full house, and said 'Iraq could now be entering a golden phase, with both political, economic stability and rising incomes'. The Government of Iraq is stable and diplomatic relations with neighbouring countries, notably Saudi Arabia, Jordan, and Kuwait are expanding, and British companies are helping to diversify the economy and bring both expertise and service to the Iraqi people.

She thanked Al Burhan for hosting the event.

During the proceedings the first IATA licensed regional training centre in Iraq was officially opened by Mr Naser Al Asadi from the Prime Minister's office and Mr Kamil Al Awadi from IATA to celebrate this momentous event.

Nassir Al Asadi " said the PM praised Al Burhan facility and extends his thanks for organising the Trade Fair, Iraq is open for trade relations with the international world"

The British Ambassador H.E Mark Bryson-Richardson said " IBBC members have the expertise to support Iraqi companies"

Al-Burhan Group are pleased that they have hosted the first Iraq British Trade Fair and intend on making this an annual event with the support of IBBC, Serco and the British Embassy.
Mr Kamil Awadhi of IATA said " I am working with Iraqi Airways to help improve them and we chose Alburhan centre to certify aviation training because the Burhan company were very determined and consistent in building a world standard facility".

Other attendees and exhibitors over the two-day event include a big travel sector contingent: Serco, London Sky, AL Burhan, Fly Baghdad and Menzies, access to the best Automobiles with Sardar Group's JLR and Toyota ranges, Al Ourush's mini, and consumer household products from Al Omran Group, Nasr paint, recruitment and training from M Select, fertilisers from AAA holdings and insurance from Al Maseer, MSelect resources and G4S.

Christophe Michels, IBBC MD says "We are delighted to be supporting such a vibrant and successful event. Our members are playing a prominent role in the diversification and development of the Iraqi economy, from sponsoring this event with Al Burhan, AAA Holdings, Sardar Group to presenting and exhibiting British and Iraqi companies, all of whom deliver international best business practice".

Mr Imad Al Burhan says "It is a great honour to be hosting so many high-quality businesses at our new conference facility, and we welcome International and Iraqi companies to continue the good work and reputable calibre of these businesses here today. We are also especially proud to be the first IATA qualified business to be delivering international quality accreditation and training".

(Source: IBBC)

By Dr Renad Mansour for World Politics Review (WPR). Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Iraq's Regional Reintegration Is Still a Work in Progress

In early March, Iran and Saudi Arabia announced that they had reached a deal to reestablish diplomatic ties and reopen their respective embassies.

To the surprise of many observers, their agreement was mediated by China, which has in recent years increased its political engagement with governments in the Middle East.

Click here to view the full article (registration required).

By John Lee.

Saudi Arabia's Minister of Energy, Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, held a meeting in Riyadh with Iraqi Minister of Electricity, Engineer Ziad Ali Fadel.

During the meeting, they discussed the developments in the electrical interconnection project between the two countries.

This project will contribute to supporting the reliability of the electrical networks in both countries, achieving economic savings, in addition to promoting the optimal energy mix for electricity production, supporting the integration of renewable energy into the electrical networks, and achieving the optimal investment in electricity generation projects.

The meeting also addressed opportunities for cooperation between the two countries in the field of renewable energy, and the use of the potentials and experiences of ACWA Power in this vital field, and its contribution to developing future projects in Iraq.

The meeting discussed the Kingdom's pioneering experience in smart meters and how to transfer it to the Iraqi side, and the opportunities for Saudi companies - in addition to Iraqi companies - as contractors and manufacturers in developing the infrastructure of smart meters.

The Iraqi side was briefed on the financial and regulatory reforms that the electricity sector in the Kingdom has witnessed over the past three years, and the possibility of exchanging experiences between the two countries in this field.

(Source: Saudi Ministry of Energy)

By John Lee.

Iraqi Airways has started new flights between Baghdad, Moscow (Russia) and Medina (Saudi Arabia).

The Ministry of Transport announced the resumption of these routes this week, after a hiatus of more than three decades.

The Director General of Iraqi Airways, Eng. Karim Kazem Hussein, added that the fleet will continue to be upgraded with modern aircraft.

(Sources: Ministry of Transport, Iraqi Airways)