SWIFT and the US Federal Reserve put Iraq at the mercy of the global economy
Economic expert Hassan Al-Sheikh warned on Tuesday that Iraq has become more vulnerable to global economic shocks due to its increasing connection to the international financial system, especially after joining the global SWIFT system and its direct dealings with the US Federal Reserve.
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Al-Sheikh told Al-Maalouma News Agency that “Iraq, over the past two years, has strongly entered the global economy by activating international bank transfers, subjecting banks to strict oversight, and opening channels with international banks, which has made it vulnerable to any external economic change, whether in oil prices or financial and monetary policies.”
He pointed out that Iraq, which before 2020 was almost isolated from the global financial system, is now severely restricted, which negatively impacts its general budget, which is already suffering from a worsening financial deficit.
Al-Sheikh added that this connection not only threatens the stability of oil prices, but also makes any global economic or customs decision directly impact state finances, warning of the exacerbation of crises if steps are not taken to strengthen the independence of the Iraqi economy.
He pointed out that any breakthrough in the US-Iranian negotiations could open the door for Iraq to overcome some obstacles, especially those related to the sanctions imposed on the Central Bank. This could allow Baghdad to withdraw its funds freely, provide better access to dollars, and perhaps even restore the exchange rate to 120,000 dinars for $100. (read as 1200 dinar to 1 dollar)
He indicated that this would allow Iraq to import Iranian gas more smoothly, which would contribute to improving the performance of the electricity sector.
Upon arrival, Al-Zayadi confirms Parliament's readiness to vote on the budget agenda
Member of the State of Law Coalition, Mohammed Al-Ziyadi, confirmed on Tuesday that the Iraqi Parliament is ready to include the budget tables in its upcoming sessions if they arrive from the government for voting, stressing that voting on them has become an absolute necessity due to their connection to the current fiscal year.
Al-Ziyadi told Al-Maalouma News Agency that “passing the budget earlier does not give the Ministry of Finance the authority to resubmit the project, but the latter has expressed concerns about the possibility of oil prices falling below the price set in the budget of $70 per barrel.”
He added that "the tables are being prepared to prevent a forbidden situation and avert any potential crisis," noting that these tables only require parliamentary approval to be passed. He stressed that "the constitutional mechanism requires presenting the new tables to the representatives for study and then voting on them."
He explained, “The importance of the tables for the Iraqi citizen cannot be postponed, which may prompt Parliament to extend its legislative term or hold an extraordinary session to ensure their passage in a manner that serves the interests of the country and the state.”
It's worth noting that the 2025 general budget schedules have not been sent to the Iraqi Parliament, despite more than five months of the current year having passed, disrupting spending and funding for ministries and governorate projects. Iraq's three-year budget for the years 2023-2025 has been approved, and the financial process was supposed to proceed smoothly. However, the complexities of implementing budget items and the need to vote on 2025 allocations have created new obstacles.
Trump: I want to reach an agreement with Iran
During his visit to Saudi Arabia, the US President claimed that he wanted to reach an agreement with Iran.
Mehr News Agency reported that US President Donald Trump said Tuesday evening during his visit to Saudi Arabia: "We cannot be enemies with anyone permanently. We are here to strengthen partnerships even if our differences are broad and deep, and this is our concern with Iran."
He added: "We have clear and deep differences with Iran, but I do not believe in permanent hostilities, and I want to reach an agreement with Iran."
He said: The current offer to Iran will not last forever. Iran can be prosperous, but we will not allow them to possess a nuclear weapon.
Trump reiterated his threats against Iran, saying: "If Iran refuses to reach an agreement, we will have no choice but to apply maximum pressure."
Who is in Trump's delegation on his visit to Saudi Arabia?
The US President's plane has landed.Donald TrumpToday, Tuesday, in the capitalSaudi Arabia, RiyadhWhere he was received by the Crown PrinceThe covenantSaudiPrince Mohammed bin Salman.
defense ministerHegseth House.
Secretary of the TreasuryScott Bessent.
Minister of CommerceHoward Lutnick.
CNN quoted US officials inThe White House"The majority of the White House's senior staff, including Chief of Staff Suzi Wiles and the group of vice presidents, also accompanied the president on his historic visit to Saudi Arabia," they said.
The US delegation also includes a number of invitees to attend.ForumThe Saudi-American Business Forum, held Tuesday, attracts top executives, most notably the CEO of Tesla.Elon Musk, and Amazon CEO Andy Jassy.
The forum will also be attended by the CEOs of BlackRock, IBM, Boeing, Delta Air Lines, American Airlines, andUnitedAirlines, Uber, Coca-Cola, Google.
Al-Sudani steps up preparations for the "important event" in Baghdad.
Al-Sudani steps up preparations for the "important event" in Baghdad.
Prime Minister Mohammed Shia al-Sudani chaired a meeting to follow up on the final arrangements for the Arab Summit and the Economic and Development Summit, scheduled to be held in the capital, Baghdad, next Saturday.
According to a statement issued by his office during the meeting, al-Sudani was briefed on the security, administrative, and logistical plans for securing the summit, in addition to reviewing the organizational and technical aspects to ensure a good reception and optimal organization of the conference activities.
The Prime Minister directed all state institutions and departments to enhance work and coordination efforts, each according to their jurisdiction, to ensure the success of the summit, stressing that this event represents an important milestone that reflects Iraq's status and its pivotal and active role in the Arab and regional arenas.
In this context, the Minister of Interior and Chairman of the Supreme Security Committee for the Arab Summit, Abdul Amir al-Shammari, earlier chaired an expanded meeting that included the ministry's undersecretaries and a number of commanders and officers, to review the final touches of the security plans and procedures for the upcoming Arab Summit in the capital, Baghdad.
During the meeting, according to a statement issued by the Ministry of Interior, a comprehensive discussion was held on coordination between various security formations to ensure the highest levels of protection and organization, reflecting a positive image of Iraq.
The Minister of Interior emphasized the importance of high commitment and discipline in implementing tasks and plans, emphasizing that the success of the summit represents a shared national responsibility that requires the highest levels of preparedness and professionalism. He directed the continuation of security practices, the scrutiny of all requirements, and the unification of efforts on a single path.
"One Trillion Dollars"... Bin Salman Prepares for the Second Phase of Agreements with the US
One Trillion Dollars"... Bin Salman Prepares for the Second Phase of Agreements with the US
Saudi Crown Prince Mohammed bin Salman announced that the Kingdom is currently working on partnership opportunities worth $600 billion, including agreements exceeding $300 billion that were announced during the Saudi-US Investment Forum. He added that in the coming months, the Kingdom will work on the second phase to complete the remaining agreements, bringing them to $1 trillion.
During his speech at the forum, bin Salman explained that economic relations between Saudi Arabia and the United States span more than 92 years, beginning with the signing of an oil exploration concession agreement in 1933 with Standard Oil of California.
He added that the Kingdom is working today to deepen this strategic partnership and transition from an economy based on natural resources to a diversified economy based on knowledge and innovation.
He explained that this partnership includes multiple fields, such as military, security, economic, and technological, and contributes to localizing industry, developing local content, and supporting the gross domestic product.
He pointed out that the United States is a major destination for the Public Investment Fund, as it accounts for approximately 40% of its global investments, reflecting confidence in the American economy and its ability to innovate, especially in the fields of technology and artificial intelligence.
He continued, noting that the number of American companies operating and investing in the Kingdom has reached 1,300, representing nearly a quarter of the total foreign investment, including 200 companies that have established their regional headquarters in the Kingdom.
The Crown Prince emphasized that Vision 2030 has achieved most of its goals and contributed to diversifying the economy and empowering the private sector, as non-oil exports rose to $82 billion in 2024, more than 2.2 million citizens were employed, the unemployment rate fell to its lowest level in history, and the presence of women in the labor market doubled.
Bin Salman stated that cooperation between the two countries is not limited to the economy, but also includes joint efforts to achieve security and peace in the region and the world.
Signing of an economic partnership document between Riyadh and Washington
US Presidential Air Force One landed in Saudi Arabia at 9:50 a.m. Riyadh time, escorted by Saudi F-15 fighter jets in a symbolic display of warm welcome.
On Tuesday morning, the Saudi Crown Prince welcomed US President Donald Trump upon his arrival at King Khalid International Airport in Riyadh. This was the start of his first official visit during his second presidential term, which aims to deepen the strategic partnership between the two countries.
Bin Salman signs security, economic, and technological memoranda ofunderstanding with Trump.
Saudi Crown Prince Mohammed bin Salman and US President Donald Trump signed the Strategic Economic Partnership Document and memoranda of understanding on security, economic, and technological matters between the two countries on Tuesday.
Saudi media reported this, noting that several memoranda of understanding were signed between Saudi Arabia and the United States covering security, energy, space, health, technology, mining, medical research, and other areas. The financial value or content of the signed documents have not yet been disclosed.
Trump arrived earlier today at King Khalid International Airport in Riyadh aboard Air Force One, escorted by Saudi F-15 fighter jets.
The American guest was accompanied by a large delegation that included several government ministers and senior officials.
In addition, during a press conference yesterday, the US President described his visit today to Saudi Arabia, followed by the UAE and Qatar, as a historic visit.
The Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman, also welcomed the US President's official visit during its last session.
He expressed his hope that the visit would contribute to strengthening and developing the bonds of cooperation and strategic partnership between the two friendly countries in various fields, in a way that achieves their common interests and vision, according to the Saudi Press Agency.
It is worth noting that this official tour is Trump's first outside the United States during his second presidential term.
Eight years ago, Trump also chose Saudi Arabia as the destination for his first foreign trip as president, underscoring the importance of Saudi Arabia's growing geopolitical role in the region, as well as the distinguished commercial and historical ties between the two countries.
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The Arab Summit in Baghdad and Joint Arab Economic Cooperation
Samir Al-Nusairi
The 34th Arab Summit will be held in Baghdad soon, amidst the economic, political and security challenges and crises sweeping the world, the Arab region and the geographical region, at a time when most countries are suffering from the current trade war between America and China, which has disrupted international trade and complicated ways to facilitate the economic and financial process, in addition to the effects of wars, conflicts and disputes in the region and the world on the current economic situation and expectations of slowing economic growth and inflationary stagnation and the suffering of countries that depend primarily on oil as the main resource for the country, as well as the accumulated suffering of poor countries from the food and energy crises.
All of the above factors make Iraq, which is witnessing security and economic stability, enjoys balanced foreign relations with countries of the world, and strong and open relations with Arab countries. This is supported by the success of the current government in achieving fundamental stages of comprehensive economic, financial, and banking reform, which will be reflected in building a solid national economy and a solid financial and banking sector, as economic indicators indicate in 2024 and the first quarter of 2025.
Foreign exchange reserves and gold reserves exceed $100 billion, with a sufficiency rate of 140% to cover the local currency in cash circulation and to cover imports, the recovery of the Iraqi dinar, and the relative stability of the exchange rate against the US dollar. The annual inflation rate reached 2.8% and the core inflation rate 2.5%, which means maintaining the general level of prices despite the food crisis and the repercussions of the current global trade war. What strengthens the Iraqi economy are the giant economic and investment projects and joint projects with Arab and friendly countries, such as the Development Road Project, gas investment, regulating foreign trade financing, building solid financial and banking relations with the world's correspondent banks, complying with international standards, and combating money laundering and terrorist financing.
Therefore, holding the Arab Summit in Baghdad is an important step towards Iraq's return to its Arab fold and its openness to building balanced political, economic and security relations with sister nations. This will enable Iraq to launch an initiative for a joint Arab strategic cooperation project, similar to the one currently implemented by global economic blocs. This initiative aims to formulate a strategy for Arab economic integration, unify joint policies and programs to support and enhance Arab development work and confront potential risks.
The experience of previous successful coordination relations with Egypt, Jordan, Saudi Arabia and the rest of the Gulf states has established important pillars for Arab economic cooperation, which supports Iraq's position in calling for the establishment of an Arab economic bloc that serves the supreme interests of the Arab peoples in all fields, especially cooperation, communication and strengthening financial and banking relations among them, particularly in foreign banking transactions. Motivating and encouraging investment companies to invest in Iraq will lead to strengthening the financing and investment sectors, especially economic infrastructure projects.
Saudi-American alliance is to establish the world's largest critical minerals center with investments of $9 billion
Saudi Arabia's Grand Mining Company signed a memorandum of understanding with US investment firm Burkhan Global to establish the world's largest critical minerals center in the Kingdom, with an investment value estimated at approximately $9 billion, according to Mohammed bin Nasser Al-Dulaim, head of the National Mining Committee at the Federation of Saudi Chambers.
The signing ceremony between the two mining companies took place on the sidelines of the Saudi-US Investment Forum in the Saudi capital, Riyadh, coinciding with US President Donald Trump's visit to the Kingdom.
According to a statement from the Federation of Saudi Chambers, Mohammed Al-Dulaim, who also chairs the board of directors of the Saudi Mining Company, said that the Saudi-US alliance "aims to transform the Kingdom into an international player in mining, industry, and innovation. It also underscores the convergence of the two countries' sovereign ambitions, industrial innovation, and reshaping global supply chains. It represents a strategic turning point for the Kingdom to build an ecosystem aligned with the country's industrial sovereignty."
He added that the Saudi-US alliance in the minerals sector "will contribute to consolidating and strengthening the Kingdom's position as a central force in the global critical minerals economy. This partnership includes funding the development of a globally integrated mining and processing platform and establishing the first-of-its-kind Minerals Innovation Center to enable advanced mining and processing operations and support emerging mining technologies dedicated to providing critical minerals to international markets."
Rare metals are vital in technology and clean energy industries, such as smartphones, electric cars, and advanced batteries.
Al-Dalim expects this cooperation between the Saudi and American companies to create new job opportunities, transfer knowledge, and enhance the Kingdom's role as a global platform for mineral innovation and investment, according to the statement.
Saudi Arabia signed several agreements on Tuesday on the sidelines of Trump's visit to the kingdom, most notably the signing of the Strategic Economic Partnership Document by Trump and Saudi Crown Prince Mohammed bin Salman.
During his speech at the Saudi-US Investment Forum, the Saudi Crown Prince said, "We have signed 145 agreements worth more than $300 billion with the United States."
He added, "We are looking for investment opportunities worth $600 billion, and we hope that it will reach $1 trillion."
The Minister of Finance affirms Iraq's keenness to strengthen its relations with the World Bank.
Finance Minister Taif Sami affirmed on Tuesday Iraq's keenness to strengthen relations with the World Bank and benefit from its expertise.
The ministry said in a statement, seen by Al-Eqtisad News, that "Finance Minister Taif Sami received today the World Bank Representative to Iraq, Emmanuel Salinas Muñoz," indicating that "during the meeting, areas of joint cooperation between the two sides were discussed, especially with regard to supporting economic programs and financing development projects."
He continued, "The two parties discussed prospects for strengthening the partnership in vital sectors, including energy, education and health, and the importance of continuing coordination to implement financial and administrative reforms, in line with the priorities of the Iraqi government and its plans for sustainable development.
" The Minister of Finance stressed "Iraq's keenness to strengthen its relations with the World Bank and benefit from its technical and financial expertise."
The World Bank representative reiterated "the institution's commitment to supporting the Iraqi government's efforts in implementing reform programs and achieving economic stability."
Finance Minister
Taif Sami affirmed today, Tuesday, Iraq's keenness to strengthen relations with the World Bank and benefit from its expertise
The ministry said in a statement received by the Iraqi News Agency (INA): "Finance Minister Taif Sami received today the World Bank Representative to Iraq, Emmanuel Salinas Muñoz," indicating that "during the meeting, areas of joint cooperation between the two sides were discussed, especially with regard to supporting economic programs and financing development projects."
He continued, "The two parties discussed prospects for strengthening partnerships in vital sectors, including energy, education, and health, and the importance of continuing coordination to implement financial and administrative reforms, in line with the Iraqi government's priorities and plans for sustainable development."
The Minister of Finance affirmed "Iraq's keenness to strengthen its relations with the World Bank and benefit from its technical and financial expertise." The World Bank representative reiterated the institution's "commitment to supporting the Iraqi government's efforts to implement reform programs and achieve economic stability."
Clarification of the mechanisms for spending and disbursing the costs of the Arab Summit in Baghdad
Nouri explained, in a statement to {Euphrates News}, that: “Article {1} Paragraph {Seventh} of the Financial Administration Law No. {6} of 2019 defined the “emergency reserve” as the amounts approved within the Federal General Budget Law to cover emergency and unexpected expenses that occur after the law is enacted.”
He added, "The budget law for the years 2023, 2024, and 2025 stipulated in Article {1/A/3} the allocation of an amount of {500} billion Iraqi dinars within the "other expenditures" appropriations under the emergency reserve item."
Nouri explained that "Article {6} of the Budget Law granted powers to the Prime Minister and the Federal Minister of Finance to use the amounts approved for the emergency reserve to cover urgent expenses, with a maximum of {3} billion dinars for each case, provided that the approval of the Council of Ministers is obtained when this limit is exceeded, upon the proposal of the Minister of Finance."
He also pointed out that "the same article requires the Minister of Finance to prepare controls for disbursing emergency reserve allocations within the instructions for implementing the annual general budget, in addition to the Federal Board of Financial Supervision preparing a quarterly report to be submitted to the House of Representatives, including the expenditures from these allocations."
Nouri pointed out that "these controls ensure transparency in covering the Arab Summit's expenses within a clear legal ceiling that reflects the state's commitment to responsible spending procedures."
Trump compares the situations in Baghdad, Riyadh, and Abu Dhabi
US President Donald Trump criticized the policies of what he described as "liberals" and so-called "nation builders," referring to previous Democratic administrations and their failures in Iraq and Afghanistan. He compared the developments he saw in Riyadh, Abu Dhabi, and Muscat to those in Baghdad and Kabul.
The massive construction I saw could not have come about through Western intervention or instigation from those who come in beautiful planes to lecture the people of the region, teaching them how to live or how to govern themselves.
The urban and development miracles taking place in Riyadh and Abu Dhabi were not the work of self-styled “nation builders” or other “useless liberals” who spent trillions of dollars and failed to develop places like Baghdad, Kabul, and many other cities. The birth of the new Middle East is being done by its people themselves, who have lived here their entire lives, who are developing their countries with their own sovereignty, who are pursuing their own vision, and who are ensuring that they have their own amazing destiny.
Announcing the first US-Saudi cooperation in the field of artificial intelligence.
Nvidia, one of the largest American companies producing graphics processors, video cards, and computer chipsets, confirmed on Tuesday that it will sell more than 18,000 of its latest artificial intelligence chips to the Saudi company Humane.
This announcement comes as part of US President Donald Trump's tour of the Arabian Gulf region, which he began with a visit to Saudi Arabia today. He is accompanied by a large delegation including several officials, businessmen, and senior executives.
Blackwell's advanced chips will be used in a 500-megawatt data center in Saudi Arabia.
Nvidia explained that its first deployment will use the GB300 Blackwell chips, which are among Nvidia's most advanced AI chips currently, and which were only officially announced earlier this year.
Tuesday's announcement underscores the importance of Nvidia's chips as a leverage tool for the Trump administration, as countries around the world compete for these devices, which are used to train and deploy advanced AI programs like ChatGPT, according to CNBC.
"I am very pleased to be here to celebrate the grand opening and launch of Human," said company president Jensen Huang. "It is truly a remarkable vision for Saudi Arabia to build the AI infrastructure in your country so that you can participate and help shape the future of this amazing, transformative technology."
Last week, the US Department of Commerce announced that it would repeal what it called former President Joe Biden's rule and implement a "much simpler rule."
Nvidia has also been required to obtain an export license for its AI chips since 2023 due to national security concerns.
Humane, (in another article it is spelled Humain) owned by the Saudi Public Investment Fund, will develop artificial intelligence models and build data center infrastructure. The company's plans include eventually deploying "hundreds of thousands" of Nvidia GPUs.
“Saudi Arabia is energy-rich, and it's transforming that energy through these AI-powered supercomputers from Nvidia, which are essentially AI factories,” Huang said.
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