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From Tasnim, under Creative Commons licence. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

No Problems in Way of Financial Exchanges between Iran, Iraq: Official

There are no problems in the way of financial exchanges between Iran and Iraq, an Iranian official said.

Chairman of the Iran-Iraq Joint Chamber of Commerce Yahya Al-e Es'hagh made the remarks in a meeting held on Monday with the participation of Iran's commercial envoy to Iraq and representatives of the Ministry of Foreign Affairs.

He termed the opportunity for trade and economic relations between Iran and Iraq "strategic' and said their interests will serve the people of the two countries.

Achieving $20 billion worth of trade is possible between the two countries in the next few years, he said, adding that the current value of trade between Iran and Iraq has crossed $10 billion.

Al-e Es'hagh also highlighted the key role of the private sector and said that Iran's private sector could reach up to $10 and $11 billion worth of bilateral trade with Iraq, in fields other than exporting gas, electricity and technical-engineering services.

From Tasnim, under Creative Commons licence. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

An Iranian official confirmed that the Iraqi government has released all of Tehran's frozen assets, amounting to $10 billion worth of energy debts.

The funds have been deposited into an account at the Trade Bank of Iraq (TBI) and will be utilized for the purchase of goods that are not subject to US sanctions, Chairman of Iran-Iraq Joint Chamber of Commerce Yahya Al-e Es'haq  announced on Monday.

Consequently, Iraq is no longer hindered in settling its debt arrears or conducting financial transactions with Iran, he noted.

The outstanding $10 billion debt owed by the Iraqi government was primarily for imports of natural gas and electricity, Al-e Es'haq explained.

The funds had been blocked as a result of US banking sanctions on Iran. Washington has previously issued several waivers to Baghdad, enabling it to release the funds.

Highlighting Iran's significant regional standing, Al-e Es'haq affirmed Tehran's commitment to capitalizing on trade opportunities with neighboring Iraq.

He said Iran and Iraq have the potential to double their trade volume to $20 billion in the coming years, up from its current level of just over $10 billion.

Furthermore, the chairman emphasized the pivotal role that the private sector could play in achieving $10-$11 billion in bilateral trade with Iraq, covering various fields other than gas exports, electricity, and technical-engineering services.

By Louisa Loveluck and Mustafa Salim, for The Washington Post. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

A building boom fueled by corruption is changing the face of Baghdad

Twenty years after an American-led invasion plunged Iraq into conflict, a real estate boom is changing the face of this historic capital city, as construction workers demolish old brick houses and clear yards lined with palm trees to build smaller units that can be sold for astronomical rates.

A house without running water or government electricity on the western bank of the Tigris can fetch at least $2,300 per square meter. In Mansour, to the north, the rates can reach six times that figure.

Click here to read the full article.

By John Lee.

US State Department spokesperson Matthew Miller (pictured) has explained the background to Iraq's payment of its debt to Iran, despite the sanctions that are in place with regard to Iran.

At a press briefing, he was asked:

"Iraqi electricity ministry, they told the state media that Iraq has paid off all the debts for gas imports from Iran, which - about 11 trillion Iraqi dinar.  How do you give Iraq a green light to pay all of this money to Iran?  And were there any negotiation or a mini-deal between the U.S. and Iran to this matter?"

Mr Miller responded:

"I will just say there has been no change in our policy towards Iran or Iraq.  The Biden Administration continues to implement all U.S. sanctions on Iran.  Since 2018 the Department of State has provided a number of waivers - you've heard me speak to these in the past - in consultation with Congress that allow Iraq to pay for electricity imports from Iran, by transferring funds into a restricted account in Iraq. 

"Consistent with U.S. sanctions, these funds can only be accessed for humanitarian and other non-sanctionable transactions.  The money only goes to approved third parties.  They are not transferred to Iran directly, and we the United States continue to approve transactions for the use of funds on a case-by-case basis."

(Source: US State Department)

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

How China dominated Iraq's solar energy market

As Iraq continues to struggle to provide electricity to its people, cheap Chinese technology is helping the country, as well as the Kurdistan region, move toward renewables while deepening Beijing's reach in the Middle East.

Click here to read the full article.

From Tasnim, under Creative Commons licence. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

A spokesperson for the Iraqi Ministry of Electricity said Iran has expressed its readiness to increase the volume of gas exports to the Arab country.

Ahmad Musa al-Ebadi said on Friday that a visit by a delegation from Iraq's Ministry of Electricity to Iran in early June led to steep rise in gas exports to Iraq.

Iran supplies 45 million cubic meters of gas to Iraq, he added, noting that Iran has also helped Iraq to launch power plants.

Ebadi stated that Iran has expressed readiness to increase the export of gas to neighboring Iraq.

The spokesperson asserted that Iraq needs 55 million to 60 million cubic meters of gas annually, while Iran has supplied Iraq with 45 million cubic meters of gas so far following a series of negotiations.

He expressed hope that gas imports from Iran would continue to increase the generation of electricity in his country.

Iraqi minister of electricity claimed that all debts over gas imports from Iran have been fully paid, also saying that generation of electricity in Iraq has decreased 2,000 megawatt as a result of reduced gas imports from Iran.

Ziad Ali Fadhil made the comments late on Friday and stated that all debts related to buying gas from Iran have been paid fully.

Iraq presently produces 24,000 megawatts of electricity, showing a 22 percent hike compared to a year earlier, he said, adding that the reduced flow of Iran's gas has decreased energy generation by about 2,000 megawatts recently.

Noting that electricity generation in Baghdad has reached 6,400 megawatts, Fadhli said Iraq requires generating 34,000 megawatts of electricity to meet the domestic demand.

(Source: Tasnim, under Creative Commons licence)

On June 16^th IBBC hosted it's best attended London Conference at The Mansion House yet, with over 280 delegates from Iraq, UK, and International European and Middle East countries.

With an overarching theme of 'Iraq open to the world' a wide range of panels discussed Iraq's rapidly improving international position across economic indicators, political relationships, and security. Baroness Nicholson, IBBC President, welcomed delegates, The Lord Mayor spoke of London's importance as a financial centre and Lord Ahmed (Minister of State for the Middle East, North Africa, South Asia, and United Nations) presented an upbeat outline of UK's trading and political relationship with Iraq including significant increase in bilateral trade in the last year. Professor Hamid Khalaf Ahmed, Executive Director for the Higher Committee for Education Development in Iraq & Advisor to the Prime Minister, spoke on behalf of the Iraqi Prime Minster, to reiterate the determination of the GOI to see through its five priorities, including setting a budget and delivering on targets for corruption and infrastructure development, increase in public sector jobs and investment in education at all levels of Iraqi society. Dr Mohammed Shukri, Chairman, Kurdistan Board of Investment outlined a focus on diverse investment opportunities including agriculture, tech, and infrastructure in the KRG. Two prominent sponsors Mr Sardar Al Bebany, IBBC Executive Committee Member, CEO & Chairman, Sardar Group and Mr Amet Selman, CEO, AAA Holding Group offered their thanks to IBBC audience and outlined their commitment and importance to investing in their people and businesses in Iraq.

Three strong focus areas emerged from the conference, and were reflected in the panels along with other important topics:

Finance, chaired by Mr John Curtin, Ernst & Young Iraq, Included panellists Mr Haider F. Al-Shamaa, International Islamic Bank; Mr Tim Palmer, UK Export Finance; Mr Salahuddin Al-Hadeethi, Ministry of Finance; Dr Yasser Hassan, National Bank of Egypt; Mr Raed Hanna, Mutual Finance Ltd

Energy; Chaired by Mr Luay Al Khateeb, Centre on Global Energy Policy - Columbia U. With a keynote Address from: Mr Laith Al Shaher, Deputy Minister of Oil. Panellists included: Dr Abdulhamzah Hadi Abood, the Advisor from the Ministry of Electricity; Mr Laith Al Shaher, Ministry of Oil; Mr Andrew Wiper, Basrah Gas Company; Mr Mushhood Haider, Scotland Trade, and Investment; Mr Ali Al Janabi, Shell Iraq and UAE; Ms Sara Akbar, Oil Serv 

And keynote discussion on Iraq Open to the World.

Professor Frank Gunter opened the discussion with a keynote presentation of the key findings of his report ''Seaports and Airports of Iraq: Rules Versus Infrastructure' (see separate briefing here)

Chairman Mrs Hadeel Hasan Al Hadeel Al Hasan LLC led the discussion including, panellists: Professor Frank Gunter, Lehigh University; Mr Steve Alexander; Sardar Group; Mr Richard Cotton, AAA Holdings; Mr Hassan Heshmat, Hydro-C; H.E. Bader Mohammad Alawadi, Ambassador of the State of Kuwait.

Significant panels also included.

Education and skills roundtable; of acute importance due to the technical demands on Iraq's expanding economy and the need to upgrade university courses and overseas scholarship support for 5,000 Iraqi students from the GOI, Chaired by Professor Mohammed Al Uzri (IBBC Health and Education Advisor) with Professor Hamid Khalaf Ahmed responding to questions and outlining the GOI plans for education with IBBCs University and skills members.

An emergent theme of growing importance is 'Heritage', as a business and culturally important sector, chaired by: Professor Mohammed Al Uzri, with Dr John McGinnis, The British Museum; with Prof Gamal Abdelmonem, Nottingham Trent University, Mr Ali Al Makhzomy, Bilweekend; Dr Rosalind Wade Haddon, British Institute for the Study of Iraq; Professor Chris Whitehead, Newcastle University.

During the day there were also a KRG roundtable discussions with Dr Mohammed Shukri and a full complement of KRG businesses and chambers of commerce, A Tech forum on 'The digitisation of Iraq. Chaired by Ashley Goodall of IBBC, including Mr Saquib Ahmed, MD SAP Iraq; Mr Padraig O'Hannelly, Iraq Business News; Mr Mohsen Garcia, CEO 1001 Media; Mr Peter Chamberlin, Scott Logic, Ms Cynthia El Khoury, Mastercard Iraq; Mr Ali Al-Khairalla, Embassy of the Republic of Iraq (available to view here)

A special ceremony awarded The Rasmi Al Jabri Award (for Iraqi companies dedicated to best international practices and significant growth of Investment and turnover). This year the winners are AAA Holding and Mr Amet Selman for their work for successfully providing fertilizers to the Iraqi market in conjunction with the GOI and third-party agricultural groups. (Video link here). The conference was preceded by an ebullient reception for over 150 delegates the previous evening at the Institute of engineers, where Prof. Dr Sabih G. Khisaf (of Hyperloop Dubai) gave a talk on the importance of engineering and his work on the hyperloop and hosted by John Scott of IBBC.

Christophe Michels, MD of IBBC who chaired the conference commented 'This is our 11^th Iraq Day at The Mansion House and probably the most successful we have had yet. Iraq is rapidly developing, building on a stable budget, good security, political stability, and increasingly good relations with her neighbours. Now is the time for Iraq to truly embrace business and to cut down on outdated bureaucracy, regulations and the corruption going hand in hand with these. If this does not happen, the country risks missing out on all the new opportunities arising from finally opening to the world. As IBBC we are optimistic and will continue to lend our support to our Members and the wider Iraqi community'.

IBBC Spring Conference 2023 Sponsors:

Principal Sponsor: AAA Holding Group

Gold Sponsors: Sardar Group & Trade Bank of Iraq

Bronze Sponsors: Standard Chartered Bank & Hydro - C

To attend future events, including the Iraq SME conference, July 6^th, and IBBC Autumn conference in Dubai, Dec 8^th, please follow our website.

By Simon Watkins for the OilPrice.com. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

China Deepens Influence In Iraq With Oil-For-Infrastructure Deals

A series of meetings occurred last week between senior members of the Iraqi and Chinese governments aimed at broadening and deepening the already extensive 'oil-for-projects' framework characterised by Chinese firms investing in infrastructure projects in Iraq in exchange for oil.

Officially, Iraqi Deputy Prime Minister and Minister of Planning Muhammad Ali Tamim, and the Chinese ambassador to Iraq Cui Wei, discussed China's support for Iraqi schools, hospitals, electricity, and service sector projects.

Unofficially ...

Click here to read the full report.

By John Lee.

The Kurdistan Regional Government (KRG) has taken a step towards reducing the environmental impact of waste gas and harnessing it to generate electricity from oil wells.

One notable achievement is the Garmian power plant, a 165 MW station that utilises flare gas recovery from the Hasira oil wells to produce electricity. Completed in 2021, the plant has also generated 118 employment opportunities for local residents.

Spanning across 35 donums of land, the power plant comprises 180 generators and 45 converters. Each generator has a capacity of 0.9 MW, resulting in a daily estimated production of 100 MW. Efforts are underway to further increase this output.

(Source: KRG)