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By John Lee.

Saudi Arabia's Public Investment Fund (PIF) has set up a company to invest in Iraq.

The new company is one of six that will invest a total of up to SAR 90 billion (USD 24 billion) in Bahrain, Iraq, Jordan, Oman, Sudan and Egypt.

They will invest in various key sectors, including but not limited to, infrastructure, real estate development, mining, healthcare, financial services, food and agriculture, manufacturing, telecoms, and technology, among other strategic sectors and industries in each country.

(Source: Saudi Public Investment Fund)

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

Revival of key border crossing shows shift in Iraq-Saudi ties

A new phase of Iraqi-Saudi relations has begun, marked by efforts to strengthen ties between the neighbours.

In September, the Jadidat Arar land crossing was also opened for Iraqis traveling to Saudi Arabia for the Umrah pilgrimage.

Opening the crossing for even more pilgrims marks a new and symbolic stage of the burgeoning bilateral relationship.

The full article can be viewed here.

Advertising Feature

Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 1st September 2022).

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

The RSISX index ended the week at IQD934 (+5.1%) / $816 (+5.1%) (weekly change) (+1.7% and +1.4% YTD change, respectively). The number of week traded shares was 2.9 bn and the weekly trading volume was IQD4.2 bn ($2.8 mn).

ISX Company Announcements

• The National Bank of Iraq (BNOI) has opened its first branch in Saudi Arabia. The bank, which is a subsidiary of Jordan's Capital Bank Group, said the new branch in Riyadh will encourage and facilitate trade between Iraq and Saudi Arabia. In June 2022, Capital Bank Group took in the Saudi Public Investments Fund as a strategic partner with a 23.97% stake. (Iraq Business News)
• Stocks that resumed / will resume trading:
  • Modern Sewing (IMOS) resumed trading on Aug. 28 after holding its AGM (Aug. 24) in which they discussed and approved 2021 annual financial statements and decided to distribute IQD0.10 cash dividend per share, corresponding to a yield of 1.6%.
  • Gulf Commercial Bank (BGUC) and Al -Khazer for Construction Materials (IKHC) resumed trading on Aug. 31 after holding their AGM in which they discussed and approved 2021 annual financial statements.
  • Iraq Baghdad for General Transport's (SBPT) AGM which was planned to be held on August 30th has been postponed due to the lockdown on AGM date till further notice. The company resumed trading on Sep. 1.
  • Ashur International Bank (BASH) will resume trading on Sep. 4 due to disclosing its 3M22 financial statements.
  • Zain Al-Iraq Islamic Bank (BZII) will resume trading on Sep. 4 due to disclosing its 2021 annual financial statements.
• Stocks that will be suspended from trading:
  • ISX will suspend trading of Modern Animal and Agricultural Production (AMAP) starting Sep. 12 due to the AGM that will be held on Sep. 15 to discuss and approve increasing the company's capital from IQD4.1 bn to IQD8.2 bn through 100% rights issue and amending the name of the company by adding an activity of "trade and industry food materials".
  • ISX will suspend trading of Mosul Bank (BMFI) starting Sep. 13 due to the AGM that will be held on Sep. 17 to discuss and approve 2021 annual financial statements, discussing cash dividends distribution and electing seven new board members.
  • ISX will suspend trading of Asia Al Iraq Islamic Bank (BAIB) starting Sep. 14 due to the AGM that will be held on Sep. 20 to discuss and approve 2021 annual financial statements, discussing cash dividends distribution and electing seven new board members.
  • ISX will suspend trading of Commercial Bank of Iraq (BCOI) starting Sep. 22 due to the AGM that will be held on Sep. 27 to discuss and approve 2021 annual financial statements and discussing cash dividends distribution.
  • ISX will suspend trading of Baghdad for Packing Materials (IBPM) starting Sep. 14 due to the AGM that will be held on Sep. 19 to discuss and approve 2021 annual financial statements.

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By John Lee.

The National Bank of Iraq (NBI) has opened its first branch in Saudi Arabia.

The bank, which is a subsidiary of Jordan's Capital Bank Group, said the new branch in Riyadh will encourage and facilitate trade between Iraq and Saudi Arabia.

In June 2022, Capital Bank Group took in the Saudi Public Investments Fund as a strategic partner with a 23.97% stake.

Full text of announcement (Arabic)

(Source: NBI)

By John Lee.

Saudi Arabia-based Jazeera Paints has opened its sixth showroom in Iraq.

The new showroom is in Ranya [Rania], in the Northeast of the Kurdistan Region, which has seen significant economic and industrial development in recent years.

It is close to other towns such as Qaladze, Dukan, Chwar Qwrna, Sangasar, and Hajiawa, and will also, "serve their needs for high-quality paints and construction solutions."

Several distinguished city officials, engineers, and contractors interested in construction and urbanization attended the branch opening.

This is Jazeera Paints' sixth showroom in Iraq; the previous five are in Sulaymaniyah, Chamchamal, Kirkuk, Ramadi, and Basra.

By the end of 2022, the company intends to expand further in Iraq, opening three showrooms in three cities.

(Source: Jazeera Paints)

By John Lee.

Iraq and Saudi Arabia have signed a memorandum of understanding (MoU) regarding the allocation of a grant from the government of Saudi Arabia to finance the renovation of Ibn Al Khatib Hospital in Baghdad.

The Saudi embassy initially announced its support for the hospital last year, following a fire that killed at least 82 people, and left more than 100 injured.

The grant will be provided through the Saudi Fund for Development (SFD).

During the meeting, Iraq's Ambassador to Saudi Arabia, Dr. Abdul Sattar Hadi Al-Janabi, praised the critical role played by the Kingdom through the SFD in supporting the health sector and the infrastructure in Iraq. He highlighted the importance of the present project in enhancing the livelihood of many Iraqis and their access to essential health services.

According to the official Saudi Press Agency, the Kingdom has allocated $1.5 billion for soft loans through SFD to support development in Iraq.

(Source: Saudi Press Agency)

By John Lee.

Saudi Arabia has approved a cooperation agreement with Iraq relating to maritime transport.

The official statement following a meeting of the Saudi Cabinet said simply, "approving a cooperation agreement between the government of the Kingdom of Saudi Arabia and the government of the Republic of Iraq in the field of maritime transport," without giving any details.

(Source: Saudi Press Agency)

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

Deep Data: GCC Electricity and Iraq's Reliance on Iran

In connection with the recent Arab summit in Jeddah, Iraq and Saudi Arabia are forging ahead with efforts to connect their electricity grids.

The plan revolves around a new power line between the two neighbors with a capacity of 1 gigawatt (GW). Separately, Iraq and the Gulf Interconnection Authority (GCCIA) are advancing a scheme to power southern Iraq.

While Iraq has long been under pressure from the US and some Arab states to reduce reliance on energy imports from Iran, informed sources in Baghdad characterize the shifts underway as a win-win for all sides-pointing to burgeoning domestic demand in Iran, and the possibilities offered by a new regional electricity market.

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

By John Lee.

Writing in Foreign Policy, Iraqi Prime Minister Mustafa al-Kadhimi says that after leaning heavily on the United States, Iraq is finding its own footing.

Original article (subscription required):

On Biden's Middle East Visit, He Will See a New Iraq at the Table

Summary of the main points of the article, according to the Media Office of the Prime Minister:

Arabic: here;

English, below (via Google Translate):

When US President Joe Biden arrives in the Middle East this week, he will arrive in a region facing many challenges, such as terrorism, food security, and climate change. But the Middle East today is a region facing these challenges with a group of leaders seeking positive change.

I will represent a recovering Iraq that stands with greater confidence on the international stage stronger than it has been since President Biden's last visit in 2016, or even more than when we met in the Oval Office last year.

The United States has had a significant role in supporting Iraq over many years, and we are grateful for the help and sacrifices that Americans have made to support us. Today, Iraq is drawing its own path, locally, regionally and internationally.

What I hope Mr. Biden will realize after our meeting in Saudi Arabia on Friday is my personal determination, and the determination of the Iraqi people to solve Iraq's problems through Iraqi solutions.

Iraq is now a multi-party and multi-ethnic constitutional democracy. Yes, we are still in the protracted process of forming a new government after the elections last fall. The formation of the government took a long time, which has indeed frustrated many inside and outside Iraq.

I share that sentiment, but I am also proud of the state's ability to continue to serve Iraqi citizens, protect our natural resources, and play a leading role in regional initiatives that advance prosperity and security.

Nearly two decades have passed since the elections were called, which is a great evidence of the extent to which democracy has been entrenched in Iraq after more than three decades of Saddam's brutal dictatorship; This is a success story that cannot be overlooked.

The political difficulties that result from the elections are an example of the confused conditions that democracy sometimes produces, and confirm the need to consolidate the principles of democracy in Iraqi public life, and to ensure its sustainability in a way that is not limited to the ballot boxes.

The path towards a successful democracy requires time, will and leadership. With our two feet after the expulsion of ISIS from our land, today we can look towards better prospects, as our country is no longer a passive member of the international community; We are now active at the regional and international levels, including the initiative to host the multilateral summit aimed at strengthening regional cooperation and stability.

Last year, Iraq hosted the Baghdad Conference for Cooperation and Partnership with the leaders of Jordan, the United Arab Emirates, France, Qatar, Kuwait, and Egypt, with the participation of ministers from Turkey, the Islamic Republic of Iran, and Saudi Arabia.

The conference discussed security, economic, and environmental issues whose solutions require goodwill, sincere participation, and cooperation between states, through these and other initiatives, we were able to play a positive role in the region.

This is evidence of my government's commitment to spare no effort to achieve stability in our country and the region. While we seek to de-escalate tensions by bringing the various parties together, we also strongly support respect for each country's sovereignty and the need for non-interference in the internal affairs of other countries.

Our relationship with the United States has changed for the better, and while our historical cooperation revolved around security and combating terrorism, the relationship is now expanding to include other no less important societal challenges, such as: economy, energy, climate change, environment, health, education, and culture.

With progress made by Iraq, our strategic dialogue with the United States has also progressed, and the transition from the American combat role to another broad-minded form has taken place with a deepening of relations outside the security framework.

Our partnerships with the United States Agency for International Development and other American institutions provide us with influential support and technical expertise in our journey to build our country.

The main motive for this growth in the relationship was the Iraqi national need to invest in the repercussions of regional stability, economic development, environmental security, solutions to climate change, and food security.

Geographically, Iraq is located in the hottest regions in the world, and the most affected by climate changes, and concern about dust storms, high heat waves, drought, and lack of water supply has become the prevalent among our people compared to the terrorist threat.

But Iraq remains an important producer of oil at the international level, with huge reserves that are not fully explored, but this economic artery increases our environmental challenges.

Therefore, we are working quickly to invest gas that burns in oil fields, and we want to convert our strong sunlight into electrical energy that can support the development of our industries, and create jobs for our young generations.

Iraq has a lot to offer the region, whether in terms of economic integration, free trade opportunities or the stability of energy markets.

We have built bridges of important relations with countries such as: Jordan, Egypt, and the Gulf Cooperation Council, and we have begun to see tangible results for this improvement in relations in various forms, including the development of electrical interconnection with our Gulf neighbors as well as Jordan, the pivotal regional state.

At the end of last year, we completed the payment of the dues to the State of Kuwait, which resulted from the disastrous invasion carried out by Saddam in 1990.

There are problems that need to be addressed, foremost among which is that we, the Iraqis, strengthen the state's authority and control over the spread of uncontrolled weapons.

The problem of recovering weapons after they fell into the wrong hands suffered from the most powerful countries; In order to protect their democracies, and address them in Iraq will require Iraqi solutions that are sustainable and require strategic patience inside Iraq and from our partners.

The United States and our other international partners should look at and deal with the Iraqi issue from the perspective of the progress we have made, as well as should.

(Sources: Foreign Policy, Media Office of the Prime Minister)

By Al Monitor staff. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

Iraqi prime minister sets objectives for regional summit

Amid longstanding political deadlock and economic and environmental challenges, Iraqi prime minister Mustafa Kadhimi is attending the GCC +3 Summit in Saudi Arabia.

Click here to read the full article.