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From the Iraq Britain Business Council (IBBC):

How Iraq is Modernising and Diversifying its Growing Economy

For the last three years Iraq has enjoyed relative stability, good oil prices and a growing economy. For those who invested in the Iraqi stock market, returns of over 100% are common and GDP in 2025 is estimated to be up to 5%.

Oil and Gas sales has driven this expansion, but other factors such as sovereign wealth funds are now encouraged by the GOI's stability to invest, such as the Saudis with their Public investment fund, the Qataris ( both government and private sector, and the Gulf states, have driven around $3.5bn investment into infrastructure, housing and the development road initiative, in addition to Iraqis investing in consumer real estate such as cafes and housing  all feeding off economic and political confidence. The government has also pledged up to $400bn of investment into development, infrastructure and the Al Fawr port complex and the new $15bn trade deal with UK for cyber, telco and defence support.

At IBBCs Baghdad conference in February, over 350 business delegates flocked to hear the leading minsters or oil, communications, foreign affairs and key advisors to the Prime Minister, expand on opportunities in Iraq, where the atmosphere was palpably enthusiastic to participate in the new Iraq economy.

Beyond Infrastructure we also see expansion in Schooling and Universities, in more diverse services such as travel, tech and professional services like law and banking. Collaboration with international companies and countries is key to Iraq's evolution, as new skills and technologies are coming into the country, driven by international confidence in Iraq. Iraq needs a more skilled workforce to enable engineering and business expansion, and companies like Unihouse and Mselect are supporting these skills.

Indeed, IBBCs membership mix reflects this diversification, modernisation and internationalisation of the economy: private schools, training and skills companies, tech and media companies, high end added value design, and the establishment of Agritech and marine sector companies bringing expertise into the country like DPD, AL Zaman Group(Marine Shipbuilding company Uk Ltd ) Gold Sponsors, and CJ-ICM.

At our Spring Conference at the Mansion House on June 3rd we will showcase the leaders in these new sectors and explain why they are now investing and establishing in Iraq. You will also meet the best of British expertise, through the sagacity of Lord Howell on energy, Lord Green on banking, Professor Frank Gunter with his report on Iraq Entrepreneurs, and from Iraq the minister of Transport, who will outline the significant infrastructure opportunities, as well as other Iraqi officials soon to be confirmed. Underpinning UK investment the UKEF CEO, Tim Reid, will present how companies can access the £billions in UK trade guarantees, Jon Wilks CMG ( former Ambassador) will articulate his much anticipated geo political insights and dynamics especially with an election looming and developments in Syria, Iran and the Middle East, The IFC on investment initiatives led by Hogan Lovells (Gold sponsor) and with TBI (Gold Sponsor), and key IBBC companies in energy, finance , maritime, agritech, tech and education will be evident on stage. For those wanting more interactive discussion there are roundtables on Entrepreneurship, Growth, Transport (with Sardar, Gold Sponsors), Education and a special Tourism and heritage panel and exhibition. On 2nd June will be a special networking reception at the Mansion house for delegates, and the Tech forum online - covering how AI and Tech support the services sector- including its use in education, investment and Pharma.

To view the latest speaker, line up and to register, please go to this link on IBBCs website.

While the worlds stock markets are in turmoil, for once, Iraq presents a beacon of economic and social stability as it takes the long march towards modernity and diversification of its economy. Come and hear how this is happening and meet the people who are making it happen. Register here for the IBBC Mansion House conference.

Gold sponsors include: Trade bank of Iraq, Sardar Group and Al Zaman Group (Marine Shipbuilding company Uk Ltd), Hogan Lovells International LLP

By Ahmed Mousa Jiyad. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Rebalancing IOCs Positioning in the Upstream Petroleum Sector in Iraq

The Ministry of Oil (MoO) recently concluded an agreement with BP covering four main oilfields in Kirkuk, following an earlier contract with an unidentified Ukrainian company to resume development of the Akkas gas field.

Approximately a year prior, MoO finalised and executed an agreement with TotalEnergies and QatarEnergy encompassing four different projects. These three agreements could, if implemented, reverse the exodus of International Oil Companies (IOCs) and rebalance their positioning in Iraq's upstream petroleum sector. The lack of transparency surrounding these deals makes it difficult to assess how well they serve Iraq's interests. However, available information suggests the agreements, particularly with BP and TotalEnergies, strongly favor these IOCs from a comparative perspective.

IOCs include well-known majors, medium-sized enterprises, and smaller companies, broadly categorised as Western IOCs (WIOCs) and non-Western IOCs (NWIOCs). Their positioning in Iraq's upstream petroleum sector over the past twenty years has evolved through three distinct yet overlapping phases.

1. The initial phase, coinciding with the aftermath of the 2003 Anglo-American invasion and occupation, was characterised by clear WIOC dominance.
2. This dominance gradually and dramatically weakened during the second phase, culminating in an exodus of several major WIOCs, which created opportunities for NWIOCs to enter the market and, for larger companies among them, to consolidate their strategic positions.
3. The third phase has witnessed new agreements with select WIOCs, two of which could significantly rebalance their own positions and, consequently, overall WIOC positioning in Iraq's upstream petroleum sector.

While IOC positioning carries geopolitical and strategic implications from both corporate and national perspectives, this article focuses primarily on the corporate viewpoint. The contractual frameworks, governance modalities, processes, and stakeholder relationships differ across these three phases.

After reviewing and analysing these phases, this article provides a comparative assessment of the latest two agreements-the TotalEnergies and BP-Kirkuk deals.

Click here to read the full article.

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.

By John Lee.

Iraq's Ministry of Communications has signed an agreement with Qatar's Ooredoo Group for the deployment of the country's fourth submarine cable (FIG) at the Al-Faw landing station.

Minister Dr. Hayam Al-Yasiri emphasized the strategic importance of the 24-pair fiber-optic cable, which has a capacity of over 700 terabits and connects seven Gulf countries across a 2,000 km route.

She also announced that additional approvals have been granted to global telecom companies to lay new submarine cables and develop transit projects. Iraq's existing and planned networks, including the Route of Civilizations and the strategic Development Road transit network, will enhance its role as a key regional communications hub.

Dr. Al-Yasiri highlighted Iraq's competitive advantages, including shorter transit routes and simplified maintenance, positioning the country as a secure and attractive corridor for international telecom traffic between Europe and Asia via Al-Faw and Turkey.

She noted that Iraq's international bandwidth has surged from 10 Gbps to 1,800 Gbps, reflecting growing investor confidence and increased foreign interest in Iraq's telecom sector.

(Source: Ministry of Communications)

By John Lee.

Qatar-based Ooredoo Group has partnered with France's Alcatel Submarine Networks (ASN) to build the Fibre in Gulf (FIG) submarine cable.

The cable, connecting Qatar, Oman, the UAE, Bahrain, Saudi Arabia, Kuwait, and Iraq, will have a capacity of up to 720Tbps with 24 fibre pairs.

Ooredoo said in a statement that the project will provide all GCC countries a low latency, shorter and secure route to a new corridor connecting Europe.

Ooredoo is the parent company of Iraqi mobile phone company Asiacell.

(Source: Ooredoo)

By John Lee.

On Friday, TotalEnergies (45%, operator) and its partners Basra Oil Company (BOC) (30%) and QatarEnergy (25%) launched today the construction works of ArtawiGas25, a first processing facility for the associated gas from the Ratawi [Artawi] field, in the Basra region.

This facility, which is part of the Gas Growth Integrated Project (GGIP), represents an investment of around USD 250 million and will process 50 million cubic feet per day (Mcf/d) of gas previously flared. The gas will supply local power plants, covering the demand of approximately 200,000 households in the Basra region.

Signed in September 2021, the GGIP project is a $10-billion multi-energy project designed to enhance the development of Iraq's natural resources and improve the country's electricity supply. The GGIP includes a large-scale gas processing plant, with a first phase of 300 Mcf/d that will recover gas being flared on three oil fields and supply gas to 1.5 GW of power generation capacity.

According to a statement from TotalEnergies, in anticipation of the start-up of this main gas processing facility, the ArtawiGas25 project will significantly reduce gas flaring at the Ratawi field as early as end 2025. "The innovative modular design of ArtawiGas25 could also pave the way for potential replication across other Iraqi oil fields. ArtawiGas25 will create up to 160 direct and indirect jobs for Iraqi nationals during construction phase and 30 jobs during operation phase."

Julien Pouget, Senior Vice President Middle East & North Africa, Exploration & Production at TotalEnergies, said:

"We are very pleased to launch the ArtawiGas25 project: it will give the Iragi people a tangible insight into the benefits of the GGIP, which will provide more energy with less emissions. Through this project, TotalEnergies is demonstrating its capacity to deliver valuable and fast-track solutions in accordance with the government's expectations and the country's electricity needs. We look forward to the next GGIP milestones in the coming weeks with the start of construction of the 1 GW solar project."

(Sources: TotalEnergies, Ministry of Oil)

By John Lee.

On Tuesday (7th January), iQ Networks, a subsidiary of Sulaymaniya's iQ Group, signed Iraq's inaugural dark fibre IRU framework agreement with Qatar-based Gulf Bridge International (GBI) in Baghdad.

According to a statement from iQ, this landmark deal is a pivotal move towards establishing Iraq as an essential telecommunications hub.

The event also celebrated surpassing over 1 terabyte of capacity on the Silk Route Transit. Numerous companies, including GBI, are already utilizing capacity on this route, while others are in active testing phase.

Asoz Rashid, CEO of iQ Group, said:

"The fact that we've surpassed 1 terabyte of active capacity is more than a technical milestone; it's a clear indication of Iraq's evolving role in the global digital economy. The Silk Route Transit is the first step towards reshaping Iraq's economy away from natural resources, laying the groundwork for a future defined by data and technology."

Waseem Amjad, CEO of iQ Networks, highlighted the broader impact of this achievement:

"Reaching 1 terabyte of capacity is transformative for iQ. One key feature is its integration with global OTT peering, which enhances how efficiently content is delivered across the internet. By building strong peering relationships with global OTT providers, we're reducing latency and improving user experience, allowing AI to develop, regional financial institutions to process faster, and so much more. In short, this will impact everyone."

H.E. Eng. Essa Bin Hilal Al-Kuwari, Chairman of GBI, expressed his enthusiasm for the agreement:

"This partnership underscores GBI's commitment to advancing regional connectivity and digital transformation. By joining forces with iQ Networks, we are not only enabling Iraq to become a strategic hub for data transit but also fostering innovation and creating a robust digital ecosystem that benefits businesses and communities alike."

(Source: iQ Group)

By John Lee.

Iraq's Minister of Transport, Razzaq Muhibis Al-Saadawi, has announced progress on the Development Road Project, emphasizing that following the completion of detailed designs, the project will be presented to major international companies for investment opportunities.

Key Progress Milestones:

1. Completion of Preliminary Designs:
   • The Ministry has finalized 100% of the preliminary designs for both the road and railway components of the project.
   • Comprehensive topographic surveys and soil investigations have also been completed.
2. Transition to Final Designs:
   • Work has commenced on final designs, focusing on existing infrastructure and key elements such as bridges, buildings, and stations.
3. Timelines and Next Steps:
   • The detailed design phase is expected to conclude by 2025.
   • The project will then enter the phase of inviting leading global companies to compete for investment opportunities, aligning with Iraq's strategic vision under the leadership of Prime Minister Mohammed Shia Al-Sudani.

Detailed Survey Achievements:

• The topographic survey spans from Al-Faw to southeast of Al-Najaf Al-Ashraf Station, covering areas linked to passenger stations, container hubs, storage facilities, and water crossings such as rivers and streams.
• Surveys were conducted using aerial imaging and satellite-connected surveying equipment.
• Progress on detailed designs:
  • Railway line: 64% complete.
  • Road component: 60% complete.
  • Overall progress: 63% cumulative completion.

International Collaboration:

• The second ministerial council meeting on the Development Road Project, held in Baghdad in October, brought together transport ministers from Iraq, Turkey, the UAE, and Qatar.
• Discussions emphasized the importance of coordinated efforts among participating countries to ensure the project's success and foster effective collaboration.

Strategic Vision:

The Development Road Project is a cornerstone initiative for Iraq, aiming to boost its connectivity, enhance regional cooperation, and attract global investment. The project is poised to serve as a critical link for trade and economic growth, reinforcing Iraq's position in regional and international logistics networks.

(Source: Ministry of Transport)

By John Lee.

Prime Minister Mohammed S. Al-Sudani chaired a committee meeting to evaluate the progress of agreements and memoranda of understanding with Türkiye, signed during the Turkish President's visit to Baghdad in April.

Key topics included water resource infrastructure projects under the Strategic Framework Agreement, emphasizing cooperation based on fairness and good neighborliness.

The committee also discussed the Development Road Project, a regional initiative involving Iraq, Türkiye, Qatar, and the UAE, aimed at bolstering economic ties. Al-Sudani reviewed challenges and identified solutions to ensure timely completion and seamless collaboration on key infrastructure efforts.

(Source: PMO)

By John Lee.

QatarEnergy is to take a 50-percent stake in the TotalEnergies solar energy project in Iraq:

• Partnership Agreement: QatarEnergy has signed an agreement with TotalEnergies for a solar power project in Iraq as part of the Gas Growth Integrated Project (GGIP).
• Stake Distribution: QatarEnergy will acquire a 50% stake in the project, with TotalEnergies holding the other 50%.
• Project Scale: This large-scale project, using 2 million bifacial solar panels on single-axis trackers, will generate up to 1.25 gigawatts (GW) of solar power.
• Electricity Supply: Upon completion, it will supply power to around 350,000 homes in the Basra region, with phased completion between 2025 and 2027.
• Statements: Qatar's Minister of State for Energy Affairs expressed optimism about contributing to Iraq's solar power sector alongside TotalEnergies.
• Broader GGIP Role: QatarEnergy joined a consortium in June 2023, with a 25% stake, to implement the GGIP in Iraq, which also includes capturing flared gas for power generation.

Full statement from QatarEnergy:

QatarEnergy has signed a partnership agreement with TotalEnergies to enter into a solar power project that is part of the Gas Growth Integrated Project (GGIP) in the Republic of Iraq.

Pursuant to the terms of the agreement, which is subject to regulatory approvals, QatarEnergy will acquire a 50% interest in the solar photovoltaic project, while TotalEnergies will retain the remaining 50%.

This strategic project, which will be one of the largest in the world, will consist of 2 million high-efficiency bifacial solar panels mounted on single-axis trackers and will, upon its completion, be capable of supplying up to 1.25 gigawatts (peak) of solar-generated power to the electricity grid in the Basra region of Iraq. The project will be developed in phases that will come online between 2025 and 2027 and will have the capacity to provide electricity to about 350,000 homes in the Basra region.

Commenting on this occasion, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, said: "I am pleased to have concluded our entry into this very important project for Iraq's energy sector, and look forward to working with our strategic partner, TotalEnergies, to progress it to fruition. We thank the Iraqi government for their trust, and TotalEnergies for this opportunity to support Iraq's solar power development."

QatarEnergy announced in June 2023 that it had entered into a consortium to implement the Gas Growth Integrated Project in Iraq, with a 25% participating interest, together with TotalEnergies (45%) and Iraq's Basra Oil Company (30%).

GGIP is a key strategic project that involves the design and construction of facilities to develop Iraq's natural resources in addition to recovering significant volumes of otherwise flared gas throughout the Basra region to supply power generation plants.

(Source: QatarEnergy)

By John Lee.

Representatives from Iraq, Turkey, the UAE, and Qatar gathered in Basra to discuss the latest developments in the "Development Road" project.

The meeting focused on finalizing the economic feasibility study and defining key routes for the project's execution. Led by Iraq, with participation from Turkey, Qatar, and the UAE, this meeting is part of ongoing efforts to accelerate work on the strategic initiative, which aims to connect the region through Iraq's Grand Faw Port.

Director General of Iraq's General Company for Ports, Dr. Farhan Al-Fartousi, highlighted the importance of the meeting, which was directed by Prime Minister Mohammed Shia Al-Sudani and Minister of Transport Razzaq Muhibis Al-Saadawi. Attendees included high-level officials from all participating countries, with discussions focusing on the next steps in implementing this regional transportation project.

The Development Road is seen as a transformative project linking East and West via Iraq, with significant benefits for all signatory nations and neighboring countries. The quadrilateral Memorandum of Understanding (MoU) for the project was initially signed in April 2024 by Iraq, Turkey, Qatar, and the UAE.

(Source: Ministry of Transport)