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From Amwaj Media. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Inside story: Iraqi debt payment to Iran highlights Iran-Saudi-US dynamics

Iraq's clearing of part of its debts to Iran has given rise to speculations of a US green light for direct transfers to the Iranian banking system.

Such talk has gained strength by Iran's supreme leader's declaration that there is "nothing wrong" with a deal to resolve the crisis over the Iranian nuclear program.

Indeed, Ayatollah Ali Khamenei's comments follow the Omani Sultan's recent visit to Tehran-a known interlocutor between Iran and the US-and a call between the presidents of France and Iran.

The full article can be viewed here (registration required).

By John Lee.

The Iraqi Minister of Electricity, Ziyad Ali Fadel, has attended the ceremony to mark the start of work on the electrical interconnector between Iraq and Saudi Arabia.

The 1GW line will connect between the Saudi city of Arar and Yusufiya in western Baghdad.

GCC Interconnection Authority (GCCIA) hosted the event in Dammam, Saudi Arabia.

(Source: Ministry of Electricity, Trade Arabia, Kuwait Times)

By Sinan Mahmoud for The National. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

Who is Iraq's first female ambassador to Saudi Arabia?

Safia Al Suhail, an experienced Iraqi politician and former ambassador in Rome and Amman, made history on Monday as she presented her credentials in Riyadh, becoming Iraq's first ever female ambassador to Saudi Arabia.

Click here to read the full article.

By Simon Watkins for the OilPrice.com. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Aramco Eyes Major Opportunity In Iraq

Following the recent China-brokered resumption of relationship deal between historical enemies Saudi Arabia and Iran, a deal for the Kingdom to develop two key projects in Iran's close ally Iraq is in the offing.

The problem with this idea is that it is dependent on two highly unpredictable elements.

Click here to read the full report.

From the Iraq Britain Business Council (IBBC):

Iraq open to the world... and who's making it happen.

An IBBC conference on June 16^th at London's Mansion House.

On 16^th June IBBC are hosting a significant delegation of Iraq businesses and government officials to the UK, with a strong focus on energy, oil and gas, new infrastructure, and Investment projects. As Iraq takes a more internationalist approach to business, trade, culture and diplomatic engagement with their neighbours and the world, the range and nature of projects is opening.

For example, Saudi Arabian investment fund (PIF) is investing $3bn in infrastructure projects, Aramco are discussing Basra oil projects, Shell is finally moving into multibillion dollar petrochemical projects, Total Energies has started work on its huge solar, gas capture and oil extraction deal, ANB are moving into Iraq, Dutch Royal Boskalis investing in an export terminal in Basra and the EBRD are expanding operations in Iraq and the Government are investing $17bn in the development road connecting both the Gulf to Turkey and Europe.

H.E. Dr Haider M. Mekkiyah, Chairman of the National Investment Commission is making s keynote speech outlining the current opportunities for Infrastructure and Investment.

You can attend sessions on finance and energy, from leading international speakers, such as Dunia Chalabi, CEO of Total Energies Iraq, Ali AL Janabi chairman of Shell Iraq, Basra Gas Company, Dr Laith Al Shaher, Deputy Minister of Oil, will give a keynote speech, Standard Chartered, TBI and UKEF, GE, and The Sardar Group, and high-profile speakers on the developing Heritage sector from the British Museum. A Tech session with SAP, Mastercard, Scott Logic and Iraq's new streaming stars, 1001.

Professor Frank Gunter is launching the IBBC advisory council's report on Ports and Airport supported by industry leaders and sponsors, Sardar Group, AAA Holding and Hydro-C.

Prof. Hamid Ahmed Khalaf, Advisor to the Prime Minister and Executive Director of the High Committee for Education Developments in Iraq, will attend the conference and take part in the Education Round table discussion chaired by Professor Mohammed Al Uzri. The Iraqi Government has allocated funding for several thousand post graduate scholarships to mostly take place at UK universities of the next 3 years.  Education is one of the strongest growth sectors in the country and now represents the second biggest membership stream within IBBC.

Iraq has world class reserves of oil and gas, and oil exports represent over 90% of its income. The sector is due to vastly expand in coming years with new projects having been agreed in Solar, Oil production, Gas capture and Petrochemicals. It is also under increasing pressure to reduce its environmental impact and reliance on crude oil revenues. Under the expert Chairmanship of Dr Luay Al Khateeb, former Electricity Minister, and Founder of the Iraq Energy Academy, our high powered 'Energy Panel' will focus on Iraq's burgeoning Energy sector and how to maximise its potential following international standards and best practices.

Iraq's heritage is coming a big topic, not just for its commercial value, tourism, and growth, but also for what it signifies about Iraq's current culture and history. Hear leading experts on Iraq's heritage.

- Professor John McGinnis, The British Museum /Nimrud Archaeological Trust

- Professor Gamal Abdelmonem, Nottingham Trent University
- Mr Ali Al Makhzomy, Bilweekend

- Dr Rosalind Wade Haddon, British Institute for the Study of Iraq.

- Professor Chris Whitehead, Newcastle University

IBBC is also hosting an exhibition on heritage "Legacies of War and Peace in Iraq: Mosul's Story of Resistance, Resilience, Recovery and Rise".

Supporting the new internationalism are initiatives in training, education, and skills, with British Universities and training companies, who are expanding new courses to propel Iraq business skills, including Nottingham Trent University, University of Mosul, University of Leeds, University of Wasit, and Newcastle University.

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.

For a full agenda please click here and to register here

Iraqis are resilient and have always recovered, but 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

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.

The Saudi ambassador to Baghdad, Abdulaziz Al-Shammari (pictured), has revealed the signing of a contract between Saudi Arabia and Iraq for a significant investment project near Baghdad International Airport (BIAP).

In a statement to the state-run Iraqi News Agency (INA), Al-Shammari said the contract involves an investment of up to one billion dollars in the Rafil area, known as the "Baghdad Avenue" project.

This project is set to be the largest mall in Iraq, boasting spacious cafes, restaurants, and commercial offices for major Iraqi companies. Additionally, it will feature 4,000 apartments and 2,500 villas.

The contract signifies a significant step forward in the economic collaboration between Saudi Arabia and Iraq, promising positive developments for both nations.

(Source: INA)

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)