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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)

Statement from US National Security Advisor Jake Sullivan Welcoming Developments in Iraq's Energy Sector

We welcome significant progress in Iraq this week with respect to energy deals that further strengthen Iraq's sovereignty, independence, and economic prosperity.

First, the Government of Iraq and the Kurdistan Regional Government reached a historic agreement on the export of oil and management of revenues through the Iraq-Turkey Pipeline. This agreement paves the way for a multi-year budget now before Iraq's Council of Representatives and an eventual hydrocarbons law for long-term stability and predictability in Iraq's energy sector.

Second, the Government of Iraq reached an unprecedented $27 billion deal with France's TotalEnergies, including a project to enable the recapture and use of flared gas in southern Iraq. Once implemented, this historic project will increase electricity supply for the benefit of the Iraqi people, advance Iraq's energy self-sufficiency, reduce harmful climate effects from flared gas in southern Iraq, and allow for the export of gas products to new markets.

We are pleased that companies from Qatar, Saudi Arabia, and the United States will play important roles in this infrastructure project. The United States is proud to support these and other regional projects and ongoing diplomatic initiatives to advance a more stable, interconnected, and prosperous Middle East region, which ultimately benefits the United States and the American people.

(Source: The White House)

By Michael Knights, Hamdi Malik and Crispin Smith, for the Washington Institute for Near East Policy. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

The Muhandis Company: Iraq's Khatam al-Anbia

Similar to Iran's Revolutionary Guards, Iraqi "resistance" groups have long sought a company with preferential access to lucrative state contracts, and the Sudani government is finally providing them after years of opposition-on the Saudi border no less.

Click here to read the full report.

By John Lee.

The Iraqi Minister of Electricity, Ziyad Ali Fadel, held a meeting this week with the Saudi Export Development Authority (SEDA).

Among the items discussed was the reconstruction of Baiji thermal and gas stations Nos. 1 and 2, and the possibility that these will be financed by the Saudi Export Fund.

(Source: Ministry of Electricity)

By John Lee.

TotalEnergies has confirmed that it will proceed with the Gas Growth Integrated Project (GGIP) in Iraq.

In a statement to the markets on Wednesday, it added that QatarEnergy to take a 25-percent stake in the project.

Also, in agreement with Iraqi authorities, TotalEnergies will invite the Saudi company ACWA Power to join its 1GW solar project in Basra.

The full text of the TotalEnergies statement follows:

While confirming all the terms of the Development & Production Contract signed in 2021, TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) and the Iraqi Government have, through exchanges in the past months, including in 4 occasions between Prime Minister Al-Sudani and Chairman & CEO Patrick Pouyanné, jointly defined the necessary conditions and mutual insurances to move forward with the Gas Growth Integrated Project (GGIP).

The Iraqi Government and TotalEnergies have agreed on a 30% stake for the Basrah Oil Company (BOC) in the GGIP. Furthermore, in agreement with the Iraqi Government, TotalEnergies has invited QatarEnergy to take a 25% stake in the GGIP.

The consortium will thus be composed of TotalEnergies (45%), Basrah Oil Company (30%) and QatarEnergy (25%).

TotalEnergies welcomes the continuity of the voice of the State of Iraq on this Development & Production Contract, which is a strong and positive signal for foreign investment in the country.

Signed in September 2021, the GGIP has for main purpose to enhance the development of Iraq's natural resources to improve the country's electricity supply.

According to these agreements, TotalEnergies and its partners will invest approximately $10 billion (100% share):

• to recover flared gas on three oil fields in order to supply gas to power generation plants,
• to build a seawater treatment plant in order to provide water injection for pressure maintenance to increase regional oil production, as an alternative to the use of fresh water from rivers and aquifers.

Furthermore, TotalEnergies will develop a 1 GW solar power plant to supply electricity to the Basrah regional grid. In agreement with Iraqi authorities, TotalEnergies will invite the Saudi company ACWA Power to join this solar project.

(Source: TotalEnergies)