Custom Search

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.

By John Lee.

The International Finance Corporation (IFC), a member of the World Bank Group, in collaboration with the Central Bank of Iraq (CBI), has signed an agreement to develop environmental and social risk management guidelines for the banking sector, and launched a seven-year Sustainable Finance Roadmap and an Environmental, Social, and Governance (ESG) Code to improve sustainable financing for the sector and strengthen the country's financial infrastructure.

The Sustainable Finance Roadmap, which outlines the Central Bank of Iraq's strategic plan for 2023 - 2029, aims to improve the performance of Iraqi banks in areas like environmental and social risk management, encourage the availability of sustainable banking products, and increase the competitiveness of the banking sector. The Plan, which encompasses developing an ESG code, also aims to support financial stability, reduce environmental and sustainable risks, and promote social development.

"The global demand for sustainable financial products highlights the need for banks to consider ESG issues in their risk management framework to attract investments," said H.E. Ali Mohsen Ismail, Governor of the Central Bank of Iraq. "As a Central Bank, we play a key role in sustaining the development, growth, and financial stability of Iraqi banks, ensuring their ESG performance matches international standards."

The new ESG Code sets forth specific standards and practices that Iraqi banks can incorporate into their business strategies and investment decisions, paving the way for greater mitigation for ESG risks across the banking sector.

"This partnership marks a significant milestone in Iraq's strategic approach towards sustainable finance and demonstrates IFC's commitment to partnering with the country's Central Bank and the banking sector to strengthen its financial infrastructure and increase the competitiveness of its banks," said Fawaz Bilbeisi, Regional Manager for IFC in the Kingdom of Saudi Arabia, Iraq, and Lebanon. "This ESG Code will help banks improve their performance on accountability, responsibility, management and resilience, which are critically important for clients, shareholders, investors and Iraq's sustainable development."

This ESG Code was developed according to the relevant Iraqi laws and global best practices issued by financial institutions like IFC, the Organization of Economic Cooperation and Development (OECD), the Basel Committee on Banking Supervision (BCBS), the Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI), the Islamic Financial Services Board (IFSB), and the International Sustainability Standards Board (ISSB) of the International Financial Reporting Standards Foundation.

IFC has been a pivotal driver of private sector development in Iraq, channeling over $1.9 billion since 2005 to fuel the growth of its businesses in the context of diversifying the country's economy. IFC's current committed portfolio stands at around $350 million, invested in dynamic sectors such as energy, telecoms, and banking. IFC has also launched several advisory projects to mobilize private sector investment through public-private partnerships, expand access to finance for local businesses, and support Iraq's entrepreneurial ecosystem. This initiative also reflects how IFC's strategy in Iraq continues to focus on strengthening the Iraqi banking sector via both investment and advisory services, helping pave the way for the country's sustainable development.

Click here to download the full document [Arabic]

(Sources: IFC, CBI)

By John Lee.

Saudi Arabia's Ambassador to Iraq, Abdulaziz Al-Shammari, is quoted as saying that a commercial representation office for Saudi Arabia is being established in Erbil, as part of broader efforts to strengthen trade ties between Saudi Arabia and Iraq.

The office will function under the commercial consulate in Baghdad.

In a statement to the state-run Iraqi News Agency (INA), he added that the Saudi consulate in Basra will soon be reopened.

(Source: INA)

By John Lee.

Egypt's Talaat Moustafa Group (TMG) has informed the Egyptian Stock Exchange that it has started "the necessary legal and technical procedures" to begin projects and investments in Iraq.

In July, company Chairman Hisham Talaat Moustafa was part of a delegation of Egyptian, Saudi, and Iraqi business leaders meeting with Iraqi Prime Minister Mohammed Shia' Al Sudani.

The company is known for real estate investment project, in particular the development of major residential projects, in addition to hotels and resorts.

(Source: Egyptian Stock Exchange)

By John Lee.

The Saudi Arabian Cabinet has approved a Memorandum of Understanding (MoU) with Iraq aimed at tackling money laundering and terrorist financing.

In a statement, the state-run Saudi Press Agency (SPA) reported that agreement involved, "exchanging financial investigations related to combating money laundering and terrorism financing between the Saudi General Directorate of Financial Investigation at the Presidency of State Security and the Iraqi Money Laundering and Countering Financing of Terrorism Office."

(Source: SPA)