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.”

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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.

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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

Parliamentary Defense: The US decision to revoke the authorization for war against Iraq is a recognition of sovereignty.

Karim al-Muhammadawi, head of the parliamentary Security and Defense Committee, affirmed on Friday that the US Congress’ decision to revoke the 2003 Authorization for the Use of Military Force against Iraq represents an explicit recognition of the end of direct military intervention in the country and the return of full sovereignty.

Al-Muhammadawi said in a statement received by Shafaq News Agency, “We followed with interest the US Congress’ decision to revoke the authorization for the use of military force against Iraq, the authorization under which the war was launched in 2003 and opened the door to prolonged foreign interference in Iraqi affairs.”

He continued, “We in the Parliamentary Security and Defense Committee consider this decision a positive step, albeit a late one. However, it represents a clear recognition that the phase of direct military intervention in Iraq has ended, and that Iraq is now a sovereign state, managing its internal and external affairs through independent national decision-making.”

Al-Muhammadawi explained that “this decision reinforces Iraqi national efforts, which have been working for years to end all forms of foreign interference, and is consistent with the demands of Iraqi national forces to expel all foreign forces and regulate relations with the international community on the basis of mutual respect and shared interests.”

He emphasized that “Iraq has effectively begun to fully restore its sovereignty and will no longer allow itself to be an arena of conflict or a sphere of influence for any party. Such international resolutions must be effectively leveraged to enhance the independence of Iraqi decision-making and build partnerships based on full respect for national sovereignty.”

He concluded by saying, “We salute all the national and diplomatic efforts that have contributed to conveying Iraq’s voice to the international community, and we renew our commitment in the Security and Defense Committee to work to complete the sovereignty project and ensure that security and political decisions remain solely in the hands of the Iraqi state.”

Yesterday morning, Thursday, the Iraqi embassy in Washington announced that the US Congress had approved the revocation of the 1991 and 2002 authorizations for the war on Iraq.

The decision to revoke the authorization for war on Iraq is that the US Congress (the House of Representatives or the Senate) votes to repeal old laws that had granted US presidents (George H.W. Bush in 1991, and George W. Bush in 2002) broad powers to wage war on Iraq without having to return to Congress each time.

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“Iranian oil smuggling” puts Iraq in a predicament amid US pressure on Sudan.

The Foundation for Defense of Democracies (FDD) concluded that the Baghdad government has an opportunity to confront Iranian oil smuggling activities through Iraqi ports and waterways, warning of significant sanctions if smuggling is not curbed.

The American foundation stated, in a report translated by Shafaq News Agency, that “Iraqi Prime Minister Mohammed Shia al-Sudani announced on September 6 the formation of a committee to investigate the smuggling of Iranian oil through Iraqi ports and waters, and he affirmed that there would be no leniency in this matter.”

However, the report argued that the record of similar committees in the past, which investigate the activities of Iran-backed groups, indicates that perpetrators may not be held accountable. It noted that Tehran has devised numerous illicit schemes to generate revenue, relying on Iraqi companies, Iranian-backed militias, and government officials.

The report cited a 2024 Reuters report on oil smuggling operations generating between $1 billion and $3 billion annually.

He pointed out that Iranian oil is being smuggled by exploiting the control of government positions in the oil sector by Tehran-backed militias. He noted that the militias, many of which have political wings that form part of the ruling coalition, place their members and allies in key positions that control key elements of Iraq’s oil sector.

The report continued, stating that “in early September, the US Treasury Department imposed sanctions on an Iraqi national for smuggling Iranian oil as Iraqi oil, generating approximately $300 million annually for Iran and others involved in the scheme.”

He added that the ministry also targeted, in early July, a network run by Iraqi national Salim Ahmed Saeed for selling Iranian oil as Iraqi, implicating Iraqi officials. This network is believed to have transported billions of dollars’ worth of Iranian oil.

According to the US report, the idea of ​​forming government-affiliated investigative committees has previously largely failed to hold Iran accountable for a range of “malign activities” in Iraq. This includes, for example, the committee investigating drone attacks on military bases across Iraq last June. The committee concluded that the drones were manufactured outside Iraq, but did not specify the weapons’ country of origin.

As another example, he explained that “an investigation committee concluded, following a clash with members of the Hezbollah Brigades around the Agriculture Directorate, where a policeman was killed, that the militia was condemned and recommended the removal of two leaders from the brigades from their positions in the Popular Mobilization Forces. However, the government did not implement these recommendations, even though al-Sudani had approved them.”

Therefore, the report continued, the United States must pressure al-Sudani to ensure a fair investigation and swift action. It must inform al-Sudani that this committee represents an opportunity to put an end to the widespread illicit activity in Iraq that funds and assists the regime in Tehran. The United States must form the committee to be comprised of impartial experts and provide them with access to oil officials, sites, and associated companies, as well as records.

According to him, the Sudanese government must subsequently swiftly address the problems identified by the committee and implement a campaign of fundamental reforms to limit Iranian influence in the Iraqi oil sector and put an end to its evasion of sanctions.

The report concluded by stating that if this committee instead conducts a formal investigation and the government fails to implement this reform, the United States must expand its sanctions to include Iraqi oil officials who assist Iran and profit from its oil smuggling.

Shafaq.com

Laying down arms is a turning point. Iraq faces a golden opportunity fraught with risks.

Former Iraqi Foreign Minister Hoshyar Zebari described Iraq on Friday as having a “golden opportunity” to stand on its own two feet and move forward, both in terms of the investment climate encouraged by the government of Mohammed Shia al-Sudani, the overall improvement in the security situation, and the recent regional shifts in the balance of power.

In an interview with the English-language newspaper The National in Abu Dhabi, translated by Shafaq News Agency, Zebari said that Iraq is moving on multiple fronts, and they will hold national elections to choose a new government.

Economically, according to Zebari, Iraq is attracting foreign investors primarily due to improved security across the country, a decline in terrorist attacks and unrest, and its recent encouragement of American companies to invest, particularly in the oil sector.

According to the newspaper, several factors are encouraging this development boom, including an improvement in the security situation to levels unprecedented since 2003. This calm, particularly since late 2022, when the Sudanese government assumed power, has provided the confidence to launch infrastructure projects and implement reforms aimed at improving the business environment .

In this regard, Zebari was quoted as praising the “good intentions of the Iraqi government,” despite the unstable situation, warning in this context that the recent drone attacks targeting American investments in the Kurdistan Region could undermine investor confidence .

According to the former foreign minister, “The Iraqi government investigated this case, but when the investigation concluded, it did not name any of the perpetrators, which discouraged investors.”

More than anything else, Iraq needs an investor-friendly environment, security, a court, laws, and control over outlaws and militias, Zebari says.

After noting the government’s recent withdrawal of the Popular Mobilization Forces (PMF) bill following intense US pressure, the report quoted Zebari as saying, “The US position has been very explicit recently, unlike before, when they usually conveyed these messages through diplomatic channels. This time, however, they have openly and publicly declared that they will not support the passage of the PMF law.”

In the interview, Zebari addressed “positive change” in the region, pointing to the trend toward placing weapons and non-state actors under state control, as in Lebanon, Syria, and the Kurdistan Workers’ Party.

The report addresses regional power dynamics that have undergone dramatic shifts over the past year following the defeat of what it claims was the “Axis of Resistance.” The fall of Bashar al-Assad’s regime in Syria removed a central client state and a pivotal conduit for Tehran’s regional influence, linking Iran to the Mediterranean via Iraq and Lebanon. Iran’s grip on Iraqi militias has also weakened.

But the report quoted Zebari as saying that the fall of the Assad regime in Syria was a “turning point in the Middle East,” adding that it occurred “at a pivotal moment, and was a surprise to many regional powers. I believe it was a blessing for the entire region, even though the new rulers were unknown, but politics accepts the facts on the ground.”

The former Iraqi foreign minister, a prominent leader in the Kurdistan Democratic Party, concluded by saying, “Syria’s new rulers have achieved significant progress in less than a year, and they now enjoy acceptance and appreciation in the Arab world and internationally.”

Shafaq.com

Ministry of Foreign Affairs: US Congressional Resolution Confirms End of Conflict with Iraq

Ministry of Foreign Affairs – US Congressional Resolution Confirms End of Conflict with IraqThe Ministry of Foreign Affairs confirmed, on Friday, that the Congressional revocation of the war authorizations represents a step to strengthen the partnership with Washington and consolidates the principle of respect for sovereignty, while reflecting the development of relations with the United States. Undersecretary of the Ministry of Foreign Affairs Hisham Al-Alawi told the official agency, “The US Congress’ vote to revoke the authorization for the war on Iraq is a revocation of the old laws that had granted US presidents (George Bush Sr. in 1991, and George Bush Jr. in 2002) broad powers to wage war on Iraq without the need to return each time to Congress.”

He explained that “there were two basic types of authorizations: the first was the 1991 authorization to launch the Gulf War to liberate Kuwait from the occupation of Saddam Hussein’s regime, and the second was the 2002 authorization to launch the war on Iraq and topple Saddam Hussein’s regime.” He pointed out that “the importance of the cancellation at this time is due to the fact that Iraq is no longer under Saddam Hussein’s rule, and there are no longer legal justifications for the authorization to remain in place. In addition, the step will prevent any future US president from exploiting this law to launch military operations in Iraq or the region without congressional approval.”

Al-Alawi also stressed that “the decision is also a symbolic step toward improving relations with Iraq and demonstrating that the United States is no longer at war with it.” He noted that “the cancellation does not include ongoing operations, such as military cooperation against ISIS, as these are taking place within new agreements and understandings or with different approvals, and not based on the old laws of war.”

It is noteworthy that the US House of Representatives previously voted to repeal the legal justifications used to attack Iraq in 1991 and 2003, in the latest attempt by Congress to strip the president of his authority to wage war.

This move follows President Trump’s decisions to bomb Iranian nuclear facilities and strike a boat allegedly transporting illegal drugs in the Caribbean.

Lawmakers from both parties have long questioned the validity of keeping these mandates in place, arguing that they allow presidents to abuse their power.

The House of Representatives passed the measure by a vote of 261 to 167, with 212 Democrats and 49 Republicans supporting it. The bipartisan supplement is linked to the annual National Defense Authorization Act, which passed later Wednesday. The amendment was introduced by Democratic Rep. Gregory Meeks of New York and Republican Rep. Chip Roy of Texas.

During the House discussions, Meeks said that these authorizations were “long outdated” and “risk being abused by any administration of either party.” He added, “It is time for Congress to reclaim its constitutional authority over matters of war and peace.”

Republican Representative Brian Mast of Florida, chairman of the Foreign Affairs Committee, opposed the amendment on “procedural” grounds. He said, “I think there’s broad agreement on the reasons for terminating these authorizations, but it shouldn’t be done without the proper process for something of this magnitude.”

The Senate, which was controlled by Democrats in 2023, passed a similar measure with the support of 48 Democrats and 18 Republicans, but it was not brought to a vote in the House of Representatives, which was controlled by Republicans.

In the House of Representatives in 2021, 219 Democrats and 49 Republicans voted to repeal the 2002 authorization, but it stalled in the Senate, where both chambers had Democratic majorities.

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Ministry of Oil: Plans to build a pipeline from Basra to the Sultanate of Oman

The State Oil Marketing Organization (SOMO) confirmed on Friday that the signing of memoranda of understanding with the Sultanate of Oman came due to its strategic importance in marketing Iraqi oil, while indicating that there is discussion regarding the construction of a complete pipeline from Basra to Oman. The company’s general manager, Ali Nizar Al-Shatri, said in a statement to the official agency, “The signing of memoranda of understanding with the Sultanate of Oman comes due to its strategic location for Iraqi crude oil and petroleum products, as Oman has an outlet on the Arabian Sea and another on the Arabian Gulf at its beginning, before the Strait of Hormuz. The result is that its presence will be closer to our crude oil customers, as most of our exports are directed to Asia, and thus Asian customers will be able to load crude oil from those locations instead of taking the long route.”

He added, “There are also technical issues. The more open the waters are, the less impact bad weather will have. However, our ports in Basra suffer from bad weather, which forces us to halt exports. Therefore, going to Amman means going to an open region, and exports from there are more stable and consistent with our customers, while reducing the chances of disruption.”

He also pointed out that “discussions are open regarding the construction of a complete pipeline from Basra to Amman, which would achieve multiple outlets and increase export capacity, and would give Iraq the potential referred to by the Prime Minister regarding increasing quotas and production ceilings. This can only be achieved with the presence of local export and consumption capacity, and this was noted in the Prime Minister’s speech regarding increasing investments in the refining sector, which is important, while export capacity depends on the available export outlets.”

He continued, “Oman will play a major role in this area if the pipeline and tanks upon which the memoranda of understanding were signed are completed, as well as the commercial process, which is not without marketing aspects. The result is that when oil is stored in Oman, there is a cost that has been incurred, and this cost must be recovered. Iraq needs additional profits to recover the costs, and this can only be achieved through commercial integration.”

Al-Shatri explained: “This is why another memorandum of understanding was signed for trade integration between Iraq and the Sultanate of Oman, between the State Oil Marketing Organization (SOMO) and OQ Trading Company, an Omani state-owned company that has proven itself globally and internationally. We are currently in the process of discussing the details of the contracts, because the memoranda of understanding set the general roadmap, but we need the details of the contracts to complete them.”

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