Thursday Afternoon Iraq Economic News Highlights 7-14-22

Al-Kazemi: This Is Something Biden Should Realize

Policy   2022-07-13 | 12:34  5,634 views  Al-Kazemi continued. Iraq Now it is a multi-party and multi-ethnic constitutional democracy. Yes, we are still in the protracted process of forming a new government after the elections last fall. It took a long time to form a government, which has really frustrated many inside Iraq And outside it.” He pointed out, “Hosting "I share that sentiment, but I am also proud of the state's ability to continue to serve Iraqi citizens, protect our natural resources, and play a leading role in regional initiatives that enhance prosperity and security."

He pointed out that "the political difficulties that result from the elections are an example of the confused conditions that democracy sometimes produces, and confirm the need to consolidate the principles of democracy in Iraqi public life, and to ensure its sustainability in a way that is not limited to the ballot boxes."

A successful democracy requires time, will and leadership, and as we stand on our two feet after the expulsion of ISIS from our land, we are able today to look towards better prospects, as our country is no longer a passive member of the international community; Parties that aim to enhance regional cooperation and stability.

Iraq in the last year, Baghdad Conference For cooperation and partnership with the leaders of Jordan, the United Arab Emirates, France, Qatar, Kuwait, and Egypt, with participation at the ministerial level from Turkey, the Islamic Republic of Iran, and Kingdom Saudi Arabia

The Prime Minister added, "This is evidence of my government's commitment to spare no effort to achieve stability in our country and the region. While we seek to de-escalate tensions by bringing the various parties together, we also strongly support respect for the sovereignty of each country and the need for non-interference in the internal affairs of other countries.

” And the fight against terrorism, the relationship is now expanding to include other no less important societal challenges, such as: the economy, energy, climate change, the environment, health, education, and culture. LINK

Al-Kazemi’s Advisor Presents A Solution To Protect The Iraqi Energy Market From The Fluctuations In The Crude Oil Markets

Economie   14:55 - 07-13-2022   Today, Wednesday, the financial advisor to the Federal Prime Minister, Mazhar Muhammad Salih, identified two factors that may stand behind the possibility of a recession in the global economy in the coming months, and while he explained the impact of this in Iraq, he proposed a solution to protect the Iraqi energy market from the fluctuations in the prices of crude oil markets.

Saleh said, "There are two factors for the possibility of the global economy heading towards economic stagnation in the coming months, as the first factor is the strict monetary policy of the strongest economy in the world, which is the economy of the United States, which will lead to the policies of raising interest rates undertaken by the US Federal Reserve to combat inflation at the general level."

For prices in the United States, the increase in investment costs and a decline in growth in the real sectors, which leads to a possibly slow decline in inflation growth, but will lead to a greater deterioration in the level of employment, higher unemployment rates and lower rates of growth in GDP.

He added, "There is an objective link between high rates of economic growth and high demand for energy resources, which will contribute to the stagnation of derived demand for crude oil in the global market," noting that "the same will apply to the economies of the eurozone by following strict monetary policies to confront the frightening European inflation." Currently".

He pointed out that "the second factor is the development of trends in the Chinese economy, which represents the second largest economy in the world, which has entered the phase of the Cold War with the West, which means that the growth of the Chinese economy will be indirectly affected by the global recession and various forms of economic boycott due to tension in economic relations."

The international community and its exposure to some Western commercial and technological isolation, as well as the inevitability of the Chinese economy being affected by the conditions of recession in global demand.

He noted that "China's imports of Russian crude oil are currently the highest among the sources of supply, and they are discounted in value by 40% per barrel, which means abandoning part of its imports from other currently high-priced oil markets from outside Russia."

He pointed out that "the aforementioned factors will undoubtedly lose the growth momentum in demand for oil energy resources in the world, which will cause some (glut) in the oil supply markets, which are highly elastic or deflationary demand factors that directly contribute to the further deterioration of prices.

The oil-exporting countries in OPEC and others, the potential glut in the oil market may cause price damage to the economy of Russia, the second oil producer in the world, whose daily production is estimated at about 11 million barrels of crude oil, most of which goes to export, to face a severe oil price war.”

He continued: "There is no doubt that Iraq, whose economy depends on crude oil exports, will be affected by the price drops (if they occur) and will undoubtedly cause a decrease in the country's financial returns, so a mechanism must be applied that is to go as an accelerated future view towards employing the accumulation of financial surpluses that are currently obtained and directing their spending with priority.

To finance large investments in the refining sectors of giant refineries and petrochemical plants to export petroleum products, whose added value rises to between 5-7 times compared to a barrel of exported crude oil.

He continued: "Therefore, it is necessary to adopt a policy of accelerated transformation from the policy of exporting crude oil to exporting oil products, in a manner that ensures the stability of the limits of Iraq's financial and economic sustainability from the fluctuations of oil markets during the next ten years."

He concluded by saying: “Thus, protecting the Iraqi energy market from fears of future crude oil market price fluctuations can only be achieved by raising the added value of the crude oil itself, by adopting a policy of manufacturing oil derivatives immediately by investing in (giant refineries with various products and few losses). ) as agreed upon by all energy experts in Iraq.    https://kirkuktv.net/AR/Details/7460

Airlines Begin Reverse Flights To Transport Iraqi Pilgrims

Iraq   10:27 - 07-14-2022  Airlines announced today, Thursday, the start of its reverse flights to transport Iraqi pilgrims from King Abdulaziz International Airport in Jeddah to Baghdad International Airport.

And it said in a statement, that Iraqi Airways carried out its first reverse flight to transport 344 Iraqi pilgrims from King Abdulaziz International Airport in Jeddah to Baghdad International Airport.

https://kirkuktv.net/AR/Details/7472

Electricity: The Cabinet Discusses The Electronic Collection Project After The Eid Holiday[/Size]

Iraq   09:42 - 07-14 2022   Electricity: The Federal Ministry of Electricity announced that the Council of Ministers will discuss the electronic collection project after the Eid holiday, indicating that the project includes providing energy service to agricultural and slum areas and its prices will not affect the citizen's income.

The ministry's spokesman, Ahmed Moussa, said, "The ministry's achievements are now on the ground," noting, "We have embarked on electronic collection projects, where if all collections throughout Iraq estimated the value of the supplied energy amounting to 4 trillion dinars."

He added, "Electronic collection requires the installation of smart meters, the organization of service to regions, and the rehabilitation of distribution networks for informal settlements," noting that the Ministry's opinion board decided to treat irregular subscribers as consumers and to deliver electricity to them.

He continued, "The electronic collection project was submitted to the Council of Ministers for the purpose of discussion, and we are waiting after Eid to discuss it and proceed with it," noting that "this project includes providing energy service to agricultural and slum areas."

He stated that "there are some steps that will precede this project," noting that "the energy prices within this project will not differ from the current prices, and will not affect the citizen's income."

https://kirkuktv.net/AR/Details/7469

Oil Prices Continue To Decline

Economie| 08:37 - 14/07/2022    Follow-up - Mawazine News:  Oil prices continued to decline, today, Thursday, with investors doubling the bets on the US Central Bank raising interest rates, which would control inflation and reduce demand for oil.

Brent crude futures for September fell 20 cents, or 0.2%, to $ 99.37 a barrel, after increasing 9 cents, on Wednesday.  West Texas Intermediate crude futures for August delivery were traded at $95.93 a barrel, down 37 cents, or 0.4%, after an increase of 46 cents in the previous session.

https://www.mawazin.net/Details.aspx?jimare=199298

Mosul Reconstruction Committee: A Number Of Projects Will Be Implemented Within The Emergency Support Law

Political | 09:42 - 07/14/2022   Baghdad - Mawazine News   The Mosul Reconstruction Committee announced, on Thursday, that Nineveh Governorate will witness the implementation of a number of projects within the emergency support law, while revealing the details of a visit to Baghdad by a team headed by Nineveh Governor Najm al-Jubouri, after the Eid holiday.

The Executive Director of the Committee, Abdul Qader Al-Dakhil, said that "the funds allocated in the emergency support law for Nineveh Governorate will be implemented through which a number of projects will be included by the Ministry of Planning."

In an interview with the official news agency, Mawazine News, Al-Dakhil added, "At the forefront of these projects is the improvement of the health sector's reality, especially since the city suffers from a significant shortage of beds."

He pointed out that "  He stressed, "All the problems that the governorate suffers from, the lack of funding and the need to implement projects, will be discussed during a team visit by the local government headed by the Nineveh Governorate, to the capital, Baghdad, after the Eid al-Adha holiday, to solve all the problems and resolve the issues that the governorate needs." https://www.mawazin.net/Details.aspx?jimare=199304

Foreign Workers..A Time Bomb That Threatens The Security And Economy Of Iraq

Posted On2022-07-14 By Sotaliraq   Iraq is witnessing a remarkable increase in the number of foreign workers coming from abroad, so that the country has become one of the countries that attract it, at a time when it is complaining about the high rates of unemployment among young people, especially among graduates and those with higher degrees.

There are more than a million foreign workers in Iraq who practice a variety of professions, where private entrepreneurs in various fields prefer foreign workers, given that they are willing to work for long hours and accept all jobs at low wages, and some of them resort to sleeping in the place where they work to provide housing rent.

Another reason for not employing citizens by private entrepreneurs is to stay away from the tribal and social problems that the Iraqi worker may cause with them in the event of any dispute, as well as his inability to pressure him to increase working hours, as happens with foreign workers.

But on the other hand, specialists warn of the phenomenon of foreign labor in Iraq, because of the negative effects it has on Iraqi youth looking for work, and the presence of most foreign workers is outside the country's official contexts.

They also warn that the presence of foreign workers inside Iraq poses a real danger on the security and economic levels, which calls for tightening their procedures, and taking the necessary approvals from the intelligence authorities.

To confront this phenomenon, the Iraqi Ministry of Interior sends foreign workers to their countries after it has been proven that they are illegal inside Iraq. It also refers companies in the private sector to the judiciary, for not complying with the decision to employ a percentage of local workers.

In turn, the Iraqi border guards are conducting intensive patrols to prevent the infiltration of illegal immigrants into the country, and in this regard, security sources in the Maysan Governorate Border Guard say, “The Border Guard regiments deployed on the border strip in Maysan Governorate managed to thwart the attempts of more than fifty infiltrators across the border with Iran during the month of July only.

Those sources explain that “these infiltrators were trying to reach the capital, Baghdad, in order to work, as many of them carry phone numbers of employers who have previously worked with them, and after they left Iraq to visit their country, they tried to repeat the process again, and this movement is all done by smuggling networks.”

Most foreign workers resort to finding a means of smuggling to enter Iraq due to the cost of the investment permit. Usually, employment offices use foreign workers based on investment permits that allow companies and investors to enter 50% of the required labor estimated for their projects. This is the fundamentalist way of their entry, according to the economist Nabil Jabbar. .

Jabbar added, “But obtaining these permits and obtaining approvals costs the investor, and the amount of administrative and bureaucratic pressures to pass and enter labor contributed to raising the costs of using labor, and therefore the entry of labor in this way (smuggling) exempts the investor from obtaining the permit through employment offices.”

And the Iraqi government passed a law years ago obligating all companies to employ 50 percent of Iraqi workers.

Article 30 of the Labor Law, which was enacted in 2015, stipulates that “administrations and employers are prohibited from employing any foreign worker in any capacity unless he has a work permit issued by the Ministry of Labor in return for a fee determined by instructions issued by the Minister,” while Article 31 of the law states: Preventing and prohibiting a foreign worker from joining any work before obtaining a work permit.

Specialized analysts believe that illegal foreign labor constitutes a drain on Iraq's financial resources, by converting hard currency into dollars and then taking it out through remittances, which threatens the cash reserve of the Central Bank of Iraq.

In this aspect, the researcher in economic affairs, Ahmed Eid, states that “foreign labor, especially illegal ones, greatly affects the Iraqi economy, because it increases the level of unemployment that Iraq suffers from.”

Eid stresses that "the most dangerous thing about foreign labor is that cash transfers threaten and drain the country's cash reserves from the country's hard currency, so strict controls must be placed on funds that are transferred abroad."

Regarding the legality of the presence of foreign workers in Iraq, the legal expert, Ali Al-Tamimi, points out that there is no law relating to foreign labor in Iraq, noting that “the applicable law is Labor Law 37 of 2015 and Foreigners Residence Law 118 of 1978, and these laws stipulated that the worker obtain a work permit as a condition Presence, passport, entry visa and other security conditions.”

Al-Tamimi explains that “the presence of these workers without plans is similar to the large number of imported cars, which has an impact on the economy, unemployment, foreign currency in the country and criminal security.” In front of the judiciary only to deport them to their countries.

Shafak Agency tried to speak with a number of illegal foreign workers present in the country, but they refused to make any statement to the media on the matter.

The unemployment rate in Iraq is 13.8 percent, while the poverty rate is 25 percent, according to the latest government statistics.

Iraqis have been protesting for years against the country's political system, against the backdrop of rising indicators of financial and administrative corruption, declining services, and high unemployment and poverty rates.  LINK

Four Countries, Including Iraq, Account For Half Of Oman's Industry Exports

Shafaq News / Amman Chamber of Industry announced today, Thursday, that four countries, including Iraq, acquired half of their exports during the first half of this year.

The Amman Chamber of Industry said in a report seen by Shafak News Agency that "the Chamber's exports during the first half of the current year 2022 amounted to 3.577 billion dinars, compared to 2.227 billion dinars for the same period last year 2021."

The Chamber added in its report that "Oman's industry plays a pivotal role in the Kingdom's trade balance, as it contributes 93 percent of the total national exports, with a value of up to 5 billion dinars annually, while the volume of investment in the sector is 15 billion dinars."

The report pointed out that "the exports of Jordanian industrial products spread in most regions of the Kingdom reach more than 142 markets around the world due to the export of 1,400 various commodities."

The Jordan Chamber of Industry pointed out that "India, the United States of America, Saudi Arabia and Iraq, accounted for more than half of the Chamber of Industry's exports during the first half of this year, registering a value of 1.911 billion dinars," noting that "Oman's industry exports to Iraq rose during the first half of the year. In 2022, it reached 291 million dinars, compared to 257 million dinars for the same period last year, with an increase of 13 percent.

The report indicated that "the Chamber's exports during the first half of the current year 2022 were distributed to the sectors of the mining, chemical, cosmetics, engineering, electrical and information technology industries, in addition to the exports of the sectors of the catering, food, agricultural, livestock, therapeutic, medical and leather supplies and other industries."

It is noteworthy that the Amman Chamber of Industry, which was established in 1962 and currently has 8,600 industrial establishments in its membership, employs 159,000 male and female workers with a capital of about 5 billion dinars.    LINK