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By John Lee.

Iraq's Ministry of Oil has reportedly postponed its oil and gas bidding round for 11 new blocks to 25th April.

Abdul Mahdi al-Ameedi, director general of the Petroleum Contracts and Licensing Directorate (PCLD), told Reuters:

"The bidding process was rescheduled to be on April 25. It is just to give the companies a little bit more time to submit the bid bonds and be prepared for the bidding."

However, Oil Ministry Spokesman Asim Jihad told Bloomberg he was unaware of any postponement in the auction, originally scheduled for 15th April.

Just two weeks ago, the ministry said it was changing to a new “hybrid” type of oil contract.

(Sources: Reuters, Bloomberg)

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 15th Mar 2018).

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

The RSISX index ended the week at IQD927 (-1.2%) / $878 (-1.2%) (weekly change) (+14.3% and +17.1% YTD change, respectively). The number of week traded shares was 20.3bn and the weekly trading volume was IQD11.9bn ($9.7mn).

ISX Company Announcements

• Al-Mansour Bank (BMNS) will hold AGM* on Mar. 29, 2018 to discuss and approve 2017 annual financial results. ISX will suspend trading of BMNS starting Mar. 26, 2018.
• Iraqi Land Transport (SILT) will hold a GA on Mar. 18, 2018 to elect new BoDs as private sector representatives. The company has been suspended since Aug. 6, 2017 for not disclosing 2016 annual financial results.
• Metallic & Bicycles Industries (IMIB) will be suspended from trading on Mar. 18, 2018 if the company fails to explain why the prices touched the lower limit on Mar. 14 and Mar. 15, 2018.
• National Chemical & Plastic Industries (INCP) will be suspended from trading on Mar. 18, 2018 if the company fails to explain why the prices touched the lower limit on Mar. 14 and Mar. 15, 2018.
• Original shares of Al-Mosul for Funfairs (SMOF) resumed trading on Mar. 11, 2018 after discussing and approving 2013 annual financial results and increasing the capital from IQD400 mn to IQD800 mn through 100% bonus issue.
• Iraqi Agricultural Products (AIRP) resumed trading on Mar. 11, 2018 after electing five BoD members as private sector representatives.
• ISX requested Al Taif Islamic Bank to submit a number of documents in order to be started trading in the banking sector as an Islamic Bank.
• ISX requested Dar Al-Salam for Insurance (NDSA) to provide updates regarding the capital increase process.
• ISX requested Al-Karada Court to set up a new date to auction 40 mn shares of AL- Batek Financial Investment (VBAT) and 50 mn shares of Al-Hamraa for Insurance (NHAM) owned by Sadiq Abdul-Hadi Faraj for the payment of debt to Bilad Islamic Bank (BLAD). The court representative didn’t attend the auction on Mar. 12, 2018.
• According to ISX announcement on Mar. 12, 2018, Rabee Securities will hold a GA on Mar. 27 to elect five BoD members and other five alternative members.
• Cross Transactions: 6.0 bn shares of Iraqi Islamic Bank (BIIB) on Mar. 13, 2018, which represents 2.4% of BIIB capital.

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 8th Feb 2018).

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

The RSISX index ended the week at IQD926 (+5.7%) / $966 (+5.9%) (weekly change) (+14.2% and +15.5% YTD change, respectively). The number of week traded shares was 11.3bn and the weekly trading volume was IQD8.6bn ($6.9mn).

ISX Company Announcements

• According to the letter (dated Jan. 29, 2018) sent to Al-Rafidain Bank, Al-Rasheed Bank, and Trade Bank of Iraq (TBI) related with treasury bonds regulations and payments to contractors for 2018, Central Bank of Iraq (CBI) will pay the past due payments to contractors on behalf of the Ministry of Finance (MoF) after the completion of the auditing by the Federal Board of Supreme Audit. In the letter it was mentioned that the bond’s annual interest will be 5% with a maturity of three years. The Ministry of Planning will prepare the list of names and contractors and the amounts due to them and send it to the MoF. The role of the CBI is to deliver the bonds to the contractors according to the required payments. (CBI)
• The Anti-Money Laundering (AML / CFT) Council announces the preparation and issuance of the National Strategy for Combating Money Laundering and the Financing of Terrorism for the years 2017-2020 according to the international requirements, which is the first strategy in Iraq in this regard. (CBI)
• Regarding the request of ISC from Economy Bank for Investment (BEFI) on Dec. 14, 2017 to clarify unclear items in 2016 annual financial results since their earlier clarifications weren’t clear and financial statements do not represent the current financial position of the bank, ISC mentioned that the bank replied that these cases will be amended in 2017 annual financial results. ISC declared that the problems remain unsolved and the report is unclear and thus the BEFI will remain suspended from trading until these issues will be resolved.
• According to Bada’a Al-Karada court decision on Aug. 28, 2017, ISX will auction starting March 6, 2018 North Bank (BNOR) shares amounted 4.8 bn owned by Omer Mohammed Ahmed Al-Jaff for payment of IQD2.3 bn debt to Al-Mansour Bank (BMNS).
• Iraq Noor Islamic Bank for Investment (BINI) will hold a GA on Feb. 22, 2018 to elect a new BoD. ISX will suspend trading of BINI starting Feb. 19, 2018. BINI will resume trading on Feb.25, 2018.
• Metallic & Bicycles Industries (IMIB) disclosed signing investment contracts with the Chinese Company for Motorcycles Production and the British Himalaya Enterprise.

This article was originally published by Niqash. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Every day new anti-corruption cases are announced in Iraq's new "war on corruption". Yet they achieve virtually nothing. This may well be a war that nobody in Iraq can win.

Last week the Iraqi prime minister, Haidar al-Abadi, said that now that the war against the extremist group known as the Islamic State had been won, that a new war should be fought – and this one would be against corruption.

Last year the advocacy organisation Transparency International says that Iraq was the 166th most corrupt country in the world out of 176. And corruption of all kinds has been a problem in the country for decades. It’s almost a way of life here. So this will be far from an easy fight. In fact, it may prove to be more difficult than the fight against the Islamic State group.

Iraqi politics functions according to a kind of unofficial sectarian quota system that was established after the 2003 US-led invasion of Iraq that toppled Saddam Hussein’s regime.  In order to avoid sectarian infighting among politicians, US administrators thought it best to split the most important positions in Iraq’s new Parliament between the three major ethnic and sectarian groups in the country; that is, the Sunni Muslims, Shiite Muslims and Iraqi Kurdish.

Over time though, many analysts believe this practice has come to hamper Iraqi democracy, with leaders being picked for their sect or ethnicity, rather than on merit.

And the system is far more problematic than that. In reality, it is based on two further principles: How much power each appointment gives to the person who gets the job, and therefore how much money the appointment can generate.

Every party in the Iraqi government today also has what is known as an “economics office”, a bureau tasked with raising funds for the political party using the government jobs held by the members themselves. According to insiders, who cannot be named for security reasons, these offices coordinate making deals and signing contracts behind the scenes so that investments and kickbacks are shared with the political party itself.

By Ahmed Mousa Jiyad.

Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

Debating SOMO Transformation

New important developments pertaining to or initiated by Iraq's State Oil Marketing Organization (SOMO) surfaced during the last few months; they seemed to be integrated components of what was revealed as SOMO's unstoppable transformation. They are:

• Partnership with IOCs in activities outside Iraq;
• Offering crude oil through regular spot/auction-trading;
• Contemplating oil-hedging and Change of “marker crude” in the pricing formula for Asian market only.

These initiatives could have real, effective and far-reaching consequences in both directions -- positive and negative. Thus, serious, evidence-based and professional debate is urgently needed to address all matters relating to SOMO and its unique status not only for the petroleum sector but also for the entire national economy; signs of discontent with SOMO began to show visibility and generate impacts.

In this brief contribution, our Monitoring, Analyzing and Reporting (MAR) (an ongoing activity covering Iraqi petroleum sector), analyses, first, these new four initiatives and highlights many key questions that have to be addressed and specifies critical issues that require further investigation.

That is followed by discussing transparency, as necessary condition for SOMO transformation, and the paper ends with concluding remarks and suggests the launching of SOMO Transformation Debate and convening a special workshop.

Please click here to download the full report.

Mr Jiyad is an independent development consultant, scholar and Associate with the former Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq’s Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: mou-jiya(at)online.no, Skype ID: Ahmed Mousa Jiyad). Read more of Mr Jiyad’s biography here.

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 27th July 2017).

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

The RSISX index ended the week at IQD764 (+2.1%) / $784 (+2.1%) (weekly change) (-20.4% and -17.2% YTD change, respectively). The number of week traded shares was 25.6bn and the weekly trading volume was IQD20.4bn ($16.1mn).

ISX Company Announcements

• Iraqi Islamic Bank (BIIB) will hold AGM* on Aug. 12, 2017 to discuss and approve 2016 annual financial results and rehabilitating the branches in dangerous areas by using IQD44.2mn from its expansion reserves. ISX will suspend trading of BIIB starting on Aug. 8, 2017.
• Commercial Bank of Iraq (BCOI) will hold AGM* on Aug. 8, 2017 to discuss and approve 2015 annual financial results and distribute 2.6% cash dividend (IQD0.026 dividend per share). ISX will suspend trading of BCOI starting on Aug. 3, 2017. BCOI disclosed change in major shareholder’s ownership percentage after Ahli Bank of Bahrain acquired 25.7bn shares, corresponding to 10.3% share at BCOI.
• National Islamic Bank (BNAI) will hold AGM* on Aug. 3, 2017 to discuss and approve 2016 annual financial results. ISX will suspend trading of BNAI starting on Jul. 31, 2017.
• Al-Nukhba for General Trading (SNUC) will hold AGM* on Aug. 13, 2017 to discuss and approve 2016 annual financial results. ISX will suspend trading of SNUC starting on Aug. 8, 2017.
• Iraqi for Seed Production (AISP) will hold AGM* on Aug. 15, 2017 to discuss and approve 2016 annual financial results, increasing its capital from IQD7.5bn to IQD11.25bn through 50% bonus issue and distributing 28.2% cash dividend (IQD0.282 dividend per share). ISX will suspend trading of AISP starting on Aug. 10, 2017.
• Iraqi for General Transportation (SIGT) resumed trading on Jul. 27, 2017 after fulfilling ISC disclosure requirements and publishing 2014 and 2015 annual financial results.
• Iraqi Land Transport (SILT) resumed trading on Jul. 27, 2017 after fulfilling ISC disclosure requirements and publishing 3M17 financial statements.
• Baghdad Soft Drinks (IBSD) resumed trading on Jul. 25, 2017 after discussing and approving 2016 annual financial results and deciding to distribute 10% cash dividend (IQD0.10 dividend per share, 4.4% dividend yield).
• United Bank (BUND) will start distributing 2% cash dividend (IQD0.02 dividend per share, 4.8% dividend yield) from 2014 profit starting on Oct. 1, 2017.
• A cross transaction occurred on 4.9bn shares of Iraqi Middle East Investment Bank (BIME) on Jul. 24, 2017, which represents 2.0% of BIME capital.
• A cross transaction occurred on 13.0bn shares of Al-Arabiya Islamic Bank (BAAI) on Jul. 24, 2017, which represents 5.2% of BAAI capital.
• ISX disclosed on Jul. 24, 2017 that it will suspend auctioning the 18.946bn shares of United Bank (BUND) owned by Sarbast Bayiz Abbas Ako for the payment of debt to Trans Bank of Iraq (TBI) as requested by Bada’a Court/Erbil until the case is settled.

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 6th July 2017).

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

The RSISX index ended the week at IQD805 (-0.9%) / $826 (-1.6%) (weekly change) (-16.2% and -12.8% YTD change, respectively). The number of week traded shares was 8.7bn and the weekly trading volume was IQD5.6bn ($4.3mn).

ISX Company Announcements

• Baghdad Soft Drink (IBSD) will hold AGM* on Jul. 20, 2017 to discuss and approve 2016 annual financial results, electing new BoD members, distributing cash dividend and the decision of establishing new soft drink factory in Basrah province. ISX will suspend trading of IBSD starting on Jul. 17, 2017.
• Iraqi Date Processing and Marketing (IIDP) will hold AGM* on Jul. 13, 2017 to discuss and approve 2016 annual financial results and discuss buying shares of Al-Khair Financial Investment (VKHF). ISX will suspend trading of IIDP starting on Jul. 10, 2017.
• Bank of Baghdad (BBOB) will hold AGM* on Jul. 12, 2017 to discuss and approve 2016 annual financial results. ISX will suspend trading of BBOB starting on Jul. 9, 2017.
• Al-Hilal Industries (IHLI) will hold its AGM* on Jul. 27, 2017 to discuss and approve 2015 annual financial results. The company was suspended from trading starting on Jul. 6, 2017 for not publishing its 1Q17 financial results.
• Investment Bank (BIBI) resumed trading on Jul. 6, 2017 after discussing and approving 2016 annual financial results and deciding to distribute 6% cash dividend (IQD0.06 dividend per share, 11.1% dividend yield) in its AGM (Jun. 22,2017).
• Ahlia Insurance Company (NAHF) will hold AGM* on Jul. 11, 2017 to discuss and approve 2016 annual financial results. ISX suspended trading of NAHF starting on Jul. 6, 2017.
• ISX suspended the following companies from trading starting Jul. 6, 2017 according to ISC letter for not fulfilling ISC disclosure requirements and publishing 1Q17 financial results: Commercial Bank of Iraq (BCOI), Kurdistan International Bank (BKUI), Al-Hial Industries (IHLI), Iraqi Land Transport (SILT), Al-Badia for General Transportation (SBAG), Al-Khatem Telecoms (TZNI), Al-Khair Financial Investment (VKHF), Bain Al-Nahrain Investment (VMES).
• ISX notified Trade Bank of Iraq (TBI) on Jul. 6, 2017 that it will auction on Jul. 26, the 18.946bn shares of United Bank (BUND) owned by Sarbast Bayiz Abbas Ako for the payment of debt to TBI.
• According to Bada'a Al-Karada court decision, ISX will auction 106.8mn shares of Investment Bank of Iraq (BIBI) on Jul. 9, 2017 owned by Widad Ali Ajam for the payment of debt to Al-Mansour Bank (BMNS).
• National for Tourist Investment (HNTI) will hold AGM* on Jul. 10, 2017 to discuss and approve 2016 annual financial results and discuss investing in Basra land. ISX will suspend trading of HNTI starting on Jul. 5, 2017.
• International Islamic Bank (BINT) calls investors to subscribe to its capital increase to IQD250bn through 150% rights issue starting from Jun. 21, 2017.
• Mamoura Real Estate Investment (SMRI) calls investors to subscribe to its capital increase through rights issue starting from Jul. 23, 2017. The company will increase capital from IQD19.2bn to IQD22.78bn through 15.0% rights and 3.6% bonus issues.

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Note: ISX will be closed starting from June 25, 2017 to June 29, 2017 due to the religious holiday of Eid Al-Fitr. The next session will be held on Sunday, July 2, 2017.

Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 15th June 2017).

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

The RSISX index ended the week at IQD942 (-2.2%) / $867 (-2.6%) (weekly change) (-12.3% and -8.5% YTD change, respectively). The number of week traded shares was 3.3bn and the weekly trading volume was IQD2.5bn ($2.0mn).

ISX Company Announcements

• A cross transaction occurred on 1.2mn shares of Modern Chemical Industries (IMCI) on Jun. 14, 2017, which represents 0.67% of IMCI capital.
• Investment Bank of Iraq (BIBI) will hold AGM* on Jun. 22, 2017 to discuss and approve 2016 annual financial results. ISX will suspend trading of BIBI starting on Jun. 19, 2017. ISX notified Badaa Al-Karada Court decision that it will auction on Jul. 9, 2017 the 107mn shares of BIBI owned by Wdad Ali Ajaam for the payment of debt to Saif Abdul-Ameer Hilal.
• Al-Mansour Bank (BMNS) announced that it started distributing 5.0% cash dividend (IQD0.05 dividend per share, 5.1% dividend yield) from 2016 profit starting Jun. 11, 2017.
• Gulf Insurance and Reinsurance (NGIR) will hold AGM* on Jul. 3, 2017 to discuss and approve 2015 annual financial results. ISX will suspend trading of NGIR starting on Jul. 2, 2017.
• Modern Animal and Agricultural Production (AMAP) will hold a GA on Jul. 2, 2017 to elect a BoD. ISX will suspend trading of AMAP starting on Jul. 2, 3017 and the company will resume trading on Jul. 3, 2017.
• Al-Nibal Al-Arabya for Money Transfer (MTNI) resumed trading on Jun. 11, 2017 after discussing and approving 2016 annual financial results.
• ISX requested Al-Huda Islamic Bank to submit a number of documents in order to be listed in the ISX.

By John Lee.

The Central Bank of Iraq (CBI) has reported that 35 banks and 10 remittance companies took part in its currency auction on Wednesday.

A total of $152,560,881 sold at a price of 1184 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

By John Lee.

The Central Bank of Iraq (CBI) has reported that 35 banks and 9 remittance companies took part in its currency auction on Tuesday.

A total of $159,467,043 sold at a price of 1184 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)