Source: Kurdistan Share Dispute Delays Iraqi Budget Vote
2026-11-07 / 01:57 Shafaq News- Baghdad Disputes over provisions on the Kurdistan Region's share of Iraq's 2027 federal budget remain unresolved, a government source told Shafaq News on Saturday, after the Council of Ministers did not meet to vote on the bill.
Prime Minister Ali Al-Zaidi's office confirmed to Shafaq News that no cabinet session was held on Saturday.
The Kurdistan Regional Government (KRG) wants its share set at 14.14%, its proportion of Iraq's population in the latest census, and has rejected the 12.67% allocated under the current federal framework. Last month, a member of parliament's Finance Committee estimated Erbil's allocation in the draft at about 6%.
The bill has been stalled since the Finance Ministry sent it on Sept. 27 to the Ministerial Council for the Economy, which approved it and referred it to the cabinet. In early October, parliament's Finance Committee decided to summon Finance Minister Falih Al-Sari over the budget's priorities and its timeline for reaching parliament, saying it had not yet seen the draft.
Iraq has had no budget law for 2026, and the 2025 spending tables were never approved. Under the Financial Management Law, monthly government spending is therefore capped at one-twelfth of the previous year's outlays.
Read more: Kurdistan presses Baghdad to secure 2027 budget share
https://www.shafaq.com/en/Iraq/Source-Kurdistan-share-dispute-delays-Iraqi-budget-vote
From Madrid, Iraq Moves to Attract Spanish Investment and Expand Economic Cooperation
Madrid - INA - 11/06/2026 Iraq’s Ambassador to Spain, Ali Shamran, affirmed on Friday that economic diplomacy efforts are focused on attracting reputable Spanish investment firms to Iraq.
In a speech delivered on the sidelines of the launch of the Iraqi-Spanish Business Council in Madrid, attended by a correspondent from the Iraqi News Agency (INA), Shamran stated that "economic diplomacy serves as a fundamental pillar for developing relations between nations."
He added that the launch of the Council aims to strengthen economic ties between Baghdad and Madrid in a manner that serves mutual interests. He further invited Spanish companies to take advantage of the investment opportunities available in Iraq, particularly within the renewable energy sector.
For his part, Juan Luis Gimeno Chocarro, Director General for Economic and Commercial Information at the Spanish Ministry of Economy, Trade, and Business, emphasized that his country aspires to develop its economic relations with Iraq, placing great importance on the diversification and modernization of the Iraqi economy.
He noted that Spanish firms are already executing major projects in Iraq and that the joint business council has an agenda to be implemented gradually designed to bolster cooperation between the two nations.
Meanwhile, Abdullah Al-Jubouri, Chairman of the Iraqi-Spanish Business Council, explained that the Council seeks to build bridges of communication between the business communities of both countries and to develop joint investment opportunities in sectors such as healthcare, transport, technology, and tourism.
He underscored the commitment to fostering a favorable environment for Spanish companies and encouraging them to enter the Iraqi market.
For his part, Riyadh Al-Hashimi, Director of the Private Sector Development Department at the Ministry of Trade, affirmed that Iraq possesses significant investment opportunities, and the Iraqi market is open to Spanish companies—firms that hold the expertise and capabilities required to execute major projects across various economic sectors and contribute to the development process.
Meanwhile, Ahmed Al-Yasiri, Secretary-General of the Iraqi-Spanish Business Council, emphasized that the launch of the Council’s operations marks an important step toward strengthening the economic partnership between Iraq and Spain, noting that "the forum aims to achieve positive outcomes that will contribute to the advancement of trade and investment relations between the two nations."
From A Rentier Economy To International Openness: Unveiling The Path To Economic Reform In Iraq
Baghdad Today – Baghdad Economic expert Ahmed Abdel Rabbo confirmed today (Thursday, November 5) that Iraq is at a financial and economic crossroads that requires a shift from temporary palliative policies to comprehensive structural reforms, in order to ensure the sustainability of the national economy and enhance its integration into the global financial and trade system.
Abdul Rabbo told Baghdad Today that “raising Iraq’s credit rating represents the first step in the path of reform,” noting that “the country’s rating during 2026, at the level of ( B- ) according to Fitch and Standard & Poor’s agencies, and the level of ( Caa1 ) according to Moody’s, places it within the category of high-risk investments, as a result of the great dependence on oil, whose contribution exceeds 90%, despite the fact that the Central Bank has large and comfortable foreign reserves.”
He added that "the second step is to enhance international banking openness, by qualifying a number of local banks and ensuring that they meet compliance requirements, enabling them to open direct correspondent accounts with major international financial institutions, including Citibank and JPMorgan, to facilitate clearing and financial transactions and reduce reliance on international intermediaries, similar to the Saudi and Emirati experiences."
Regarding the regulation of foreign trade, the expert stressed "the importance of a gradual and mandatory transition from the traditional bank transfer system ( TT ) to the documentary credit system ( LC ), as it is a more organized and secure tool in financing international trade, and contributes to the distribution of risks and the protection of funds from manipulation."
He pointed out that "improving the credit rating and opening up the banking sector would achieve important economic returns, foremost among them reducing the cost of external borrowing to finance major projects, attracting sovereign wealth funds and international companies, which supports investment and provides new job opportunities, as well as enhancing the capabilities of local banks and supporting the stability of the purchasing power of the Iraqi dinar against the dollar."
Abdul Rabbo identified “a set of measures that should be included in the roadmap of the government and the Central Bank, most notably the enactment of reform packages to stimulate local production and the agricultural sector, and the activation of tax and customs automation, in addition to restructuring operational expenses and controlling the salaries item in the general budget, in a way that contributes to improving the efficiency of spending and raising Iraq’s ranking in international governance indicators.”
He also called for "tightening banking compliance standards, obligating the banks concerned to implement anti-money laundering ( AML ) programs and Know Your Customer ( KYC ) procedures, in accordance with international regulatory requirements, particularly the standards adopted by the US Federal Reserve, in conjunction with the Ministry of Commerce and the Central Bank taking measures to regulate traditional remittances and gradually restrict their use, and providing exemptions and incentives for traders who adhere to documented letters of credit."
The expert concluded by saying that “overcoming the rentier economy model is no longer a postponed option, but has become an economic and strategic necessity to ensure the future of future generations,” stressing that “population growth and youth energies represent Iraq’s real wealth capable of providing sustainable alternatives to oil, and the success of the competent government agencies in implementing these reform paths would pave the way for a more dynamic, diversified, competitive and integrated Iraqi economy in international financial markets https://baghdadtoday.news/307113-.html