Rolls-Royce announces its first authorized dealer in Iraq
Rolls-Royce Motor Cars has announced the appointment of Al-Aroush Motor Trading Limited as its official dealer in Iraq. The dealership will open early next year under the name Rolls-Royce Motor Cars Iraq, providing customers with access to the latest models of the world's most famous and luxurious cars without having to rely on dealerships in neighboring countries or the region.
The video for this My FX Buddies Blogpost is below here:
Statement from the company's regional management in the Middle East and Africa:
May 15, 2025 Iraq
Rolls-Royce | Press Information
Rolls-Royce Motor Cars announces its first authorized dealer in Iraq
Al Arood Auto Trading Company Limited becomes the authorized dealer for Rolls-Royce Motor Cars in Iraq
Rolls-Royce Motor Cars Iraq will offer all Rolls-Royce models, along with authorized dealer services, within a temporary facility, in preparation for the opening of a new showroom in 2026
The first dealer in Iraq for Rolls-Royce since the brand was founded 120 years ago
The Iraqi luxury market is witnessing remarkable development and is expected to show sustainable growth in the coming period
Rolls-Royce Motor Cars Middle East and Africa has announced the appointment of Automobile Trading Company Limited as its official dealer in Iraq. The showroom is scheduled to open in early 2026 under the name Rolls-Royce Motor Cars Iraq. The showroom design will be in line with Rolls-Royce's new visual identity, allowing customers to experience the essence of the brand in a contemporary, modern space equipped with the latest digital technology.
Customers will soon be able to visit a temporary facility featuring a range of Rolls-Royce vehicles, along with a selection of accessories, while benefiting from the services provided by the owner of the car house.
Rolls-Royce's entry into the Iraqi market is a milestone in our journey, especially in light of the growing demand for Iraqi products, and we are proud to contribute to shaping this expressive scene. In fact, our investment in this promising market will provide our customers with an exceptional experience that combines the highest levels of custom and the advantages of bespoke design, while creating a space that embodies the Rolls-Royce spirit and expands our position as a true home for the landfill in every sense of the word.
James Crichton, Regional Director, Rolls-Royce Motor Cars, Middle East and Africa
For the Iraqi individual, with his long-standing buying heritage, growing ambitions, and growing passion for law, it is an ideal destination for a prestigious brand with a rich heritage like Rolls-Royce. We are honored to be the authorized dealer of Rolls-Royce Motor Carrier, committed to embodying the brand's values of craftsmanship and exceptional customer experiences. We look forward to welcoming our customers and introducing them to the world of Rolls-Royce Motor Carrier with all its bespoke experiences and unique products that embody the highest levels of Bedouin craftsmanship and charcoal.
Dr. Sabah Abdul Latif Al Salem, CEO of Al Aroush Automotive Trading Co. Ltd.
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Ashur Bank joins Iraq Britain Business Council
Ashur International Bank has joined the Iraq Britain Business Council (IBBC).
According to a statement from the IBBC, the move follows a long relationship between the Council and the bank's CEO, Mohammed Al-Delaimy.
It says the bank, established in 2005 is one of the leading private banks in Iraq, offering comprehensive banking services to individuals and businesses, with a strong focus on digital innovation, financial inclusion, and developing financial products tailored to the evolving needs of the Iraqi market.
Mr. Mohammed Al-Delaimy, CEO of Ashur International Bank, stated:
"We, at the bank, are delighted to join IBBC, which we consider a strategic platform to strengthen cooperation with leading international institutions, exchange expertise, and contribute actively to Iraq's economic growth. Our membership in the council aligns with our vision of thoughtful expansion and building effective and sustainable partnerships. This compliments our ongoing collaboration and support with IBBC since day one"
Mr Christophe Michels, MD of IBBC said:
"IBBC has a long history of partnering with Mr Al.Delaimy, as a member of the IBBC's Advisory Council and previously during his leadership roles at Trade Bank of Iraq and SCB [Standard Chartered Bank], so we are delighted to be working with Ashur International Bank and the promise of modern digitised and corporate banking that Iraq and IBBC members value."
46 Iraqi business leaders participate in the investment summit in Washington.
46 Iraqi business leaders participated in the investment summit in Washington.
The US Embassy in Baghdad said in a statement: “A delegation of 46 business leaders from Iraq, including the Kurdistan Region, arrived in the United States to participate in the annual SelectUSA Investment Summit, which was held in the Washington, D.C., area from May 11 to 14.”
It added: “The delegation included a variety of sectors, including technology, cybersecurity, tourism, hospitality, food and beverage, franchising, agriculture, construction, investment, pharmaceuticals, real estate, and oil and gas,” explaining that “the wide variety of opportunities aims to promote cooperation and investment between the United States and Iraq.”
The SelectUSA Investment Summit is the largest event dedicated to promoting foreign direct investment in the United States.
The summit brings together international investors, representatives from state and local governments, and government officials to facilitate investment in the American economy. The SelectUSA Summit is organized by the Department of Commerce and provides essential information and services to help foreign investors navigate the investment process in the United States.
Iraq: Concluding Statement of the 2025 IMF Article IV Mission
A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF's Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.
The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.
An International Monetary Fund (IMF) mission, led by Mr. Jean-Guillaume Poulain, met with the Iraqi authorities in Amman and Baghdad during May 4–13 to conduct the 2025 Article IV consultation. The following statement was issued at the end of the mission:
A highly uncertain global environment, falling oil prices, and acute financing pressures, are taking a toll on economic activity and exacerbating Iraq’s existing vulnerabilities, calling for urgent measures to preserve fiscal and external stability. These include containing the fiscal deficit by mobilizing non-oil tax revenues and reining in the public wage bill, completing the restructuring of state-owned banks, and promoting private sector growth, by reforming the labor market, improving the business environment, enhancing governance and fighting corruption. Building on recent progress, the Central Bank of Iraq (CBI) should continue modernizing the banking system and supporting private banks in expanding their corresponding banking relationships.
Recent Economic Developments, Outlook and Risks
The non-oil sector grew at a slower pace last year and inflation remained subdued. Following a very strong growth of 13.8 percent in 2023, Iraq's non-oil GDP is expected to have considerably moderated to 2.5 percent in 2024, driven by a slowdown in public investment and in the services sector, as well as a weaker trade balance. The agriculture, manufacturing, and construction sectors remained resilient, benefiting from post-drought recovery, expanded refining capacity, and strong growth in credit to households. The decline in oil production weighed on overall growth, which contracted by 2.3 percent for the year. Inflation dropped to 2.7 percent by end-2024, amid lower food price inflation and liquidity absorption from the CBI.
The fiscal position has deteriorated, along with external balances. The 2024 fiscal deficit is estimated at 4.2 percent of GDP, compared to 1.1 percent in 2023, reflecting rising spending on wages and salaries and energy purchases. Financing constraints have led to reemergence of arrears notably in energy and capital expenditure. On the external front, the current account surplus narrowed sharply from 7.5 percent to 2 percent of GDP, due to a surge in goods imports. Nonetheless, external buffers remain strong, with reserves at US$100.3 billion at end-2024—covering over 12 months of imports.
Non-oil growth is projected to remain subdued in 2025 amid a challenging global environment and financing constraints. Non-oil GDP is projected to slow down to 1 percent this year as the impact of falling oil prices and financing constraints weigh on government spending and consumer sentiment. The current account is expected to weaken considerably in 2025 primarily due to declining oil export revenues. The deterioration in the external position is projected to weigh on foreign reserves.
Policy Priorities
Iraq’s vulnerabilities have increased in recent years due to a large fiscal expansion. Beside weighing on prospects of private sector-led growth, current public employment policies and resulting wage costs are unsustainable given Iraq’s low non-oil tax base. Accordingly, dependence on oil revenues has worsened, and the oil price required to balance the budget increased to around $84 in 2024, up from $54 in 2020.
These challenges have been exacerbated by the sharp decline in oil prices in 2025, requiring an urgent policy response. In the very short-term, the authorities should review current and capital spending plans for 2025 and limit or postpone all non-essential expenditure. At the same time, there may be scope to increase non-oil revenues by revising customs duties as well as introducing or raising excise taxes. The authorities should also explore options to diversify the creditors base for increasing financing availability. Monetary financing of the deficit should be avoided as it could fuel inflation, drain FX reserves, and weaken the CBI’s balance sheet.
More broadly, a sizable fiscal consolidation is needed to mitigate macro-fiscal risks, ensure debt sustainability, and rebuild fiscal buffers. On the revenue side, besides customs duties and excise taxes, there is scope to gradually reform personal income tax by limiting exemptions and increasing rates. Strengthening tax administration—through digitalization, improved enforcement, and better collection—is essential. A more effective tax administration should allow for eventually introducing a general sales tax. On the spending side, curbing current expenditures, particularly via comprehensive wage bill reforms, limiting mandatory hiring, and adopting attrition rule, would yield significant savings. Recent efforts to better target the public distribution system are welcome, but there is scope to further improve targeting and eventually shift to cash-based social safety nets. Finally, it is urgent to reform the public pension system through raising the retirement age and reducing both the accrual and replacement rates is needed to enhance its sustainability.
Implementing these reforms would also create fiscal space to increase capital spending. Expanding non-oil investment, especially in trade and transportation infrastructure should help economic diversification. Substantial investments are also required to modernize the electricity sector and develop natural gas resources, both of which are essential for improving energy security and reducing dependence on gas imports. Improved procurement, public financial management, and corruption control would enhance the effectiveness of any additional public investment.
Further efforts are needed to mop up excess liquidity in order to improve monetary policy transmission. While the CBI has made progress in absorbing excess liquidity, additional adjustments could enhance the effectiveness of the framework. Key measures include increasing the issuance of CB-bills, focusing on the short maturity (14-day) at the policy rate, revising size limits on individual banks’ bids, and improving liquidity forecasting tools and practices. To safeguard its balance sheet and preserve credibility, the CBI should continue to avoid financing the government deficit.
The mission commended the CBI for the successful transition to the new trade finance system. Trade finance is now fully processed by commercial banks through their correspondent banking relationships. This has also supported the recent decline in the spread between the official and parallel market exchange rates. Nonetheless, further efforts are needed to further reduce the spread, including by imposing Iraqi dinar usage for car and real estate transactions, improving customs controls to curb smuggling, and simplifying FX access.
While initial steps to reform state-owned banks are encouraging, broader efforts are needed to strengthen the financial sector. The restructuring plan for state-owned banks should be finalized without delay, encompassing treatment of non-performing loans, and recapitalization needs. In parallel, the mission welcomed progress in digitalization and the authorities’ intention to undertake a comprehensive banking sector overhaul. Reforms should include enhancing corporate governance, digital infrastructure, and cybersecurity, while promoting a stronger role for private banks. Efforts to enhance AML/CFT measures by tackling the deficiencies identified in the MENAFATF Mutual Evaluation report should continue.
Chronic power shortages, electricity losses and excessive tariff subsidization continue to weigh on the economy. Addressing inefficiencies in the electricity sector is important for fiscal sustainability and improving productivity. In 2024, distribution losses reached 55 percent, driven by theft and illegal connections, leading to significant financial losses. The authorities are deploying smart meters and have introduced other measures to enhance billing and collection. However, progress should be accelerated. Once collection substantially improves, achieving cost recovery will also require electricity tariff increases, with carefully calibrated subsidies targeted to low-income users. Recent disruptions in electricity imports from Iran further underscore the need for diversified supply and the development of gas projects.
Combating corruption and governance weaknesses is imperative to support economic development. Steps taken in the implementation and upgrade of the national anticorruption strategy and the improvements in corruption perception indices are positive developments. However, corruption remains a significant hurdle for growth. Strengthening accountability frameworks for the operation of state-owned and private enterprises in the oil, electricity and construction sectors is critical, and thorough compliance with Extractives Industries Transparency Initiative standards and the enactment of the law on Transparency and Access to Information should be prioritized. Additionally, aligning anticorruption legal frameworks with international covenants and best practice, and strengthening the independence of the judiciary are essential for effective enforcement and for the protection of economic rights.
A comprehensive structural reform agenda is essential to unlock growth potential. The mission estimates that a comprehensive set of reforms covering the labor market, business regulation, the financial sector and governance could double non-oil potential GDP growth over the medium term. On labor market, priorities include increasing labor force participation, particularly among women, by improving female education and further reducing barriers to their work and mobility, and reforming public sector hiring, which distort labor markets and reduce productivity. Efforts to better align skills with labor market needs should intensify. More generally, simplifying regulations and reducing bureaucratic impediments in e.g. business registration or tax administration should increase participation in the formal economy and help private sector development.
The mission would like to thank the Iraqi authorities and various stakeholders for their excellent hospitality and cooperation and candid discussions during the mission.
AI provided summary below:
🇮🇶 Iraq: IMF 2025 Report Summary
🔹 What Is This?
The International Monetary Fund (IMF) visited Iraq to check on the country’s economy. They talked with Iraq’s leaders and shared ideas to help the country grow stronger. This is their update from that visit.
✅ Positive Points (Good News)
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Strong Savings: Iraq still has over $100 billion in foreign currency reserves, enough to pay for a year of imports.
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Lower Inflation: Prices of goods and services rose more slowly—inflation dropped to 2.7% by the end of 2024.
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Some Sectors Are Growing: Farming, building, and factories are doing well because of better weather and more support.
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Improved Banking System: The Central Bank of Iraq made progress by helping private banks and using modern tools for trade.
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New Anti-Corruption Steps: Iraq is starting to fight corruption and has made progress on some transparency rules.
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More Digital Tools: Iraq is working on digital banking and online tools to improve how money and taxes are handled.
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Women in the Workforce: There's a plan to help more women join the workforce by improving education and job rules.
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Good Trade Tools: New trade finance systems make international trade easier and help lower the gap between official and black market exchange rates.
⚠️ Negative Points (Challenges)
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Oil Price Drop Hurts Budget: Falling oil prices are hurting Iraq’s income, making it harder to pay for everything.
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Big Budget Deficit: Iraq is spending more than it earns, with a 4.2% budget gap in 2024.
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Relying Too Much on Oil: Iraq still depends heavily on oil money and doesn’t collect enough non-oil taxes.
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Electricity Problems: Power cuts, stolen electricity, and 55% loss during distribution hurt the economy and people’s daily lives.
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Old Banks Need Fixing: State-owned banks still have problems with bad loans and weak systems.
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Too Many Government Jobs: Iraq spends too much on public salaries, and this isn’t sustainable.
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Corruption Still High: While there’s some progress, corruption is still a big problem, especially in oil, power, and building sectors.
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Debt Risk: If Iraq doesn’t change how it spends and collects money, its debt could become a serious problem.
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Falling Growth: Iraq’s economy is growing much more slowly—only 1% growth expected in 2025 in non-oil areas.
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Fewer Exports, More Imports: Iraq’s trade balance is worse because it’s selling less oil and buying more goods from abroad.
🛠️ What the IMF Suggests Iraq Should Do
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Cut unnecessary spending in 2025 and stop relying on printing money.
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Raise more money through taxes (like sales tax and customs).
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Reform government pay and hiring rules.
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Improve electricity service and reduce theft.
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Help private businesses grow by removing red tape.
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Keep modernizing banks and helping private ones grow.
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Finish fixing state-owned banks and bad loans.
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Invest more in roads, electricity, and natural gas.
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Help more women get jobs and train workers better.
"Delayed Legislation and Electoral Silence"... The 2025 Parliament Effectively Ends Its Term - Urgent
As the early parliamentary elections scheduled for this fall approach, the Iraqi parliament appears to have entered a state of "early hibernation," following months of legislative deadlock and the stalling of numerous controversial bills amidst mounting political preoccupation with propaganda campaigns and power-sharing deals both inside and outside parliament.
The end of the last legislative term came without convening any decisive sessions, raising questions about the effectiveness of the current parliamentary session. The session has faced repeated criticism due to weak legislative and oversight performance, widespread absenteeism, and laxity in performing constitutional duties. Observers considered this to be an "early and unofficial end" to Parliament's work.
In this context, political affairs researcher Riyadh Al-Wahili confirmed on Thursday (May 15, 2025) that the House of Representatives has effectively ended its activities early, explaining that "the few remaining months of the House's term will not witness any sessions due to the proximity of the elections and the preoccupation of the blocs and representatives with propaganda and political deals."
He added, "What is happening now is a natural consequence of a long period of parliamentary inaction. The council has not made any noteworthy legislative or oversight achievements during its previous terms, instead engaging in political conflict and the exchange of accusations between the parties."
A parliament without sessions... and issues postponed until after the elections.
Since the beginning of 2025, the Iraqi parliament has suffered a clear decline in the frequency of its sessions, amid escalating divisions within political blocs and the focus of most efforts on preparing for the early elections scheduled for next October. Most sessions have been suspended in recent months, either due to a lack of quorum or backroom deals that have led to the suspension of sensitive laws such as the oil and gas law, the supplementary budget, and amendments to the electoral law.
According to observers, Parliament has entered a state of "political clinical death," with deepening divisions among influential forces and a lack of consensus on passing strategic bills, such as the Federal Court Law, the General Amnesty Law, and the Federal Civil Service Law. This has widened the trust gap between citizens and the legislative institution.
This stagnation has also led to a paralysis of service and development issues, particularly in governorates awaiting financial and legislative entitlements within the budget. This portends that all these crises will be postponed to the next parliament, amid fears of a worsening administrative and economic situation in the second half of the year.
The paralysis is likely to continue until the election, as most MPs are now preoccupied with their early election campaigns, while the blocs devote themselves to forging pre-election alliances, at the expense of the legislative and oversight role for which the Council was established.
Sudanese surprise: Mohammed bin Salman will attend the Baghdad summit.
Statements by Counselor Fadi Al-Shammari
Fadi al-Shammari, political advisor to the Iraqi Prime Minister, said that several Arab countries have confirmed their attendance at the Baghdad summit, most notably the UAE, Qatar, Saudi Arabia, Egypt, and Jordan. He explained that diplomatic contacts with Saudi Arabia have confirmed the presence of Saudi Crown Prince Mohammed bin Salman in Baghdad to participate in the summit. Prime Minister Mohammed Shia al-Sudani announced on Wednesday evening that the Arab summit might include surprises regarding attendance, representation, and decisions.
Al-Shammari in an audio interview with researcher Hassan Al-Azzawi:
Today we are witnessing a major Arab summit with high-level participation from various countries. The most prominent countries that have confirmed their participation are the UAE, Qatar, Saudi Arabia, Egypt, and Jordan.
Saudi Arabia has confirmed the attendance of Saudi Crown Prince Mohammed bin Salman, and this is what we hope for. His attendance has not yet been confirmed.
The Gulf Summit does not conflict with the Arab Summit; rather, it is complementary, supportive, and solidarity-based. Therefore, the outcomes of the Riyadh Summit are significant and consistent with the outcomes currently being agreed upon by the Arab delegates gathered to finalize the recommendations paper, in preparation for its presentation to heads of state next Saturday.
The summit is important, and attendance is important, but what's even more important is that all 22 countries attend. Our diplomatic contacts have emphasized this goal, but during previous summits, some countries were absent. We hope that all Arab leaders will be present, or at least that they will be represented by a foreign minister.
There are more than 18 initiatives to be proposed, and they are currently being agreed upon. If approved by all countries, they will be important and pose a challenge to Iraq in its management of this session. We have formed a specialized team to assist the Ministry of Foreign Affairs to ensure proper management, strength, and presence in implementing the commitments of the Arab Summit.
This summit will not feature headlines and slogans, but rather will include practical, implementable outcomes in the areas of investment, economy, communications, digital transformation, and artificial intelligence. If we succeed in concluding agreements between the representatives of the countries, it will be a significant precedent announced in the capital, Baghdad.
Iraq will sponsor rapprochement talks between the UAE and Sudan during the summit to resolve their differences, and both sides have responded positively.
Arab Summit: Iraq Returns to Leadership Role, Baghdad Transforms into Influential Regional Player
Political researcher Abbas Ghadir said on Thursday (May 15, 2025) that holding the Arab League meeting in Baghdad will make Iraq an influential regional player.
Ghadir told Baghdad Today, "The Baghdad summit will make Iraq an influential regional player, especially since the summit will issue important decisions regarding the political and security changes and challenges facing the region at various levels. This summit will make Baghdad a major player in confronting crises and challenges and an effective player in finding diplomatic solutions."
He added, "Holding the Baghdad summit with a large Arab presence confirms that Iraq has been able to regain its leadership and pivotal role in the region, especially after the government worked to distance Iraq from the cycle of war, adopted a policy of balance, and refused to be part of any regional or international axes throughout previous dangerous crises."
Today, Wednesday (May 14, 2025), Foreign Minister Fuad Hussein announced the details of the Arab Summit to be held in Baghdad next Saturday.
At a press conference on the Arab Summit in Baghdad, attended by a Baghdad Today correspondent, Hussein said, "The preparatory committee for the Arab Summit in Baghdad has accomplished significant work," noting that "the participation of leaders and officials in these exceptional circumstances confirms their desire to unify the Arab position."
He added, "Twenty Arab organizations are participating in this summit, in addition to international organizations, including the Secretary-General of the United Nations, the Secretary-General of the Organization of Islamic Cooperation, and the guest of honor, the Prime Minister of Spain."
Hussein continued, "Iraq granted 1,000 entry visas to summit attendees, and there are approximately 300 journalists from Iraqi institutions and 200 from the international press," noting that "16 meetings of the Arab Summit's Supreme Administrative Committee were held in Baghdad."
He stressed that "Iraq is proud to have hosted three summits: the Arab League Council, the fifth session of the Development Summit, and the leaders' summit between Iraq, Egypt, and Jordan," emphasizing that "Iraq is now the chair of the 77th Summit and China."
He explained that "the Arab League Council meeting at the ministerial level will submit its decisions to the summit," explaining that "on the day of the summit, there will be two morning sessions, one at the summit level and the other the fifth development summit. The two summits will issue the Baghdad Declaration, including an immediate halt to the events in Gaza."
Hussein pointed out that "the sister Arab countries presented their visions on the items up for discussion during the summit," adding that "it is hoped that political initiatives will be put forward to establish an Arab center for combating terrorism, organized crime, drugs, and reconstruction."
Regarding Trump's decision, Hussein said, "The announcement of lifting sanctions on the Syrian people is an important step, and what is happening in Riyadh and what will happen in Baghdad is an integrative phase." He emphasized that "there will be decisions regarding the Syrian situation and the situation of Arab countries in general."
Regarding the PKK's decision, Hussein explained, "We are pleased with the PKK's decision to lay down its arms," indicating that "there will be cooperation between Baghdad and Ankara to address the PKK's decision."
Aboul Gheit: The Baghdad Summit has great hopes and Arab citizens have high expectations from it.
"We meet today at a time when the region and the world are witnessing great turmoil," Aboul Gheit said during his speech at the preparatory meeting of foreign ministers for the 34th Arab Summit in Baghdad. He noted that "the martyrs of Palestine are our martyrs, and their cause is the cause of the Arab nation. We look forward to a unified message from this summit to immediately halt the war of extermination."
The Secretary-General warned that "the occupation's scheme knows no end, not only in Palestine, but also in Syria and Lebanon," stressing that "our message must be one, and our vision must be shared and unified."
Baghdad hosts the Arab Summit: "The path to development" is at the forefront of the economic agenda.
Iraq is counting on the 34th Arab Summit, scheduled to be held in Baghdad on Saturday, May 17, 2025, to be a pivotal moment in strengthening its regional economic role and consolidating its position as one of the most prominent players in shaping the Arab development map, at a time when it has risen to fourth place in the Arab world in terms of gross domestic product by 2025.
"The Road to Development": Iraq's Gateway to Economic Integration
The "Development Road" initiative is the centerpiece of Iraqi hopes, serving as the cornerstone of Iraq's vision for long-term Arab-regional economic integration. Through this initiative, Iraq aspires to transform its geographic location into a pivotal link between Asia and Europe, via an advanced transportation network, ports, and infrastructure.
Baghdad Economic Forum member Jassim Al-Aradi told Al-Sabah newspaper that the summit is being held at a crucial time, coinciding with Arab countries' efforts to stimulate their markets. He noted that the presence of Arab leaders in Baghdad provides political momentum that supports feasible economic projects, most notably the "Development Road" project.
Diversifying the economy and reducing dependence on oil
For his part, Dr. Ahmed Hadhal, Professor of Economics at Al-Mustansiriya University, emphasized that the economic axis constitutes the cornerstone of the summit's agenda, calling for stimulating mutual Arab investments and reducing reliance on oil, which still accounts for approximately 90% of Iraq's public revenues.
He added that the Iraqi government is working to encourage investment in local production, renewable energy, and manufacturing industries to narrow the import gap and achieve sustainable economic stability.
Investment opportunities and increasing regional cooperation
Economic researcher Adnan Bahiya believes that the "Development Road" project will provide extensive investment opportunities in infrastructure, industry, and agriculture, pointing to the potential to attract Arab and foreign capital to implement vital projects. Researcher Majid Abu Kalal described the summit as a "new bridge for economic cooperation," anticipating the announcement of initiatives and memoranda of understanding that will support trade and investment integration between Iraq and Arab countries.
Baghdad at the heart of Arab economic transformations
The summit's convening in Baghdad comes at a time when the Iraqi capital is seeking to restore its historic role as a political and economic decision-making center in the region, building on internal economic transformations and growing regional support. This makes the summit a golden opportunity to consolidate this role on the ground.
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Regarding the nuclear agreement, the United States submits a "written proposal" to Iran.
The United States presented Iran with a written proposal for a nuclear agreement during the fourth round of negotiations held on Sunday, according to a US official and two other sources familiar with the matter, Axios news website.
This is the first time since the talks began in early April that White House envoy Steve Witkoff has presented a written proposal to the Iranians.
Iranian Foreign Minister Abbas Araqchi took the proposal back to Tehran for consultations with Supreme Leader Ali Khamenei, President Masoud Pezeshkian, and other senior officials.
The report is in line with what US President Donald Trump said on Thursday during his visit to Doha, when he stated that the United States is "very close to reaching a nuclear agreement with Iran," noting that Tehran had "somewhat" agreed to the terms.
On Tuesday, Trump said in Saudi Arabia that he had offered the Iranians an "olive branch" indicating the option of peace, but stressed that "this offer will not last forever. It is time for them to choose."
During the first round of talks weeks ago, Araghchi presented Witkov with a written document containing several Iranian proposals. A source familiar with the meeting said Witkov told the Iranian foreign minister that "it was still too early for that, and that he wanted to build a good relationship first."
During the third round of talks in late April, Araghchi presented Witkov with an updated document containing Iranian ideas for a nuclear deal. This time, Witkov agreed to receive the document, and a team of US experts studied it and sent Tehran a list of questions and requests for clarification, according to Axios.
Meanwhile, Witkov and his team prepared a US proposal outlining the Trump administration's vision for Iran's "civilian" nuclear program and monitoring and verification requirements, according to the two sources.
Witkov and other officials offered conflicting answers about whether Iran would be able to enrich uranium, and to what extent.
An adviser to Khamenei told NBC News on Wednesday that Iran is prepared to sign a deal that would allow it to enrich only to the minimum levels needed for civilian use and would require it to give up its stockpile of highly enriched uranium, needed for a nuclear weapon, with inspectors verifying compliance, in exchange for the lifting of all sanctions.
Witkoff briefed the UN Security Council days ago on details of the US proposal, which he described as "great and very substantial," but stressed the "need for further progress in the negotiations," according to the minutes of the meeting seen by Axios and confirmed by another source familiar with the matter.
Witkoff presented the new proposal to Araghchi in Oman on Sunday, the sources said. A State Department official declined to comment.
The US envoy expressed satisfaction with the results of the fourth round of talks, held a day before Trump began his trip to the Middle East, while a date for the fifth round has not yet been set.
"I hope you can help me deal with the Iranian situation," Trump told Qatari Emir Sheikh Tamim bin Hamad Al Thani during their meeting in Doha on Wednesday. "It's a dangerous situation, and we want to make the right decision."
Trump emphasized his desire to avoid war, because "things like this start and get out of control. I've seen it time and time again, and we won't let it happen."
Senior diplomats from Iran and the European Troika—France, Britain, and Germany—are expected to meet in Istanbul on Friday, the first such meeting in two months.
European diplomats said the three European powers have decided to trigger the "snapback" mechanism under the 2015 nuclear deal if a new agreement is not reached by next August.
Mishaan al-Jubouri: Qaani's appearance in Baghdad is a humiliation for the government.
On Thursday, May 15, 2025, Iraqi politician Mishaan al-Jubouri described the appearance of Iranian Quds Force Commander Esmail Qaani in Baghdad as a "humiliation for the Iraqi government" headed by Mohammed Shia al-Sudani.
Al-Jubouri said in a post on the X website, followed by "Al-Jabal," that "General Qaani's appearance in Baghdad on the eve of the Arab Summit is a deliberate message. Either Tehran wanted to humiliate the government by saying that the decision is not in your hands, or Al-Sudani's opponents leaked the photos to tell the Arabs: Baghdad is subordinate and does not deserve high representation. In both cases, the timing was calculated."
Qaani arrived in the Iraqi capital, Baghdad, on Wednesday for an unannounced visit that coincided with Iraq's preparations to host an Arab summit next Saturday and with the Gulf-US summit being held in the Saudi capital, Riyadh.
The Iraqi National Security Advisor revealed the visit by posting photos of the two men, saying in a post: "We received the commander of the Iranian Quds Force, General Esmail Qaani, who is visiting Baghdad. We discussed with him ways to develop Iraqi-Iranian relations, joint efforts to secure the border, and the stages of implementing the provisions of the security agreement between the two countries."
He added, "We stressed the importance of the success of the negotiations between Washington and Tehran, and everyone's commitment to dialogue and de-escalation to achieve sustainable stability in the region."
The Quds Force Commander's Public Visit to Iraq: What Is Qaani Seeking in Baghdad?
Areport issued by the Foundation for Defense of Democracies examines the visit of Esmail Qaani, commander of the Quds Force of the Iranian Revolutionary Guard Corps, to Iraq and its significance amid escalating regional and international tensions.
In its report issued on Thursday, May 15, the foundation stated that Qaani's visit to Iraq, unlike his previous movements in the region, was "very public this time."
The foundation believes that the Arab League summit, the security agreement between Tehran and Baghdad, the nuclear negotiations between Iran and the United States, and the situation of pro-Iranian armed factions in Iraq all add special significance to Qaani's recent visit.
Background and circumstances of the visit
The Quds Force commander's visit to Iraq comes at a time when he has not appeared in public for weeks following the killing of Hassan Nasrallah and Hashem Safi al-Din, leaders of the Lebanese Hezbollah movement. This has sparked speculation that he may have been arrested inside Iran.
nuclear negotiations
On May 13, Qaani met in Baghdad with Iraqi National Security Advisor Qasim al-Araji. The latter stated that the meeting focused on "the importance of the success of negotiations between Washington and Tehran, and the need for everyone to commit to dialogue and reduce tensions to achieve lasting stability in the region."
The report quoted Shafaq News as saying that Qaani briefed leaders of Shiite factions in Iraq on the details of the ongoing nuclear negotiations between Tehran and Washington.
The report added that Iran is seeking Arab support to lift international sanctions and is keen to include this issue on the agenda of the upcoming Arab League summit.
Arab League Summit
The Arab League summit is scheduled to be held in Iraq on May 17. The invitation to Ahmad al-Sharaa, head of the transitional government in Syria, to participate in the summit has sparked considerable controversy in recent days.
Sharaa, who played a key role in the overthrow of Bashar al-Assad—one of Tehran's most prominent allies in the region—will not participate in the summit.
The report, quoting the Kurdistan 24 website, stated that prominent Shiite political figures in Iraq had issued specific warnings to Iraqi officials against inviting Sharaa to the summit.
These figures also pressured Iraqi Prime Minister Mohammed Shia al-Sudani to rescind his official invitation to Sharaa, ultimately leading to the head of the Syrian transitional government's non-participation in the summit.
Border agreements between Tehran and Baghdad and the suppression of Kurdish groups
The foundation's report indicated that the implementation of the security agreement between the Islamic Republic and Iran was among the topics discussed during Qaani's meeting with the Iraqi National Security Advisor.
Al-Araji stated that he discussed with the Quds Force commander the issue of "securing the borders and implementing the provisions of the security agreement" between the two countries.
Rudaw News had previously reported, citing Iranian media, that Iraq's National Security Council had officially announced a ban on all political, media, and social activities of parties opposed to the Islamic Republic on its territory, including in the Kurdistan Region.
According to the report, the suppression of Iranian dissidents in Iraq is carried out with direct support from the Iraqi National Security Advisor and the Prime Minister himself.
The fate of Iranian-backed armed factions in Iraq
The Foundation for Defense of Democracies (FDD) continued its report by stating that the issue of disarming Shiite factions affiliated with the Popular Mobilization Forces (PMF) in Iraq has been on the political scene in Iraq for the past six months, with government officials repeatedly emphasizing the need to restrict and control arms possession within the country.
On May 13, Iraqi Prime Minister Mohammed Shia al-Sudani met with Hadi al-Amiri and Qais Khazali, two of the most prominent leaders of Iran-backed armed factions.
During the meeting, Al-Sudani stated that preparations for the Arab League summit were the focus of discussion, adding, "This summit represents an important step toward strengthening Iraq's relations and coordinating its positions on current issues and challenges, especially in light of Iraq's growing and pivotal role in its Arab and regional environment."
However, according to the Foundation for Defense of Democracies, Al-Sudani did not address the issue of disarming these factions during the meeting.
In the same context, Reuters reported on April 6 that a number of Tehran-backed armed groups in Iraq had expressed their willingness to surrender their weapons.
What is Iraq's role in stopping attacks between the US military and the Houthis?
Key statements made by Iraqi government spokesman Dr. Bassem Al-Awadi to Newsmaker:
No Arab country has apologized for participating in the Arab Summit in Baghdad.
The Baghdad summit will be one of the most important summits held in recent years.
The Arab Summit will discuss all challenges in Gaza, the West Bank, Syria, and Lebanon.
Iraq will present an initiative on Syria at the Baghdad summit.
He will propose an initiative to rebuild what was destroyed in Lebanon and Gaza.
We seek to bring relations with Saudi Arabia to the stage of full partnership and cooperation.
Iraq played a role in reaching a ceasefire agreement between the United States and the Houthis.
We thank RT Arabic for its role and for adopting it as a source of news, and we support its presence in Baghdad.
During a Gulf tour where he garnered trillions of dollars in investments, Trump hinted at a near-term nuclear deal with Iran.
US President Donald Trump's hint on Thursday that a deal with Iran regarding its nuclear program was imminent overshadowed his Gulf tour, during which he expected to reap trillions of dollars, the latest of which was $1.4 trillion in investments pledged by Abu Dhabi, the final stop on his visit.
US President Donald Trump visits the Sheikh Zayed Grand Mosque, accompanied by Abu Dhabi Crown Prince Sheikh Khalid bin Mohammed bin Zayed Al Nahyan, during an official visit to Abu Dhabi, May 15, 2025. © Brendan Smialowski / AFP
After his first stop in Saudi Arabia and then Qatar, Trump arrived in the UAE capital, Abu Dhabi, on Thursday, on his first foreign trip since returning to the White House in January.
In Abu Dhabi, he was received by President Sheikh Mohammed bin Zayed Al Nahyan, accompanied by children waving UAE and US flags, while women performed a traditional dance.
Later, he visited the Sheikh Zayed Grand Mosque accompanied by Abu Dhabi Crown Prince Sheikh Khalid bin Mohammed bin Zayed Al Nahyan.
During his reception of his US counterpart at Qasr Al Watan in Abu Dhabi, the UAE president announced that his country will invest $1.4 trillion in the United States over the next ten years.
Prior to that, Trump spoke in Qatar about the possibility of reaching an agreement with Tehran, saying, "I think we're probably getting closer to making a deal without having to do it (referring to possible military action)."
Following this statement, oil prices fell by more than three percent, amid indications that Iran may agree to meet some US demands regarding its program.
Ali Shamkhani, an advisor to Supreme Leader Ayatollah Ali Khamenei, announced on Wednesday that Iran is prepared to conclude an agreement with the United States regarding its nuclear program in exchange for the immediate lifting of sanctions, according to NBC News.
Trump also visited Al Udeid Air Base, the largest US military base in the Middle East, on Thursday, and announced a $10 billion Qatari investment there.
technological ambitions
The UAE's English-language newspaper, The National, reported that the United States and the UAE are working to announce a partnership in the field of artificial intelligence and technology during the visit.
The UAE is betting on artificial intelligence to help diversify its oil-dependent economy.
But these ambitions hinge on access to advanced US technologies, including artificial intelligence chips, which were subject to export restrictions and which the UAE president's brother, National Security Advisor Sheikh Tahnoun bin Zayed, reportedly lobbied for during a visit to Washington in March.
Two days ago, Trump lifted further restrictions on artificial intelligence chips imposed by his predecessor, Joe Biden, to hinder Beijing's access to advanced technology.
Trump hopes to conclude billions of dollars in trade deals with the UAE, having previously estimated from Doha that the "record" tour would raise between $3.5 and $4 trillion.
The US president also praised what he described as a record $200 billion deal to purchase Boeing aircraft from Qatar Airways.
Saudi Arabia promised Trump $600 billion in investments, including US arms purchases that the White House described as "the largest in history."
Generosity of Gulf leaders
But the generosity of Gulf leaders sparked controversy ahead of Trump's visit to Qatar, which offered him a luxury jet for presidential use, in what his Democratic rivals deemed blatant corruption.
The US president avoided hinting at criticism of monarchies on human rights.
Instead, Trump praised Saudi Crown Prince Mohammed bin Salman as a visionary for his rapid economic investments in the kingdom.
Trump also fulfilled a key request of bin Salman by announcing the lifting of sanctions on Syria, months after opposition factions ousted President Bashar al-Assad from power.
In Riyadh, Trump met with Syrian transitional president Ahmed al-Sharaa, the leader of Hayat Tahrir al-Sham, which led the offensive to oust Assad. The US president described al-Sharaa, who is on the US's most wanted list, as "a charismatic young man. A strong man. A strong past. A very strong past. A fighter."
Tehran denies receiving a written US proposal and makes the nuclear deal conditional on lifting the sanctions.
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Iranian Foreign Minister Abbas Araghchi denied that Tehran received a written proposal from the US during the negotiations. This came in response to a report by Axios, citing a US official, that the Trump administration had submitted a written proposal to the Iranian delegation.
The source added that the Iranian foreign minister conveyed the proposal to Tehran for consultation with the Iranian leadership. This coincided with President Trump's announcement that Washington is very close to reaching a nuclear agreement with Tehran, and that the latter has somewhat agreed to the terms. He added that his country is conducting very serious talks with Iran for long-term peace, according to him.
For his part, Ali Shamkhani , advisor to the Supreme Leader of the Islamic Revolution, affirmed Tehran's readiness to reach a nuclear agreement and eliminate its highly enriched uranium stockpiles, provided it maintains its right to enrich and lifts sanctions on the country as part of any retaliatory agreement. He added that his country would commit to never producing nuclear weapons, would agree to low-level enrichment, and would allow international inspectors to supervise the process.
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