Iraq News Posted by Clare at KTFA 5-21-2025

KTFA:

Clare:  Well-known companies show strong interest in Iraq

5/20/2025 - BAGHDAD

The National Investment Commission confirmed on Tuesday that "there is strong interest from well-known companies in Iraq."

"Iraq witnessed a significant influx of foreign investments over the past two years, exceeding $64 billion," said the head of the National Investment Commission, Haider Makiya, to the Iraqi News Agency - INA. 

This figure reflects the success of the investment planning that was completed in 2023. "We began to reap its fruits in 2024 and 2025," he noted.

He highlighted that "most of these investments belong to well-known companies operating directly within Iraq."

"The Prime Minister indicated in the Parliament the size of these investments, which exceed $60 to $63 billion," he pointed out.  LINK

Clare:  By the end of the year, Iraq will launch its first 250-megawatt solar power plant

5/21/2025

Minister Hayan Abdul-Ghani stated on Wednesday that the first solar-powered electricity generation plant in Iraq will be inaugurated by the end of 2025, stressing the ministry's commitment to implementing projects to stop the burning of associated gas and the resulting thermal emissions.

This came in a speech he delivered during the first international conference on carbon economics in Iraq, which was attended by a Shafaq News Agency correspondent in the capital, Baghdad.

In his speech, the minister said, "Iraq has realized the magnitude of the global climate challenge and the rapid economic and technological changes that are imposing themselves on the energy landscape."

He added, "Carbon emission reduction can be transformed into a real opportunity to attract financing and investment, and develop technology through carbon market mechanisms and carbon bonds." He added, "We have already taken steps in this direction, including paving the way for associated gas movement projects, achieving routine flaring by 2029, and preparing projects for carbon emission opportunities, through openness to international markets and bilateral cooperation with international partners."

Abdul Ghani also indicated that "the first solar-powered electricity generation station, with a capacity of 250 megawatts, will be inaugurated by the end of this year."

He continued, "We view carbon as an economic opportunity that can be transformed from an environmental tax into a financial economy through carbon investment, which will contribute to financing strategic projects without burdening the state's general budget."

The Oil Minister considered that "this conference represents an important link in the chain of national efforts aimed at building a low-carbon economy, enhancing Iraq's readiness to lead the way in climate leadership mechanisms in line with our commitments to the Paris Climate Agreement, and setting our ambitions to diversify sources of income."

He explained, "Under this agreement, Iraq was committed to reducing emissions by 2% by 2023, but we, the Ministry of Oil, were able to achieve more than this percentage with the first project implemented in Basra Governorate through the implementation of the first phase."

Abdul Ghani continued, "There are projects signed by the Ministry of Oil with several companies aimed at stopping gas flaring. Through these projects being implemented, greenhouse gas emissions will be reduced by more than 23%. This is almost ten times what Iraq committed to at the Paris Conference." LINK

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Clare:  Al-Eidani urges British companies to invest in three areas in Basra

5/21/2025

Basra Governor Asaad Al-Eidani called on British companies on Wednesday to register their businesses in the province, particularly in the water, energy, and infrastructure projects .

Following a meeting with the British Ambassador to Iraq, Irfan Siddiq, Al-Eidani told Shafaq News Agency that "the meeting addressed strengthening the historical relations between the United Kingdom and Iraq, especially Basra Governorate," explaining that "a number of service issues that affect the lives of Basra citizens were discussed, including water, public services, and infrastructure ."

He added, "Basra's environment is now ripe for investment, and we invite British companies to register their businesses in the province and take advantage of the available opportunities, especially given their extensive experience and the trust they have in Basra ."

In turn, the British ambassador told the agency, "This is his first visit to Basra Governorate since assuming his post," expressing his "happiness to visit the city and see its conditions ."

He stressed that "Basra represents the country's economic engine, with many joint projects and initiatives between Britain and Iraq there ."

He added, "We look forward to supporting and following up on these projects, particularly in the water sector, as well as the energy and infrastructure sectors, which are among the priorities and needs of the people of Basra and Iraq in general ."

The ambassador explained that his last visit to Basra was in 2010, and today he noted significant progress in the security situation and stability witnessed in recent years, which encourages British companies to invest in the province and Iraq in general .

In a related development, Al-Eidani discussed with the UAE Ambassador to Iraq, Salem Issa Al-Zaabi, ways to enhance economic and trade cooperation between the province and the UAE, stressing the presence of promising opportunities that can be built upon in the coming period.

Al-Eidani told Shafaq News Agency, "Basra has deep-rooted historical and cultural ties with the Gulf Arab states, most notably the UAE," noting that "there are many commonalities and opportunities that can be leveraged to enhance joint cooperation in a way that serves the interests of both countries and peoples."

For his part, Ambassador Al Zaabi told the agency that he was "very happy with this visit and to see the landmarks and investment opportunities that the governorate offers." He added, "We see great potential for economic, investment, and trade cooperation, and we hope that this visit will mark the beginning of a new phase in relations between the UAE and Iraq, particularly with Basra."  LINK

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Clare:  Minister of Finance: We are working to modernize regulations and enhance transparency and financial discipline.

5/21/2025 - Baghdad

Finance Minister Taif Sami confirmed on Tuesday that the ministry is working to modernize administrative and financial systems and enhance transparency and financial discipline, in line with the priorities of the government program and to consolidate economic stability.

The ministry said in a statement, seen by Al-Eqtisad News, that "Finance Minister Taif Sami received the economic team at the US Embassy in Baghdad to discuss ways of joint cooperation within the FSVC program to enhance economic and financial capabilities in Iraq."

The statement added that "the two sides discussed mechanisms to support the general budget and aspects of technical cooperation between the ministry and the US side in the areas of budget preparation and government accounting, through the program and performance budget implementation mechanism."

The Minister of Finance stressed - according to the statement - "the importance of benefiting from international expertise in supporting ongoing reforms," ​​noting that "the ministry is working to modernize administrative and financial systems, enhance transparency and financial discipline, in line with the priorities of the government program and consolidate economic stability."

The statement continued, "The US team expressed its readiness to provide technical and advisory support, especially in developing tools for preparing program and performance budgets, improving accounting systems, and developing financial information systems."

The statement concluded that "the two parties agreed to continue coordination and organize training workshops for ministry employees in a number of technical specialties, to support the implementation of best practices in public finance management and achieving sustainable development."  LINK

Clare: Iraq Facing Economic Challenges: IMF's Vision for 2025?

5/21/2025

The International Monetary Fund (IMF) issued a concluding statement on May 15, 2025, addressing the economic situation in Iraq, highlighting the economic challenges facing the country and presenting a roadmap for urgent reforms aimed at achieving financial stability.

Current Economic Challenges: The Iraqi economy faces complex challenges ranging from slowing global growth, Trump's trade wars, accelerating global inflation, and declining oil prices, the primary source of revenue. Expansion in government spending (employment sector) is also widening the fiscal deficit and exacerbating the risk of reliance on oil as the primary source of revenue.

The challenges are not limited to public finances alone, but also include deteriorating infrastructure, a weak private sector, and a lack of investment in non-oil sectors. This is in addition to the fiscal deficit rising to 4.2% of GDP and a significant decline in the current account surplus. This decline is a critical indicator that must be carefully considered, given that the current account is an important indicator of the health of the country's overall economy.

Outlook for 2025: The Fund expects economic growth to remain weak this year, with non-oil GDP slowing to 1%. The current account is also expected to deteriorate further, impacting foreign exchange reserves, which reached $100 billion at the end of 2024, covering more than a month of imports.

The future of the Iraqi economy: The International Monetary Fund believes that the future of the Iraqi economy depends largely on the government's ability to implement structural and financial reforms. Iraq possesses significant potential for economic growth, but realizing this potential requires taking concrete steps to implement a set of reforms proposed by the Fund.

The IMF statement emphasized the importance of cooperation between the Iraqi government and the IMF to implement these proposed reforms, which would contribute to improving the country's economic conditions. In conclusion, the IMF's vision is not merely recommendations, but rather an opportunity to redirect the Iraqi economy toward sustainability through strategic planning and effective implementation of the proposed economic and financial reforms.   LINK