Iraq Economic News and Points To Ponder Saturday Morning 6-6-26
Russia And Saudi Arabia Sign 30 Agreements At The St. Petersburg International Economic Forum
Money and Business Russia and Saudi Arabia continue to strengthen their cooperation in trade, investment and economic sectors, signing 30 agreements today during the St. Petersburg International Economic Forum.
The signing took place during the St. Petersburg International Economic Forum, and was attended by Russian Deputy Prime Minister Alexander Novak and Saudi Energy Minister Prince Abdulaziz bin Salman.
Novak said, following the signing ceremony, that Russia and the Kingdom continued to strengthen their bilateral cooperation and expand interaction in the areas of trade, investment and other economic sectors.
Novak said: "Today we can confidently say that we have achieved a true strategic partnership, which is embodied in the practical development of trade and investment between our two countries."
He added: “Around 30 agreements have been signed, and all of this is crucial for developing trade and economic cooperation between our two countries. The volume of trade is increasing, projects are being implemented on the ground, and there is continuous communication between our business communities.”
Novak revealed that the Saudi delegation was one of the largest delegations participating in the forum, comprising about 170 people, in addition to a large number of businessmen.
The Russian Deputy Prime Minister noted the convergence of views between the two countries on key international issues.
In closing, Novak said: "This year marks 100 years since the establishment of diplomatic relations between Russia and Saudi Arabia. Respect for each other's sovereign choices and respect for the cultures of our peoples has always been a solid foundation of bilateral relations."
For his part, Saudi Energy Minister Prince Abdulaziz bin Salman stressed the special importance the Kingdom attaches to Russia, saying: "It is wonderful that in Saudi Arabia we no longer need to explain how important and vital Russia is, both in our bilateral relations and for the world as a whole."
The Saudi energy minister also noted that the Kingdom's selection as this year's guest of honor prompted them to return the favor by demonstrating the importance of being here, saying: "We wanted to show how important and vital Russia is to us."
The St. Petersburg International Economic Forum kicked off Wednesday in St. Petersburg, with the participation of leading experts and decision-makers from around the world. The event will continue until Saturday. Saudi Arabia is the guest of honor at this year's forum, underscoring the strength of economic ties between Moscow and Riyadh.
https://www.economy-news.net/content.php?id=69889
International Monetary Fund: Iraq Among The Countries Most Vulnerable To Financial Pressures With Rising Debt In 2026
Money and Business Economy News – Baghdad A report issued by the International Monetary Fund showed that Iraq faces increasing financial pressures during 2026, due to the rising cost of government energy subsidies, increasing public debt, and rising borrowing costs in international markets.
According to the report, Iraq is estimated to be among the countries with high levels of energy subsidies, with the cost of subsidies reaching less than 6% of GDP, making the general budget more vulnerable to fluctuations in oil and gas prices, and increasing pressure on public finances if global energy prices continue to rise.
The IMF noted that Iraq is among a group of economies that have seen a significant increase in public debt compared to before the COVID-19 pandemic, as debt levels rose significantly in 2026 compared to 2019, within a regional trend that includes a number of countries with high fiscal deficits.
According to the report, this development coincides with rising sovereign borrowing costs in the region, increasing financing pressures on countries with large financial needs, including Iraq, in a global environment characterized by high interest rates and tighter financing conditions.
The Fund stressed that the continuation of these pressures poses challenges to fiscal policies in Iraq, especially with regard to the need to control spending, redirect subsidies, and enhance fiscal sustainability within medium-term frameworks, while maintaining the ability to finance basic services in light of the fragile regional economic environment.
https://www.economy-news.net/content.php?id=69926
Iraq recorded a sharp decline in imports during 2025
Money and Business Economy News – Baghdad International trade data on import values for 2025 showed a significant decline in the value of Iraq’s imports compared to the previous four years, after it had been among the top importing countries on the list.
According to the data, the value of Iraqi imports during 2025 reached approximately $51.1 billion, down from $87.4 billion in 2024, a difference of over $36 billion, representing one of the largest declines recorded compared to previous years. Observers attribute this to stricter financial compliance procedures through the Central Bank's electronic platform and the drop in oil prices.
Iraq had recorded a steady increase in the value of imports during the past years, as it rose from $60.9 billion in 2021 to $76.1 billion in 2022, then $85 billion in 2023, before peaking at $87.4 billion during 2024.
In the ranking of importing countries for 2025, Iraq came behind several countries including Colombia, Ukraine, Bangladesh, Pakistan and Kazakhstan, while it outperformed other countries such as Kuwait, Oman and Qatar.
The data is based on International Trade Centre calculations relying on United Nations Trade Statistics (COMTRADE) and International Trade Centre data. https://www.economy-news.net/content.php?id=69925
Iraq And Austria Discuss Ways To Expand Prospects For Joint Cooperation.
Money and Business Economy News – Baghdad The First Deputy Speaker of the House of Representatives, Adnan Faihan Al-Dulaimi, discussed on Saturday with the Austrian Ambassador to Iraq ways to expand the prospects of joint cooperation in various fields between the two countries.
The media office of the First Deputy Speaker stated in a statement received by "Al-Eqtisad News" that "the First Deputy Speaker of the House of Representatives, Adnan Faihan Al-Dulaimi, received in his guest house the Ambassador of the Republic of Austria to Iraq, Andrea Nasi."
He added that "during the meeting, all the latest developments on the local scene were reviewed, as well as an exchange of views on the most prominent regional and international developments and their implications for the region."
According to the statement, the First Deputy stressed "the need to raise the level of bilateral relations and expand areas of joint cooperation in a way that serves the mutual interests of the two friendly countries, especially in the economic and investment sectors, and the importance of resuming direct flights between Baghdad and Vienna as a supportive step to enhance trade exchange and revitalize tourism."
Faihan explained that “Iraq is proceeding with a policy of balanced openness and strengthening constructive partnerships with various countries of the world, based on a vision that is based on mutual respect and common interests, and in a way that contributes to supporting sustainable development efforts and achieving the country’s higher interests.”
The statement indicated that “the Ambassador of the Republic of Austria to Iraq, Andrea Nasi, expressed his country’s keenness to strengthen the partnership with Baghdad and develop areas of cooperation in various sectors, in a way that contributes to achieving the common interests of Iraq and Austria and serves the future of the two friendly peoples.”
https://www.economy-news.net/content.php?id=69922
Iraq Secures International Approval For $900 Million In Funding For Road Network Development Project
Money and Business Iraq Secures International Approval for $900 Million Road Network Development Project.
The World Bank announced on Friday its approval of a $900 million project to improve Iraq's road infrastructure.
In a statement, the Bank said the project will support Iraq's transport economic corridors through strategic investments in key road corridors that form a cornerstone for domestic transport, regional integration, and long-term economic growth. It will also enhance transport safety and reliability and open new opportunities for individuals and businesses across the country.
The statement added that road transport accounts for more than 90% of Iraq's total transport volume, yet most of the country's road networks suffer from poor infrastructure, deterioration due to climate stresses, and road safety hazards.
The project focuses on priority investments along two strategic axes: a north-south corridor connecting Baghdad to the Turkish border via the E2 highway, and an east-west corridor along the E1 highway linking Baghdad to both Syria and Jordan.
He pointed out that "the program, in its first phase, funds the rehabilitation of key sections of the E1 highway, helps improve the efficiency of specific roads in the Kurdistan Region of Iraq, and establishes the initial section of the E2 highway.
These investments combine to enhance the operational efficiency of Iraq's national road network and strengthen its resilience to climate change, while laying a solid foundation for future phases that will attract private sector capital and expand the scope of the transport corridor program."
The statement emphasized that "approximately 7.9 million citizens are expected to benefit from the project, the majority of whom live along newly constructed or upgraded roads, including about 3 million women and 1.5 million young people."
It further noted that "the project will benefit various regions of Iraq, from Baghdad to the Kurdistan Region and along the border corridors with Jordan, Syria, and Turkey."
The statement added that "the project will also support performance-based road maintenance contracts, create an enabling environment for sustainable partnerships with the private sector, and explore opportunities to generate income and revenue."
The statement concluded, “The Roads and Bridges Department of the Ministry of Construction, Housing, Municipalities and Public Works will implement the project with strategic supervision from a high-level steering committee that includes key national institutions and representatives from the Kurdistan Region of Iraq.” https://www.economy-news.net/content.php?id=69908
Al-Zaidi Travels To Washington With Businessmen And Promises To Inject $10 Billion Into The Private Sector.
Arabic and international Iraqi Prime Minister Ali Faleh al-Zaidi announced on Saturday an upcoming official visit to the United States, accompanied by businessmen, to expand mutual and joint investment opportunities, noting at the same time that the development fund is for the private sector and will absorb a contribution from the Central Bank worth $10 billion.
This came during Al-Zaydi’s reception of a number of businessmen, members of the board of directors and development of the private sector, members of the Iraqi Economic Council and a number of heads of boards of directors of private banks, in the presence of the Minister of Finance, the head of the Board of Advisors, the director of the office of the Prime Minister, and the head of the Higher Authority for Coordination between Governorates.
According to a statement from the Prime Minister’s Media Office, Al-Zaydi affirmed that the government relies on cooperation with the private sector to ensure the success of its reform efforts in the economy and development, and that it will adopt an open-door policy regarding the proposals, requests, and problems submitted by businessmen that require intervention and resolution.
Al-Zaydi stressed the fight against corruption and extortion, and called on all businessmen or companies not to be drawn into offering any sums of money to facilitate their work and obtain their rights, and that his door is open to any case of obstruction practiced by any element within the body of the state.
Al-Zaydi said that the private sector is a partner of the government, and we support its pivotal role in developing the economy. Our criteria for preferring the private sector are: “tax accountability,” “the size of the workforce and their inclusion in social security,” and “the size of the social benefits contributed to.”
He added: We have a project for one million residential plots, and we call on the private sector to contribute to its infrastructure. There must be a share for everyone who does not own a property, plot of land, or housing unit. We will cooperate with the private sector in preparing residential lands according to economic models that preserve the rights of the state and the citizen.
The Iraqi Prime Minister revealed an upcoming visit to Washington, saying: “We have an official visit coming up to the United States, and we will bring with us a number of businessmen to expand mutual and joint investment opportunities.”
Al-Zaydi pointed out that the development fund is for the private sector, and will absorb a contribution from the Central Bank worth $10 billion, and we will open subscription to contributions for all citizens, at the official value of the Iraqi dinar.
He explained that the profits of the Development Fund will be exempt from taxes, and will finance the establishment of new factories with new products needed by the Iraqi market. We have prepared monthly payments of approximately (1 trillion dinars) for the purpose of paying the dues of businessmen, companies, and contractors, and the payments will increase with the resolution of the crude oil export crises.
He noted that he had issued directives to resolve obstacles related to tax accounting and to remove any conflict in instructions, and everything that hinders progress towards the goal of preserving public funds. He also directed that all laws and decisions that do not facilitate economic development and impede the expansion of partnership with the private sector be studied.
For their part, the businessmen offered to expand consultations with the government regarding service and development projects and priorities, diagnose market needs, and find solutions to economic challenges in order to help the government achieve its goals. https://www.economy-news.net/content.php?id=69942