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Iraq, at the crossroads of several trade routes in the Middle East, has become the 78th country to accede to the United Nations TIR Convention.

Iraq's accession to the TIR Convention anchors its strategic role as a transit hub and supports the country's economic vision to expand its non-oil sectors.

The TIR system will boost regional trade and stimulate economic development and stability in Iraq and the wider region.

IRU Secretary General Umberto de Pretto said:

"We are thrilled that Iraq has joined the TIR system.

"This development will allow Iraq to fulfil its huge potential as a regional trade hub, supporting east-west and north-south connectivity.

"Iraq's accession to the TIR Convention is a golden opportunity to confirm the country's readiness to leverage the potential of international trade in supporting economic growth and driving prosperity and development."

Globally recognised for its high security standards and efficiency, the TIR system has been rapidly expanding in the Middle East. From Oman and the United Arab Emirates to Saudi Arabia, and most recently in Qatar, TIR is already significantly reducing border-crossing times and boosting trade in the region.

(Source: IRU)

By John Lee.

Oil prices surged on Monday after several producers, including Iraq, announced an unexpected cut in production.

Iraq's Ministry of Oil said it has voluntarily decided to reduce production by 211,000 barrels per day (bpd), starting from May, and continuring until the end of 2023.

According to BBC, Saudi Arabia is reducing output by 500,000 bpd, with the UAE, Kuwait, Algeria and Oman also making cuts.

(Sources: Ministry of Oil, BBC)

By John Lee.

The Saudi EXIM Bank has announced the signing of an agreement with Iraqi Islamic Bank for Investment and Development for a new, SAR75-million [$20 million] credit line.

The new credit line is the latest addition to the broad portfolio of financial instruments that Saudi EXIM Bank provides to national financial institutions to help facilitate trade with Iraq and boost Saudi exports to the brotherly nation.

The agreement is part of Saudi EXIM Banks's efforts to facilitate investment opportunities that establish and strengthen trade relations between Saudi Arabia and neighboring countries. It is also one of several financial solutions designed to help grow non-oil Saudi exports and increase their global competitiveness.

With these objectives in focus, the agreement is designed to maximize trade between the two countries, minimize risk, and bridge gaps in funding for Saudi exports to Iraq.

The agreement was signed by H.E. Eng. Saad Alkhalb, the Chief Executive Officer of Saudi EXIM Bank, and Mr. Humam Thamer Kadhum, Managing Director of Iraqi Islamic Bank for Investment and Development. Mr. Ahmed W. Ahmed, the Iraqi bank's Chairman, and top executives from both sides were also present at the event.

"The new agreement is an extension of our strategic partnership with the Iraqi Islamic Bank for Investment and Development that is aimed at creating investment opportunities for stronger trade between our countries," said Alkhalb.

The agreement, he explained, lays the groundwork for a new credit line that helps financial institutions in both countries to fund Iraqi importers of Saudi goods at competitive rates.

He reiterated Saudi EXIM Bank's willingness to build effective partnerships that facilitate sustainable credit solutions for a dynamic, diverse economy. A key target of vision 2030 is to increase the share of non-oil exports in the Kingdom's gross domestic product from about 16 percent to at least 50 percent by 2030.

Ahmed W. Ahmed, the Chairman of Iraqi Islamic Bank for Investment and Development, said that the agreement enables new credit lines to revitalize mutual trade, empower regional financial institutions to support their respective economies, and create opportunities for imports and exports. Mutual trade has been growing thanks to the reputation for quality that Saudi products have built in Iraq.

(Source: Saudi EXIM Bank)

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 30th March 2023).

Please click here to view a table of listed companies and their associated ticker codes.

*Selling price of the dollar from banks and non-bank financial institutions to the final beneficiary

**Selling price of the dollar by the CBI to the banks

ISX Company Announcements

• Saudi Arabia's Export-Import (EXIM) Bank signed a new credit line contract with the Iraqi Islamic Bank for Investment and Development (BIIB). The deal will be worth $20 mn and will be utilized to finance Saudi exports to Iraq. The agreement will open new investment opportunities that will boost economic operations between the two countries.
• National Company for Tourism Investment (HNTI) invited its shareholders to receive their cash dividends for the year 2021 at the company's headquarters in Baghdad.

Stocks that resumed / will resume trading:

• Al-Mansour Hotels (HMAN) resumed trading on Mar. 28 after holding its AGM on Mar. 19 in which they discussed and approved 2021 annual financial statements and elected five original and three alternative board members for the private sector.

Stocks that were suspended / will be suspended from trading:

• ISX will suspend trading of National Bank of Iraq (BNOI) on Apr. 11 due to the AGM that will be held on Apr. 16 to discuss and approve 2022 annual financial statements, dividend distribution, increasing the capital through 11.11% bonus issue to IQD300 bn, and adopting the cumulative voting method.

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Prime Minister Mr. Mohammed S. Al-Sudani, received the Saudi Minister of Commerce, Mr. Majid bin Abdullah Al-Qasabi, and his accompanying delegation.

The meeting focused on discussing prospects for cooperation between the two countries and ways to develop bilateral relations to serve the interests of the two brotherly peoples.

During the meeting, the Prime Minister reaffirmed Iraq's openness to developing partnerships with the Kingdom of Saudi Arabia in various economic and investment sectors. They also discussed cooperation in the energy and coordination in facing the effects of climate change and the measures taken to mitigate its impact on the region.

For his part, the Saudi Minister of Commerce, Mr. Al-Qasabi, conveyed the regards of the Custodian of Two Holy Mosques, King Salman bin Abdulaziz Al Saud, His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince to Prime Minister Al-Sudani emphasizing that the Kingdom of Saudi Arabia is keen to continue joint work at the Iraqi-Saudi Coordination Council, which includes cooperation between the two countries in economic, investment, tourism, security, and other sectors.

(Source: Media Office of the Prime Minister)

By John Lee.

The Iraqi Cabinet has approved the recommendation of the Ministerial Energy Council regarding a settlement agreement with the South Korean company Kogas, the operator of the Akkas gas field.

The agreement includes a payment of USD 49 million in crude oil, to be made by the State Oil Marketing Organization (SOMO).

According to a statement from the Media Office of the Prime Minister, Kogas will transfer its contractual rights and obligations to a qualified global company or consortium of companies, in accordance with Ministry of Oil standards.

The contract will remain in force for one year after signing, and Kogas will provide technical support to the project without any other financial or contractual obligations.

The agreement also allows for the termination of the contract after the end of the one-year period without obtaining an alternative operator.

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.

(Source: Media Office of the Prime Minister)

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

Deep Dive: Iran inks security accord with Iraq as regional diplomacy revved up

The secretary of Iran's Supreme National Security Council (SNSC) has capped off a busy month of dialogue with Arab states with the signing of a security agreement in Baghdad. The accord aims to address concerns about Iranian Kurdish opposition groups based in northern Iraq.

This comes as Ali Shamkhani's recent talks in China to restore relations with Saudi Arabia and visit to the United Arab Emirates (UAE) have raised questions about the foreign ministry's role in Iran's diplomacy. While Iranian Foreign Minister Hossein Amir-Abdollahian has publicly insisted that all state institutions are on the same page, few are convinced.

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

Iran and Iraq on Sunday signed a bilateral agreement on security cooperation.

The agreement was signed by Secretary of Iran's Supreme National Security Council Ali Shamkhani and Iraq's National Security Adviser Qasim al-Araji in Baghdad at a meeting attended by Iraqi Prime Minister Mohammed Shia' Al Sudani.

Accompanied by the governor of the Central Bank of Iran (CBI) and two Foreign Ministry deputies, Shamkhani has traveled to Baghdad to hold talks on economic and political subjects and sign the document on mutual security cooperation, which was being prepared for months.

The agreement commits Iran and Iraq to safeguarding the principles of good neighborliness and protecting the common border.

According to a statement from Iran's state-controlled Tasnim News Agency, the deal is expected to have a significant role in ending what it called "the illegal presence of anti-Iranian armed groups and the elements affiliated with the Zionist regime in the Iraqi areas adjacent to Iran's northwestern border regions."

Shamkhani's visit to Iraq, made days after a landmark trip to the United Arab Emirates, comes after Iran and Saudi Arabia announced their decision to restore ties.

Following days of intensive talks in Beijing, Iran and Saudi Arabia agreed on March 10 to resume their diplomatic relations and reopen their embassies and diplomatic missions within at most two months.

Arab governments neighboring Iran have eagerly welcomed the rapprochement between the two regional heavyweights.

(Sources: Tasnim, under Creative Commons licence; Media Office of the Iraqi Prime Minister)

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: Amid 'witch-hunt' in Iraq, ex-PM considered as conduit in Iran

Iraqi ex-prime minister Mustafa Al-Kadhimi (2020-22)-a key proponent and prior host of talks between Iran and Saudi Arabia-is seemingly under fire at home, where several of his close associates face arrest warrants and asset freezes.

This follows an unannounced visit to Tehran by the former premier.

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