Iraq News Highlights and Points To Ponder Thursday AM 11-7-24

Economist: The Value Of The Dinar Will Decrease And The Financial Deficit Will Increase

Information/Special..  Today, Wednesday, economic expert Sadiq Al-Rikabi expected that the Iraqi economy would be negatively affected during the coming period and the value of the dinar would decline as a result of the political and economic changes that the world is witnessing.

Al-Rikabi said in an interview with Al-Maalouma Agency, "Iraq is in an unenviable economic situation in light of the expected decline in oil prices. The United States will depend on its oil, and the industry in China has declined relatively and no longer depends primarily on oil. In addition, the expected improvement in relations between Washington and Moscow will allow Russian oil to return to global markets."

He added that "Iraq's failure to diversify its sources of income and its reliance on a rentier economy and fixing the price of a barrel of oil at $70 in the financial budget will lead to a larger deficit and will affect salaries as well as the value of the dinar."

Recently, Iraqi officials confirmed that the turbulent political and security situation in the region, as a result of the Zionist aggression on Gaza and Lebanon and its repercussions, directly affects the Iraqi economy. LINK

Economist Criticizes Government's Neglect Of Tourism, Agriculture And Dependence On Oil

Information / Baghdad..Today, Thursday, economic expert Diaa Mohsen criticized the government's neglect of the tourism and agriculture sectors and its reliance only on oil revenues to finance the budget.

Mohsen said in an interview with Al-Maalouma Agency that "the political events that the region is going through are one of the reasons affecting oil prices," indicating that "the weakness of the Chinese economy, which is considered the largest oil-consuming economy, is the reason behind the decline in prices."

He added that "Iraq still depends on oil revenues, and this is considered a big mistake because any breach or concern in the oil market negatively affects the budget revenues," noting that "the official price of oil in the budget is $70 per barrel, and every dollar below that causes Iraq a loss of one billion dollars in budget revenues."

He explained that "Iraq committed itself to the agreement with OPEC Plus to reduce oil production by no less than one hundred thousand barrels per day, equivalent to two billion dollars annually."

He pointed out that "the legislative authorities must seriously consider diversifying revenues and not relying on oil alone, leaving the real economic sectors neglected, such as tourism with more than 31 outlets without investment, as well as the agricultural sector, which is only sufficient to produce wheat." LINK

Iraq Counts On The Grand Faw Port, And An Expert Says: It Will Change The Economy - Urgent

Economy |Today,   Baghdad Today – Baghdad  Economic expert Nasser Al-Kanani confirmed today, Thursday (November 7, 2024), that the Grand Faw Port will significantly change the Iraqi economy during the next stage.

Al-Kanani told Baghdad Today, "The Grand Faw Port has great importance on the economic and financial level, and this port will significantly change the Iraqi economy during the next phase, and thus the port will be a direct link between East Asia and Western Europe."

He said, "The port will drive the wheel of economic development in Iraq and will have great financial benefits for Iraq. Therefore, there is great governmental interest in this project and the speed of its completion due to its economic and financial importance for Iraq. This port will be a transport station for all countries in the region and the world."

Prime Minister Mohammed Shia al-Sudani arrived today, Thursday (November 7, 2024), at the Grand Faw Port in Basra Governorate.

A statement issued by his office, received by Baghdad Today, stated that Al-Sudani will sponsor the ceremony of receiving the five port berths from the Korean company implementing the work.

The port, which is being built by South Korea's Daewoo under a deal worth about $5 billion, is located at the mouth of the Shatt al-Arab, where the Euphrates and Tigris rivers meet before flowing into the sea. It is expected to be the largest port in the Middle East upon completion .

It will be built on an area of ​​54 square kilometers and has a capacity of 90 berths. The port’s “breakwater,” which is approximately 14,523 kilometers long, has entered the Guinness Book of Records as the longest breakwater in the world .

Two industrial zones, residential projects, and travel and tourism areas will be built around the port, which is being built in five phases, with the first phase of the port project due to be completed and operational by the end of 2025 . LINK

Al-Sudani: We Faced Major Challenges In Implementing The “Greater Iraq” Project

Construction and reconstruction   Economy News – Baghdad  Prime Minister Mohammed Shia al-Sudani said on Thursday that his government faced "major challenges" in starting to implement the vital development road project, considering the Grand Faw Port project to transform Iraq's historical geographical situation.

This came in his speech during the ceremony of receiving the five berths of the Grand Faw Port in Basra Governorate from the Korean company implementing the work.

In his speech, Al-Sudani described the Grand Faw Port project as “Iraq’s most prominent project and the people’s project,” announcing at the same time the receipt of the five docks that represent the backbone of the port project in its first phase.

He added that with the completion of the basic and important phase, the first phase will be completed next year according to the previous timetables. The process of docking of huge commercial ships on the port’s docks has also taken place, so that this project will be included in the contract and paths of global trade and transport routes that pass through the Middle East region, which is of great strategic importance to global trade.

Al-Sudani added, "Through this dream port that has become a reality, Iraq's historical geographical situation is transformed from a country in need of other people's ports to a maritime country overlooking the Gulf, which is the most prominent water basin in the world where energy, trade, communication and commercial exchange activities are concentrated in all their forms."

He stressed that the federal government, which he heads, is committed to completing the Grand Faw Port project as a gateway to Iraq's largest project, the Development Road, noting that the Development Road project represents the backbone of the government's vision to maximize non-oil revenues, and today we face major challenges in implementing it.

In April 2024, Iraq, Turkey, the UAE, and Qatar signed a quadripartite agreement on the Iraq Development Road Project, under the auspices of Iraqi Prime Minister Mohammed Shia al-Sudani and Turkish President Recep Tayyip Erdogan.

The agreement aims to enhance cooperation regarding the Iraq Strategic Development Path project, as the four countries will work to establish the necessary frameworks for implementing the project, according to a statement issued by the Prime Minister's Office.

The strategic project of the development road is expected to contribute to stimulating economic growth and strengthening regional and international cooperation relations, as it will achieve economic integration and sustainability between the East and the West.

The project will also increase international trade, facilitate the movement of goods, provide a new competitive transportation route, and enhance regional economic prosperity.

It is worth noting that the "Development Road" project is a land and railway road extending from Iraq to Turkey and its ports. The length of the road and railway is 1,200 kilometers inside Iraq, and it aims primarily to transport goods between Europe and the Gulf countries.

The project's investment budget amounts to about 17 billion US dollars, of which 6.5 billion is for the expressway, and 10.5 billion for the electric train. It will be completed in 3 phases, the first ending in 2028, the second in 2033, and the third in 2050.

The project is expected to provide about 100,000 job opportunities in the first phase, and one million job opportunities after its completion.  https://economy-news.net/content.php?id=49585