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By John Lee.

Iraq's Minister of Oil, Hayan Abdul Ghani, met with a delegation from Saudi Arabia's Al-Khorayef Petroleum on Tuesday, including senior representatives Mohammed Al-Dughmi and Khalid Hamza Al-Rikabi.

Discussions focused on enhancing cooperation in the oil, gas, and energy sectors.

Alkhorayef Group joined the Iraq Britain Business Council (IBBC) in 2023.

(Source: Ministry of Oil)

By John Lee.

Prime Ministers Keir Starmer and Mohammed S. Al-Sudani have unveiled an ambitious £12.3 billion [$15 billion] UK-Iraq trade and investment package aimed at enhancing prosperity and bilateral economic ties.

The agreement represents over a tenfold increase in trade compared to last year and underscores both nations' commitment to strategic collaboration across key sectors.

Key Projects Announced:

1. De-mining Operations: £330 million for UK-led mine removal across Iraq.
2. Al-Qayyarah Airbase Rehabilitation: £500 million to boost Iraq's air defence capabilities.
3. Water Infrastructure:
   1. Comprehensive Water Project: £5.3 billion for improved water access and irrigation in South and West Iraq.
   2. Basra Desalination Project: £3.3 billion for clean water infrastructure benefiting 3 million residents.
4. Power Grid Enhancements:
   1. Iraq-Saudi grid interconnection (£1.2 billion).
   2. National grid upgrades by GE Vernova (£82 million).
5. Telecommunications: Vodafone to lead Iraq's 5G rollout (£410 million).
6. Railway and Sanitation Projects:
   1. £82 million for a new railway.
   2. £260 million for sewage and water processing in Hilla.
   3. £655 million for sewage and water processing in Baghdad.
7. Emergency Services and Border Security:
   1. British fire-fighting vehicles (£27.5 million).
   2. Radio communication systems (£98 million).
   3. Border security technology (£66.5 million).

The UK will leverage its global financial expertise to aid in the establishment of Iraq's Strategic Investment Fund, the Iraq Fund for Development (IFD). Designed to attract private investment, the IFD aims to finance critical socio-economic infrastructure projects and drive Iraq's long-term economic growth.

The Prime Ministers also welcomed a landmark Iraq-BP agreement for long-term investment, further solidifying the foundation for future collaboration in energy, logistics, and financial services.

Full statement from the 10 Downing Street:

The Prime Minister of the United Kingdom, The Rt Hon Sir Keir Starmer KCB KC MP, hosted the Prime Minister of The Republic of Iraq, His Excellency Mohammed Shia Al-Sudani as part of the Iraqi Prime Minister's official visit to the United Kingdom, from 14-16 January 2025.

Prime Minister Starmer congratulated PM Al-Sudani on the stability and growth that Iraq has enjoyed under his leadership. The leaders reaffirmed their commitment to the vision of a prosperous, sovereign Iraq through a new partnership focused on trade and investment, deepening educational and cultural ties, as well as tackling security, migration and climate change challenges. This visit re-affirms the UK and Iraq's commitment to work together on shared regional and global interests and underlines a shared commitment to the long-term strategic relationship.

The Prime Ministers signed a landmark Partnership & Cooperation Agreement (PCA), a wide-ranging treaty on trade and strategic cooperation and agreed a trade package worth up to £12.3 billion, underpinned by a series of export agreements, to bolster the growing trading relationship between the UK and Iraq.

Prime Ministers Starmer and Al-Sudani agreed to develop and further UK-Iraq co-operation on a wide range of sectors, including:

Trade, Economy and Investment

Prime Ministers Starmer and Al-Sudani discussed their shared objective of increasing prosperity and their commitment to an ambitious expansion of UK-Iraq trade and investment.

They agreed to utilise UK private sector expertise on critical water, energy, telecoms and defence infrastructure, and to secure future investment projects in the clean energy, pharmaceutical, logistics, and financial services sectors. This will be supported through a UK Export Finance (UKEF) Memorandum of Cooperation to boost private sector investment and financing in Iraq, signed by the UK Foreign Secretary and Iraqi Foreign Minister. The Prime Ministers welcomed the recently announced agreement between the Government of Iraq and BP for a long-term investment in Iraq.

The Leaders announced a trade and export package of £12.3 billion, over 10 times last year's total UK-Iraq bilateral trade, consisting of the following UK-led projects in Iraq:

• De-mining: UK Companies have been appointed to remove legacy mines across all of Iraq: a contract worth £330mn.
• Rehabilitation and reconstruction of Al-Qayyarah airbase: UK private sector expertise will deliver the £500mn rehabilitation of Iraq's Al Qayyarah airbase providing Iraq with air defence coverage and capability for North & West of Iraq.
• Comprehensive Water Project: a UK-led consortium will lead a significant water infrastructure project worth up to £5.3bn in UK exports. This will improve water quality, irrigate agricultural land, and provide clean water in the South and West of Iraq, improving living conditions for millions of Iraqis.
• Basra Water Project: a UK company has been appointed to build large-scale infrastructure for desalination and water processing plants, providing clean water for the 3 million Iraqis in the Basra province. This project is worth up to £3.3bn in UK exports.
• Iraq-Saudi Grid interconnection: UK-made power transmission systems will interconnect the Iraq and Saudi grids, a project worth at least £1.2bn.
• Enhancement of the Iraqi National Grid: GE Vernova will supply and install £82mn worth of power substations to improve Iraq's electricity grid.
• 5G rollout: Vodafone has been appointed to design the new 5G network planned by the government in a project set to be worth £410mn over twenty years.
• Iraqi Railway project: A UK company will deliver a £82mn construction project to build a new railway in Iraq.
• Hilla Phase 2: a UK company has been appointed to deliver sewage and water processing solutions serving 3 million Iraqis, worth £260mn in exports.
• Baghdad Sanitation Project: a UK company has been appointed to provide up to £655mn worth of water management, and sewage treatment solutions for the Mayoralty of Baghdad.
• Provision of UK Firefighting vehicles: 62 British-made fire-fighting vehicles will be exported to Iraq, in a UKEF-facilitated £27.5mn export.
• Provision of radio communications equipment: UK firms will export £98mn worth of communications technology to provide the Iraqi emergency services with equipment to tackle emergencies and incidents more efficiently across Iraq.
• Border technology: UK companies will provide £66.5mn worth of border security equipment to the Iraqi Ministry of Interior, to make Iraq's crossings, checkpoints, and airports safer.

The UK is supporting Iraq as it undertakes the bold long-term reforms needed to grow its economy. As a global financial leader, the UK is harnessing expertise to support the establishment of PM Al-Sudani's high ambition for the Iraq Fund for Development (IFD), Iraq's first Strategic Investment Fund. The IFD has the potential to support socio-economic infrastructure development projects in Iraq and provide a gateway to the world for attracting private investment.

Defence and Security

Prime Ministers Starmer and Al-Sudani re-affirmed the strong historical UK-Iraq defence and security relationship. Noting that 2025 marks over ten years of the Global Coalition's military mission in Iraq, both Prime Ministers reflected on the historic successes of the Iraqi Security Forces and the Coalition in achieving the territorial defeat of Daesh in Iraq and honoured the sacrifices made by Iraqi, UK, and other forces in securing this aim.

The Prime Ministers signed the Joint Statement on the Strategic Bilateral Defence Relationship that establishes the basis for a new era in security cooperation and paves the way for a new agreement to reflect the ambition of both countries. This deepens our defence cooperation for the future, including through the provision of UK-Iraq military education exchange, UK advisory support on capability and institutional reform, and the development of defence industrial partnerships. The Defence & Security Joint Statement underlines shared objectives, including counter-terrorism, regional security and stability and a strong and prosperous Iraq. The Prime Ministers Starmer and Al-Sudani jointly highlighted the importance of aviation safety and security standards.

Migration and Organised Immigration Crime

Prime Ministers Starmer and Al-Sudani committed to enhance vital migration cooperation between the UK and Iraq, given the importance of our strategic partnership in disrupting irregular migration upstream, and the significant work being led by the Government of Iraq to provide reintegration support to those returned.

The Prime Ministers agreed the principles of a specific returns agreement that delivers on a joint commitment to ensure those who have no right to be in the UK can be returned swiftly. They discussed the practical next steps on how to do so, building on the Home Secretary's recent visit, in which landmark agreements set out how the two countries will strengthen border security and enhance law enforcement cooperation to tackle people smuggling organised crime organisations.

Both agreed that the increasingly global nature of organised immigration crime underscores the need to stop people smuggling gangs from putting so many lives at risk and that strengthening the border security of our nations is a key part of this effort - UK private sector expertise plays an important role in this, announcing the provision of police communications equipment, border technology and comprehensive training programmes to Iraq's Ministry of Interior, ensuring Iraq has state-of-the-art technology and emergency response capability to support our shared objective of strengthening border security, whilst also contributing to UK growth.

Culture and Education

Prime Ministers Starmer and Al-Sudani noted the importance of educational and cultural exchange in building shared opportunities and mutual trust and understanding and acknowledged strong people-to-people connections between the two countries. They discussed Iraq's history of educational achievement and PM Starmer strongly welcomed Iraq's investment in international scholarships with PM Al-Sudani announcing a significant scholarship scheme enabling over 2000 Iraqi students to study in the UK. They noted the potential for high-quality teaching, learning and research collaboration between UK and Iraqi universities and academics with a number of high-level agreements being signed with UK Universities. They discussed the importance of English language learning and UK international school qualifications, which unlock opportunities for greater educational and cultural exchange, and recognised the work of UK and Iraqi institutions working to widen access.

Women, Peace and Security

Prime Ministers Starmer and Al-Sudani committed to deepening cooperation on the Women, Peace and Security agenda, with PM Starmer welcoming Iraq's plans to launch its third National Action Plan and a network of Iraqi women peacebuilders in March 2025. The Prime Ministers agreed on the importance of supporting women-led and women's rights organisations. They recognised the need for on-going support, justice and accountability for all survivors of Daesh-perpetrated sexual violence, including mothers and their children born of conflict-related sexual violence, and continued efforts to end violence against women and girls. They agreed on the importance of girls completing a quality education and women's economic empowerment, benefitting all of society.

Climate and Environment

Prime Ministers Starmer and Al-Sudani underlined the importance of working together to tackle climate and environmental issues. The Prime Ministers welcomed the Government of Iraq's commitment to end flaring of associated gas by 2028, as a part of its transition towards a cleaner energy system, and dry gas venting, that has negative environmental and economic consequences, and the UK's commitment to clean power by 2030.

The parties signed a Memorandum of Cooperation on Climate Change, the Environment, Energy Transition and the Carbon Economy. This will deepen cooperation on a broad range of climate and environment issues. In particular, it recognises a partnership to enhance co-operation to deliver Iraq's commitment to end flaring.

Sport Cooperation

The two Prime Ministers underlined the importance of developing sports exchange mutual benefit. The leaders encouraged further contact and development of cooperation over sports affairs and encouraged their sports associations to coordinate their activities and strengthen exchange and cooperation, including in sports science and medicine. The Prime Ministers expressed a strong interest in exchanging visits among sport teams of the two countries.

(Sources: 10 Downing Street, PMO)

By a Guest Blogger. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Anecdotal evidence, including inquiries to Iraq Business News, seems to suggest that supporters of US President-elect Donald Trump are more likely to believe that the Iraqi currency, the Dinar (IQD), will increase in value by an unprecedented multiple, some saying by as much as 1,000-fold!

The correlation between being a Trump voter and believing in a significant revaluation of the Iraqi dinar (often called the "dinar RV" theory) is not rigorously studied, but there are social and cultural dynamics that might help explain the connection between the two groups.

The Dinar revaluation theory emerged after the 2003 Iraq War: The basic premise is that the Iraqi Dinar, which traded at around 3 IQD per USD before the 1991 Gulf War but crashed to roughly 1,310 IQD per USD, would suddenly revalue back to its previous rate or even higher. Believers often hold large quantities of physical Dinar notes, sometimes investing tens of thousands of dollars.

The theory's spread among Trump supporters was facilitated by several factors:

The "Global Reset" Narrative:

• Many believers connected the Dinar revaluation to a broader theory about Trump leading a massive reorganization of the global financial system
• This often tied into QAnon-adjacent beliefs about Trump secretly fighting a "deep state" that was suppressing the Dinar's true value
• Some proponents claimed Trump and his team were directly involved in orchestrating a coming revaluation

Social Media Dynamics:

• The theory spread rapidly through Facebook groups, YouTube channels, and forums that also shared pro-Trump content
• Many of these platforms used similar language about "mainstream media suppression" of both Trump and the "truth" about the Dinar
• Currency speculators and scammers actively targeted these communities, recognizing their receptiveness to anti-establishment financial narratives

Political Context:

• The theory appealed to a desire for both financial windfall and validation of political beliefs
• Some promoters claimed Trump's Middle East policies, particularly regarding Iraq and Saudi Arabia, would trigger the revaluation
• The belief often aligned with broader skepticism of traditional financial institutions and expertise

Psychological Factors:

• The combination of potential financial reward and political validation created a powerful motivational force
• Believers often interpreted skepticism from financial experts as further evidence of a cover-up
• The complexity of international currency markets made it easier for promoters to make plausible-sounding but false claims
• Investment in the theory often strengthened social bonds within these communities, making it harder to abandon the belief

Despite years of failed predictions, the theory continues to circulate; some believers have modified the timeline but maintain their basic conviction. The persistence of this belief system despite contrary evidence and expert warnings illustrates how financial conspiracy theories can become deeply intertwined with political identity and resistant to contrary evidence. Both Trump supporters and proponents of the dinar revaluation theory often demonstrate a tendency toward belief in conspiracy theories or "hidden truths" that challenge mainstream narratives.

For more information on the Iraqi dinar, check out IBN's Dinar Page here: https://www.iraq-businessnews.com/the-dinar-page/?swcfpc=1 

The Iraqi Dinar Revaluation Scam: False Hope, Financial Deception

Have you seen a connection between support for Trump and a belief in the revaluation theory? Please let us know in the comments below.

[UPDATE, January 21st 2025: Following Donald Trump's inauguration, let us know your thoughts on Dinar RV in our survey here: https://www.iraq-businessnews.com/2025/01/21/survey-trump-and-the-iraqi-dinar/?swcfpc=1]

See also:

"Tired of Dinars", Iraq flocks to Dogecoin

By John Lee.

The Central Bank of Iraq (CBI) announced an expansion of foreign currency transfer options for local banks, adding the Jordanian Dinar and Saudi Riyal to the list.

Iraqi banks are now also permitted to fund trade with Turkey in Euros, previously restricted to transactions with EU countries. These currencies join the existing options of the US Dollar, UAE Dirham, Chinese Yuan, and Indian Rupee.

This move aims to diversify trade financing options and streamline international transfers at official rates. The CBI highlighted its commitment to facilitating smoother transactions, increasing the involvement of local banks in global transfers, and enhancing economic cooperation with partner nations.

According to a statement from the CBI, this year it has successfully transitioned from an electronic platform to direct transactions through correspondent banks, aligning with global banking practices and earning widespread recognition.

(Source: CBI)

By John Lee.

Iraq's National Investment Commission (NIC) Chairman, Dr. Haider Mohammed Makiyya, announced the signing of the Investment Protection and Promotion Agreement with Saudi Arabia on November 24, 2024.

The agreement, finalized ahead of the 28th World Investment Conference in Riyadh, aims to create a secure environment for Saudi investors in Iraq, supported by legal guarantees and diverse investment opportunities.

Speaking at the conference, Dr. Makiya highlighted Iraq's commitment to attracting Saudi investments through regulatory reforms. The event, hosted by the World Association of Investment Promotion Agencies (WAIPA), facilitated global dialogue on investment trends and partnerships.

During a ministerial roundtable, Dr. Makiya joined global leaders to explore sustainable investment collaborations, including renewable energy initiatives such as green hydrogen and advanced engineering solutions for energy projects worldwide.

(Source: NIC)

By John Lee.

On Thursday, Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman held a virtual meeting on the sidelines of the 38th OPEC and non-OPEC Ministerial Meeting (ONOMM).

Objective:

• Reinforce precautionary efforts.
• Support stability and balance in the global oil markets.

Key Decisions:

1. Extension of April 2023 Adjustments:
   • Adjustment Volume: 1.65 million barrels per day.
   • Extension Period: Until the end of December 2026.
2. Extension of November 2023 Adjustments:
   • Adjustment Volume: 2.2 million barrels per day.
   • Extension Period: Until the end of March 2025.
   • Gradual Phase-out Plan:
     • Monthly reductions starting April 2025.
     • Full phase-out by September 2026.
     • Flexibility to pause or reverse reductions based on market conditions.
3. Compensation for Overproduction:
   • Pledges by Overproducing Countries:
     • Achieve full compliance with production quotas.
     • Submit updated compensation schedules for overproduced volumes (since January 2024) to the OPEC Secretariat by December 2024.
   • Compensation Period: Extended until the end of June 2026.

Significance:

• Reinforces the role of OPEC+ in maintaining market stability.
• Demonstrates transparency and collaboration among member nations.
• Allows flexibility in response to changing market conditions.

Full statement from OPEC:

OPEC plus countries Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, which previously announced additional voluntary adjustments in April 2023 and November 2023 held a virtual meeting on the sideline of the 38th  OPEC and non-OPEC Ministerial Meeting (ONOMM).

The meeting was conducted to reinforce the precautionary efforts of OPEC+ countries, aiming to support the stability and balance of oil markets. The aforementioned countries decided, in addition to the latest decisions from the 38th ONOMM, to extend the additional voluntary adjustments of 1.65 million barrels per day that were announced in April 2023, until the end of December 2026.

Moreover, these countries will extend their additional voluntary adjustments of 2.2 million barrels per day, that were announced in November 2023, until the end of  March 2025 and then the 2.2 million barrels per day adjustments will be gradually phased out on a monthly basis until the end of September 2026 to support market stability as per the attached table. This monthly increase can be paused or reversed subject to market conditions.

In the spirit of transparency and collaboration, the meeting welcomed the pledges made by the overproducing countries to achieve full conformity and resubmit their updated compensation schedule to the OPEC Secretariat for the overproduced volumes since Jan 2024 before the end of December 2024 as agreed in the 52nd Meeting of the Joint Ministerial Monitoring Committee (JMMC).  The compensation period will be extended until the end of June 2026.

(Source: OPEC)

By John Lee.

The Fuel Directorate of Iraq's Ministry of Electricity hosted a seminar featuring representatives from Saudi-based CNSA, attended by senior officials including the Ministry's Deputy for Production Affairs, Eng. Mohammed Nema, and other technical specialists.

CNSA presented innovative technologies to enhance the efficiency of Iraq's power sector, including:

• Advanced fuel tank cleaning methods while operational.
• Solutions for black powder issues in gas supplies that disrupt power plants.
• Techniques to separate oil and water in fuel.
• Modern welding methods for pipes to prevent complications.

The seminar included video demonstrations and discussions on applying these technologies to upgrade Iraq's energy infrastructure. It also explored collaborative opportunities between Iraq's Ministries of Electricity and Oil and CNSA to implement critical projects.

This initiative highlights Iraq's commitment to international cooperation, leveraging Saudi expertise to address growing energy demands.

(Source: Ministry of Electricity)

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

Iraq, Saudi Arabia move to shore up military cooperation

 Iraq and Saudi Arabia have inked a new military cooperation agreement, marking a potentially significant step in their evolving rapprochement.

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

By John Lee.

Saudi Arabia and Iraq have signed a memorandum of understanding (MoU) for cooperation in the military field.

The agreement was signed during a visit by Iraq's Minister of Defense, Thabet Mohammed Saeed Al-Abbasi, to Saudi Arabia.

No details of the agreement were announced.

Saudi Minister of Defense, Khalid bin Salman, added that they discussed the latest developments in the region and the efforts made to reduce escalation and its repercussions in a way that contributes to preserving its security and stability, and we discussed topics of common interest.

(Source: @kbsalsaud)

From the Iraq Britain Business Council (IBBC):

Iraq is making a significant comeback, presenting the private sector with an increasing array of opportunities to invest and contribute to its ongoing development. The Sudani government has not only introduced stability and reforms but is also investing in a wide range of infrastructure projects that promise growth and transformation.

At our December conference, IBBC will introduce the key stakeholders driving this project renaissance, spanning sectors as diverse as maritime development, the strategic Development Road, agriculture, energy, and the financing mechanisms supporting them all.

Where Growth Meets Opportunity

In September, Iraq's Minister of Transport outlined ambitious plans to IBBC, focusing on critical areas such as the development of Al Faw Port, investments in the Development Road, freeports, new cities and business hubs along the route, the establishment of a maritime authority, rail links to western Iraq, direct UK-Iraq flights, and tourism. Other ministries are concentrating on water management, agricultural advancements, and the Central Bank's modernization and digital transformation initiatives.

These initiatives will be a focal point on December 13th at our conference, Growing Opportunities, where you'll hear from key decision-makers, including lead sponsors like Al Zaman Group, Sadar Group, Trade Bank of Iraq, Basra Gateway Terminal, SAP and London Sky (Travel Partner). Top Iraqi and UAE ministers, British officials, and leading IBBC companies will explore all facets of a sustainable Iraq, from economic growth and energy to finance, climate action, education, and agritech innovation. A special Education Day will also take place on December 12th at the Taj Hotel, featuring discussions with higher education ministers, UK universities, and schools, all centered on skills development and training for the modern economy, sponsored by GEMS.

Tech and Innovation Focus

The Tech Forum will be hosted online, featuring speakers from InnovationUK, fintech experts, and leaders in digital transformation. This session will highlight the latest technological advancements reshaping Iraq's business landscape.

Geostrategic Insights and Business Environment

A high-level discussion on Iraq's current geostrategic positioning and its regional context will precede panel and roundtable discussions on key sectors such as energy, finance, transport, and infrastructure. Business-focused roundtables on Kurdistan and Basrah will also delve into the unique opportunities these regions present.

The Iraqi government has already committed $400 billion in investments this year, and private sector de-risking is advancing rapidly, with significant investments from Saudi Arabia, Qatar, and the UAE flowing into real estate and related sectors.

Similarly, Iraq's energy market is diversifying into gas and solar power, even as oil production continues to rise. Notably, Chinese companies now produce 50% of Iraq's oil output. Iraq's strategic location at the crossroads of Turkey, China, the Gulf, Iran, and Europe places it at the center of geopolitical developments. Under the Sudani government, Iraq has successfully balanced its relationships with these diverse forces, fostering internal and regional stability. While governance challenges remain, the outlook for business and investment has rarely been more promising. This positive sentiment is reflected in the Iraq Stock Market's 128% growth over the past two years, and the rapid modernization of private universities and schools.

Iraq is Rising-Be Part of Its Future

Join us at the IBBC conference to meet our members, Iraqi government ministers, and officials leading this major transformation. Don't miss the chance to engage with those shaping Iraq's promising future.

For more details and registration, click here.