Why Iraqis Are Furious: Blackouts, Heatwaves, and Broken Promises

Iraqis' anger is being "cooked" under a scorching sun: demonstrations instead of electricity

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Iraq is on the cusp of its harshest summer in years. Power outages in some areas last for more than six hours, and in others even longer, compared to an hour or two of supply. This portends a potential explosion that could erupt at any moment, forcing some to stage massive demonstrations.

The video for this My FX Buddies Blog post is below here:

 

While technical plans for production, transmission, and distribution are nearing completion, the fuel dilemma—particularly Iranian gas—has emerged as a critical factor that could upset the balance of generation and put the electricity system to a critical test.

 

With rising temperatures and increased demand, the challenge has become twofold: securing fuel on the one hand, and containing potential public anger on the other.

 

Electricity justification

 

Ministry of Electricity spokesperson Ahmed Moussa told Eshaan that "the ministry is close to completing its emergency plan for the summer of 2025, which includes the maintenance and rehabilitation of production stations and generating units, strengthening the transmission network by constructing new lines and expanding transformer stations, in addition to addressing bottlenecks and creating fixed feeders and stations within load centers, while improving the performance of distribution networks."

 

Moussa added, "The plan is proceeding well technically, but the biggest challenge we currently face is the fuel issue, particularly Iranian gas, on which a large percentage of production stations depend."

 

Severe shortage of Iranian gas

 

He explained that "Iraq currently receives approximately 20 million cubic meters of Iranian gas daily, while its demand ranges between 45 and 55 million cubic meters, which has caused a number of generating units to shut down and a general decline in production," noting that "this shortage negatively impacts the hours of electricity supply to citizens."

 

He pointed out that "the government has signed an actual contract with Turkmenistan to provide alternative gas, and negotiations are currently underway to implement this contract. Discussions are also underway to establish platforms to import liquefied natural gas from the Gulf states, Algeria, and Nigeria. These platforms will be connected to pipelines extending to power stations in the south and the capital."

 

Warning against anger

 

The Ministry of Electricity's claims and justifications may not convince Iraqis, whose anger increases as temperatures soar and power outages become more frequent. Warnings of demonstrations fueled by the summer heat are also made more prevalent.

 

The worst summer

 

Energy expert Ali Al-Bakri described the summer of 2025 as "the worst in the history of electricity supply in recent years," warning that a complete halt to Iranian gas supplies would reduce production to less than 20,000 megawatts, while actual demand could reach 40,000 megawatts due to informal settlements and unplanned expansion. He noted that "the logical number, in the event of sound planning, would be between 33,000 and 35,000 megawatts."

 

Al-Bakri told Eshaan, "Iranian gas and its associated pipelines provide approximately 9,000 megawatts of energy, equivalent to a third of the system's production. Losing this source represents a major dilemma that cannot be quickly compensated for."

 

He expected that the supply hours would drop to just one or an hour and a half, compared to two to two and a half hours of outages, if the crisis continues without realistic solutions.

 

He called for support for solar energy projects and private generators, emphasizing the need to provide soft or interest-free government loans to encourage citizens to invest in renewable energy, given its positive impact on the environment, reducing pollution, and enhancing the aesthetics of cities.

 

Solutions that may alleviate the crisis

 

Al-Bakri concluded by saying, "We are facing a very critical season, and if the government does not take preemptive measures, the likelihood of popular protests demanding improved supplies remains very high."

 

“Unpredictable!”

 

In the same context, Furat Al-Moussawi, director of the Iraq Energy Center, said that accurately predicting electricity supply hours next summer is impossible, given its complete dependence on the availability of fuel and the plants' ability to handle high loads, especially with rising temperatures.

 

Al-Moussawi explained in an interview with “Eshan” that “a governorate like Basra may experience up to 20 hours of power supply due to its proximity to gas sources, while Baghdad suffers from a 2-for-2 supply in most of its areas, meaning two hours of power supply for every two hours of outage.”

 

He added, "The contract with Iran stipulates that Iraq be supplied with 50 million cubic meters of gas per day, but quantities are declining due to Iran's seasonal needs, effectively resulting in the loss of thousands of megawatts of generation."

 

Al-Moussawi explained that the proposed alternatives include:

1. Supplying stations with petroleum derivatives (black oil and gas oil), although this option reduces generation efficiency and increases technical failures.

2. Completion of the offshore platform in Khor Al Zubair to receive 600 million standard cubic feet of imported gas daily from several countries.

3. Deploying solar power plants on government buildings, in addition to soft loans from the Central Bank, to encourage citizens to install home solar energy systems, which can be set up in just one or two days.

Demonstration in Najaf, main roads blocked with burning tires in protest against poor service

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n the morning and evening of Sunday, May 25, 2025, dozens of citizens staged demonstrations in the Al-Haidariya and Al-Mundhireh areas of Najaf Governorate, protesting the deteriorating services situation. Protesters escalated their protests by blocking major roads and burning tires in the streets.

 

Al-Jabal's correspondent reported that "dozens of citizens took to the streets this morning in the Al-Haidariya district and blocked the road linking the governorates of Najaf and Karbala using burning tires, in protest against the deterioration of services in the governorate. This prompted the intervention of riot police, who dispersed the demonstration, pursued the protesters, and arrested a number of them ."

 

He added, "The protests have not stopped. At 8:00 p.m. today, a new demonstration erupted in the Al-Manathira district, during which the road linking southern Najaf to the city center was blocked by protesters, amid chants denouncing poor services and the government's disregard for their demands ."

 

Eyewitnesses reported that "the protests were still ongoing at the time of writing, amid a heavy security presence and warnings of an escalation in the event of continued official neglect."

 

Al-Jabal's camera documented part of the protests that took place in the Al-Manathira district in Najaf, where a group of citizens were seen blocking major roads in the district.

Joint Statement of the Central Bank of Iraq and the Central Bank of Tunisia

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Within the framework of strengthening bilateral relations and consolidating cooperation between the Republic of Iraq and the Republic of Tunisia, His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, met in the Iraqi capital, Baghdad, with His Excellency the Governor of the Central Bank of Tunisia, Mr. Fathi Zuhair Al-Nouri. The meeting took place on the sidelines of the conference:

"The Iraqi National Strategy for Financial Inclusion 2025-2029: Vision and Diagnosis," organized by the Central Bank of Iraq.
During the meeting, a memorandum of cooperation and coordination was signed between the Central Bank of Iraq and the Central Bank of Tunisia, expressing the two sides' commitment to developing joint frameworks and consolidating the principles of banking integration, in light of the development of economic relations between the two brotherly countries.

The memorandum stipulates enhancing cooperation in several areas, most notably:
    • Banking supervision and risk management in line with international standards.
    • Promoting and expanding the use of electronic payment systems to support financial inclusion.
    • Overseeing payment systems and exchanging expertise on developing their technical infrastructure.
   • Exchanging information and expertise in the fields of financial innovation, cybersecurity, and combating money laundering and terrorist financing.

This visit provided an opportunity for both sides to discuss financial issues of mutual interest and explore opportunities for joint cooperation in developing the banking sector's infrastructure, particularly with regard to modernizing and developing electronic payment systems and financial services. This reflects both sides' commitment to strengthening channels of dialogue and technical and regulatory cooperation with their counterparts regionally, Arab countries, and internationally.

Through this partnership, both sides affirmed their constant endeavor to keep pace with developments in international banking and build strategic cooperative relations that contribute to achieving financial stability and supporting economic growth between the two brotherly countries.

 

 

 

 

 

The Central Bank of Iraq launches the first national strategy for financial inclusion.

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The Central Bank of Iraq (CBI) launched its first National Financial Inclusion Strategy for the period 2025-2029.

The strategy includes an integrated framework for financial inclusion aimed at enabling all individuals and businesses to access the financial sector and use appropriate and safe financial services while protecting their rights, thus contributing to economic and social development.

In his speech, His Excellency the Governor of the CBI, Mr. Ali Mohsen Al-Alaq, emphasized that the CBI attaches great importance to promoting financial inclusion in Iraq, as well as cooperation at the regional, Arab, and international levels. The CBI has worked with international partners to develop a financial inclusion strategy in accordance with international best practices, in partnership with the World Bank Group, the Arab Monetary Fund, the Global Financial Inclusion Alliance, and the German Development Cooperation Agency (GIZ), in addition to local partners from public and private bodies and agencies.

The CBI is working to achieve a number of goals, including increasing the percentage of bank accounts, enhancing consumer protection for those dealing with the financial sector, using the latest electronic payment methods, and developing infrastructure and regulations to enhance financial inclusion.

 

Central Bank of Iraq
Media Office
May 25, 2025

 The text on the last picture says:

Definition of Financial Inclusion...

To enhance access to and use of formal financial services for all segments of the population in Iraq, especially marginalized communities, in an affordable and sustainable manner, ensuring consumer rights are protected.

Why is a National Financial Inclusion Strategy being developed?

The Central Bank of Iraq developed the first National Financial Inclusion Strategy to promote sustainable development and expand formal financial access to disadvantaged segments of the population.

The National Financial Inclusion Strategy has become a widely recognized approach globally, with significant momentum over the past decade.

As of 2021, more than 60 countries had launched a National Financial Inclusion Strategy.

 

A strong, diversified, and sustainable economy is a fundamental pillar of the National Security Strategy (2025-2030).

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Samir Al-Nusairi

 

The Prime Minister announced the Iraqi National Security Strategy, with its axes and objectives, designed to ensure security and economic stability, protect Iraq internally and externally, avoid risks, and enhance the country's societal security, stability, sovereignty, and prosperity in all areas.

What concerns us as economists is how to achieve the economic goal of the strategy, which constitutes the basic foundation for building effective economic stability and sustainable development in accordance with Iraq’s economic vision for the years (2025-2030). 

          

It is important to note that most countries in the world, whether emerging or fragile economies, have national security strategies that rely on plans to build stability and social development for their people. The most prominent of these plans relate to ensuring food security, health security, and livelihood security as basic and systematic priorities for building a safe, stable, and developed society. This is what Iraq's Vision 2030 clearly emphasized and indicated. 

Iraq is currently going through a critical, important, and sensitive phase due to the political, security, and economic circumstances, which can be specifically identified with the fluctuations in global oil prices and the global economic recession. The economic reality, according to official data, also indicates that

The preliminary results of the general population census indicate that Iraq's population has risen to 46 million, while unemployment and poverty rates continue at the overall level. This requires solutions and major efforts to empower youth, reduce unemployment rates, and alleviate poverty in a country that aims to achieve stability in its national security strategy. To implement the plans drawn up to achieve this, we believe that

 Building the foundations of a comprehensive national security strategy, with a focus on the economy, must result in security, stability, and economic development that contribute to societal well-being. It must be effective and implementable under the current circumstances in Iraq. Therefore, many citizens from various levels of government, politics, and economics, as well as university professors, civil society organizations, youth, women, and professionals, must familiarize themselves with the strategy's details, each within their respective fields, and contribute to achieving its objectives.

The magnitude of the economic challenges, both domestically and internationally, and the continued volatility of global oil prices require a firm stance by all governmental, political, and popular bodies, as well as the private sector, to protect Iraq and sustain the building of a strong, diversified, developmental, and sustainable economy, based on realistic realities.

 I believe that the strategy should be a realistic application of the axes of the government program in its economic and security dimensions, and most importantly... 

Legitimate demands to eliminate financial and administrative corruption, address unemployment and poverty, and return Iraqi funds stolen by corrupt

people.

The basic economic principles of the national security strategy should be as follows:

1- Building a sound national economy with multiple resources.

2- The private sector plays a pivotal role in leading the market.

3- Providing food, medicine and environmental security for citizens.

4- Ensuring a decent life for the individual and the family.

5- Reforming and developing the financial and banking sector and increasing its contribution to economic development.

6- The state guarantees social justice for citizens.

7- Protecting the spirit of citizenship and community and civil peace.

8- Reforming and developing good governance institutions to provide the best services to citizens.

9- Information security and transparency of economic data and indicators.

 

Al-Salami: The government must take urgent action regarding the oil agreements between the region and Washington.

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MP Haider Al-Salami called on the federal government on Sunday to take urgent action regarding the agreements concluded by the Kurdistan Regional Government (KRG) with American companies related to the investment of natural resources.
Al-Salami told Al-Maalouma that “Iraq’s natural resources represent a right for all components and spectrums of the Iraqi people, and their investment and extraction are the exclusive prerogative of the federal government.” He explained that “the KRG’s signing of agreements with American companies to invest in oil and gas fields represents a clear violation of the constitution and the Federal Court’s ruling, which affirmed that oil and gas belong to the Iraqi people, and that the management of this sector is the sole responsibility of the federal government.”

He added, “Baghdad must not be satisfied with rejectionist statements, but must take real steps to reconsider its dealings with the KRG and send clear messages to the concerned countries that the Kurdistan Region is part of the Iraqi state and not an independent entity.”
Al-Salami pointed out that "this issue must be taken seriously into consideration, because natural resources belong to all Iraqis, regardless of their ethnicity, sect, or religion, and they must not be invested unilaterally by the region without consulting the federal government."

It is noteworthy that the agreements concluded by the regional government with some American companies in the field of oil and gas investment have sparked widespread political and popular controversy, as they are considered a violation of the constitution and a Federal Court ruling. 

"Federalism Works": U.S. Scholar Hails Kurdistan's Stability, Urges Respect for Autonomy

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"Anytime Kurdistan Regional Government leaders get a visit to Washington, it's important," Romano stated. "What they're doing now is further cementing the business relationship between the Kurdistan Region and key sectors of the American economy."

https://www.youtube.com/watch?v=gqwQffDtBhI0  embed here:

 

The Kurdistan Region’s growing ties with the United States and its sustained pursuit of economic development were praised by David Romano, Professor of Middle East Politics at Missouri State University, in an exclusive interview with Kurdistan24 on Friday. Romano emphasized that the Kurdistan Region continues to serve as a beacon of stability and a model of federalism in a volatile region, while calling on Washington to back Erbil's constitutional rights.

"Anytime Kurdistan Regional Government leaders get a visit to Washington, it's important," Romano stated. "What they're doing now is further cementing the business relationship between the Kurdistan Region and key sectors of the American economy. And they're getting the United States to clearly signal its continuing attachment to the Kurdistan Region and its economy and its welfare."

He underlined that the latest developments signify U.S. confidence in Kurdistan and a reaffirmation of its right to pursue independent economic initiatives. "It's a commitment from Washington to Hewler," Romano added.

Commenting on the recently signed agreements with HKN and WesternZagros, Romano observed, "I don't know if these two agreements signify any change... the signing of the oil deals is a continuation of the American approach to the Kurdistan Region."

He stressed that these agreements are legally sound, especially as they focus on domestic production. "It actually shouldn't pose a legal constitutional problem... the Kurdistan Region has a clear right to pursue its own development... These agreements look to be focused on especially domestic gas production for Iraqi needs. That's legal. There should be no question that that's constitutionally legal."

Romano expressed hope that the U.S. will encourage Baghdad to honor these constitutional provisions. "Washington will push Baghdad... not overreach with its attempt to centralize all authority... the Kurdistan Region has complete legal right to develop [new fields] as it sees fit."

Highlighting Kurdistan’s long-standing role as a U.S. partner, Romano noted, "The Kurdistan Region is a friendly, stable island for the United States... it's also a way to help them negotiate various initiatives with Baghdad."

He urged resolution of lingering disputes between Erbil and Baghdad, suggesting it could demonstrate how federalism can work effectively in the region. "If Baghdad and Erbil could resolve some of their remaining disagreements... Iraq in general could serve as a good example of how federalism can work."

Romano drew parallels with Syria, suggesting that Kurdistan’s experience offers valuable lessons. "Federalism can work very well... it reassures minorities, and Iraq is close to showing that it’s better than the alternatives."

He concluded by stating that Kurdistan's example should be seen as a model for decentralization and democracy: "They've avoided armed conflict for the most part... In a country like Syria, if they would like to build a better future, it should be an example to aspire to."

Romano reiterated the importance of U.S.-Kurdistan relations: "This is the kind of engagement, investments, relationships, and diplomatic initiatives that we're always happy to see."

'The Timing Cannot Be Any Better,' Qanbar Backs U.S. Investment in Kurdistan

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He affirmed that the projects will endure for generations and attract more American companies: "It’s a win-win situation... Iraq also will benefit. The region will benefit."

Entifadh Qanbar, President of the Kurdish Protection Action Committee, described Prime Minister Masrour Barzani’s recent U.S. visit and the signing of two multibillion-dollar gas contracts as a "strategic, very important historical" development, with long-term consequences for both Kurdistan and the United States.

Speaking to Kurdistan24 on Friday, Qanbar underscored the monumental scale of the agreements: "The signing of two, gigantic, gas contracts, valued hundred and $10,000,000,000 is a huge step, and the timing cannot be any better."

He linked the initiative directly to President Donald Trump’s broader Middle East investment policy. "As we saw [in] President Trump's trip to Qatar, United Arab Emirates, and Saudi Arabia, he brought $3,000,000,000,000 of investment, and this step is very much welcomed," Qanbar stated. He emphasized that Dr. Massad Boulos, Trump’s special adviser on the Middle East and Africa, expressed strong support for the Kurdistan deal, calling it a welcome step.

Qanbar praised the growing strategic ties, noting Prime Minister Barzani’s words that Kurdistan enjoys "excellent relation[s] with the United States" with room for further enhancement. "There is a love between the American people and the Kurdish people... not only in gas... but also in all types of minerals and wealth in Kurdistan, which will strengthen the American Kurdish relationship," he added.

Highlighting the durability of the investment, Qanbar said, "Even if President Trump has changed or his term finished, the investments will continue. That's why I call it a strategic step."

He affirmed that the projects will endure for generations and attract more American companies: "It’s a win-win situation... Iraq also will benefit. The region will benefit."

Qanbar also projected the model outward: "This model... will be copied to the rest of the Middle East... to Syria... to Lebanon," calling for similar reconstruction and investment in neighboring nations. He cited 24-hour electricity in Kurdistan as a potential outcome.

On legality, Qanbar strongly defended the contracts' constitutional basis, citing post-2005 clauses and omissions in the federal government’s authority: "This is a witch-hunt from Baghdad... for chauvinistic reasons and hatred towards the Kurdish people, unfortunately."

Referencing recent remarks by Secretary of State Marco Rubio, Qanbar pointed to a clear strategic alignment: "The linchpin of the U.S. policy is Kurdistan autonomy... [The Kurds] are the first allies of the United States in Iraq, and they will be treated so."

Qanbar stressed that President Trump’s vision is anchored in three principles: Peace, Partnership, and Prosperity. "Each ‘P’ contributes to [the] other. Peace and prosperity come from partnership with the United States," he asserted, thanking the Kurdish leadership for embracing this approach.

"Every American congressman, senator... said the Kurds are the best partners... in fighting terrorism," he continued, emphasizing the Peshmerga's role and advocating that partnership extend beyond security to economics and diplomacy.

Qanbar noted, "The United States does not need to protect Kurdistan. Kurdistan can protect itself... Kurdistan needs weapons... anti-aircraft and anti-drones and anti-missiles... The Kurds are able to control the area and defend themselves."

He proposed differentiated U.S. policy toward Kurdistan and the rest of Iraq: "You have to have one Iraq, maybe... but two policies." He compared this to U.S. policy on China and Taiwan.

Qanbar affirmed that under Trump, the Kurdish role will expand: "The role of [PM] Masrour Barzani and President Masoud Barzani will be bigger than Kurdistan... to succeed peace and prosperity in the Middle East."

He credited President Masoud Barzani's unique regional diplomacy: "No one in the Middle East has all these relations... except President Masoud Barzani."

Qanbar reiterated that peace and prosperity must be built on economic ties: "Jobs, more jobs, income... improving relations with all neighbors... These are advantageous for the Kurdish people."

He concluded by affirming Kurdistan's new trajectory: "Kurdistan was falling apart after Da'esh... Now Kurdistan has a very bright future... The signing of these two major gas contracts is only the beginning... Within less than two years, there will be enough production of gas to cover not only Kurdistan, [but] all Iraq."

Baghdad softens tone on Erbil's Washington deals

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She stressed her keenness to attract American investments.

After the Kurdistan Regional Government's recent oil contracts with American companies, worth tens of billions of dollars, sparked outrage in the Iraqi federal government, given that they were concluded without Baghdad's knowledge, the latter quickly softened its tone, merely calling for "adherence to the constitution" in addressing a sovereign issue of such importance.

Iraqi Prime Minister Mohammed Shia al-Sudani expressed his aspiration to develop and grow relations with the United States in various fields, particularly in the economy, energy, investment, and culture. During his meeting with US Senators Angus King and James Lankford, al-Sudani affirmed, according to a statement issued by his office, that "the government has taken decisive steps in the oil and gas sector and achieved important accomplishments that will enhance cooperation with American companies and attract investment in this field."

Washington's investments in Kurdistan: a partnership of trust that strengthens its presence and enhances stability.

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Former Iraqi diplomat Ghazi Faisal affirmed on Sunday (May 25, 2025) that US investments in the Kurdistan Region represent a strategic partnership that reflects Washington's confidence in the region's future and its pivotal role in the region's stability.

Faisal told Baghdad Today, "Relations between the Kurdistan Region and the United States are acquiring a strategic dimension, and the recent visit of the region's Prime Minister, Masrour Barzani, to Washington is a pivotal step toward strengthening the region's position regionally and internationally."

He added, "The visit carried clear economic dimensions, as the two sides discussed vital projects in the energy sector that will contribute to supporting economic growth within the region and Iraq in general, by improving infrastructure, expanding the production network, and providing new job opportunities."

Faisal explained that "the agreements reached during the visit will enhance integration between the federal government and the regional government and open new horizons for cooperation in the areas of sustainable development and energy, thus enhancing the stability of Iraq and the wider region."

He concluded his statement by saying, "This growing partnership with Washington consolidates Kurdistan's role as an active element in the regional stability equation and a reliable economic partner on the international stage."

Relations between the region and the United States are witnessing significant development in various areas, most notably security, energy, and investment.

In recent years, the United States has been keen to encourage a stable investment environment in the region, given its strategic geographic location and promising natural resources, particularly in the oil and gas sectors.

Iraqi Kurdistan is one of the country's most relatively stable regions, making it a preferred destination for foreign companies, particularly American ones, seeking to expand their businesses in a safer and more transparent environment.

These partnerships are seen as part of US efforts to achieve economic stability that enhances political stability in Iraq and the broader region.

SOMO confirms plans to invest in foreign oil refineries

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On Sunday, May 25, 2025, the State Oil Marketing Organization (SOMO) revealed Iraqi plans to invest in foreign refineries with high refining capacities, as part of what it called "maximizing" oil revenues.

 

“Iraq is studying plans to invest in foreign refineries with high refining capacities to ensure oil marketing and maximize returns, with a focus on the fast-growing Asian markets, ” the company’s general manager, Nizar Al-Shatri, said in an interview with Bloomberg, followed by Al-Jabal. He explained that “ the trend toward investing in foreign refineries aims to enhance the marketing capacity of Iraqi crude oil by guaranteeing a fixed percentage in its favor in these refineries, regardless of price fluctuations.”

 

He pointed out that "the company seeks to establish long-term partnerships to address price fluctuations in the international market without affecting the volume of exported quantities , by dealing with reputable clients who possess high refining capacities in various markets."

 

He revealed that "the company has direct export contracts with major refineries and companies in Asia, Europe, and the Americas, in addition to a number of markets on the African continent."

 

He added, "Long-term partnerships allow Iraq to sell its crude oil to foreign companies at an officially announced price. When the latter resell it at a premium in the markets—when there is high demand—Baghdad receives a 65% share of these profits, while the foreign company takes 35%. If the oil is sold below the price, the foreign company bears the loss."

 

Al-Shatri pointed out that "the spot market provides an additional price premium, which generated $80 million in profits for the company in one previous year," stressing that "Iraq is committed to adhering to the quotas set by OPEC+, a commitment that has helped achieve market balance."

 

Al-Shatri explained that "oil production is supplemented with condensates and associated gas. These condensates are often mixed in some oil fields to improve the specifications of Iraqi crude oil," calling for "the necessity of subtracting them from total production, as they are not crude oil."

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"The Weaker Position"... Expert: Iraq Faces Economic and Energy Challenges Until 2028

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Oil expert Furat al-Moussawi warned that Iraq's economic and energy challenges will continue until 2028, attributing this to the country's near-total reliance on a rentier economy and the lack of radical strategic solutions to date.

During his appearance on the program "Free Talk" on Al Furat TV, Al-Moussawi said, "Iraq still suffers from a single-source rentier economy that is out of step with global market developments, and this has caused significant harm to the national economy." He pointed out that "all current projects rely on oil revenues without any real diversification in the productive sectors."

He added, "The country is currently exporting approximately 3.4 million barrels per day, 200,000 barrels more than the limit permitted under the OPEC agreement, which has alarmed the organization and prompted some countries, most notably Saudi Arabia, to seek to reclaim their market share."

Al-Moussawi pointed out that "the price of a barrel of oil approved in the three-year budget is $70, which poses a major challenge in light of market fluctuations, while the budget will not regain balance unless the price of a barrel reaches at least $55." He emphasized that "Iraq does not yet have a sovereign wealth fund, which increases the fragility of its financial situation."

In the energy sector, Al-Moussawi explained that "gas investment is still contingent on increasing oil production, which limits development potential." He added that "the Karbala refinery has not yet been completed, as has an investment project in Al-Faw, at a time when the country does not have enough refineries to qualify it for regional competition."

He continued, "The only clear project currently is the agreement with Total, Qatar Energy, and Basra Oil, which includes four strategic projects, including exploiting seawater for oil fields, producing the first 100 megawatts of solar energy, and investing in four gas fields."

He pointed out that "the government realizes that the current strategy is ineffective, as evidenced by the lack of effective investments and radical solutions to the energy crisis," warning of "the difficulty of achieving gas self-sufficiency before 2028."

Al-Moussawi emphasized that "geopolitical turmoil, including the Russia-Ukraine war and sanctions on Iran and other countries, has contributed to oil price volatility, prompting OPEC to emphasize its study of market developments before making any decision to increase production."

The oil expert concluded by saying, "Iraq remains in the weakest position among oil-producing countries due to its complete dependence on oil revenues, lacking any real tools to ensure long-term economic stability."

Iraq signs a memorandum of understanding to develop part of the Al-Rufayl Economic City in Baghdad.

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Prime Minister Mohammed Shia al-Sudani sponsored the signing of a memorandum of understanding today, Sunday, regarding the development of a portion of the Al-Rufayl Economic City in Baghdad.

A statement from his media office received by Al-Eqtisad News stated that "Al-Sudani sponsored the signing ceremony of a memorandum of understanding between the National Investment Authority and Talaat Moustafa Holding Company for Real Estate Development, regarding an Iraqi-Egyptian-Saudi investment project to develop part of the economic city of Al-Rifai, west of the capital, Baghdad, and to invest in promising opportunities in its various sectors, in the presence of the Chairman of the National Investment Authority and the Chairman of the Saudi Al-Muhaidib Group, Mr. Suleiman bin Abdul Qader."

According to the statement, the ceremony included a "review of the integrated city designs implemented by the group, and a detailed explanation of the economic city, its spaces and planning, services, schools, hotels, and other service facilities."

The Prime Minister welcomed the group and all fruitful partnerships, stressing the state's support for investment projects and providing all necessary facilities to expand the investment environment in Iraq. He also pointed to the acceleration of development plans and the vital development projects they include.

For his part, Hisham Talaat Moustafa expressed the group's readiness to cooperate and begin implementation procedures for the projects contracted for.

New recommendations from Al-Sudani to classify public companies and promote financial reform.

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Prime Minister Mohammed Shia al-Sudani directed, on Sunday, the classification of public companies and the implementation of financial and administrative reforms, during his chairing of a meeting of the Supreme Committee for Corporate Restructuring.

His media office said in a statement received by Shafaq News Agency that the meeting discussed the issues on the agenda and the committee's work mechanism, which aims to maximize non-oil revenues, reform public companies, and review the implementation of previous decisions related to administrative and financial reform, in addition to adopting sound economic foundations in evaluating and managing companies, which contributes to strengthening the state treasury's resources, guaranteeing the rights and entitlements of workers in these companies, and improving their performance.

During the meeting, recommendation (First/1) contained in the minutes of the meeting of the subcommittee concerned with supervising the company classification process, regarding the establishment of the “General Company for Reconstruction, Equipment and Scientific Investments,” was approved.

Recommendation (First/2) of the minutes of the subcommittee concerned with classifying companies, regarding the reclassification of the companies concerned, was also approved, in addition to approving Recommendation (First/3) related to the recommendations of the World Investor Day Conference.

The meeting also approved Recommendation (First/4) regarding the general economic policy paper, and Recommendation (First/5) regarding the disbursement of fuel quantities, based on what was stated in the minutes of the subcommittee concerned with the company classification process.

Al-Sudani confirms the provision of everything necessary to expand the investment environment in Iraq.

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Prime Minister Mohammed Shia al-Sudani sponsored the signing of a memorandum of understanding on Sunday to develop part of the Al-Rufayl Economic City in Baghdad. He affirmed the state's support for investment projects and the provision of all necessary measures to expand the investment environment in Iraq.

Al-Sudani's office stated in a statement received by Al-Ghad Press that "Prime Minister Mohammed Shia al-Sudani sponsored, today, Sunday, the signing ceremony of a memorandum of understanding between the Investment Authority and Talaat Moustafa Holding Company for Real Estate Development, regarding an Iraqi-Egyptian-Saudi investment project to develop part of the economic city of Al-Rufayl, west of Baghdad, and to invest in promising opportunities in its various sectors, in the presence of the Chairman of the Investment Authority and Chairman of the Saudi Al-Muhaidib Group, Suleiman bin Abdul Qader."

The statement indicated that "the ceremony witnessed a review of the integrated city designs implemented by the group, and a detailed explanation of the economic city, its spaces and planning, services, schools, hotels, and other service facilities."

According to the statement, Al-Sudani affirmed "the state's support for investment projects and the provision of all necessary facilities to expand the investment environment in Iraq," noting "the acceleration of development plans and the vital development projects they include."

Baghdad Pulse brings life back to the capital's streets... a new promise of life. 

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On a quiet night in Baghdad, the sidewalks were asleep under dim lights, and the ancient Rashid Street silently told the tales of a thousand years of history... Suddenly, it was as if a "pulse" had been poured into the city's arteries!

 

Baghdad's Pulse... a name unlike any other, a new promise of life, an initiative emanating from the heart of Iraq's private banks, revitalizing the heart of the capital and its oldest streets. From Mutanabbi Street, where ink meets paper, to the Government Palace, where decisions were housed in historic palaces, it now reaches Rashid Street, a street that has witnessed the transformations of time from the Ottoman era to the present day.

 

Young people are returning, shops are open until the early hours of the morning, and light streams from the modern columns to embrace the spirits of visitors. It's not just a reconstruction, but a restoration of identity and a revival of the spirit of tourism and culture at a time when we are in dire need of light.

 

All this is thanks to a joint collaboration between the Iraqi Private Banks Association, the Baghdad Municipality, and the Ministry of Culture, under the supervision of the Prime Minister's Office. The goal? To keep Baghdad alive in our memories, vibrant in our hearts, and poised to proudly become the Arab Tourism Capital in 2025!

 

In this regard, Ali Tariq, Executive Director of the Iraqi Private Banks Association, explained that the Baghdad Pulse initiative represents support from the Iraqi banking sector for the city of Baghdad.

 

Tariq said that the Nabd initiative, which is funded by the Tamkeen Fund and supervised by the Association of Private Banks and the Baghdad Municipality, aims to highlight the heritage of the capital, Baghdad. He noted that the first phase, once completed, has kept Mutanabbi Street open until morning and has contributed to the creation of numerous jobs for people. He noted that the importance of this area lies in making Baghdad a destination for heritage tourism.

 

Last February, the Prime Minister's Office announced the launch of the third phase of the "Baghdad Pulse" initiative to rehabilitate Rashid Street, as part of ongoing efforts to revive Baghdad's architectural heritage and promote economic development.

 

The Prime Minister's Media Office stated in a statement received by Al-Eqtisad News that this initiative comes in cooperation with the Iraqi Private Banks Association, the Baghdad Municipality, and the Ministry of Culture. 

 

He added that the third phase aims to revive Rashid Street's unique architectural character, improve its infrastructure, and revitalize its role as a vibrant economic and cultural center, contributing to the revitalization of heritage tourism in light of Baghdad's selection as the Arab Tourism Capital for 2025.

 

The statement indicated that this initiative contributes to attracting investment and providing an urban environment that reflects Baghdad's historical identity. It also falls within the government's vision to strengthen partnerships between the public and private sectors, with Iraqi private banks playing a pivotal role in supporting the project by financing rehabilitation and reconstruction operations.

 

The statement emphasized that the continued implementation of "Baghdad Pulse" reflects the government's commitment to developing the city's infrastructure in accordance with the latest international standards, ensuring Baghdad's role as a thriving economic and cultural center is enhanced and its status as one of the region's most important historical capitals is restored.

 

Rashid Street is a well-established Baghdad landmark, established in 1916 during the Ottoman rule by order of Khalil Pasha. Its purpose was to facilitate the movement of the army. Initially known by the name of its founder, its name changed several times during the British occupation before finally settling on Rashid Street, in honor of the Abbasid Caliph Harun al-Rashid, upon the recommendation of historian Mustafa Jawad.

 

Minister of Culture, Tourism and Antiquities, Ahmed Fakak Al-Badrani, spoke about the three phases of the rehabilitation of Rashid Street.

 

Al-Badrani noted that every city in the world has what is called its commercial heart, or "downtown," a term used to describe the authentic or old city center. In Baghdad, Rashid Street represents this vibrant heart, combining the city's authenticity with its commercial center.

 

He added: "The rehabilitation phases have begun on Mutanabbi Street, one of Baghdad's most famous streets and a major cultural center, renowned for being an ideal place for book lovers and reading."

 

The second phase included the rehabilitation of Government Palace Street, a group of heritage palaces that once ruled Baghdad, including the Ottoman governor's palace, the king's palace, and other interconnected palaces.

 

The third phase of the "Baghdad Pulse" initiative aims to rehabilitate Rashid Street, revive its unique architectural character, improve its infrastructure, and revitalize its role as a vibrant economic and cultural center.

He emphasized that these efforts aim to stimulate heritage tourism, especially after Baghdad was named the Arab Tourism Capital for 2025, attract investments, and provide an urban environment that reflects Baghdad's historical identity.

 

Al-Badrani explained that Iraqi private banks played a pivotal role in supporting this project, actively contributing to financing the rehabilitation and reconstruction operations. He noted that the participating entities include the Prime Minister's Office, the Iraqi Private Banks Association, the Baghdad Municipality, and the Ministry of Culture. These entities represent a partnership between the public and private sectors, with Iraqi private banks contributing to the financing, while government agencies undertake implementation and supervision.

 

In addition, economic expert Mustafa Hantoush stated that social standards have become one of the most important elements of governance in the modern banking system.

Speaking to Al-Eqtisad News, Hantoush emphasized that social standards are no longer merely a secondary element, but have become a core component of the Basel III Committee's standards, which govern banking performance globally.

 

He explained that one of the most prominent manifestations of these standards is banks' engagement with the local community, through implementing social and service activities targeting specific groups, such as people with special needs, or by highlighting banks' capabilities in providing services that go beyond traditional financial frameworks, thus enhancing public confidence and improving the quality of the relationship between the bank and the community.

 

Hantoush pointed out that Iraq has a successful experience in this field, citing the "Baghdad Pulse" initiative, which contributed to the development of Mutanabbi Street, transforming it into an economic and cultural icon for the country.

 

He added that the street, which previously employed around 1,000 people, now accommodates a larger number thanks to the shift system and the expansion of activities, which has had a positive impact on employment and the revitalization of the local market.

 

Concluding his remarks, Hantoush called on profitable sectors such as housing and oil to adopt the same societal approach by investing in development and service programs that benefit various segments of society. He emphasized that this approach enhances the institution's image, raises confidence in it, and is one of the most successful long-term strategic marketing tools.

A member of the Finance Committee: The 2025 budget may not reach Parliament for discussion.

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Member of the Parliamentary Finance Committee, Jamal Koujar, predicted on Sunday that the 2025 budget schedules will not reach the House of Representatives for discussion and legal action.

"The Finance Committee has repeatedly requested the budget tables be sent, but to no avail," Kocher said in a statement. "We previously hosted the Minister of Planning, who said we have completed the ministry's requirements and sent them to the Council of Ministers. Ask the government about the reason for the delay."

"We expect the 2025 budget schedules will not reach the House of Representatives," Kocher added, noting that "all investment projects for 2024 are on hold due to a lack of liquidity."

Kocher continued, "There is no possibility in the 2025 budget to launch new projects, and the three-year budget is spent in the following manner: the 2023 budget is spent in 2024, and the 2023-2024 budget is spent in 2025. This means that the deficit has turned into an actual deficit."

Hebrew newspaper: America is pressuring Israel to postpone its comprehensive operation in Gaza.

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 The Jerusalem Post revealed on Sunday that the US administration has asked Israel to postpone its comprehensive military operation in the Gaza Strip in order to resume negotiations on a hostage deal.

Two informed sources told the Hebrew newspaper that "the United States guarantees two main elements: first, postponing the comprehensive operation in Gaza, and second, progress in the ongoing negotiations in parallel with the military operation."

Israel is currently conducting large-scale operations in Gaza, and Israeli officials have made it clear that once a comprehensive ground operation begins, Israel will not withdraw from the areas it enters, even as part of a potential deal. Furthermore, the possibility of a ceasefire as part of any agreement will become more complicated.

Defense Minister Israel Katz stated a few days ago: "Once the military operation in Gaza begins, we will act with full force, and we will not stop until we achieve all our goals."

Israeli officials confirm that the only agreement currently on the table is the "Witkoff Framework," which includes the release of 10 prisoners and a 60-day ceasefire.

Tehran to Washington: If the trigger mechanism is activated, the response will be harsh.

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Iran has issued an explicit warning regarding the activation of the nuclear agreement's "snapback mechanism," stressing that any such move will be met with a firm response.

This came in remarks made by Iranian Foreign Minister Abbas Araqchi during a meeting with the Iranian Parliament's National Security and Foreign Policy Committee.

Araghchi pointed out that uranium enrichment inside Iran is an irreversible "red line," emphasizing that Tehran will not negotiate under threat or pressure, and that Iranian diplomacy operates based on an independent vision that is not subject to political blackmail or temptations.

During the meeting, the Minister presented a comprehensive report on developments in the indirect negotiations between Iran and the United States, including the fifth round of talks.

He expressed his country's willingness to cooperate in establishing a regional enrichment center, but stressed that enrichment within Iranian territory is "non-negotiable."

Araghchi also held Israel partly responsible for the escalation, warning that any war that might break out in the region would not only harm one party, but would have repercussions that would extend to all countries in the region.

For their part, several members of the parliamentary committee expressed their categorical rejection of any negotiations with the United States, noting that it continues to impose sanctions even while the talks are ongoing, which they described as a "dishonest approach."

 Did you miss the last episode of My FX Buddies?  Catch it below:

U.S. & Iraq Strengthen Partnership: Energy, Economy & Culture in Focus!

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