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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.

Baghdad Conference goes to NYC as Iran-Saudi talks set to resume

A follow-up meeting of the recent Baghdad Conference has been held on the sidelines of the United Nations General Assembly.

As on Aug. 28 in the Iraqi capital, the gathering brought together mainly regional officials along with some European representatives.

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

By John Lee.

Petrofac shares closed the day up more than 26 percent on Friday, after the company announced that it has reached a plea agreement with the UK Serious Fraud Office (SFO) in relation to bribery in Iraq, Saudi Arabia and the UAE.

The Company indicated guilty pleas to seven counts of failing to prevent former Petrofac group employees from offering or making payments to agents in relation to projects awarded between 2012 and 2015 in Iraq, Kingdom of Saudi Arabia and the UAE, contrary to Section 7 of the UK Bribery Act 2010. These offers or payments were made between 2011 and 2017.

It added that all employees involved in the charges have left the business.

A sentencing hearing is scheduled to take place at Southwark Crown Court commencing on Monday 27 September 2021 [Note: Subsequently postponed to Friday 1st October, and then to Monday 4th October]. The Company will make a further announcement following sentencing or any adjournment.

In a statement to the markets, Group Chief Executive Sami Iskander said:

"With my new management team we are rebuilding the company into a new Petrofac that's relevant for the future, across both traditional and new energies, built on a foundation of the highest ethical standards."

(Sources: Petrofac, SFO)

By John Lee.

Iraq and Saudi Arabia agreed to work together to help streamline the flow of goods between the two countries.

Meeting at the recently-reopened border post of Arar, officials from both sides agreed to implement more efficient electronic clearance systems to reduce delays.

They will also upgrade the road connections leading to Arar.

(Sources: Iraqi Ministry of Transport, Saudi Gazette)

Saudi Minister of Transport and Logistic Services and Chairman of the Transport General Authority Eng. Saleh bin Nasser Al-Jasser and Iraqi Minister of Transport Nasser Al-Shibli signed a cooperation agreement in the maritime transport field on behalf of their respective governments.

The agreement is part of a series of actions that the Saudi-Iraqi Coordination Council implements to enhance relations between the Kingdom of Saudi Arabia and the Republic of Iraq at the strategic level and to open new aspects for cooperation in various fields.

The agreement aims at supporting the maritime transport field, which is considered one of the pillars of the economic development in the world, which requires developing the commercial maritime navigation, increasing the movement of commercial ships to transport passengers and goods, encouraging commercial exchange, facilitating the access requirements and procedures to the ports of both countries with their ships, and enhancing the exchange of expertise and technologies between marine companies, institutions and institutes in this field.

The agreement also included treatment methods for ships of both countries regarding access to their ports, their stay and departure, and in cases of emergency and marine accidents in the territorial water, where the deal also aims at offering facilitation for maritime transport companies, ships and personnel, in addition to mutual recognition of documents of ships and sailors for both countries, and coordinating positions of both countries in international maritime conferences.

(Source: SPA)

By John Lee.

On Monday, Prime Minister Mustafa Al-Kadhimi received the Saudi Minister of Commerce, Majid bin Abdullah Al Qasabi, and his accompanying delegation.

During the meeting, they discussed the development of bilateral relations between Baghdad and Riyadh, and ways to enhance cooperation in the fields of economy and investment, and to work to enhance and develop the inter-trade movement.

(Source: Govt of Iraq)

By Katherine Harvey and Bruce Riedel, for The Brookings Institution. The opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Egypt, Iraq, and Jordan: A new partnership 30 years in the making?

In April, the news that Iraq was mediating between longtime rivals Saudi Arabia and Iran captivated Middle East watchers.

Iraq's new role as a Saudi-Iran intermediary comes as the Saudis have taken concrete steps in recent years to build a meaningful relationship with their northern neighbor, such as reopening their border last November for the first time since 1990.

Yet while the new Saudi-Iraq relationship is indeed noteworthy, Iraq has simultaneously been forging a regional partnership with two other Arab states: Egypt and Jordan. Indeed, Baghdad hosted a summit in late June attended by Egyptian President Abdel-Fattah el-Sissi and King Abdullah II of Jordan.

It was the fourth time leaders of the three countries have met together since March 2019, and the first time on Iraqi soil. It was also the first visit by an Egyptian president to Iraq in more than 30 years.

The full report can be read here.

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

When will Iraq's envisioned industrial cities fire up?

The previous Iraqi government headed by Adil Abdul Mahdi (Oct. 2018-May 2020) concluded a number of ambitious agreements to establish joint industrial cities with neighboring Jordan, Iran, and Saudi Arabia.

The Council of Representatives in 2019 also passed a law to facilitate the construction and operation of such endeavors.

However, it seems that work on these cities has not seen significant progress since.

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

Advertising Feature

Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 3rd June 2021).

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

The RSISX index ended the week at IQD896 (-2.3%) / $775 (-1.7%) (weekly change) (+23.5% and +16.9% YTD change, respectively). The number of week traded shares was 54.8 bn and the weekly trading volume was IQD57.6 bn ($38.4 mn).

ISX Company Announcements

• Cross transactions: 39.6 bn shares of Kurdistan International Islamic Bank (BKUI) on Jun. 2, which represents 9.9% of BKUI's capital. 12.4 bn shares of National Bank of Iraq (BNOI) on May 31, which represents 4.96% of BNOI's capital.
• ISX will suspend trading of Al-Ameen Estate Investment (SAEI) starting Jun. 23 due to the AGM that will be held on Jun. 28, to discuss and approve 2020 annual financial statements and elect new director of the board members.
• ISX will suspend trading of Al Mansour Bank (BMNS) starting Jun. 21 due to the AGM that will be held on Jun. 24 to discuss and approve 2020 annual financial statements.
• The Saudi Fund for Development (SFD) has signed an export financing agreement with the National Bank of Iraq (BNOI), a subsidiary of the Capital Bank Group, to provide credit facilities worth $10 mn to Iraqi importers who seek to import Saudi products and services. The step will help strengthen trade relations between the two nations. The agreement was signed in Amman, Jordan, in the presence of Saudi Fund for Development CEO Sultan Abdulrahman Al-Marshad, and Basem Khalil Al-Salem, Chairman of the Board of Directors, Capital Bank, along with senior officials from both sides. (Zawya)
• The period for submitting annual financial statements for the year 2020 and the statements for the first quarter of the year 2021 has been extended to Jun. 10 without penalty.
• The trading of Asia Al Iraq Islamic Bank (BAIB) was transferred from the non-regular market to the normal system starting Jun. 1.

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SFD signs a $10 million export financing agreement with the National Bank of Iraq

The Saudi Fund for Development (SFD) has signed an export financing agreement with the National Bank of Iraq (NBI), a subsidiary of the Capital Bank Group, to provide credit facilities worth $10 million to Iraqi importers who seek to import Saudi products and services. The step will help strengthen trade relations between the two nations.

The agreement was signed in Amman, Jordan, in the presence of Saudi Fund for Development CEO Sultan Abdulrahman Al-Marshad, and Basem Khalil Al-Salem, Chairman of the Board of Directors, Capital Bank, along with senior officials from both sides.

Under the agreement, SFD will provide a $10 million revolving line facility to the National Bank of Iraq to finance 100% of Saudi exports to Iraq with a repayment period of up to 36 months, depending on the type of imports and the nature of the trade transactions.

SFD CEO Sultan Abdulrahman Al-Marshad said:

"This agreement reflects the strong ties between the Kingdom and Iraq, and our mutual desire to increase cooperation across several sectors. It is part of an ongoing $1.5 billion that the Saudi government allocated to support reconstruction and development projects in Iraq.

"Supporting stability in countries seeking to achieve sustainable economic and social development is one of the main priorities of the SFD, and through this agreement, we seek to achieve prosperity for both nations.

"The agreement with the National Bank of Iraq is consistent with the Kingdom's aim to diversify its national economy and increase its non-oil exports, will open new markets for Saudi producers, and it will stimulate the Iraqi commercial and financial sector."

Chairman of the Board of Directors of Capital Bank Basem Khalil Al-Salem welcomed the new trade relations. Said Al-Salem:

"The role of SFD in supporting and financing development projects in Iraq reflects the historical relationship between our two nations and Saudi Arabia's ongoing commitment to Arab economic integration throughout the region.

"This line of financing will expand trade between Iraq and Saudi Arabia by providing credit facilities for Iraqi investors to import Saudi products and services at competitive prices. It will also increase transport links between our two nations and stimulate the financial and commercial sectors."

The agreement is the first in an ongoing program of economic regeneration between SFD and the National Bank of Iraq.

(Source: SFD)

By John Lee.

The Saudi embassy has announced that King Salman bin Abdulaziz will fund the rehabilitation of Ibn Al-Khatib Hospital in Baghdad, as a gift to the Iraqi people.

A fire at the hospital last month killed at least 82 people, and left more than 100 injured.

Saudi Arabia will also take critically ill victims of the fire and provide them with medical care in the Kingdom's hospitals at King Salman's expense.

(Source: SPA)