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From the Kurdistan Regional Goverment:

According to the strategic program set by the Kurdistan Regional Government (KRG), by the end of 2025, all services in Kurdistan will be managed digitally and electronically and no paper will be used.

The Prime Minister's vision for the issue of digitalization of government institutions and services has been made into a long-term strategic program and now being implemented in several institutions as they have been digitized:

Smart electricity meters

This electronic system plays a significant role in regulating electricity distribution, informing citizens about how to use electricity and preventing excesses on the public electricity grid.

Electricity bill

The electronicization of electricity billing systems has begun alongside smart meters, allowing citizens to monitor electricity consumption and electricity expenditures through their mobile phones.

Electronicization of judicial records

Electronicization of the judicial system is one of the largest electronic system of the Kurdistan Regional Government (KRG) which about 65 judicial offices are connected to the main data center of the Kurdistan Regional Government.

E-System - Education

Through this system, all the work of the Ministry of Education of the Kurdistan Regional Government has been done electronically, which will have a better impact on the organization of staff, which is a major problem in the ministry.

Entry and Exit system

Regulation of entry and exit in the Kurdistan Region is one of the new steps of the ninth cabinet of the Kurdistan Regional Government and the most important benefits of this system is the creation of e-visa portal and collecting data on entry and exit in the borders.

Ministry of Higher Education

The system of processing citizen's transactions in the Ministry of Higher Education is Electronized, you can be aware of the transactions submitted to the Ministry of Higher Education through a mobile application.

Service Portal

This portal provides complete information about the offices and directorates of all ministries, offices and departments with the requirements that citizens need when making transactions. Before making any steps, citizens can check the service portal to see what kind of documents are required for their transactions.

Driving license

This digital system is for renewing driver's licenses in a modern and time-saving manner. At the same time, it will accelerate the annual renewal and vehicle registration processes throughout Kurdistan.

Electronic records and receipt of vaccines and dashboards.

In this context, the system of receiving the results of the coronavirus test, has been made electronic so that citizens can receive the results of the coronavirus test from their mobile phones. A coronavirus dashboard has also been established that citizens and journalists can use.

Electronic pension transactions

The pensioners' transaction system has been electronized and through this system all departments are connected together and the level of errors and routines is reduced and is a reason for the electronic payment of pensioners.

Electronicization of public contracts

The KRG's electronic public contracts system will enter a new stage of transparency and reduce routine in the tendering process in Kurdistan.

Electronic salaries

Digital Payroll Management System is another system for managing the payroll schedule of employees in the Kurdistan Region.

Electronic financial management

The Kurdistan Regional Government (KRG) Financial Management System is a system for managing expenditures of all institutions of the Kurdistan Regional Government.

Information update system

This system is used between all institutions of the Kurdistan Regional Government and the Department of Media and Information of KRG to send and publish news.

Electronic management of martyrs, Anfal victims and political prisoners

This system is used to manage the payment of financial entitlements.

Domain .KRD

The .KRD domain is the only Kurdish domain that represents Kurds in the world of technology and has great benefits in consolidating Kurdish language and culture in the electronic world.

Official Government Website

Official website of the Kurdistan Regional Government: Through this website, the websites of all ministries are linked together and citizens can access information and data of the Kurdistan Regional Government through this portal.

Central Government Data Center

The Central Government Data Center is the repository of information of the Kurdistan Regional Government and all the data that is digitized is stored in this data center.

(Source: KRG)

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

Iraqi economic capital engulfed in trash, suffers from dilapidated electricity

Georgian government plans to open an honorary consulate in Erbil in the near future to strengthen cultural and economic ties between Tbilisi and Erbil, Georgia's envoy in Iraq told Rudaw last week.

Zaza Kandelaki (pictured), Ambassador of Georgia to Iraq, Jordan and Lebanon, told Rudaw last Wednesday that it may take some time for the opening of an honorary consulate in Erbil because of procedures.

Click here to read the full article.

KRG Prime Minister Masrour Barzani has received a delegation from the Japan International Cooperation Agency (JICA), headed by the agency's Vice President Ando Naoki.

Prime Minister Barzani thanked the Japanese government and JICA for assisting the Kurdistan Regional Government (KRG) in the process of reforming and establishing a solid economic infrastructure in the Kurdistan Region through professional project implementation.

The JICA delegation highlighted its work and activities in the Kurdistan Region, implemented in the fields of electricity, water, sewage, agriculture, and the re-modification of Erbil's master plan in coordination with the KRG.

The agency also expressed the willingness of Japanese companies to initiate investments in the Kurdistan Region.

(Source: KRG)

Iraq: Staff Concluding Statement of the 2022 Article IV Consultation Mission:

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or 'mission'), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF's Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF's Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

Washington, DC :

High oil prices have provided Iraq's economy with much-needed respite after a near-crisis in 2020. Nevertheless, underlying imbalances and oil dependence continued to increase. Using the opportunity provided by high oil revenues to reverse the trend of rising vulnerabilities and modernize the economy will be of paramount importance in the face of multiple looming challenges, which could severely test the limits of the current economic model. A meaningful economic transformation must start with a prudent, patient, and disciplined fiscal policy aimed at building financial buffers, reducing oil dependence, and reorienting expenditures toward priority investment and social needs. A careful calibration of the 2023 budget will be crucial to preserve gains from recent policy efforts. Alongside, decisive structural reforms will be critical to improve socio-economic conditions and promote private sector development as the key driver of growth and employment.

Economic Outlook and Risks

1. The economy is gradually recovering amid rising underlying vulnerabilities. Real GDP is projected to grow by 8 percent in 2022, driven by a 12-percent expansion in oil output. Meanwhile, real non-oil GDP is expected to expand at a more moderate pace of 3 percent after rebounding by 21 percent in 2021. Inflation has been relatively contained, averaging 5 percent during the first 10 months of 2022, as the pass-through from high global commodity prices has been muted by food and fuel subsidies. Helped by high oil prices, this year's fiscal and external current account balances are expected to reach surpluses of 6 and 11 percent of GDP, respectively, while foreign exchange reserves of the central bank could exceed $90 billion by end-year. At the same time, these surpluses veil widening of the non-oil fiscal balance, and Iraq's dependence on oil continued to increase with the oil price needed to balance the government budget ("budget breakeven oil price") reaching US$66 per barrel in 2022, up from US$52 per barrel in 2019.

2. Near-term outlook is positive, but vulnerabilities could manifest themselves in the medium term. Oil output is projected to gradually rise from 4.4 to 5 million barrels per day by 2027. Non-oil real GDP growth is expected to accelerate to 4 percent in 2023-helped by the stimulus from the Emergency Law for Food Security and Development-before moderating to 3.5 percent in the medium term. Under the baseline projection of declining global oil prices and continued expansionary fiscal stance, both fiscal and external balances are projected to decline and turn into deficits by 2025. Alongside, foreign exchange reserves could peak at around US$100 billion in 2024 and rapidly decline over the medium term.

3. This outlook is subject to significant downside risks, amid multiple looming challenges. A faster decline in global oil prices could reignite financing pressures sooner. Government finances are particularly vulnerable to faster accumulation of losses in the electricity sector and the depletion of the State Pension Fund, as well as the rising costs of climate change.

Policy Priorities

4. A sound fiscal framework will be critical to tackle Iraq's economic challenges. Policymakers need to carefully balance the goals of saving the oil windfall to strengthen resilience to future oil price volatility, and increasing critical social spending and public investments, while gradually reducing dependence on oil. IMF staff recommends a commitment to a fiscal rule targeting a gradual reduction of the non-oil primary fiscal deficit to build a fiscal stabilization buffer which would improve the government's ability to smooth expenditures in response to future oil price declines. At the same time, the fiscal strategy should seek to allocate sufficient resources for public investments and the social safety net to support Iraq's critical development needs and the vulnerable population.

5. Careful calibration of the 2023 budget parameters will be pivotal. It would be important to provide adequate indexation of targeted cash transfers and low-income pensions to protect the most vulnerable from the rising cost of living. At the same time, a large procyclical boost to expenditures is not advisable as it could fuel inflation pressures, further increase the government budget's dependence on oil revenues and create conditions for a costly boom-bust cycle. IMF staff recommends saving a significant portion of the oil windfall by targeting a non-oil primary fiscal deficit of ID 114 trillion (58 percent of non-oil GDP) in 2023, most importantly by containing growth of the government payroll and mobilizing non-oil revenues.

6. Elevated inflation risks warrant vigilance on the part of monetary policy. Although inflation has remained stable in recent months, there are significant risks of its acceleration in the near term with a looser fiscal stance and second-round effects of high global commodity prices. Should these risks begin to materialize, it would be important for the central bank to be prepared to tighten domestic financial conditions as needed to avoid fueling domestic drivers of inflation.

7. Implementation of the proposed fiscal framework needs to be accompanied by sustained policy efforts in several key areas:

• Upgrading public financial management notably by urgently establishing a Treasury Single Account and implementing an Integrated Financial Information Management System (IFMIS), in addition to strengthening control over commitments and contingent liabilities.
• Diversifying government revenues , including by making payroll taxes more progressive, eliminating regressive exemptions, strengthening tax and customs administration, and introducing taxes on the sales of selected non-essential goods and services.
• Reducing the government wage bill , which consumes around 40 percent of the annual budget, crowding out other priorities, and cannot be sustained in the long run, which puts a premium on promoting private sector job creation. A multi-pronged approach should focus on strengthening control over payroll; an attrition-based employment reduction strategy; and close alignment of government pay and allowances with the private sector. In parallel, IMF staff encourages developing a civil service reform and a national employment strategy to improve labor force participation, remove obstacles for private employment, and reduce informality.
• Enhancing the social safety net. Limiting eligibility for the untargeted food ration card program would allow to significantly augment the budget for targeted cash transfers. Automatic inflation indexation of cash transfers would ensure adequate protection. Furthermore, a pension reform is increasingly urgent, most importantly to restore the financial sustainability of the State Pension Fund. Going forward, close alignment or integration of pension systems for private and public sector workers is needed to facilitate labor mobility and strengthen incentives for private sector employment.
• Fixing the electricity sector , which incurs an annual loss in excess of 3 percent of GDP while being unable to meet domestic demand. A comprehensive reform strategy should focus on enhanced monitoring and transparency of the sector's costs, a review of the tariff structure, investments in gas capture and renewable energy sources, and sustained efforts to improve collection and reduce technical losses.
• Strengthening Financial Stability. Accelerating implementation of core banking systems and initiating the restructuring of large state-owned banks remains a critical priority. The IMF team welcomes the completion of Iraq's first AML/CFT national risk assessment and agrees with the authorities' plans to swiftly proceed with implementing its key recommendations. IMF staff also supports the central bank's efforts to strengthen monitoring of transactions through the foreign exchange auction and its plans to explore alternative trade finance mechanisms to facilitate trade. In parallel, the mission recommends developing liquidity management tools to better support exchange rate stability.
• Improving Governance. IMF staff welcomes the authorities' efforts to implement the 2021-24 National Integrity and Anti-Corruption strategy and emphasized the importance of continuing to strengthen governance, including through timely completion and publication of the audit reports of government accounts, improving the legal framework and streamlining the institutional structure for combatting corruption, and advancing digitalization of government institutions.

(Source: IMF)

The KRG's Minister of Electricity, Kamal Mohammed, signed a contract with with "Pluto Otto Cycle company" on Monday to build a solar power station in Erbil province.

The minister signed the deal with the company to set up a 25-megawatt solar power station. The project will be implemented within 90 days and will produce 25 megawatt of electricity using solar energy.

The Ministry of Electricity in the Kurdistan Regional Government's (KRG) Ninth Cabinet aims to develop the electricity sector, through numerous different projects, especially using solar energy to provide electricity.

(Source: KRG)

By John Lee.

Iran and Iraq have reportedly concluded a $4-billion contract under which Iran will supply technical and engineering services to Iraq.

The report from Iran's state-run PressTV gave no details of the deal, but quoted Hamid Hosseini, Director of the Iranian Oil, Gas and Petrochemical Products Exporters' Association (OPEX), as saying:

"In the eight months of this year [beginning on March 20], exports to Iraq, except for electricity, totaled $4.7 billion, down by $1.4 billion compared to the same period last year."

It adds that Iran's exports to Iraq are expected to reach $8-9 billion for the year.

Iraqi Prime Minister Mohammed Shia al-Sudani visited Iran this week, meeting top leaders, including Supreme Leader Ayatollah Ali Khamenei.

(Source: PressTV)

Iraq's outstanding debts for the purchase of natural gas from Iran have been paid off, Iranian Oil Minister Javad Owji (pictured) said.

Speaking to reporters on the sidelines of a weekly cabinet meeting on Wednesday, Owji said Iraq's outstanding debts for the purchase of gas from Iran during the previous and current Iranian year have been settled.

Iran has received a sum of €2.6 billion from Iraq, including €1.6 billion for the sale of gas to the neighboring country this year, he added.

The minister noted that the export of gas to Iraq this year has increased by 1.5 billion cubic meters compared to the previous year.

The Iraqi government has currently no debts to Iran for importing natural gas, Owji stated.

In August, the Iraqi Ministry of Electricity unveiled plans to increase natural gas imports from Iran as Baghdad prepares to open new natural gas-fired power plants.

According to Iraqi officials, the volume of gas imports from Iran stands at 43 million cubic meters, while Iraq requires 55-60 million cubic meters of the energy source.

(Source: Tasnim, under Creative Commons licence)

From the World Bank:

Iraq Economic Monitor, Fall 2022: A New Opportunity to Reform

The World Bank's new Iraq Economic Monitor, A New Opportunity to Reform finds that high oil prices have boded well for Iraq's economy pushing fiscal and external balance into double digit surpluses.

After growing by 2.8 percent in 2021, GDP growth accelerate in the first half of 2022 to 10.5 percent thanks to rising oil output and a recovery in domestic economic activity after the pandemic. Record oil exports have brought in record oil revenues for the government and pushed international reserves to their highest levels in more than two decades.

However, global inflation has partly passed through to consumers, negatively impacting consumption of the lower income deciles, and added to import costs and food security risks. While the Emergency Food Security and Development bill, provided some space for urgent expenditures in the absence of a ratified budget for 2022, investment projects and implementation of economic reforms were impacted by the delays in government formation.

Without deeper structural reforms and economic diversification, Iraq's extreme oil-dependence leaves it vulnerable to commodity price volatility. Despite several reform initiatives, Iraq remains one of the most oil-dependent countries in the world. High dependence on oil, procyclical fiscal policy and insufficient oil revenue management have left Iraq vulnerable to commodity price volatility. The private sector, mostly dominated by the poor and vulnerable segments of the workforce, remains largely informal and stunted.

Looking ahead, Iraq's economic outlook will be supported by persistent high oil prices, but global demand is expected to gradually weaken. GDP growth is forecast to accelerate to 8.7 percent in 2022 driven by strong oil GDP growth of 12 percent and stronger non-oil growth supported by non-oil industry and services activity. Growth is expected to gradually ease over the medium-term as oil production will be constrained by more sluggish global demand. With oil prices projected at over US$90 per barrel in 2022-24, strong oil export revenues are expected to keep fiscal and external accounts in significant surpluses.

Downside risks to the economic outlook relate to further weakening of global demand, insecurity and political instability, and renewed inflationary pressures. Rising food prices exacerbate pre-existing poverty trends and increase food security risks. Risks of social unrest would be compounded by any further erosion of purchasing power due to inflation, and continued electricity and water shortages.

Iraq's socio-economic vulnerabilities are further be amplified by intensifying climate change shocks both in physical (temperature rise, water scarcity, extreme events) and financial terms. Iraq's dependence on oil also leaves it vulnerable to new economic risks amid the global transition towards a decarbonized world that would gradually diminish oil's prominent role in fueling the global economy. The focus of mitigation measures should therefore be on bridging the supply-demand gaps while decarbonizing Iraq's energy value chain and managing the macro-fiscal implications of the transition to a low-carbon economy.

A new government was confirmed into office in October 2022, marking a new opportunity to implement reforms towards economic diversification, tackling longstanding structural challenges and addressing climate challenges. Crucially, Iraq's intertwined development and climate realities require an urgent call for adaptation and mitigation actions that can bring growth and productivity gains, accompanied by fiscal reforms and economic diversification that make these measures feasible and sustainable.

Click here to download the full report.

(Source: World Bank)

JICA renews commitment to boost infrastructure projects for socio-economic development in Iraq

The United Nations Development Programme (UNDP) in Iraq and Japan International Cooperation Agency (JICA) Iraq Office have signed a renewed partnership agreement to monitor and accelerate the implementation of socio-economic infrastructure projects in Iraq.

Implemented by the Government of Iraq (GoI) with loan assistance from JICA, aiming to improve economic recovery and living conditions of Iraqi communities, Japanese Official Development Assistance (ODA) loan projects are advancing infrastructure development in Iraq.

Five key components of ODA loan projects were completed in 2022 across Iraq, promoting service delivery and connecting communities to vital service sectors. Over two million residents of the city of Basra who experienced deteriorated water supply and quality for decades will soon receive access to a reliable clean source of water, as major components of the Basra Water Supply Improvement Project, locally known as the Basra Grand Water Project, are now completed. In the north, the Deralok Hydropower Plant in Duhok Governorate will soon begin to supply power, feeding 37 MW to the grid and addressing thereby Iraq's efforts to reduce carbon emissions resulting from fuel-operated powerplants.

"For over 14 consecutive years, JICA and UNDP have partnered to support the government to improve socio-economic conditions for Iraqi communities through reliable public service delivery. We will continue to support the Government of Iraq in laying down the foundation for sustainable growth in key public sectors, with a focus on electricity infrastructure, water and sanitation, health, oil, and transportation," says UNDP Iraq Resident Representative Zena Ali-Ahmad.

"We have been working with the Government of Iraq to deliver basic infrastructure and Japanese knowledge to Iraqi people over a decade. Although we have faced many difficulties, including unstable security conditions and the COVID-19 pandemic, some large projects were successfully completed in 2022, which shows a notable progress of JICA projects. Our partnership with UNDP has greatly contributed to this achievement during the implementation stage" says JICA Iraq Chief Representative YONEDA Gen.

Through signing this agreement, JICA and UNDP reaffirm their commitment to improve the state of national infrastructure, public services, and private sector development, advancing Iraq closer to achieving the United Nations Sustainable Development Goals.

Video: https://bit.ly/3AhxKAY

(Source: UN)

From the Iraq Britain Business Council (IBBC):

As Iraq returns to the international stage with record oil revenues, stability, and a new Government, the IBBC extended its Autumn Dubai conference over three days to accommodate a record number of attendees and speakers. While energy is fundamental to Iraq, the conference branched out to encompass other important topics, challenges, and opportunities that Iraq's rebounding economy requires in the immediate and longer term.

Foremost sectors include finance and investment, tech, infrastructure and industry, water and the environment, education, skills and training and a special focus on regional areas including KRI and Basrah. Education was the subject of a special preconference day for universities and government officials.

Addressing and welcoming the business conference Baroness Nicholson, President of IBBC confirmed that Iraq is an important country for Britain, and we enjoy good and strong relations, especially between IBBC members from both the UK and Iraq.   HE Juma Al Kait, Assistant Undersecretary for International Trade, UAE Ministry of Economy also welcomed the delegates to the UAE and noted that trade between Iraq and UAE has grown over 60% in the last year and is set to continue growing in the future.

HE Mr Mustafa Ghalid Mukheef, Governor of the Central Bank of Iraq, spoke of continued and accelerated investment in infrastructure, Mr Adel Khudair Al Masoodi, Representing the Iraqi Minister of Trade, The British Ambassador, Mr Mark Bryson- Richardson, Dr Mohammed Shukri Chairman of Kurdistan Investment board and Mr Sardar Al Bebany, Sardar group Chairman and CEO and principal sponsors of the conference all focused on different aspects of business and trade opportunities.

With a strong financial focus on day one, Mr Abdullah Jefri of International Finance corporation said that Iraq has an alarming economic reliance on oil and under threat from climate change, drought, and food security so the country will require $250bn of investment to diversify and meet demands for infrastructure and IFC are investing in Telecoms, Ports, infrastructure / renewables and agriculture with the private sector, which is the only way to reach the investment objectives.  Dr Salem Chalabi, President and Chairman of Trade Bank of Iraq gave a keynote speech with the message that a concerted effort is required to convert the wealth beneath Iraq to provide prosperity for the poorest who live above it. In particular Iraq has 420,000 new people entering the workforce each year, who require employment. Dr Chalabi called for the private sector to be given the means to address the crucial employment and other challenges. TBI is investing in solar power, refinery production and assisting the central bank in numerous private sector projects.

As principal sponsors, Sardar Group held a keynote session outlining their plans for Iraq, including the opening of the largest car showroom in Iraq in Baghdad, the bourgeoning automotive market, and their dedication to training, developing, and investing in the professionalism of their employees. A notable initiative is Sardar's commitment to training Yazidi IDP's in KRI in business skills and English. But Sardar has also been on a long journey from a family business to a corporation and from car dealerships to the electrification of Iraq and the intention to set up electric trains, while extending nationally and internationally with international investors and capabilities from the USA, Japan, and the UK.

Finance also dominated the afternoon panels with Mr Mohammed Al Delaimy, CEO Standard chartered bank chairing the IFC, MFL Finance, IIB and Etihad Credit Insurance and Sardar group

The KRI brought a significant number of delegates, and a new panel focus of Business in Iraqi Kurdistan, chaired by Mr Aiz Khidairi, with Dr Shukri, Mr Edip Nezir of UB Holding who explained the significant expansion of the group into Skiing resorts in the Kurdish mountains, residential, hospitality and steel in Basra. Mr Sheikh Salih Al Barzinje of London Sky noted the growing IBBC membership and businesses in the region are keen to travel for business and pleasure. Mr Amanj Raheem, Cabinet Secretary of the Kurdistan Regional Government commented on improving relations between Baghdad and Erbil.

The tech forum speakers ranged from Padraig O Hannelly, Editor of Iraq Business news, gave an overarching summary of where tech has evolved in Iraq, followed by Laura Khudairi, of Iraq venture partners, who invest in start-ups and early-stage businesses, explained how the start up economy is fairing and the necessity of bringing in more secondary stage investors to help scale up the ecosystem. Hossam Darra COO of SAP ME gave a full account of how SAP is supporting digital literacy, sustainable business, and the importance of technology as the new infrastructure for all areas of the economy including education, agriculture, and finance and how Government can manage data and resources more efficiently. Shamal Mohammed of Silal then discussed with Ashley Goodall the IBBC tech chair, the options for water and agriculture improvement and management through technology. The potential for carbon credit investment into soil improvement, use and monitoring of water resources and the kind of agricultural systems that are already being deployed in the Gulf, the opportunity for a thriving agriculture sector is possible with the new technologies, carbon credits to upgrade and invest in agriculture and raised the idea of developing a green wall of trees and diverse plants to halt the desertification.

In the second part, the focus was on edutech and the way in which Stirling Education are using online teaching for both students and teachers, the kind of emergent courses available, and the collaboration with KRI education ministry to share online courses with public sector education.

The final panel included Industry members, chaired by Mr Aziz Khudairi, with Mr Adil Akah Al Shnawa, President of the Iraqi Federation of Industries, Mr Ahmed Abdulla Hadi Al Hankawi of Etihad law noted there are 5000 foreign companies in Iraq who all bring tax and income benefits to the economy, and called for more simplicity and encouragement for foreign investors to come to Iraq.  Mr Amar Shubar of Management partners gave a strategic overview of Iraq's lack of industrial competitiveness, including the key drivers of failure, and clarity on what can and needs to happen to restore the country's capabilities.  Ms Sura Khudairi of Khudairi Group who said the fashion market in Iraq is growing fast and there is a strong possibility of reinventing the local production of materials and design for Iraqis, and showcased her 'Street turban' look, that takes women beyond the religious control of the past. Mr Hardi Ismail of Mselect shared their latest learning and development survey that is the country's first overview of this area, that enables people to make informed decisions about the level and type of training required by companies. Some of the data suggests 41% of companies see increased productivity because of training, 93% still prefer classroom training over online, but the global trend is very much about online training, and 37% of companies cite cost as a restriction to training and development, including oil and gas sectors. The survey will be done annually for comparison and to support Mselect's training insights and business.

Baroness Nicholson, President of IBBC opened day three with a welcoming speech that covered business opportunities in Basrah including speeches from Deputy Governor of Basrah, Mr Mohammed Tahir Altamini, Mr Majid Mozan Gutami, Chairman of Basrah Chamber of commerce, Mr Raed Hanna, MFL Finance, and Ms Marlin Shabo of AAA holding. Mrs Sara Akbar of Oil Serv gave a keynote on collaboration with Kuwait and the combined opportunity with Basrah and the south, while Ms Kate Dourian of Iraq oil report said the GOI has $100bn revenues in 2022 and for the coming year, which should be invested in production and infrastructure.

Basrah is known for its energy production, so the energy panel big guns highlight included not only Iraq Oil report, OilServ but also Basrah Gas Company's Mr Marfa al Asady , and Hans Hoiskar of Petronor. Dr Laith Abdulhussein Kadhim Al Shaher DG of the Legal Directorate at the Ministry of Oil said Iraq is rebuilding its oil infrastructure as its so important for GOI revenues and invited western energy companies to help build the infrastructure. The vision is for Iraq to increase production and activate exploration activities to increase hydrocarbon reserves. Iraq will increase refining capacity to reach self sufficiency in oil products and will increase gas capturing projects to eliminate gas flaring. Gas production is 3bn 'scuff '50% is still flared 1.5bn captured, hence still importing gas from Iran for powerplants. Rehabilitation of infrastructure for export outlets ports and terminals, increasing storage capacity, and environmental protection all planned. Currently there are 4.4mbpd but there is long term demand as Iraq's oil, and the fields are now 100-70 years old, so there's a need to renew and pump to reservoirs and increase capacity. New refining capacity is adding 350k bpd in Karbala from next year.

Further plans include capture of 1.5 'scuff' of gas and to plant more trees and forest on oil fields to reduce pollution as does reduction in gas flaring and reduce methane emission to locate areas of escape and take steps to reduce in the next year. Basra Gas Company's Mr Marfa Al Asady said there has been x4 production increase since 2013 of gas capture and plans to increase to 1.4 scuff. The gas capture has also created 5000 direct jobs and a further 5,000 indirect jobs locally. Furthermore, BGC are also training local young people and women with Basra University to obtain certificates in welding, electronics, and other skills to enable them to apply and obtain jobs in the company. The Basra Uni project also helps local people more generally to get skill certificates for work, Sarah Akbar of Oilserve also observed that its not sensible to be importing gas from Iran while there is so much potential for gas capture in Iraq, and to stop pollution and greenhouse gas emissions, it should be the number one priority of Gov to stop gas flaring and for the private sector to deliver this if opened up to them. Lizzie Porter of Iraq Oil Report also observed that the Gov has $100bn of income that needs to be invested wisely in production and capabilities for a better environment and employment. A message echoed by Mr Hans Hoiskar of Petronor, who said business in Basrah is healthy but again investment in productivity and efficiency is important to regear the country.

Vikas Handa also noted and appealed to the Gov that cancer in Basrah or Iraq is a scourge both Vikas and Dr Laith lost close relatives to cancer, that is an issue in the region, so flaring and pollution must be reduced to stop this. Sara Akbar said that Basrah does not have a cancer centre for scans, so a great need for a cancer centre in Basrah is require and should be funded by oil companies.

Water and the Environment panel addressed World Food Programme, Hydro C (renewables) and Mr Mohammed Shamal of Silal spoke of opportunities for water and agricultural production and Dr Kaiwan Siwaily energy advisor to Sardar Group. Mr Ally Raza Quershi of World food programme in Iraq, building resilience to climate change in Iraq. Who began by showing the marshes and how they have dried out. Iraq is 5^th most vulnerable country in world to climate crisis, which is now affecting Iraq; less water flowing to the two rivers, which are drying up. Hamrin lake is only 10% of its 2019 size in 3 yrs. Agriculture is a key part of economy, so how to support that? Wheat production 50% 21-22, down as water more saline and old production techniques for when water was plentiful. 5m were displaced in 2014 now 4m back home and returned to land but farms not producing and shortfalls as too little water. How to survive?

GOI has invested in food distribution but for the longer term if oil price is not sustained what happens then? The Private sector has an opportunity to bring modern technology to help. People believe what they see, not what you tell them, there is a need to demonstrate agricultural change in Iraq can work. Private sector attention is required to help agriculture modernise and compete as Iraqi's also prefer Iraqi products. Digitisation: GOI is trying to adapt at variable levels but moving forward there is much to do. Suggestions that digitising a platform for farmers can enable them to manage crops better. Hassan Heshmat- calls for greening of the economy, and is bringing new technology and solutions and innovations that require immediate actions and investment from and to the private sector. Shamal Mohammed- Silal- says long term investment from government and private sector is required as the environment is not going to get better- to manage water, agriculture, and resources, as is being done in Abu Dhabi, and he proposed a green levy on oil companies for green activities in Iraq. E.g., to plant 10m trees per year, with a multi discipline approach to make it happen. We must act now as in 10 years it will be too late and unsuitable to live/ work in- soil and water is for life and must be cared for. Agriculture started in Iraq 12,000 years ago, and Iraq can do it again and manage resources differently. Dr Kaiwan Siwaily of Sardar Group focused on lessons learned from the KRI's generation and use of Electricity.

Finally, Mr Colin Finlay of IBBC chaired the business success panel including Mr Amit Agrawal of Martrade, Mr Peter Turner of SKA, Mr Khuram Iqbal of AAA holding on how their businesses are thriving in Basrah region with the biggest fertilizer plant in Iraq, able to scale up production and distribution.

The conference closed with Christophe Michels MD of IBBC, thanking Vikas Handa for chairing the event and all delegates, speakers and especially the sponsors; Sardar Group, AAA Holdings, Basra gateway, Hydro-C and Mutual Finance.

For more information on the conference and joining IBBC as members or future conferences please contact IBBC at [email protected] and the website iraqbritainbusiness.org.

Next conference is in the UK at the Mansion House in the City of London in the Spring of 2023.

(Source: IBBC)