Iraq signs seven investment contracts in partnership with the International Finance Corporation.

Shafaq News – The Iraqi government signed seven investment contracts today, Saturday, in partnership and financing with the International Finance Corporation (IFC).

This came during an official ceremony in which the seven contracts were signed, as follows:

A $500 million contract was signed with Basra Gas Company to invest in associated gas and develop Umm Qasr Port facilities.

A $250 million financing and expansion agreement with Al-Muhaidib Group for the cement and lubricants production sector.

A $125 million financing contract for container handling equipment and a storage yard at Umm Qasr Port was signed with Al-Lorraine Investment Company.

The first phase of the Green Residential Real Estate Development Project in Sulaymaniyah was awarded to Hiwa Rauf Investment Company for $65 million.

A $10 million credit line financing agreement was signed with the Bank of Baghdad to finance international trade.

An investment partnership was concluded to establish sustainable agricultural and industrial projects with Sama Al Manar/Teriyaki Agro, valued at $120 million.

A partnership was signed with Captain Ship Holdings to establish a $250 million teaching hospital, and a partnership was signed with Al-Ula SME Finance Company for advisory services and investment attraction development.

Prime Minister Mohammed Shia al-Sudani delivered a speech at the contract signing ceremony, in which he highlighted the importance of the partnership with the International Finance Corporation, given the distinguished capabilities of the private sector, which has demonstrated an effective presence in implementing reconstruction and development projects and has endured various forms of bureaucracy, corruption, and security challenges.

He explained that the government measures aimed at improving the business environment clearly led to attracting international companies to work and invest in Iraq, and the value of Arab and foreign investments reached (100) billion dollars in the volume of licenses and companies that have already begun implementing the investment.

Al-Sudani noted that attracting foreign capital has contributed to supporting the stability of the Iraqi economy and has encouraged other international financial institutions, including those from Germany, Italy, France, Britain, and China, to contribute to financing a significant number of development projects. He also noted that this has provided legal and administrative frameworks and removed red tape, creating more job opportunities.

Shafaq.com

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Al-Sudani: Investments in Iraq reached $100 billion in two years.

Shafaq News – Prime Minister Mohammed Shia al-Sudani said on Saturday that the government he heads truly believes in restructuring the Iraqi economy, which has been damaged by the wars and conflicts the country has witnessed. He emphasized that the volume of foreign and local investments has reached $100 billion in the past two years.

In a speech during the celebration of the Partnership Day between the International Finance Corporation and the Iraqi government, Al-Sudani said, “Since the beginning of this government’s work, we have been keen to strengthen our projects by utilizing international consulting expertise in planning and consulting for various projects. This certainly does not negate our national competencies in planning, implementation, and consulting, as much as it requires support.”

He added, “Our government truly believes in restructuring the Iraqi economy. Iraq cannot continue to rely solely on revenues to support the annual budget. We live in a world of change across all sectors: economics, politics, security, and even citizen demands, which have become a determining factor in the stability of any regime or state. We cannot delay meeting citizens’ needs, especially after years of delays due to wars and conflicts.”

Al-Sudani continued, “Our partner in realizing this vision is the private sector. It is the supporting partner in realizing our vision of restructuring the economy and enhancing its capabilities. We proudly say that our country is distinguished by the presence of distinguished capabilities from the private sector, which has proven an effective presence in many projects, enduring various conditions represented by bureaucracy, corruption at times, and obstruction. He emphasized that the private sector was present even in the presence of terrorism.”

He pointed out that the government’s measures to support the private sector and improve the investment environment were clear and led to the attraction of many international and regional companies to work on various projects. He added that the volume of foreign, Arab and local investments, the licenses granted and the companies that have begun implementing these investment projects have reached $100 billion in the last two and a half years.

The Prime Minister concluded his remarks by saying that the private sector has jobs equivalent to two ministries, and as a result, we rely on the private sector to provide job opportunities in Iraq.

Shafaq.com

To boost its reserves, Iraq revives an oil well that has been absent for three decades.

Shafaq News – Sources in the North Oil Company, affiliated with the Iraqi Ministry of Oil, revealed on Saturday that drilling operations had begun on the first oil and gas well in the Kifri A field, for the first time in more than three decades. This is a step that will boost the company’s crude oil and gas production capacity .

The sources told Shafaq News Agency, “The North Oil Company has started drilling the first new well in the Kifri A field after a hiatus of more than 30 years,” indicating that “the field is one of the company’s untapped assets and represents part of its discovered oil well stock .”

She added, “The company’s Projects Department has completed the first phase of opening the road leading to the field site, located on the Kirkuk-Baghdad-Diyala road, in preparation for securing the arrival of equipment. Housing sites will later be prepared for the technical and engineering crews that will oversee the installation of drilling rigs and commence implementation operations .”

The Kifri A field is classified as one of the “important oil fields in the region, and its operation is expected to contribute to raising the North Oil Company’s oil production rates in the coming years,” according to the sources .

The Iraqi Ministry of Oil announced in early June the signing of an exploration contract for the “Kafri A” exploration well, as part of a program to drill 15 exploration wells over several years, with the goal of maximizing Iraq’s oil and gas reserves .

According to the sources, the contract includes the Iraqi Drilling Company, the Oil Exploration Company, and the North Oil Company, and actual drilling operations for the well are expected to begin within about two months of the contract signing date .

She explained that “the goal of the (Kafri A) well is primarily exploratory, meaning to discover potential oil or gas at the site, and not simply to develop existing oil resources .”

The Kifri A field is expected to contribute to increasing Iraq’s oil and gas reserves, boosting production in the medium and long term if the presence of good hydrocarbon deposits is confirmed .

The signing of the contract comes within the framework of the Ministry of Oil’s strategy to maximize national production, utilize discovered but untapped resources, and enhance Iraq’s ability to meet the needs of the domestic and foreign markets for oil and gas .

In addition, oil expert Ali Abdullah said, “The commencement of drilling operations for the first oil and gas well in the Kifri A field will contribute to enhancing the production capacity of crude oil and gas in Iraq .”

Abdullah confirmed to Shafaq News Agency that “the field constitutes part of the discovered oil reserves and potential reserves in the region,” noting that “the goal of the exploratory wells is to discover potential oil or gas, and is part of the Iraqi Ministry of Oil’s plan to maximize oil and gas reserves in Iraq .”

The oil expert pointed out that “Kafri A field is considered one of the important fields, and its operation is expected to contribute to raising the North Oil Company’s oil production rates and enhancing oil and gas reserves in the medium and long term, if drilling operations result in good hydrocarbon reservoirs .”

This step represents part of Iraq’s efforts to maximize its oil and gas production, while leveraging the province’s existing infrastructure and supporting sustainable local energy development,” according to the oil expert .

Shafaq.com

Al-Abadi to Shafaq News: We did not boycott the elections and we support Al-Sudani’s second term.

Shafaq News – Victory Coalition leader Haider al-Abadi confirmed on Saturday that his coalition was not boycotting the elections, nor would it field any candidates. He also revealed his support for Prime Minister Mohammed Shia al-Sudani to win a second term.

Al-Abadi told Shafaq News Agency, “The Victory Coalition did not boycott the elections, nor did it field candidates in the coalition’s name in the legislative elections. Some members of the Victory Coalition participated in the elections as part of the State Forces Alliance, and we will support them with votes.”

He added, “The legislative elections will be held on the scheduled date, and we are close to implementing Prime Minister Mohammed Shia al-Sudani’s directives and supporting him in securing a second term.”

He continued, “Al-Sudani is the first prime minister from within Iraq, not from abroad, and that he gradually rose to this position, from mayor to governor, then minister before becoming a member of parliament, and finally becoming prime minister.”

The Victory Coalition announced at the end of June that it would not participate in the upcoming parliamentary elections, and would instead support the National State Forces Alliance. The coalition also considered the elections to be based on “political money and lacking in strictness in enforcing legal controls to prevent manipulation and vote-buying.”

Shafaq.com

Iraq moves to exploit its geographical location in the digital world to connect three continents

Shafaq News – The Iraqi Ministry of Communications unveiled new plans on Saturday to leverage Iraq’s unique geographic location, making it a key link between Southeast Asia and Europe via the Indian Ocean, the Arabian Sea, and the Gulf.

Basra Communications Director Mohammed Helou told Shafaq News Agency, “Iraq has a strategic location that allows for the efficient reception and transmission of digital capacities. Currently, there are submarine cables in service, such as FALCON and GBI, that transmit data from Southeast Asian countries and India to Europe. These existing projects are a first step towards investing in the Iraqi corridor for global communications services, and they represent the foundation upon which larger projects currently under implementation are being built.”

According to Al-Helou, “The past period included the signing of four contracts to install new submarine cables, the most prominent of which is the Toferica project, which is the longest in the world at 45,000 kilometers. This cable starts from Europe and descends to Africa via the Atlantic Ocean, then passes through the Horn of Africa and reaches Southeast Asia, before branching out to Iraq via the Arabian Gulf outlet.”

He explained that “work is expected to commence during the last quarter of this year, with the possibility of it entering service next year, marking a qualitative leap that will strengthen Iraq’s position on the international data map.”

Other projects, according to Al-Helou, include the Fiber In Gulf cable, which was signed last March with Ooredoo, and which represents a qualitative leap from a technical standpoint, as it consists of 24 fibers (optical fibers) with a massive transmission capacity of up to 720 terabits, and the total length of the route is 1,900 kilometers. Iraq is a key part of this project, which is currently in the stage of demarcating the route and obtaining the necessary approvals.

He pointed out that “the contract for the 27,000-kilometre North Gulf SMW cable is already in place, in addition to the Warlink cable, which is intended to connect databases.”

He considered these projects to be sovereign and would enhance Iraq’s position in the region, as the capacities would be unloaded at the Faw Port and later transferred to Europe via the national system, thus contributing to shortening the distance and solving the problem of delayed and weak data.

Helou concluded by saying, “Iraq will be a new hub for global digital development, and international companies will move to open data centers there, strengthening the country’s sovereignty and digital security.”

Shafaq.com

Launch of the Partnership Day celebration between the International Finance Corporation and the Iraqi government

The International Finance Corporation (IFC) and the Iraqi government launched a partnership day celebration a short while ago, under the patronage and attendance of Prime Minister Mohammed Shia al-Sudani. The official agency reported that “the partnership day celebration between the International Finance Corporation (IFC) and the Iraqi government was launched, under the patronage and attendance of Prime Minister Mohammed Shia al-Sudani.”

Burathanews.com

Source: Mysterious flight of five US aircraft over Makhmur, northern Iraq

Al-Ma’alouma / Baghdad:  An informed source revealed on Friday the mysterious flight of five US military aircraft over a vital area in northern Iraq.

The source told Al-Maalouma, “Since the early morning hours, intensive flights of five aircraft, most of them Chinook aircraft belonging to the US forces, have been observed in the skies of Makhmur district, north of Iraq, at very low altitudes, without knowing the nature of their activity in that vital area.”

He added, “The data indicates that the aircraft were carrying important equipment or materials, which explains why they were escorted by Apache helicopters as a form of protection.” He noted that “their flight in these conditions raises many questions, especially given the recent escalation in US air activity in the skies over Makhmour.”

It is noteworthy that Makhmur District is considered one of the important geographical areas in northern Iraq due to its vital strategic location.

Almaalomah.me

Economist: Weak refining capacity keeps Iraq dependent on fuel imports.

Al-Maalomah/Baghdad… Economic expert Ali Al-Furaiji believes that Iraq’s weak refining capacity has kept it dependent on fuel imports.

Al-Furaiji told Al-Maalomah, “Despite being the second-largest oil producer in OPEC, Iraq has relied on imported gasoline and kerosene for many years due to weak refining capacity.”

He added, “Domestic gasoline consumption reaches 28-32 million liters per day, equivalent to 176-201 thousand barrels per day, while diesel fuel needs 28 million liters per day.” He pointed out that “operated refining capacity amounts to about 1.3 million barrels per day after the Karbala refinery and Basra expansions come online.” He explained

that “actual gasoline production in 2024 covers about 21-22 million liters per day, leaving a gap that will be filled through imports, while Iraq has achieved near self-sufficiency in kerosene since 2024.”

He explained that “imports declined from 16 million liters per day in 2022-2023 to about 6 million liters per day in 2024, with the estimated cost of these imports amounting to $4.5 billion annually, a financial drain that could have been invested in developing refineries.”

Almaalomah.me

Iraqis cut food spending by a third due to rising living costs.

The Iraqi Ministry of Planning revealed on Friday that food spending by Iraqi families has halved. It used to constitute more than 60% of total income in recent years, and now falls to around 31-32%. This shift reflects a reallocation of resources toward housing, health, education, and other basic services.

The ministry’s official spokesperson, Abdul Zahra Al-Hindawi, told Shafaq News Agency, “In previous years, Iraqi families spent the largest proportion of their income on food, exceeding 60%. Today, however, this percentage does not exceed a third, which is consistent with living priorities and the distribution of spending across various life needs.”

He pointed out that “recent government measures have contributed to achieving relative stability in food prices, despite some slight increases in specific commodities ranging between 0.5% and 3%.”

Al-Hindawi explained that “the ministry’s reports showed a 0.1% monthly decline in inflation during July, reflecting a limited but significant improvement in light of the current economic conditions.”

Expert View

Economic researcher Ali Abdullah believes that the shift in Iraqi household spending from food to other sectors such as housing, services, and education indicates a change in consumption patterns, but it does not necessarily mean an improvement in purchasing power.

“When 60% of income was spent on food, it was a sign of the fragility of the living situation,” Abdullah told Shafaq News Agency. “Today, despite the percentage dropping to about 30%, the rising costs of housing, energy, and transportation have made the ultimate cost of living more burdensome for citizens. This means that citizens have not actually felt a reduction in the burden, but rather the location of this burden has shifted from food to other elements.”

The Citizen’s Voice

Baghdad resident Wafaa al-Rubaie agrees with the economist’s argument that the cost of living has risen, and that families previously spent most of their income on food. “Now we spend most of what we own on rent and bills.”

“Food prices may be relatively stable, but housing, electricity, and the internet take up the bulk of our salaries,” she told Shafaq News Agency. “Even entertainment has become a luxury we can’t even consider.”

Al-Rubaie added, “For example, my family’s monthly salary is close to 1.5 million dinars, but the rent alone consumes more than 700,000 dinars per month, and electricity, water, and internet bills are close to 300,000 dinars, leaving only a little for food and other necessities. Therefore, we feel our lives are becoming more difficult with every price increase.”

The cost of living is one of the most prominent economic indicators that determines a citizen’s ability to meet their needs, especially with the rise in housing rents. This is especially true given the significant disparity in employee salaries between ministries. There are departments where an employee’s salary does not exceed 600,000 dinars per month (approximately $430).

Service and Transportation Fees

The cost of basic services such as electricity, water, and internet for a small apartment amounts to approximately 150,000 dinars per month ($103), with bills rising during the summer due to the use of air conditioning units. Citizens are calling on the government to subsidize electricity and fuel prices to ease the strain on household budgets.

The price of a liter of regular gasoline is 450 dinars (about $0.40), while the monthly cost of public transportation per person ranges from 40,000 to 50,000 dinars (about $30,000 to $40), which represents an additional burden on household incomes, especially in areas lacking regular public transportation services.

Differences between cities

Figures indicate a clear disparity in the cost of living among Iraqi cities. Baghdad has the highest monthly cost per person, followed by Erbil, the capital of the Kurdistan Region, and Kirkuk Governorate. Nineveh Governorate has the lowest cost. This disparity reflects economic disparities and citizens’ purchasing power between the governorates.

Challenges and Conclusion

Today, Iraqi citizens face complex living challenges. While food expenditures have fallen by a third, the overall cost of living remains high due to increases in housing, energy, and services.

Experts emphasize that price stability for some commodities is not sufficient to achieve economic comfort unless accompanied by government policies that boost purchasing power and improve the quality of services.

According to economic researcher Ali Abdullah, “Iraq needs deeper reforms in fiscal policy and direct support for low-income groups so that citizens can feel a tangible change.”

Citizen Wafaa Al-Rubaie concluded by saying, “We’re not looking for a luxurious life. We just want to live with dignity, and not have most of our income go toward housing and bills.”

Shafaq.com