Custom Search

By John Lee.

Further details have been announced regarding Qatar's major investment in Iraq.

Estithmar Holding Q.P.S.C. has said in a statement that it has signed three MoUs with Iraq's National Investment Commission (NIC) with a total value of 7 billion US dollars to develop new modern comprehensive cities, 5 stars hotels and also manage and operate several hospitals in Iraq.

MoU's were signed by Dr. Haider Muhammad Makiya, Chairman of the NIC, and Mr. Ramez Al-Khayyat, Vice Chairman of Estithmar Holding.

The first MoU outlines the development of two modern cities encompassing various sectors such as commercial, residential, and entertainment. These cities will be constructed in adherence to the highest international standards, aiming to foster sustainable economic development and promote investment opportunities in Iraq. The objective is to support the country's sustainable economic growth and attract investments.

Mr. Al-Khayyat said the housing shortage in Iraq is estimated at two million units, adding that these new cities will include residential complexes, villas, schools, commercial complexes, entertainment centers, as well as other essential facilities and services. The necessary infrastructure will also be established to support the construction of these cities.

The second MoU focuses on the development of luxury hotels and resorts to bolster the Iraqi economy and promote domestic and international tourism. It also aims to provide innovative solutions to overcome challenges faced by the hospitality sector while addressing a portion of the shortfall of 10,000 hotel rooms in the Iraqi tourism market.

The third MoU involves Elegancia Healthcare W.L.L., a subsidiary of Estithmar Holding, which will undertake the management and operation of multiple hospitals in Iraq. This initiative underscores Estithmar Holding's commitment to its global expansion strategy and the provision of world-class medical services to communities worldwide.

It is anticipated that Estithmar will commence the implementation of these projects by the end of this year.

Furthermore, Mr. Al-Khayyat emphasized the significance of the robust and strategic relations between Qatar and Iraq, highlighting their potential to contribute to the social and economic development of Iraq. He also acknowledged the favorable investment environment in Iraq, which presents various opportunities across multiple sectors.

(Source: Estithmar Holding)

By John Lee.

Iraq and Qatar have solidified their bilateral relations through the signing of several agreements and memorandums of cooperation.

Prime Minister Mohamed Shia Al-Sudani and the Emir of Qatar oversaw the signing ceremony, emphasizing comprehensive cooperation in politics, economy, energy, and investment.

A joint declaration of intent was signed, paving the way for collaboration between the two governments in various sectors.

Agreements were reached in the fields of air and maritime transport, aiming to enhance connectivity between the two nations. Additionally, a memorandum of understanding was established to waive visa requirements for holders of diplomatic passports.

Furthermore, a series of energy-related memorandums of cooperation were signed during the visit. These encompassed crude oil and liquefied gas supply to Iraq, as well as the establishment of a joint oil company and a new refinery.

In terms of investment, four memorandums of cooperation were inked with prominent Qatari entities. Iraq's National Investment Commission (NIC) entered into agreements with Qatar's Urbacon Holding Company (UCC Holding) [a subsidiary of Power International Holding (PIH)] and Elegancia Healthcare, a subsidiary to Estithmar Holding. Another two memorandums were signed with the Qatari Investment Holding Company, focusing on the development of new cities and the construction and enhancement of hotels.

According to Oil & Gas Middle East, the Urbacon agreement is a 25-year public-private partnership to build two power plants. It will involve an investment of $2.5 billion and have a combined capacity of 2.4 GW.

(Sources: Media Office of the Prime Minister, Oil & Gas Middle East)

By John Lee.

Iraqi Prime Minister Mohammed S. Al-Sudani has held talks in recent days with representatives of business interests from several countries:

On Monday, the Prime Minister received the President of the US-Iraqi Business Council, and the Vice President of the American Chamber of Commerce for Middle East Affairs, Mr. Steve Lutes. The meeting covered various topics including economic, financial, and health cooperation, as well as energy and environmental partnerships between Iraq and the United States. Additionally, the focus was on strengthening the Strategic Framework Agreement between the two countries, prioritizing the advancement of these areas as outlined in the government program. The Prime Minister emphasized the government's commitment to creating a secure investment environment for international companies through the implementation of laws and regulations. He highlighted the numerous investment opportunities available in Iraq, and expressed optimism about the potential arrival of major companies.

Also on Monday, he received a delegation of German company representatives, accompanied by the German Ambassador to Iraq, Mr. Martin Jaeger. During the meeting, they discussed the practical implementation of agreements made during the Prime Minister's visit to Berlin in January, focusing on cooperation and partnership opportunities across multiple sectors. The Prime Minister highlighted the growing development of the relationship between Iraq and Germany, emphasizing that Iraq is open to all kinds of economic partnerships with its friends and partners. He noted that Iraq's current state of security and economic stability serves as an encouraging factor, supported by both official and popular desire from all parties for the success of Iraq's economy.

He also received a delegation of prominent businessmen and investors from the United Arab Emirates (UAE). The delegation was headed by Mr. Abdullah Mohamed Al Mazrouei, Chairman of the Federation of UAE Chambers of Commerce and Industry. He expressed a shared desire to explore new opportunities for joint economic cooperation and strengthen existing partnerships. The Prime Minister highlighted the ambitious investment opportunities in Iraq and expressed the country's readiness to make a significant economic leap toward sustainable development and the achievement of its goals. He pointed to the successful investments made in Iraq's energy and petrochemical sectors as examples of the country's potential for growth and development. The Prime Minister emphasized that the government has a clear and actionable plan and is committed to tackling bureaucracy and providing the necessary resources to establish a conducive investment environment.

On Tuesday, the Prime Minister received a delegation of businessmen and investors from the Qatar, headed by Sheikh Nawaf Bin Nasser Al-Thani. During the meeting, Prime Minister Mr. Mohammed S. Al-Sudani emphasized Iraq's commitment to economic openness, both regionally and internationally. He highlighted the government's dedication to establishing productive partnerships in the investment sector, with a particular focus on capitalizing on the available economic opportunities. These opportunities include renewable energy initiatives, as well as the strategic utilization of associated gas and petrochemicals.

(Source: Media Office of the Prime Minister)

Statement from US National Security Advisor Jake Sullivan Welcoming Developments in Iraq's Energy Sector

We welcome significant progress in Iraq this week with respect to energy deals that further strengthen Iraq's sovereignty, independence, and economic prosperity.

First, the Government of Iraq and the Kurdistan Regional Government reached a historic agreement on the export of oil and management of revenues through the Iraq-Turkey Pipeline. This agreement paves the way for a multi-year budget now before Iraq's Council of Representatives and an eventual hydrocarbons law for long-term stability and predictability in Iraq's energy sector.

Second, the Government of Iraq reached an unprecedented $27 billion deal with France's TotalEnergies, including a project to enable the recapture and use of flared gas in southern Iraq. Once implemented, this historic project will increase electricity supply for the benefit of the Iraqi people, advance Iraq's energy self-sufficiency, reduce harmful climate effects from flared gas in southern Iraq, and allow for the export of gas products to new markets.

We are pleased that companies from Qatar, Saudi Arabia, and the United States will play important roles in this infrastructure project. The United States is proud to support these and other regional projects and ongoing diplomatic initiatives to advance a more stable, interconnected, and prosperous Middle East region, which ultimately benefits the United States and the American people.

(Source: The White House)

By John Lee.

TotalEnergies has confirmed that it will proceed with the Gas Growth Integrated Project (GGIP) in Iraq.

In a statement to the markets on Wednesday, it added that QatarEnergy to take a 25-percent stake in the project.

Also, in agreement with Iraqi authorities, TotalEnergies will invite the Saudi company ACWA Power to join its 1GW solar project in Basra.

The full text of the TotalEnergies statement follows:

While confirming all the terms of the Development & Production Contract signed in 2021, TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) and the Iraqi Government have, through exchanges in the past months, including in 4 occasions between Prime Minister Al-Sudani and Chairman & CEO Patrick Pouyanné, jointly defined the necessary conditions and mutual insurances to move forward with the Gas Growth Integrated Project (GGIP).

The Iraqi Government and TotalEnergies have agreed on a 30% stake for the Basrah Oil Company (BOC) in the GGIP. Furthermore, in agreement with the Iraqi Government, TotalEnergies has invited QatarEnergy to take a 25% stake in the GGIP.

The consortium will thus be composed of TotalEnergies (45%), Basrah Oil Company (30%) and QatarEnergy (25%).

TotalEnergies welcomes the continuity of the voice of the State of Iraq on this Development & Production Contract, which is a strong and positive signal for foreign investment in the country.

Signed in September 2021, the GGIP has for main purpose to enhance the development of Iraq's natural resources to improve the country's electricity supply.

According to these agreements, TotalEnergies and its partners will invest approximately $10 billion (100% share):

• to recover flared gas on three oil fields in order to supply gas to power generation plants,
• to build a seawater treatment plant in order to provide water injection for pressure maintenance to increase regional oil production, as an alternative to the use of fresh water from rivers and aquifers.

Furthermore, TotalEnergies will develop a 1 GW solar power plant to supply electricity to the Basrah regional grid. In agreement with Iraqi authorities, TotalEnergies will invite the Saudi company ACWA Power to join this solar project.

(Source: TotalEnergies)

By John Lee.

Dubai-based Value Added Distributor (VAD) Mindware has reportedly announced that it has extended its region of distribution with Dell Technologies to cover Jordan and Iraq.

According to Trade Arabia, Toni Azzi, General Manager at Mindware Qatar, Africa and Levant, said:

"Both locations are growing economies and with digital transformation initiatives taking place across multiple sectors in the country, there is need for technology infrastructure in both private, as well as public sectors. As regional distributor for Dell Technologies, we see our company playing a major role in developing and growing the vendor's business in these countries and moving it to the next level."

It adds that Mindware currently transacts with over 400 channel partners in Jordan and Iraq, including system integrators, corporate and SMB resellers, cloud providers, independent software vendors (ISVs), integrated service partners (ISPs) and small computer retail stores.

(Source: Trade Arabia)

Iraq, at the crossroads of several trade routes in the Middle East, has become the 78th country to accede to the United Nations TIR Convention.

Iraq's accession to the TIR Convention anchors its strategic role as a transit hub and supports the country's economic vision to expand its non-oil sectors.

The TIR system will boost regional trade and stimulate economic development and stability in Iraq and the wider region.

IRU Secretary General Umberto de Pretto said:

"We are thrilled that Iraq has joined the TIR system.

"This development will allow Iraq to fulfil its huge potential as a regional trade hub, supporting east-west and north-south connectivity.

"Iraq's accession to the TIR Convention is a golden opportunity to confirm the country's readiness to leverage the potential of international trade in supporting economic growth and driving prosperity and development."

Globally recognised for its high security standards and efficiency, the TIR system has been rapidly expanding in the Middle East. From Oman and the United Arab Emirates to Saudi Arabia, and most recently in Qatar, TIR is already significantly reducing border-crossing times and boosting trade in the region.

(Source: IRU)

Continuing his meetings in Germany on the sidelines of Munich Security Conference last week, President Nechirvan Barzani met with His Excellency Sheikh Mohammed bin Abdulrahman Al-Thani, the Deputy Prime Minister and Minister of Foreign Affairs of the State of Qatar.

The meeting focused on Qatar's relations with Iraq and the Kurdistan Region and their joint cooperation to further expand their bilateral relations.

His Excellency Sheikh Mohammed Al-Thani reiterated Qatar's willingness to expand job and investment opportunities in Iraq and the Kurdistan Region and expressed hope that greater opportunities for Qatari private sectors emerge in the Kurdistan Region. The President offered the support of all relevant institutions in the Kurdistan Region for Qatari business and investment ventures.

Both sides agreed on the importance of working to maintain peace and stability in the Middle East and reaffirmed the importance of resolving conflicts peacefully. In this context, they also discussed the constructive standing and role of both sides in the wider region.

(Source: KRG)

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

China Makes Big Moves To Secure Iraqi Oil

Whilst the U.S. and its allies appear to be taking a subtle approach to advancing their remaining interests in Iraq, as hinted at by the Qatar's talks to buy a 30 percent stake in TotalEnergies' US$27 billion project package, China seems to be taking a more direct route to what it wants.

Click here to read the full report.

By John Lee.

TotalEnergies is reportedly pulling its foreign staff out of Iraq as it struggles to finalise a deal with Baghdad for its $27-billion package of energy projects.

According to Reuters, the negotiations have stalled over a demand from Iraq for a 40-percent share in the projects.

The head of the Basra Oil Company (BOC) told the news agency that he expects Qatar to acquire a 20- to 25-percent stake in the project.

More here and here.

(Source: Reuters)