Iraq Economic News and Points To Ponder Monday Morning 6-1-26
First Chinese Ship Arrives In Iraq Via The Strait Of Hormuz After Navigation Resumes
Money and Business Economy News – Baghdad The northern port of Umm Qasr received on Monday the first cargo ship coming directly from China via the Strait of Hormuz, after the resumption of maritime traffic in the strait.
The General Company for Iraqi Ports said in a statement received by "Economy News" that the ship "MV KSL XINYANG" docked at the port loaded with materials and equipment for the oil sector and various commercial goods, with a total weight of 29,720 tons.
In an exclusive interview with Shafaq News Agency, the Director General of the General Company for Iraqi Ports, Farhan Al-Fartousi, said that “Iraqi ports continue to receive ships and goods according to regular operational plans,” indicating that “the arrival of the ship reflects the continuation of commercial activity and the ability of the ports to maintain the smooth flow of imports despite the challenges that the region witnessed during the past period.”
He explained that "the ship carried equipment and materials designated for the oil sector, in addition to various commercial goods," noting that "the resumption of maritime voyages through the Strait of Hormuz and the return of shipping lines to normal operations enhance trade and support the confidence of maritime transport companies in Iraqi ports."
Al-Fartousi added that the arrival of the ship represents an indication of the stability of maritime traffic and the continued flow of goods to Iraqi ports, and confirms the readiness of the ports to deal with various operational changes.
https://www.economy-news.net/content.php?id=69744
Work: Salary Increase For Full-Time Employees Pending The 2026 Budget
Money and Business Economy News — Baghdad The Ministry of Labor and Social Affairs revealed that the issue of increasing the salaries of full-time caregivers and opening the door for new inclusion of people with disabilities is linked to the approval of the 2026 budget, stressing the continuation of its efforts in coordination with the concerned authorities to secure the rights and services for this segment.
The head of the Ministry’s Commission for the Rights of Persons with Disabilities and Special Needs, Dhikra Abdul Rahim, said, according to the official newspaper, that “the Commission hopes to include in the 2026 budget the schedules for increasing the salaries of full-time caregivers and opening up coverage to new ones,” adding that “the Commission has begun updating the Ministry of Finance’s data and schedules related to increasing their salaries, and has completed the procedures for issuing Mastercard cards to those with a disability rate of 75 percent or more.”
She added that "the Authority is working in parallel to study mechanisms for expanding the base of beneficiaries of the program, by opening new inclusions if the necessary allocations are available in the 2026 budget," revealing that "the number of beneficiaries of the full-time caregiver has reached 388,000 in Baghdad and the governorates, which reflects the size of the segment and the importance of providing the necessary financial support for it."
Regarding the housing file, Abdul Rahim indicated that "the Authority continues to address local governments in the governorates to allocate 5 percent of the land and housing complexes to people with disabilities, to enhance their opportunities to obtain suitable housing and improve their living conditions, within the framework of governmental efforts to support the rights of this group."
Regarding the project to issue identification cards for people with disabilities, she explained that "the Authority will communicate with the Cabinet to determine the appropriate mechanism, whether free of charge or for a nominal fee, with the aim of facilitating access for beneficiaries to theservices and privileges allocated to them."
Regarding the employment file, she confirmed that “the employment offices affiliated with the Authority in Baghdad and the governorates have so far registered 906 unemployed people with disabilities, and they continue to receive applications and update their data in a way that enhances their employment opportunities in the public and private sectors.”
She added that "the Authority continues to coordinate with the relevant authorities to provide real and sustainable job opportunities for this segment, in order to ensure their economic stability," explaining that "cooperation with the Federal Public Service Council has contributed to fixing the 5 percent quota allocated to them within government appointments, as well as reserving their shares within government contract grades."
Abdul Rahim noted that "the Authority is also monitoring the implementation of laws and instructions that obligate investment companies to employ people with disabilities at a rate of 3 percent of their staff, in coordination with the National Investment Authority, in order to contribute to providing equal opportunities to benefit from the energies and capabilities of this important segment of society." https://www.economy-news.net/content.php?id=69740
How did the Kuwaiti stock exchange cope with the geopolitical tensions?
Stock Exchange Economy News - Follow-up Fawzi Al-Dhafeeri, Assistant Vice President at Kuwait Investment Company, said that the Kuwaiti stock exchange dealt calmly with the recent military and geopolitical developments.
He added that the Strait of Hormuz represents Kuwait's main maritime outlet for exports and imports, and the automotive sector is the most affected.He pointed out that economic developments and current events are putting pressure on the performance of the first market stocks. https://www.economy-news.net/content.php?id=69754
The Judiciary Recovers 3 Billion Dinars In A Financial And Administrative Corruption Case.
Localities Economy News – Baghdad The Supreme Judicial Council announced on Monday the recovery of 3 billion dinars in a financial and administrative corruption case.
The judiciary's media office stated in a statement received by "Al-Eqtisad News" that "the Second Karkh Investigation Court recovered an amount of three billion Iraqi dinars, representing the proceeds of a financial and administrative corruption case."
He added that "the recovery process came about through diligent efforts and direct supervision from the court's chief judge," stressing "the continuation of legal procedures against violators who follow illegal methods to achieve profits that harm public funds." https://www.economy-news.net/content.php?id=69751
Shipping Companies Demand Clear Rules Before Resuming Navigation In The Strait Of Hormuz
Arabic and international Economy News - Follow-up Shipping executives meeting in Athens on Monday said that any peace agreement reached between the United States and Iran must include clear rules allowing ships to resume normal operations through the Strait of Hormuz.
Ship owners and shipping industry officials participated in the Capital Link conference and other events to kick off Posidonia, a biennial week-long shipping exhibition.
“What we need is of course a framework, or a set of rules, or anything that tells us exactly how we can come in and out, so even if a peace agreement is signed, that needs clarification, which we don’t know yet,” said Pankaj Khanna, president of Hydemar Maritime Holdings Corp., according to Reuters.
He added that the company has a ship stuck inside the Gulf for three months, and pointed to the impact on the sailors by saying, "It is clear that the sailors on board the ship are missing a lot, not only in terms of seeing their families, but also of birth, death and wedding occasions."
Greek Shipping Minister Vassilis Kikilias said: "Can anyone predict the end of the conflict? Unfortunately, no. It has been confirmed that there are no predictions, and that things get very complicated with regard to conflicts, and are very difficult to resolve."
He added: "Of course we hope there will be a solution. We cannot accept that ships cannot pass freely around the world. I wish they would leave the shipping industry, seafarers and global trade out of the equation, but that seems impossible."
“While insurance coverage is available, that doesn’t mean that shipping lanes are actually the route you can be prepared to take, at least until we have clear rules of engagement as a shipping industry regarding how we deal with the two countries involved here, the United States and Iran. Right now, this is a very high-risk issue,” said Yannis Procopiou, CEO of Centrofin Management. https://www.economy-news.net/content.php?id=69753
30 Million Liters Per Day Does Not Dispel Fears... What Is The Truth About The Gasoline Crisis In Iraq?
Reports Economy News – Baghdad While many Iraqi provinces are witnessing significant congestion at gas stations and a rise in gasoline prices among some street vendors, official, parliamentary, and economic explanations regarding the reasons for this phenomenon vary. Some assert that there is no real fuel crisis, while others believe the problem is related to a flaw in distribution and management. Still others point to a gap between local production and actual demand that requires urgent solutions.
The Ministry of Oil moved quickly to reassure citizens about fuel availability, confirming it has sufficient reserves to meet market demand. Rafid Sadiq, Director of Media and Public Relations at the General Company for the Distribution of Petroleum Products, part of the Iraqi Ministry of Oil, stated that demand for gasoline increased significantly during the Eid al-Adha holiday due to the surge in tourism and visits by citizens from central and southern Iraq to the Kurdistan Region and the holy sites in Najaf and Karbala.
Sadiq explained that the ministry is currently supplying approximately 34 million liters of gasoline daily to the market, noting that there is a large strategic reserve that allows for increased supply as needed. He denied the existence of a fuel crisis, emphasizing that the congestion observed at some stations is mostly related to the evening hours when a larger number of drivers head to refuel, while distribution operations continue normally.
These statements come at a time when long queues have been observed in front of a number of gas stations in different parts of the country, which has led to questions about the reasons for the congestion and the extent to which it is related to the decline in supplies, especially with the rise in gasoline prices at street vendors on the roads.
For her part, Iman al-Maliki, head of the Oil and Gas Committee in the Basra Provincial Council, indicated that part of the crisis is related to logistical factors concerning the transportation of petroleum products. She explained that the increased transportation costs have directly impacted the quantities of gasoline reaching the province.
She added that there are concerns about delays in Basra entering the large-scale production phase of premium gasoline following the commissioning of the FCC project, which has not yet reached the expected level of actual production.
In an economic analysis of the situation, economist Mustafa Faraj believes that gasoline production in Iraq reaches approximately 30 million liters per day, with reserves nearing 135 million liters. He asserts that these figures are practically sufficient to meet market demand, and that the problem is not related to production capacity or a fundamental shortage in available quantities. He points out that current production capacity exceeds official demand, suggesting an administrative and organizational flaw rather than an actual fuel shortage.
Faraj adds that the real reasons for the crisis lie in weak distribution management and quota systems, which directly impacted the smooth flow of supply, as well as a sudden increase in consumption in some areas, particularly with the surge in vehicle traffic during holidays and the influx of pilgrims to the holy cities, where consumption rose to approximately 33.5 million liters per day.
He also pointed to administrative complexities related to financial policies, explaining that any distribution system aimed at rationalizing spending may result in reduced quantities allocated to stations, even if production is theoretically available.
The economist believes that the crisis's impact on some service sectors is not so much due to a lack of production as it is to organizational and administrative problems. He pointed out that the suspension of some flights at Najaf Airport was a result of these issues, noting at the same time that the electricity sector is already suffering from a shortage of natural gas and a decline in the capacity of some power plants, which increases reliance on diesel generators and intensifies the pressure on available fuel.
In contrast, MP Mohammed Jassim Al-Khafaji offered a different explanation for the crisis, considering that the temporary shortage witnessed in some governorates during the past days is due to the Ministry of Oil’s commitment to the fuel quotas allocated to the governorates without increasing them, despite the large increase in the number of visitors arriving in religious cities, especially Karbala.
Al-Khafaji stated that Karbala received a large number of visitors recently, leading to a surge in demand for gasoline that exceeded the province's allocated quota, resulting in a limited shortage in distribution. He added that efforts are underway to address the issue and increase the province's quota for upcoming events and pilgrimages.
He explained that domestic production is approximately 30 million liters per day, while actual consumption reaches about 34 million liters per day, resulting in a deficit of approximately four million liters per day, which was previously covered by imports. He noted that imports currently face several challenges, including government policies, current import difficulties, and the high cost of imported fuel. This has led the Ministry of Oil to allocate specific quotas to the provinces, representing the minimum of their daily needs.
Al-Khafaji confirmed that any increase in demand due to religious occasions or mass pilgrimages leads to temporary supply shortages, causing some stations to run out of gasoline and temporarily cease operations. He also noted that a larger strategic reserve would have helped to address the current deficit, but the available quantities are insufficient to meet the increased demand during peak periods.
He indicated that the Ministry of Oil is currently working on solutions to the crisis, whether through resuming imports or increasing production, suggesting that importing is the most likely option at this stage, given that refineries are operating at maximum capacity. He concluded by affirming that the relevant authorities are monitoring the situation to ensure a stable fuel supply and improved distribution flow in the coming period.
Between the official narrative that confirms the abundance of fuel and the absence of a real crisis, the economic estimates that attribute the congestion to problems in management and distribution, and the view of some local officials and deputies who speak of a gap between production and consumption and restrictions on the quotas allocated to the governorates, the scene remains linked to the ability of the concerned authorities to manage the increasing demand during the visitation and holiday seasons, and to ensure that fuel reaches all areas in the required quantities, in order to prevent the temporary congestion from turning into a wider crisis in the coming period. https://www.economy-news.net/content.php?id=69749