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By John Lee.

The Kuwait Fund for Arab Economic Development (KFAED) has said it will provide two KWD 35 million (USD 224 million) loans to support the Gulf Electricity Interconnection System Project, which will export electricity from Saudi Arabia to Kuwait and Iraq.

According to a press release from the Fund, the financing constitutes 40 percent of the total cost.

These loans have a 12-year term with a 3-year grace period, repaid in 18 semi-annual installments at a 15.5 percent annual interest rate.

It adds:

"Kuwait stands to gain immensely from this project, with its network capacity boosted by approximately 3,000 megawatts (MW), optimizing operational efficiency. Additionally, the GCCIA will be able to supply 500 MW of electricity to southern Iraq."

The project involves constructing a 300-kilometer 400-kV double-circuit overhead transmission line connecting Saudi Arabia's Al-Fadhili converter station to Kuwait's Al-Wafrah station. It also includes converting an existing double-circuit line between Al-Fadhili and the Al-Zour of Kuwait into a new 25-kilometer 400-kV double-circuit line connecting Al-Fadhili and Al-Wafrah.

Furthermore, the project entails expanding the Al-Fadhili station with electrical circuit breakers to link it to Al-Wafrah, as well as extending overhead lines from Al-Wafrah to Sabah 3 and Sabah 4 stations to integrate with Kuwait's national electrical network.

(Source: Kuwait Fund for Arab Economic Development)

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

Will growing Saudi investment in Iraq hit Iranian roadblock?

Gulf Arab investment in Iraq has swelled in recent years, signaling a new and widening rapprochement with Baghdad.

Yet, while Iran and Saudi Arabia last year agreed to normalize relations, it is unclear whether Arab investment in Iraq -- without stoking Iranian ire -- is tenable.

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

By John Lee.

Iraqi Prime Minister Mohammed Shia' Al Sudani met with a delegation of Egyptian, Saudi, and Iraqi business leaders specializing in real estate development and integrated smart cities.

The delegation included Hisham Talaat Moustafa, Chairman of Egypt's Talaat Moustafa Group (TMG); Suleiman Abdul Qader Al-Muhaidib, Chairman of Saudi Arabian Al-Muhaidib Group, along Essam Abdul Qader, CEO of the group and Raed Ibrahim Al-Mudaheem, Development Director of the group; Yasser Qassem Zghair, Director of Al-Maysarah Group; and businessman Ahmed Talaat Hani.

According to a statement from the Prime Minister's office, the delegates specialise in real estate development and the establishment of integrated and smart residential cities. The meeting was attended by the Saudi ambassador to Iraq, Mr. Abdulaziz bin Khalid Al-Shammari.

Prime Minister Al Sudani invited the business leaders to invest in Iraq's tourism sector, highlighting the country's diverse tourist destinations. He emphasized that Iraq's development aligns with the economic interests of other Arab nations.

He noted that Iraq is undergoing rapid growth and recovery, presenting numerous investment opportunities, especially in housing and new city projects. The country requires approximately three million housing units, and the government is focused on building integrated cities with comprehensive services and amenities, connected to Baghdad by an advanced transportation network.

Al Sudani announced that the government has offered projects for five new cities in Baghdad and other provinces, with plans to launch 11 more cities. These projects aim to address the housing crisis, particularly benefiting low-income groups.

(Source: PMO)

By John Lee.

The Amman Chamber of Industry (ACI)'s exports to Iraq climbed by 9 percent in the first half of 2024.

Total exports to Iraq were 440 million Jordanian dinars [USD 621 million], up from 403 million JD for the same period in 2023.

This put Iraq in fourth place, behind India, the United States of America, Saudi Arabia.

(Source: Petra)

By John Lee.

The Chairman of the Federation of Saudi Chambers, Hassan Al-Huwaizi, has met in Riyadh with the Chairman of the Iraqi-Saudi Parliamentary Friendship Committee, Sheikh Shaalan Al-Karim.

According to a press release from the state-run Saudi Press Agency (SPA), the meeting explored investment and trade prospects and emphasized the importance of legislation that promotes investment.

Additionally, Saudi Gazette reports that the meeting discussed Iraq's preparation to introduce a law to protect Saudi Arabia's investments in the country, which is expected to be approved in the coming months.

The Federation also hosted a meeting of the Saudi-Iraqi Business Forum (Saudi-Iraqi Business Council) with the participation of prominent Iraqi parliamentarians, examining Saudi investment opportunities in Iraq and the challenges confronting investors.

(Sources: SPA, Saudi Gazette)

By John Lee.

The Iraqi Ministry of Communications, under the direct supervision of Minister Dr. Hayam Al-Yasiri, announced the signing of a contract for the deployment of the 2Africa Pearls undersea cable.

The agreement, signed with Gulf Submarine Cables Company owned by Saudi Arabia's STC, aims to route internet capacities from around the world through the Arabian Gulf and Iraq to Europe.

Minister Al-Yasiri highlighted that 2Africa's Pearls cable, which spans 47 global and regional landing stations, will strengthen Iraq's position as a secure transit corridor for international internet and telecommunications.

According to a press release from Iraq's Ministry of Communications, the project involves partnerships with major global companies including STC Saudi Arabia, Vodafone, MTN, Facebook, and China Mobile. 2Africa's website says the consortium includes eight members, namely, CMI, Meta, MTN GlobalConnect, Orange, stc (center3), Telecom Egypt, Vodafone, and WIOCC [West Indian Ocean Cable Company].

Al-Yasiri also announced the fulfillment of promises to enhance Iraq's geographic significance and revenue. The transit internet capacity through Iraq has surpassed one terabit via the Civilizations Pathway project, a significant achievement within just six months.

(Source: Ministry of Communications)

From Action Contre la Faim (ACF). Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Farmers in southern Iraq hit by water crisis

Situated at the crossroads of Iran, Kuwait and Saudi Arabia, Basra is surrounded by salt-stained desert plains and the flares of oil fields.

Known as the "Venice of the Middle East" in the last century, the city of Basra has lost its lustre. There is now little evidence of its former glory, and waste is piling up in the brackish water canals.

The full article can be viewed here.

By John Lee.

Saudi air carrier flynas has launched its first direct flight between Dammam and Al Najaf on Saturday.

An inaugural ceremony was held at King Fahd International Airport (KFIA) in Dammam, attended by HE Iraq ambassador to Saudi Arabia and representatives from flynas, the Saudi-Iraqi Coordination Council, the Saudi General Authority of Civil Aviation (GACA), and KFIA.

Meanwhile, the flight was received with a welcoming ceremony at Al Najaf International Airport, attended by the HE Saudi ambassador to Iraq and representatives from flynas. Three weekly flights will operate between Dammam and Najaf in central Iraq.

(Source: flynas)

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

Inside story: Saudi Arabia opens up to Iraq's Shiite shrines

Indicating a changing approach to Iraq, Saudi Ambassador to Baghdad Abdulaziz Al-Shammari has paid a highly publicized visit to a major Shiite shrine in the city of Karbala.

The ambassador was welcomed by Karbala Governor Nassif Al-Khattabi in addition to other civil and religious dignitaries, hailing a mutual desire for "economic and political integration in all fields."

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

By John Lee.

The Iraq Development Fund Board, chaired by Prime Minister Mohammed Shia' al-Sudani, held its third meeting on Monday in the presence of the Minister of Finance, the Minister of Planning, and the Minister of Construction, Housing, Municipalities, and Public Works.

The meeting discussed the projects included in the Fund's work plan, attracting foreign investment to the Iraqi economy, and within the framework of the Fund's projects and targeting the localization of various industries in Iraq, the requests submitted by the private sector for the purpose of building school buildings were discussed, as the requests exceeded what was offered for the project in its first phase.

The meeting also discussed:

• A project to build a factory to make of passenger buses, in partnership with an international company;
• A request to establish a factory for electronic tablets, to be used for educational process;
• The file of partnerships with American, British, and Saudi companies in the fields of modern irrigation technologies, the use of technology in this framework, as well as in the field of liquefying industrial gases and lighting roads and bridges.

It also discussed deadlines for the launch of the "Rent and Own" project, in order to contribute to putting forward practical and economic solutions to the housing crisis.

(Source: PMO)