An economist proposes a solution to address the current financial bottlenecks in Iraq.
Economist Nabil Al-Marsoumi has put forward a proposal to resolve what he calls the "financial bottlenecks" facing Iraq, considering it a necessity to overcome the problem.
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This comes as the government has delayed disbursing pensioners' salaries for the current month. Officials have confirmed a liquidity crisis in state coffers, and experts warn that it will soon affect all employees. The government has officially denied the problem.
Al-Marsoumi said in a blog post on his Facebook account, on Saturday, September 6, 2025, that "according to OPEC sources, Iraq's crude oil exports last August reached 3.458 million barrels per day, all of which were exported south by sea. Thus, Iraq is approaching its maximum export capacity of 3.5 million barrels per day."
He added, "In light of the expected increase in Iraq's production share in the coming months, it is imperative to quickly resolve the oil issues between the center and the region (Kurdistan Region), and to reach an understanding with Turkey to resume pumping oil from the Ceyhan pipeline so that Iraq can export oil from the region and Kirkuk at about half a million barrels per day, which will contribute to resolving the financial bottlenecks that Iraq is currently suffering from."
Discussions and coordination between Erbil and Baghdad continue to resume oil exports from the Kurdistan Region via the Turkish port of Ceyhan, following a halt of more than two years following an international ruling issued by the International Court of Arbitration based on an official complaint filed by the Iraqi government against the Ankara government. The decision has cost Iraq and the region more than $20 billion in losses over the past two years (according to official statements), and officials in charge of the matter confirm that they are working to resume exports as soon as possible.
Iraqi employees turn to second jobs to survive
Every afternoon in Baghdad, government worker Amir Ahmed clocks out of his ministry job, changes clothes in his car, and turns on a taxi-hailing app — starting a second shift to make ends meet.
Ahmed explained that his government salary barely covers essential expenses such as utilities and school fees. “Even with the extra work I do, I am forced to borrow money if salaries are delayed by just two or three days, because of the family’s constant expenses,” he told Shafaq News.
It has become common in Iraq for employees to take second jobs in shops, private companies, and offices. The phenomenon also extends to women, many of whom take on side work, sometimes from within their homes.
The trend highlights both a deep economic crisis and flaws in Iraq’s salary scale, which no longer matches inflation and the soaring cost of living. Experts warn that the situation is creating wider social and economic problems.
Over 61 percent of the population is under 30 — nearly 28.7 million people in a country of 47 million — yet youth unemployment has exceeded 36 percent, while young women face rates above 65 percent, according to ILO data. Each year, about 700,000 young Iraqis enter the labor force, but the state can no longer absorb them, and the private sector remains too weak to fill the gap.
Economist Ahmed Abdul Rabbo explained to Shafaq News, “The income of employees does not keep pace with rising daily expenses, showing the fragility of the economic system in providing adequate pay for the effort put into government post.”
He stressed that the solution is not to ban second professions but to reform the salary system and strengthen the private sector so it can absorb young workers instead of competing with government employees for the same opportunities.
Iraq’s salary system is based on official pay scales, education level, job grade, family allowances, and, in some institutions, incentives and overtime hours. However, these measures fail to protect most employees, who still receive meager incomes from the total of these administrative mechanisms.
Psychologist Manahil al-Saleh told Shafaq News that working two jobs leaves employees with little time for their families. The pressure weakens their ability to communicate with children and spouses. They cannot provide the emotional and psychological support their families need.
Al-Sudani stresses the importance of the strategic bilateral relationship between Iraq and America.
Prime Minister Mohammed Shia al-Sudani stressed on Saturday the importance of the strategic bilateral relationship between Iraq and the United States and increased joint coordination.
Al-Sudani's office said in a statement received by the Mail that "Prime Minister Mohammed Shia al-Sudani received the new US Chargé d'Affaires in Iraq, Joshua Harris, on the occasion of his assumption of his duties."
During the meeting, Al-Sudani stressed, according to the statement, "the importance of the bilateral strategic relationship between Iraq and the United States, and increasing and developing joint coordination in various fields to serve the interests of the two friendly peoples."
The statement added that "the meeting reviewed regional conditions, the most prominent international files, and issues of common interest, exchanging views on them, and ways of cooperation to support regional stability, reduce tension, stop thecontinuation of conflicts, and prevent the expansion of the conflict."
Al-Sudani declares war on oil mafias.. A high-level investigative committee to pursue corruption and stop the economic bleeding.
Prime Minister Mohammed Shia al-Sudani ordered the formation of a high-level investigative committee on Saturday to investigate suspicions of smuggling Iraqi oil.
His office said in a statement received by Al-Mada that "Prime Minister Mohammed Shia al-Sudani has directed the formation of a high-level investigative committee from relevant authorities to investigate information received about suspicions of corruption in the mixing and smuggling of crude oil and petroleum products, whether in Iraqi ports or within territorial waters."
Al-Sudani stressed "the need to avoid complacency in this matter, and that the committee will submit its recommendations, after completing the investigations, to the Council of Ministers to take appropriate measures in accordance with the law, ensuring support for the national economy and the protection of public funds."
Iran Seeks New Channels to Funnel Cash to Hezbollah
A senior Iraqi official said he rebuffed a request from Iran in late August to grant “extraordinary facilities” at a western border crossing for the transfer of large sums of cash to Lebanon’s Hezbollah via Syria, citing political and security risks.
The official, who spoke to Asharq Al-Awsat on condition of anonymity, said Tehran had assured him its networks inside Syria could handle the onward transfer. “They told us, ‘We have people who can deliver it to Damascus. Iraqis should not worry about that,’” the official said.
Cross-border sources in Syria and Lebanon said Iranian efforts to funnel funds to Hezbollah – under mounting pressure from US and Lebanese demands to disarm – have intensified in recent weeks, with some shipments reportedly making it through with the help of smuggling networks.
Washington is now tracking financial channels that may have moved millions of dollars into Hezbollah’s coffers, according to regional security sources.
Hezbollah, facing strains within its Shi’ite support base, is seeking fresh resources to shore up loyalty and rebuild military strength, Lebanese political figures say.
A US Republican senator, Lindsey Graham, told Lebanese lawmakers last month that Washington had intelligence showing Hezbollah received fresh injections of cash, and he warned the US was probing how the transfers took place.
Iran, bracing for what it calls an inevitable new war with Israel, has instructed allied militias to explore new ways to sustain Hezbollah, Iraqi Shi’ite political leaders told Asharq Al-Awsat.
“It is a mistake to assume Iran will go into the next confrontation without deep, resilient defensive lines in the region, especially in Lebanon,” one said.
The push reflects Tehran’s difficulties in Iraq, where Shi’ite factions face tighter restrictions and are increasingly hesitant to act openly under the “axis of resistance” banner. “The room for maneuver in Baghdad is clearly shrinking,” a senior Shi’ite leader said.
Iraqi security officials said the al-Qaim crossing, near the Syrian town of al-Bukamal, has been under close US surveillance and is considered too risky for covert financial transfers. The area is already known as a “drone playground” for US forces and others, making suspicious movements hard to conceal.
Smuggling routes across the Iraq-Syria frontier – long controlled by Shi’ite groups, remnants of Assad’s forces, ISIS fighters, and other networks – remain active, but Syrian officials insist no cash shipments have crossed through official gateways.
Lebanese analysts say Hezbollah has recently shown a tougher stance on disarmament, reversing earlier signals of compliance, a shift they link to possible fresh funding. While the group has limited its public spending to repairing homes in Beirut’s southern suburbs, many believe it is stockpiling cash for the next war.
The US Treasury has repeatedly announced fresh measures to choke off Iranian financing, and in 2022 estimated Tehran supplied Hezbollah with up to $700 million annually. Hezbollah’s former leader, Hassan Nasrallah, had openly boasted in 2016 that Iran was its primary source of funding.
Despite Israeli strikes targeting financiers and couriers between Iran, Iraq and Lebanon, regional sources say Tehran and Hezbollah continue to preserve alternative routes for money transfers.
Lebanese security officials admit sealing the porous Syrian border remains difficult, with vast stretches open and the under-resourced Lebanese army struggling to block illicit crossings.
The US embassy promises "tangible benefits for Americans and Iraqis" following the Sudanese-Harris meeting.
The US Embassy in Baghdad commended Prime Minister Mohammed Shia al-Sudani's meeting with the new US Chargé d'Affaires in Iraq, Joshua Harris, on Saturday .
"In his first meeting with the Prime Minister, Chargé d'Affaires Harris discussed opportunities to strengthen the strong partnership between the United States and Iraq and advance shared interests, including protecting Iraq's sovereignty and supporting regional security," the embassy said in a statement received by the Mail.
She added, "We discussed strengthening economic ties to achieve tangible benefits for Americans and Iraqis."
The Foreign Ministry reveals progress on non-oil revenues between Baghdad and Erbil.
Foreign Minister Fuad Hussein confirmed on Saturday that the non-oil revenue file between Baghdad and Erbil has "made significant progress ."
Fouad Hussein said in a statement: "We hope that the joint committees will complete their work by Monday, and that the reports submitted to the Cabinet by Tuesday will be positive, and a decision will be made based on them ."
Regarding the negotiations between Baghdad and Erbil, he explained that "the non-oil revenue file has progressed significantly, and I believe they will reach an understanding in the coming days, as each party has presented its own explanation of the laws ."
He expressed his hope that "these committees will complete their work by Monday, and that the reports we will submit to the Cabinet by Tuesday will be positive, and a decision will be made based on them ."
He added, "The problem was not between the companies and the Kurdistan Regional Government, nor was it between the companies and the Ministry of Oil. Rather, it was a tripartite problem, and I expect them to reach a conclusion these days, and that there will be a tripartite understanding
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IRAN
Iran: We continue to exchange messages with the United States to resume negotiations.
Iranian Foreign Minister Abbas Araqchi confirmed on Saturday that his country is continuing to exchange messages with the United States to resume negotiations regarding Iran's nuclear program .
"I met with the European Union's foreign policy chief in Qatar, and I believe the Europeans are now more aware of the situation. Our negotiations with the Europeans are ongoing, but their activation of the trigger mechanism is a grave mistake that will further complicate the situation, " Araghchi said, according to Iranian media.
He added, "We continue to exchange messages with the United States to resume negotiations, and negotiations with Washington can begin if they are based on mutual respect ."
He explained, "Any new negotiations with America must take our concerns into account, and it is not possible to return to the nuclear negotiations with Washington in the form they were in before the war ."
He pointed out that "the post-war nuclear negotiations will take a different form due to the repercussions and sacrifices."
The President of the Republic: It is necessary to establish a sovereign fund from oil and gas revenues, as they belong to current and future generations.
President Abdel Latif Jamal Rashid stressed on Saturday the need to establish a sovereign fund from oil and gas revenues, as they belong to current and future generations.
The Presidency of the Republic said in a statement received by ( IQ ), "President of the Republic Abdul Latif Jamal Rashid received at the Peace Palace in Baghdad a delegation of participants in the Baghdad International Energy Forum, which included the Secretary-General of OPEC, Haitham Faisal Rashid, the Minister of Oil and Gas in the Libyan Government of National Unity, Khalifa Rajab Muhammad Abdul Sadiq, the First Undersecretary of the Ministry of Production - Egyptian Ministry of Petroleum, Ihab Rajai, and the Undersecretary of the Turkish Minister of Energy and Natural Resources, Ahmet Barat Chonkar, in the presence of the Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayan Abdul Ghani ."
He added, "At the beginning of the meeting, the President welcomed the delegation and pointed out Iraq's keenness to advance the national
energy sector and its efforts to enhance constructive partnerships with its regional and international surroundings in a way that serves the aspirations of peoples for progress and stability
."
The President of the Republic explained, according to the statement, that "Iraq, based on its strategic location and diverse wealth, is capable of investing in available natural resources and adopting sustainable solutions, in addition to its role as a pivotal partner in the transition to a green economy and the move towards the use of renewable energy ."
Rashid pointed out that "Iraq is experiencing a state of security and stability after decades of war, terrorism, and the problems the country has been suffering from," emphasizing "the importance of investing in the oil sector, as this phase represents the beginning of real investment, and the necessity of establishing a sovereign fund from oil and gas revenues, as they belong to current and future generations.
"
He stressed that "holding the forum is a promising step to highlight Iraq's pioneering role in the energy sector," noting that "success in this field will contribute to formulating new visions for energy policies and expand the horizons of cooperation with international companies to invest in the Iraqi market." He wished the Baghdad Forum success, and the participants good luck in reaching decisions that serve the development of the energy sector, achieve national interests, and meet the aspirations of the people .
In turn, the delegation members expressed, according to the statement, "their sincere desire to deepen the positive relationship with Iraq to include all sectors ."
Singapore is a strategic hub for Iraqi oil. SOMO: External reserves to face crises, and ExxonMobil is a key partner.
Economist Nabil Al-Marsoumi revealed on Saturday the reasons behind Iraq's choice of Singapore as a location for storing Iraqi oil. This comes after the State Oil Marketing Organization (SOMO) announced advanced agreements with ExxonMobil to enhance storage and refining in the Asian market.
In a clarification followed by Basra 365, Al-Marsoumi said, "The anticipated agreement with ExxonMobil aims to provide storage capacity in Singapore, giving Iraqi oil exports greater flexibility to respond to any emergency, whether it be the closure of the Strait of Hormuz or natural or political circumstances that might impede the flow of oil to global markets."
He added, "Although Singapore is not a major oil producer or importer, it represents a significant international market thanks to its strategic geographic location on shipping lanes between the Mediterranean and Western Europe on the one hand, and the Far East on the other, making it home to the most important commercial ports in Southeast Asia."
Al Marsoumi pointed out that "Singapore's political stability, its open and transparent environment, its advanced judicial and legislative system, and its highly competitive financial and banking system are all factors that have contributed to making it a global hub for oil trading."
He pointed out that "the advanced technological infrastructure, logistical support, and availability of specialized administrative and technical expertise have enabled Singapore to efficiently manage oil storage and trading operations at an international level."
Iraqi FM, US envoy discuss security and energy
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On Saturday, Iraqi Foreign Minister Fuad Hussein met with Joshua Harris, the newly appointed US chargé d’affaires in Baghdad, to discuss bilateral relations and regional developments.
According to the Foreign Ministry’s statement, talks focused on security cooperation and financial and energy issues between Baghdad and Erbil, highlighting recent understandings with US oil companies operating in the Kurdistan Region.
The two sides also discussed stalled US–Iran negotiations, along with the situation in Syria, underlining the importance of joint efforts to support stability.
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Government advisor: Linking Al-Faw Port with Omani ports will enhance Iraq's regional and international standing.
The Prime Minister's Financial Advisor, Mazhar Mohammed Salih, affirmed today, Saturday, that the agreements concluded with Oman represent a roadmap for greater openness at the Arab and regional levels, noting that they will open the doors to partnerships with Gulf countries and international seaports.
Salih told the Iraqi News Agency (INA): "The memoranda of understanding signed by Prime Minister Mohammed Shia Al-Sudani during his recent visit to the sisterly Sultanate of Oman represent a pillar of cooperation between two important Gulf countries on both sides of the Gulf. These memoranda are not just official papers, but rather a roadmap towards an Iraq that is more open to its Arab and regional surroundings, more capable of attracting investments and achieving sustainable development, and represents a strategic step towards repositioning Iraq economically and regionally."
He added, "Iraq seeks to expand its economic relations beyond the traditional framework, as the memoranda of understanding with the Sultanate of Oman in particular open the door to partnerships with a Gulf country with a strategic location and advanced international seaports, especially logistical connectivity through the Development Road project."
He continued, "Linking the Grand Faw Port with the Sultanate of Oman's ports through the Development Road Project will create a trade corridor linking the Gulf with Turkey and Europe, strengthening Iraq's position as a regional and international transit hub and expanding trade between the two countries."
He added, "The signed memoranda of understanding cover other critical areas such as the capital market, industry, energy, and tourism. These sectors could serve as a gateway to broader cooperation with Gulf countries that possess advanced expertise in these sectors. This is in addition to preventing double taxation between the two brotherly countries, to prevent tax evasion on income and capital. This will encourage Omani and Iraqi investors to invest capital without fear of tax complications."
He pointed out that a memorandum of understanding was also signed between the Federation of Iraqi Chambers of Commerce and the Oman Chamber of Commerce and Industry, strengthening the role of the private sector in leading economic cooperation in a free market environment. This will also establish strategic projects in the energy and logistics sectors. The agreement between the two countries will include the construction of an oil storage facility with a capacity of 10 million barrels in the Omani port of Duqm, an important step towards establishing a robust regional infrastructure in the energy and transportation sectors."
He continued, "This file will enable Iraq to access Asian and African markets more easily, and strengthen its position as a major transit point. It will also launch a follow-up mechanism through the formation of a joint committee, such as the Omani-Iraqi Council, to monitor implementation. This confirms the seriousness in transforming plans into a tangible reality."
He added, "More than 24 memoranda of understanding have been signed, covering various vital sectors such as energy, raw materials, tourism, communications, infrastructure, smart cities, manufacturing, financial services, and capital markets."
He explained that "the memoranda also included cooperation in the legal fields, education, scientific research, intellectual property, urban recovery, and the defense sector," noting that "the Omani investment market indicates a significant presence of the Iraqi private sector, as the number of Iraqi companies currently investing in the Sultanate of Oman has reached approximately 1,304 companies with a total capital of approximately 94.3 million Omani riyals, representing 68.2% of foreign investment there. Relations between the two private sectors also indicate prosperity, and Omanis see Iraq as an attractive market and an important opportunity to benefit from the renewed infrastructure and free zones for investment and trade."
He pointed out that "trade exchange between the two brotherly countries jumped by 30% in 2024 compared to 2023, reaching approximately $779 million, and in the first half of 2025 it increased to $622 million."
oil
Iraq says close to deal with producers, KRG on Kurdish oil exports
Baghdad will reach an agreement with international oil companies and the Kurdistan Regional Government (KRG) in the coming days to resume Kurdish oil exports, the federal Oil Ministry's undersecretary for extraction affairs told Rudaw on Saturday.
“We, God willing, in the coming days will reach an agreement with the companies and the Region. This dialogue is being managed by the Region - actually with the companies, since the contracts are signed between the Region as the first party and the companies,” Basim Mohammed Khudair said on the sidelines of an energy forum in Baghdad.
“The federal government and the Ministry of Oil have provided all facilitations and all procedures to resume oil exports as quickly as possible,” he added.
Iraqi officials have made similar optimistic remarks in the past, but they have yet to reach a final deal more than two years after exports were halted following a court ruling that Turkey was in violation of a 1973 pipeline agreement when it allowed the KRG to independently export oil beginning in 2014.
The Association of the Petroleum Industry of Kurdistan (APIKUR), an umbrella group of eight international oil firms operating in the Kurdistan Region, has said that it will not resume exports unless Baghdad provides written guarantees of the payment of “oil delivered but not paid between October 2022 and March 2023.”
Khudair said on Saturday that the oil companies "have many demands," but did not go into detail.
The Iraqi parliament in early February approved amendments to the federal budget law, authorizing a $16 per barrel production and transport fee for Erbil and international oil companies. This move was seen as crucial to restarting Kurdish oil exports.
Baghdad and Erbil complete agreements to resume oil exports.
link most recent
The Director General of the State Oil Marketing Organization (SOMO), Ali Nizar, confirmed today, Saturday (September 6, 2025), that the agreements and understandings related to the resumption of oil exports between the federal government in Baghdad and the Kurdistan Regional Government have been completed.
Nizar said in a statement to Kurdish media outlets monitored by Baghdad Today, "The Ministry of Natural Resources in the regional government has made every effort to resume oil exports."
He pointed out that the concerned authorities are now awaiting the start of the export process.
Oil and revenues continue the problems in the region and Iraq
link from kurdish news
The Iraqi prime minister has given a deadline to the ministerial committees of the Iraqi government and the Kurdistan Regional Government (KRG) to reach a final agreement and resolve the issues between the two sides, especially regarding the export of oil and revenues The Kurdistan Region's non-oil revenue, which should be sent to Iraq monthly, is 50%.
The meetings between the Kurdistan Region and Iraq have not yielded results
A senior source in the Iraqi government confirmed the information to PUKMEDIA and said: "Due to the many meetings between the two sides and the lack of any results, Prime Minister Mohammed Shia Sudani said that both sides should Reach an understanding and resolve these issues within the next 72 hours.
"In my opinion, the committees do not intend to solve their problems and the Iraqi government is making a demand from the Kurdistan Region, which is outside the constitution and law, while the Kurdistan Regional Government is more or less not committed to the agreements Oil exports and the practical handover of half of the non-oil revenues are two of the most important issues on which the two governments disagree.
The Kurdistan Region and Iraq do not give each other rights
In the past eight months, the Iraqi government has sent 5.8 trillion dinars to the Kurdistan Regional Government (KRG) for salaries, while the Kurdistan Regional Government (KRG) has sent 440 billion dinars as half of its non-oil revenues The Kurdistan Regional Government (KRG) should have sent about one trillion dinars as non-oil revenues to Iraq for the past eight months.
According to PUKMEDIA, in previous meetings of the Iraqi Council of Ministers, some ministers had demanded that the Kurdistan Regional Government should send 100% of the non-oil revenues to Iraq, all non-oil revenues in general However, the Kurdish ministers rejected the request, saying that according to the Financial Administration Law, the Kurdistan Regional Government must hand over 50% of non-oil revenues to Baghdad, not 100% of this The ministers said the KRG has not yet handed over 50% of its non-oil revenues.
The prime minister's deadline is decisive
According to the source, the final agreement between the two governments within the deadline set by the Iraqi prime minister, which is three days is difficult, because the two governments have no real intention to reach an agreement at the same time From this point of view, if they do not agree, it will not be easy to send the salaries of the rest of this year to the region.
There is an opportunity to resume oil exports
"Iraq's oil production is expected to increase in the coming months," Iraqi economist Nabil Marsumi wrote on his Facebook account Resolve the issue between the central government and the Kurdistan Region and reach an agreement with Turkey to resume the export of oil from the Kurdistan Region through the world pipeline.
"This will allow the Kurdistan Region and Kirkuk to legally export oil, which is about half a million barrels per day, thus the region will participate in solving the financial crisis," he said Iraq is currently going through.
The problems between Erbil and Baghdad have continued for three years
The Kurdistan Regional Government (KRG) and the Iraqi government have been at odds over the past three years, when the Paris court ruled that the export of oil from the Kurdistan Region was suspended The Iraqi government has sent only six salaries to the Kurdistan Region in the past eight months, and the fate of two of them remains unknown.
Iraq’s SLC Leader cautions election delay would bring chaos
On Saturday, State of Law Coalition (SLC) leader Nouri al-Maliki warned that postponing Iraq’s upcoming parliamentary elections would undermine state legitimacy and risk chaos.
Speaking at a conference, al-Maliki stressed that the November 11 vote is the only path to forming a new government. He pledged that his party would accept the results, while urging authorities to ensure the process remains transparent and free from illicit financing or corruption.
The SLC holds 33 seats in Iraq’s 329-member parliament and is part of the Coordination Framework (CF), a coalition of mainly Shiite political parties.
Earlier, al-Maliki dismissed
Rashid affirms Iraq's keenness to strengthen international partnerships to develop the oil sector.
President of the Republic, Dr. Abdul Latif Jamal Rashid, received today, Saturday, September 6, 2025, at Al-Salam Palace in Baghdad, a delegation of participants in the Baghdad International Energy Forum, which included the Secretary-General of OPEC, Haitham Faisal Rashid; the Minister of Oil and Gas in the Libyan Government of National Unity, Khalifa Rajab Mohammed Abdul Sadiq; the First Undersecretary of the Ministry of Production - Egyptian Ministry of Petroleum, Ihab Rajai; and the Undersecretary of the Turkish Ministry of Energy and Natural Resources, Ahmet Barat Çonkar.
At the beginning of the meeting, the President welcomed the delegation and highlighted Iraq's keenness to advance the national energy sector and its endeavor to strengthen constructive partnerships with its regional and international surroundings in a manner that serves the aspirations of peoples for progress and stability.
The President explained that Iraq, based on its strategic location and diverse wealth, is capable of investing in available natural resources and adopting sustainable solutions, in addition to its role as a pivotal partner in the transition towards a green economy and the move towards the use of renewable energy.
He pointed out that Iraq is experiencing a state of security and stability after decades of wars, terrorism and problems that the country has been suffering from, stressing the importance of investing in the oil sector, as this stage represents the beginning of real investment, and the necessity of establishing a sovereign fund from oil and gas revenues, as they belong to current and future generations.
He stressed that holding this forum is a promising step to highlight Iraq's pioneering role in the energy sector, noting that success in this field will contribute to formulating new visions for energy policies and expand the horizons of cooperation with international companies to invest in the Iraqi market, wishing success for the Baghdad Forum and for the participants in reaching decisions that serve the development of the energy sector, achieve national interests and meet the aspirations of the people.
For their part, the members of the delegation expressed their thanks and appreciation to the President of the Republic and their appreciation for his valuable visions, explaining their serious desire to deepen the bonds of positive relations with Iraq to include all sectors.
Mazhar Saleh: The Amman Agreements are a roadmap for regional openness and Gulf partnerships.
In a press statement, Saleh said, "The memoranda of understanding signed by Prime Minister Mohammed Shia al-Sudani during his recent visit to the sisterly Sultanate of Oman constitute a cornerstone of cooperation between two important Gulf countries on both sides of the Gulf. These memoranda are not merely official documents, but rather a roadmap toward an Iraq that is more open to its Arab and regional surroundings, more capable of attracting investment and achieving sustainable development, and represent a strategic step toward repositioning Iraq economically and regionally."
He added, "Iraq seeks to expand its economic relations beyond the traditional framework, as the memoranda of understanding with the Sultanate of Oman, in particular, open the door to partnerships with a Gulf state with a strategic location and advanced global seaports, particularly logistical connectivity via the Development Road project."
He continued, "Linking the Grand Faw Port with the ports of the Sultanate of Oman via the Development Road Project will create a trade corridor linking the Gulf with Turkey and Europe, strengthening Iraq's position as a regional and international transit hub. It will also expand trade between the two countries."
He added, "The signed memoranda of understanding cover other critical areas, such as the capital market, industry, energy, and tourism. These sectors could serve as a gateway to broader cooperation with Gulf countries, which possess advanced expertise in these sectors. This should not be overlooked, however, as the two countries must avoid double taxation to prevent tax evasion on income and capital. This will encourage Omani and Iraqi investors to invest capital without fear of tax complications."
He pointed out that "a memorandum of understanding was also signed between the Federation of Iraqi Chambers of Commerce and the Oman Chamber of Commerce and Industry, which enhances the role of the private sector in leading economic cooperation in a free market cooperation, in addition to establishing strategic projects in the fields of energy and logistics. The agreement between the two countries will go towards building an oil storage facility with a capacity of 10 million barrels in the Omani port of Duqm, which is an important step towards establishing a solid regional infrastructure in the fields of energy and transportation."
He continued, "This file will enable Iraq to access Asian and African markets more easily, and strengthen its position as a major transit point. It will also launch a follow-up mechanism through the formation of a joint committee, such as the Omani-Iraqi Council, to monitor implementation. This confirms the seriousness of turning the plans into a tangible reality."
He added, "More than 24 memoranda of understanding were signed covering various vital sectors such as energy, raw materials, tourism, communications, infrastructure, smart cities, manufacturing, financial services, and capital markets."
He explained that "the memoranda also included cooperation in the legal fields, education, scientific research, intellectual property, urban recovery, and the defense sector," noting that "the Omani investment market indicates a significant presence of the Iraqi private sector, as the number of Iraqi companies currently investing in the Sultanate of Oman has reached approximately 1,304 companies with a total capital of approximately 94.3 million Omani riyals, representing 68.2% of foreign investment there. The relations between the two private sectors also indicate prosperity, and the Omanis see Iraq as an attractive market and an important opportunity to benefit from the renewed infrastructure and free zones for the purpose of investment and trade."
He pointed out that "trade exchange between the two brotherly countries jumped by 30% in 2024 compared to 2023, reaching approximately $779 million, and in the first half of 2025, it increased to $622 million."
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