Stay tuned... an expanded meeting will be held tomorrow in Baghdad to discuss the re-export of the region's oil.
Iraqi parliament member Sherwan Dubardani confirmed on Saturday that a delegation from the Kurdistan Region, headed by the Minister of Natural Resources, had arrived in Baghdad. He explained that the capital would host an expanded meeting tomorrow between the Kurdistan delegation and the federal government to discuss the re-export of the region's oil.
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"The Kurdish delegation is currently holding a meeting, and an expanded meeting between Erbil and Baghdad is expected to be held tonight or tomorrow, Sunday, to discuss the region's oil file," Dubardani said in a statement monitored by Al-Masry.
Kurdish media outlets quoted political sources regarding the upcoming meeting, stating that it will include Deputy Prime Minister Fuad Hussein, the Iraqi Oil Minister, a representative from the Iraqi State Oil Marketing Organization (SOMO), the Kurdistan Regional Government's Minister of Natural Resources, and a delegation from the region heading to Baghdad.
She pointed out that "a joint statement on the outcomes of the meeting is expected to be issued after its conclusion."
After the technical delegation, a political delegation from Baghdad awaits arrival in Erbil to resolve outstanding issues.
government political delegation from Baghdad is scheduled to visit Erbil, following the arrival of a first technical delegation from the capital to the Kurdistan Region on Thursday.
A Jebel correspondent reported on Saturday that the "political delegation" could arrive in Erbil at any time. A well-informed source in Baghdad said the delegation would arrive to reach final agreements on the Kurdistan Region's financial dues, the issue of employee salaries, and the resumption of oil exports from the Kurdistan Region.
Last Thursday evening, a technical delegation representing the federal government in Baghdad arrived in Erbil and met with a similar delegation from the region to discuss the salary issue and its resolution, as well as the resumption of oil exports from the region to the world. According to information obtained by Al-Jibal, the meetings yielded positive results, particularly regarding the satisfaction of the region's oil-producing companies regarding the resumption of oil exports.
A senior government political delegation from Baghdad is scheduled to arrive in Erbil this week, with the authority to finalize agreements on salaries and the resumption of oil exports, a Jabal correspondent reported, citing an informed source.
The source did not disclose the size of the delegation, but indicated that it is "a large delegation, and will be headed by the Iraqi government. It is scheduled to meet with Kurdistan Regional Government Prime Minister Masrour Barzani and Minister of Finance and Natural Resources Awat Sheikh Janab to make crucial decisions on the two issues."
Kurdistan Regional Government Prime Minister Masrour Barzani stated at a press conference last Thursday afternoon that the issue of employee salaries in the region was moving toward a solution, and that an authorized delegation would arrive from Baghdad to Erbil within two days to reach an agreement on the matter.
The technical delegation in Erbil includes representatives from the Supreme Economic Council, the Undersecretary of the Iraqi Ministry of Oil, the Iraqi Board of Supreme Audit, and representatives from SOMO and North Oil.
APICORP sets two conditions for resuming the region's oil exports
The Kurdistan Region's oil company, APICORP, expressed its desire to resume oil exports on Saturday, but with two conditions.
“APICOR member companies reiterate their desire to resume oil exports via the Iraq-Turkey pipeline immediately, but we have two conditions for this, the first of which is that a written agreement be reached between the two sides on the matter,” the company said in a statement published on the XN platform. “Several months ago, we reached a mutual understanding regarding coordination on oil exports through the Iraqi SOMO company,” it noted.
She added, "The group proposes that international oil companies receive their financial dues in cash upon the arrival of the oil at the Turkish port of Ceyhan, as this agreement ensures that all parties obtain their rights transparently and as quickly as possible, within the framework of the agreed-upon contractual terms."
A representative reveals details of the negotiation sessions between the region and Baghdad.
Karim Kamal Agha, head of the Patriotic Union of Kurdistan (PUK) bloc in the Iraqi parliament, confirmed on Saturday that Baghdad is making resolving the region's salary crisis conditional on the resumption of oil exports.
He said in a press statement monitored by Al-Masry that "an Iraqi government delegation arrived in the Kurdistan Region two days ago to discuss the issue of salaries and the resumption of oil exports," indicating that "there is no doubt that oil exports will resume and the salaries issue will be resolved."
He added, "Oil companies operating in Kurdistan have exhausted their excuses and no longer have any paperwork to back up regarding production costs," stressing that "Baghdad is contingent on resuming exports to resolve the payroll issue."
He added that "the Iraqi negotiating delegation has the authority to make decisions and reach an agreement," expressing his "hope that the two parties will reach an agreement on all issues."
Iraq's trade landscape: The private sector accounts for the largest share of imports.
The Central Bank of Iraq announced, on Saturday, statistics on the volume of Iraq's imports for the first quarter of 2025.
The bank stated in its statistics that "Iraq's imports amounted to $21 billion and 363 million," indicating that "imports included both the government and private sectors."
He added that "government sector imports amounted to $1.377 billion, while private sector imports amounted to $19.985 billion."
He pointed out that "government imports included consumer imports, capital imports, petroleum product imports, other government imports, and currency printing," while "private sector imports included consumer imports and capital imports."
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Government departments will stop accepting cash payments after two days, but 15 million Iraqis still have no electronic card!
All government institutions are preparing to halt the receipt of cash for various transactions starting next Tuesday, July 1. Payments will now be entirely electronic, a practice already implemented in most departments.
He explained that "starting in July 2025, all government payments will be conducted electronically, prohibiting cash payments through government institutions." He noted that "the government has launched awareness campaigns to encourage the public to adopt electronic payment systems and move away from the traditional cash-based culture."
The population of Iraqis is approximately 46 million, of whom approximately 17 million are under the age of 15, meaning there are approximately 29 million adults. Meanwhile, the number of electronic payment cards is approximately 23 million, although most cards may be duplicated, meaning they are owned by the same person.
However, overall, the financial inclusion rate is 40%, meaning that 60% of adults do not have access to electronic payment services and do not have bank accounts or electronic payment cards. This means that less than 15 million people have this access out of the total adult population, while another 15 million lack this capability. This could lead to chaos in the electronic payment process if it is completely halted.
This process could lead to a new form of profiteering, as some employees or workers near government institutions and departments have exploited this loophole to turn it into a profession. They provide citizens with their own cards to pay fees electronically in exchange for fees exceeding the actual amount paid. In other words, fees are charged for the payment process. Government departments may also collect an advance fine from citizens for not paying electronically, without first asking them if they have an electronic payment card.
For example, if the fee for a particular government service is 40,000 dinars, the citizen is told that the fee is 42,000 dinars, without the citizen knowing the reason for the additional 2,000 dinars. They later discover that it is an advance fine for not paying electronically. The employee then takes the 2,000 dinars and pays the electronic transaction using his own card.
Electronic payment: a step towards enhancing financial confidence and reducing corruption.
In light of rapid technological developments globally, the shift to digital payment systems has become a necessity to enhance the efficiency of financial and government services, especially in countries undergoing transitions like Iraq. Iraq's experience in adopting these digital methods reflects the challenges and opportunities that accompany modernizing financial infrastructure, and their impact on expanding financial inclusion, combating corruption, and ensuring transparency in financial transactions. Through the insights of specialists and practitioners in the field, it is clear that the experience has gone beyond simply replacing cash with bank cards, serving as an incentive for structural changes in economic and administrative policies. However, there is an urgent need to address the technical and organizational obstacles to ensure the success and sustainability of this transformation.
Government employee Wassan Sami confirmed that her experience with electronic payments was generally positive, although the system seemed strange at first, given people's longstanding habit of using cash for their daily transactions.
She explained to Al Sabah: “At first, electronic payment seemed like a new and unfamiliar system, even though we have been receiving our salaries via the Qi Card for years. However, the transition to using the card for daily payments has greatly facilitated the procedures and made transactions more organized and smooth.”
She added that one of the most significant benefits she has noticed compared to cash payments is convenience and time savings, noting that “money is not lost, and we don’t have to deal with the hassle of spending coins. The procedures are also much simpler; we no longer need to receive a paper receipt or visit an employee. All we need to do is enter the required number, and the payment is completed via card within seconds, which has reduced the time by almost half.” Winner Mohammed Hassan began using an electronic payment card after joining a company that relies on electronic payroll payment in 2024, stressing that his experience has been very positive and beneficial.
Speaking to Al Sabah, he said, "The most important benefit I've noticed is the convenience and ease of transactions, whether withdrawing or transferring money, especially with the introduction of Mastercard payments at gas stations, which facilitates the speedy completion of transactions within the station."
Despite this positive experience, Mohammed noted that he encountered a problem once when he attempted to top up his account with 100,000 dinars via an ATM. However, the transaction failed, and the funds were withdrawn from his account. He added, "I contacted the company, and the issue was resolved within a few days, and my money was returned to me."
He continued, "I have continued to use the electronic payment card until now, and it has become a major part of my daily life. I never leave the card behind. I use it to purchase credit, fill up fuel, and shop online easily and quickly."
Dr. Ahmed Hadhal, a professor of economics at Al-Mustansiriya University, believes that Iraq has witnessed a rapid shift toward electronic payments in recent years. This shift began in earnest after 2016 with the decision to localize state employee salaries, paving the way for the widespread use of bank cards and bank accounts. He added that the Central Bank has reinforced this trend through several regulatory measures, including issuing instructions to activate bank accounts, encouraging citizens to use modern payment tools, and linking foreign transfers to the compliance platform, leading to remarkable quantitative results.
He pointed out that recent statistics show that the number of activated electronic cards exceeds 20 million, and the number of active bank accounts exceeds 15 million, with annual transfers via these cards exceeding $6 billion. The financial inclusion rate also increased from approximately 22% in 2020 to more than 45% in 2024, indicating a relative expansion in the banking transaction base, especially after the mandatory use of these methods for public sector employees.
However, Dr. Hedhal pointed out that this digital expansion did not fully translate into a tangible improvement in the quality of banking services or citizen satisfaction. The experience was accompanied by a number of problems, most notably poor service from electronic payment companies, the weak response of commercial banks to digital transformation requirements, and the imposition of high and unjustified fees for basic banking services. This created a trust gap between citizens and the banking system, and sometimes led to public dissatisfaction with the adoption of electronic mechanisms without a comprehensive infrastructure.
He added that electronic payment has actually contributed to reducing financial corruption in the payroll sector by eliminating the phenomenon of "ghost workers," enhancing transparency in public spending and expense classification, and enabling regulatory authorities to track many financial transactions that were previously conducted outside the banking system. However, it has not been sufficiently successful in controlling speculation or narrowing the gap between the parallel market rate and the official exchange rate, which has persisted due to some parties exploiting payment cards to speculate on the dollar or smuggle currency.
Regarding digital transformation in other sectors, Dr. Hathal noted a relative improvement in e-commerce transactions and delivery services, along with the adoption of electronic payment mechanisms for fees and collection by some government agencies. However, weak coordination between institutions, the inefficiency of digital infrastructure, and the multiplicity of service providers without effective oversight remain obstacles that limit the acceleration of comprehensive digital transformation.
Dr. Hithal concluded that achieving true success in the electronic payment experience in Iraq requires a strategic shift in financial and banking policies, based on enhancing citizen confidence in the banking system, improving service quality, reducing bank fees, and linking electronic payment methods to providing real incentives, not just obligations. He also emphasized the importance of stimulating stagnant liquidity in society, noting that more than 90% of the currency remains outside the banking system, representing a missed opportunity for the national economy.
He said, "It can be said that the Iraqi experience in electronic payments has achieved significant strides in terms of infrastructure and quantitative expansion, but it still requires profound reforms in banking governance, service quality, and digital policy integration to establish a robust and inclusive digital economy."
Anti-corruption activist Saeed Yassin explained that the governance of financial procedures and transactions is a fundamental preventative measure in accordance with international standards for combating corruption and transnational crimes. He pointed out that a significant part of this governance relates to simplifying government procedures for paying fees and collections electronically, ensuring that funds enter the public treasury and are not exposed to theft or assault, as was previously the case when cash was transferred or placed at the disposal of employees, a phenomenon witnessed by several institutions in Iraq.
Yassin added to Al Sabah that the other aspect of these measures lies in containing the crime of bribery by simplifying procedures for reviewing public institutions, adopting a system for booking appointments in advance for review, and paying fees via prepaid cards, which limits the collection of undue tax money or the illegal inflating of fees and levies.
He explained that the review process is subject to careful monitoring and statistics through the management of the "Aur" website and related sites, stressing that this experience has yielded tangible progress. He stated that he personally reviewed several government departments affiliated with the Ministry of Interior, such as the Passports Department, the National ID Card Department, the Traffic Department, and the Residence Card Department, all of which are processed through the pre-booking and electronic payment system, which represents a qualitative leap in combating bribery, transaction delays, and influence peddling that were prevalent in these departments.
Yassin pointed out that the new procedures also include a reporting and complaints system in other institutions, in addition to the establishment of the National Emergency Center, numbered 911, which represents a major achievement in improving communication and response mechanisms.
He emphasized that among the most important recommendations for developing this experience is reducing the commission collected by financial companies and banks on prepaid card transactions, and encouraging the public to purchase these cards and use them in daily financial transactions. He also emphasized the importance of continuous public awareness on how to use these cards, maintaining the speed of transactions, and ensuring that collection funds match official funds to protect funds from assault or theft.
Parliamentary Security Committee: Iraq moves to sign arms contracts with five countries for the air defense system.
Member of the Parliamentary Security and Defense Committee, Ali Al-Bandawi, revealed on Saturday that Iraq is seeking to sign arms contracts with five countries to develop its air defense system.
Al-Bandawi said, “Iraq needs an advanced air defense system to protect its airspace, skies, and territory from any external incursion and violation of Iraqi sovereignty.”
He added, “The Iraqi government has begun approaching five countries, including the United States, France, South Korea, and others, to sign contracts to import advanced weapons to arm the Iraqi army.”
He pointed out that “Iraq is preparing to sign contracts with several countries to import the air defense system and advanced radar equipment, in addition to other advanced weapons.”
During the Iran-Israel war, Iraqi airspace was subjected to numerous violations over a period of 12 days, but at the time, Iraq deployed air defenses near an oil field in the south of the country to protect oil facilities.
Sharp fluctuations in the value of the Iranian currency amid regional tensions between Tehran and Tel Aviv.
Iranian markets have witnessed sharp fluctuations in the Iranian toman's exchange rate over the past few days, directly influenced by the escalating geopolitical tensions between Iran and Israel. The US dollar's exchange rate against the toman reached 9 million tomans at the height of talk of a possible direct war, after it had been expected to reach 10 million.
But with signs of calm and de-escalation between the two sides, the value of the toman has risen again, amidst a state of uncertainty that has gripped the market.
Decrease in trading volume and warnings against risk
"We sold the dollar for 7.6 million dinars, but we didn't buy back because of the price fluctuations," Kawa Yahya, an exchange office owner, told a Kurdistan 24 reporter. "The price had risen to 9 million tomans this morning due to the escalation, but later dropped to 7 million, which represents a difference of nearly 2 million in a very short period."
Money changers confirmed that toman banknotes are becoming less available in the market, and that daily trading volume has fallen to approximately 60% compared to previous levels.
Conditional optimism and expectations of more volatility
For his part, Shawan Muhammad, an exchange office owner, said, "After the calm, the toman began to regain some of its value, but its fate remains uncertain. There is talk of an impending agreement between the United States and Iran, and if it actually materializes, the toman will regain its strength. So far, Tehran has not conceded its interests, so we expect the market to remain volatile."
Observers believe that any new security or political unrest among the countries of the region would immediately impact the toman's exchange rate and trading volume in the Iranian market.
Despite the lack of stability, approximately 10 billion tomans are still traded daily, a source of concern for traders who face significant financial risks amid the lack of clear guarantees regarding the future of the Iranian currency.
U.S. Syria Envoy Tom Barrack to Meet Kurdish PM Barzani in Erbil: Al-Monitor
US envoy Tom Barrack to visit Erbil for talks with PM Barzani on Syria's future & Kurdish rights. signaling continued US engagement in Western Kurdistan and the Kurdish question in Syria amid regional instability. First official Kurdistan Region visit focuses on political roadmap.
Tom Barrack, the United States Special Envoy for Syrian Affairs, is expected to visit the Kurdistan Region capital Erbil in the coming days, where he will hold high-level talks with Prime Minister Masrour Barzani, according to a report by Al-Monitor.
This will mark Barrack’s first official visit to the Kurdistan Region. The meeting between the U.S. envoy and Prime Minister Barzani is anticipated to focus on the ongoing political and security developments in Syria, as well as the future of the Kurdish question in Northern Syria (Western Kurdistan).
Talks to address Western Kurdistan and Syria’s political roadmap
Citing sources familiar with the agenda, Al-Monitor reported that the discussions are expected to center on the trajectory of the Syrian conflict and evolving U.S. policy in the region. Prime Minister Barzani is also expected to urge the U.S. to uphold the rights and demands of the Kurdish people in Western Kurdistan, particularly in light of regional instability and renewed international attention to northeastern Syria.
Potential meeting with SDF commander Mazloum Abdi
The report further indicated that Barrack may also meet with Syrian Democratic Forces (SDF) Commander Mazloum Abdi during his visit. Such a meeting would underscore the importance Washington places on direct engagement with actors on the ground in North and East Syria, especially regarding joint counter-terrorism operations and political autonomy.
An economist warns of the continued dominance of the dollar in Iraqi-Chinese trade.
Data from the Chinese Customs Authority showed a significant increase in the value of Chinese exports to Iraq during the first five months of 2025, increasing by 9.5% compared to the same period in 2024. The value of these exports reached $7.4 billion, compared to $6.77 billion during the same period last year, according to a report by economic expert Manar Al-Obaidi.
Al-Abidi explained that this growth is driven by increased exports from a number of sectors, most notably:
Electrical and mechanical appliances : accounted for 24% of total exports and achieved a growth rate of 11.46%.
Electronics : represented 15% of exports and increased by 29.3%.
Clothing : accounted for 7.6% of total exports and increased by 21%.
Cars and spare parts : Its share reached 7.2% and recorded the highest growth rate of 35%.
In contrast, Iraqi exports to China declined by 5.77% during the same period, reaching $15.2 billion compared to $16.14 billion in 2024, and are almost entirely limited to petroleum products.
Despite the decline, the trade balance between the two countries remains in Iraq's favor, with a trade surplus of $7.7 billion during the first five months of 2025, down from $9.37 billion during the same period the previous year.
Al-Obaidi pointed out that "this surplus remains fragile, as it is almost entirely tied to Iraq's oil exports to China in terms of quantity and price. Any decline in the value or volume of these exports could lead to a shrinkage of the surplus or its transformation into a deficit, which necessitates diversifying Iraq's export base by boosting exports of raw materials and local goods."
Although annual trade between Iraq and China exceeds $54 billion, financial transactions between the two sides continue to be conducted in the US dollar, whether for oil sales or imports.
Al-Obaidi called for "the establishment of a direct financial and trade exchange platform between Iraq and China, similar to what other countries have done, such as the recent agreement between China and Turkey to adopt local currencies in trade exchanges."
He promised that "reducing dependence on the dollar represents a strategic step towards enhancing financial independence and increasing the effectiveness of bilateral trade."
It should be noted that this data represents direct Chinese exports to Iraq and does not include goods exported to other countries, particularly the UAE, and then re-exported to the Iraqi market.
Al-Maliki: Iraq must be at the forefront of countries seeking reform and building a strong state.
link
The Secretary-General of the Islamic Dawa Party, Nouri al-Maliki, affirmed today, Saturday (June 28, 2025), that Imam Hussein, peace be upon him, launched his revolution to demand reform in the Islamic nation, and that the principles of Ashura must be translated into a strategic vision for building the state and addressing the shortcomings in its institutions.
In a speech marking the advent of Muharram and the commemoration of Ashura, followed by Baghdad Today, Maliki said, "Reform is not a political or partisan slogan, but rather a practical commitment to achieving social justice, improving the standard of living, and providing services and job opportunities, which are legitimate rights for the people."
Al-Maliki stressed the need to "review the performance of security and military institutions to ensure they are at the level of political and social stability and capable of protecting sovereignty from external threats," noting that "the escalating war between the Zionist entity and Iran in the region means that Iraq is not immune from it, as stated in the religious authority's speech."
He pointed out that "Iraq, as the cradle of Imam Hussein's renaissance, must be at the forefront of nations inspired by his revolution to create a comprehensive vision for building a strong and just state," noting that "the country's security and citizens' rights are not protected by slogans, but by institutions that possess vision and capacity."
The "hardest" month for Iraqi salaries: Eid, war, Ashura, and a delay in June
Wasit talks about 4 governorates
Amid recurring talk of a cash liquidity crisis threatening the payment of salaries to state employees, educators in Wasit confirmed that their salaries have been delayed for five days, the fifth day after the usual date, which is the 24th and 25th of each month. This is a problem that health sector employees in the governorate are also suffering from, along with teaching staff in Basra, Nineveh, and Diyala, who have not yet received their dues, according to a well-informed source at QI. The source attributed the matter to the Ministry of Finance not issuing a special notice to date, a situation that has been repeated several times before. This brings to mind analyses that have been circulating for months about the current government facing numerous difficulties in obtaining dinars and covering the salary bill. Others attributed the problem to a mere “weak coordination” between the Central Bank and the Ministry of Finance, rather than a cash shortage, as is commonly rumored in economic circles. However, employees say that June was the most difficult month, as it coincided with Eid expenses and the Ashura season, in addition to the confusion surrounding the Iran war.
The number of educational and teaching staff in Wasit Governorate is approximately 50,000 employees, perhaps more. Our salaries are usually paid on the 24th and 25th of each month. What we heard this month is that the salary disbursement notice has not yet arrived from the Central Bank, a situation that reflects clear neglect of our segment.
The salaries of teaching staff are below average, ranging between 600,000 and 700,000 dinars on average. Our segment of the population is also a key driver of the market conditions in the governorate, which have been experiencing severe economic stagnation in recent days.
We demand that our salaries not be delayed any longer, and that they be disbursed promptly. June has been a long and difficult month for our limited income, as it coincided with Eid al-Adha, the month of Muharram, and the Iran-Iraq war. This requires additional expenses.
Iraq Says US Company Among Bidders as It Plans First LNG Imports
- Iraq is in advanced talks with Excelerate Energy Inc. to facilitate its first-ever liquefied natural gas (LNG) imports to reduce dependence on Iran for supplies.
- Iraq struggles with power outages due to insufficient gas to operate its power plants, and has been looking to buy LNG for years to fill the shortages.
- The country has been in talks with several countries, including Turkmenistan, Qatar, and others, to diversify its gas imports, following the halt of electricity imports from Iran earlier this year.
Iraq is in advanced talks with Excelerate Energy Inc. to facilitate its first-ever liquefied natural gas imports as the country, which struggles with power outages, seeks to cut dependence on Iran for supplies.
Texas-based Excelerate is one of several companies to have submitted a bid to provide an LNG import ship and secure supplies of the fuel, said Ali Salman, acting director general for the state-run South Gas Co., which has been charged with overseeing the development of the project. An Excelerate representative declined to comment.
Iraq’s push to buy LNG comes as the country halted electricity imports from neighboring Iran earlier this year after the US ended a sanction waiver ordered by President Donald Trump to tighten pressure on Tehran. Gas imports from Iran have since continued and weren’t affected by the US and Israeli strikes on Iran’s energy sites this month, although this highlighted the fragility of the supply route.
Gas Supplies
Iraq, OPEC’s second-biggest oil producer, doesn’t have enough gas to operate its mostly gas-fired power plants and suffers from crippling blackouts every summer when demand peaks. It’s also been trying to reduce the amount of wastful gas flaring from its own fields, and has been looking at buying LNG for years as a way to fill the shortages.
The US has urged Iraq to diversify the origins of its gas imports, and Baghdad signed an agreement with Turkmenistan last year for gas supplies. Iraq has been in talks with Qatar and others to find more solutions, Farhad Alaaldin, an adviser on foreign affairs to Iraq’s prime minister, said on March 12.
Iraq receives Iranian natural gas from two pipelines, but flows have been interrupted several times in recent years. In 2023, Iran cut volumes in half because of unpaid bills, which Baghdad said arose due to US sanctions on Iran.
Iraq’s oil ministry has completed a project to extend an existing gas pipeline to the Khor Al-Zubair commodities port on the Gulf, where the floating storage and regasification unit will be moored. The installations will connect the regasified LNG to the Iraqi gas network.
The Washington Institute suggests Iraq replicate Saudi Arabia's experience in exploiting associated gas.
Through American technologies
link to orignal report
Washington Institute
A Washington Institute report offers recommendations for redefining and strengthening the relationship between Iraq and the United States through energy and security, particularly as Iraq faces security and economic challenges while simultaneously seeking to disengage from the international coalition mission. The report believes that partnership with Washington helps Iraq achieve its goals and serves Donald Trump's policy of curbing Iranian and Chinese influence. It notes that Baghdad can benefit from Saudi Arabia's experience in reducing gas flaring, as Riyadh began collecting associated gas using American technologies. It also includes the involvement of the American company KBR in the Nebras petrochemical project and the leasing of floating units to import liquefied natural gas from the United States until the local infrastructure is completed. The report stresses the need to sign a security agreement to reassure investors that Iraq is a safe environment. This is also a message to Iran that Baghdad prioritizes its relationship with Washington, which undermines the threat of any "groups" that might threaten the stability of the region.
raq faces security and economic challenges as Baghdad seeks to disengage from the international coalition against ISIS and restructure its relationship with the United States. Partnering with the United States on energy and security initiatives could not only advance these Iraqi goals but also serve President Trump's policy objectives, countering Iranian and Chinese influence in Iraq, creating more economic opportunities, and facilitating broader efforts to achieve stability in the Middle East.
“Slow but steady” progress in the gas sector
The energy sector, including natural gas, is one of the most important relationships Baghdad seeks to build with Washington. The United States is the world's largest gas producer, and its massive exports of liquefied natural gas (LNG) helped Europe replace Russian supplies during the Ukraine war. Iraq's gas reserves, the twelfth-largest in the world, are mostly associated gas produced as a byproduct of crude oil production, particularly in the south. However, a huge volume of this gas continues to be flared rather than captured and utilized. Iraq ranks among the world's five worst gas flaring countries; in 2023, it was flaring 1,200 million standard cubic feet per day (scfd) of gas, while importing only 1,000 scfd from Iran. That year, Iraq's electricity grid lost 5,000 megawatts (MW) due to reduced, often unreliable Iranian supplies. The same problem could recur this year. Worse still, these imports were at risk of being interrupted indefinitely due to the recent conflict between Iran and Israel.
While Baghdad hopes to achieve “zero flaring” by 2028, it is unclear how it will balance this goal with its ambitions to increase oil production to more than 6 million barrels per day later this decade (Iraq is OPEC’s second-largest oil producer). In recent years, Iraq has made slow but steady progress in addressing gas challenges, including flaring, with Prime Minister Mohammed Shia al-Sudani seeking to attract more companies from the United States and other countries to invest in the sector. However, technical and political challenges remain, including political interference, corruption, and bureaucracy, which have caused project delays.
However, some gas extraction projects are gradually progressing, including the massive Integrated Gas Growth (IGG) project, led by France's TotalEnergies. This project combines four projects into one, including the development of the Artawi Gas Hub, which is expected to process 600 million standard cubic feet per day (mmscf/d) of associated gas from several oil fields in southern Iraq. In January, TotalEnergies and its partners, Basra Oil Company and Qatar Energy, launched construction of the first associated gas processing facility from the Artawi field in Basra Governorate. This facility, part of the multi-source Integrated Gas Growth project, is expected to process 1 million cubic feet per day of gas that was previously flared, which will later be used for local power generation.
Chinese companies have won some contracts to build the GGIP, and Beijing is also involved in other major projects in Iraq’s gas sector, including the Halfaya gas processing plant, which began operations in June 2024. Meanwhile, the Basra Gas Company, a joint venture between Iraq’s South Gas Company, Shell, and Mitsubishi, was the “largest single project” for associated gas in Iraq until last year, processing output from the Rumaila, West Qurna 1, and Zubair fields, three of the giant fields in the south.
However, Iraq's energy sector remains fragile. In May, Iraq lost approximately 4,000 megawatts due to reduced Iranian gas supplies, as well as Washington's termination of waivers for importing electricity from Iran earlier this year. All of these challenges should prompt Baghdad to prioritize resolving its gas and electricity problems.
Security Partnership
Enhancing U.S.-Iraq energy cooperation requires not only a favorable investment climate but also sustainable security. To attract investment, Iraq must demonstrate its stability and security by addressing chronic problems of external interference and internal conflict. For Washington, this means that Baghdad must maintain its focus, first, on combating ISIS and second, on reducing the threat of Iranian-backed militias (which could worsen if clashes between Iran and Israel resume).
Since 2014, US forces have been stationed in Iraq at Baghdad's invitation as part of the international coalition against ISIS. Following ISIS's territorial defeat in Iraq in 2017, Washington focused on providing advice and assistance, enabling Baghdad to continue confronting the group, particularly through intelligence sharing and funding. In 2023, after achieving further successes against ISIS and under Iranian pressure to reduce US influence, Iraq initiated the termination of the coalition's mission and sought to reshape US-Iraqi relations on a bilateral basis.
Since then, regional circumstances have changed radically, with uncertainties in neighboring Syria coinciding with the Trump administration's efforts to reduce the US presence in the Middle East. However, the bilateral relationship can still be built on shared security interests.
The mission to combat ISIS remains critical for Iraq, and it will continue to receive American support. Although the group is significantly weakened, claiming only five attacks in Iraq so far in 2025, it still seeks to exploit divisions within the country. Furthermore, Iraq faces prison overcrowding with al-Qaeda and ISIS members, and it has committed to repatriating all Iraqi families associated with the group from Syria by 2026. This comes amidst cuts in US funding for resettlement and stabilization programs. Without investment in these programs, Iraq's ability to effectively reintegrate returning and released individuals from prison will be undermined.
In addition, Iranian interference has impacted Iraq's economy and security. Iranian-backed militias threaten to undermine the government, harm Iraqi security forces, and directly target US forces and bases. During the recent Iran-Israel conflict, these militias again threatened to attack US interests in the region if Washington intervened in the war. As Baghdad seeks to build a positive economic and security relationship with Washington, it must limit the influence of these actors.
Recommendations
The Israeli strikes on Iran's domestic gas production increase the urgency of expanding Iraqi-American energy cooperation and exploring untapped economic opportunities in the gas sector. Some of these bilateral efforts should focus on reducing gas flaring and developing gas fields, such as the Akkas field, Iraq's largest non-associated gas field (i.e., not associated with crude oil production), where the American oil services company SLB is reportedly currently operating. Other efforts could address some of the same issues while simultaneously diversifying the Iraqi economy. For example:
Baghdad can learn from Saudi Arabia's successes in addressing the gas flaring problem. In the 1970s, Riyadh decided to begin collecting associated gas from oil through the "Master Gas System," a network of pipelines connecting gas sites across the country. This effort helped drive industrialization in the Kingdom. Today, this expanded system, which began operating in the early 1980s, still uses technologies from leading companies based in the United States and elsewhere.
A report issued by the Iraqi Ministry of Oil indicated the possibility of involving the American company KBR in the long-delayed Nebras petrochemical project in the south. It is worth noting that the associated gas in Iraq is rich in ethane, a natural gas liquid used in the production of ethylene, a key feedstock for any future petrochemical industry. This is an area that Baghdad could seriously explore with American companies.
In the near term, Iraqi cooperation with the US private sector may include leasing floating storage and regasification units to import liquefied natural gas (LNG), as Iraq races to build the necessary infrastructure in the south. Given that the United States is the global leader in LNG, this could represent an additional opportunity for cooperation.
The recent visit of a high-level US trade delegation to Baghdad demonstrated that expanding bilateral energy cooperation is possible. However, the success of this cooperation requires security and stability in Iraq, especially in light of the geopolitical risks arising from the Iran-Israel conflict. More specifically:
Washington and Baghdad must continue to address the multifaceted threat posed by ISIS, counter the threats posed by Iranian-backed militias, and ensure that no state or non-state actor can undermine internal security.
US and Iraqi officials must continue planning and implementing the transition to a post-coalition phase. This includes signing a Status of Forces Agreement or other bilateral understanding that defines the ongoing legal status of US forces in Iraq. In addition to enabling Washington to continue supporting Iraq in its fight against ISIS, such an agreement would demonstrate to Iran and its militia allies that Baghdad prioritizes its relationship with Washington. It would also demonstrate to private sector investors that both governments prioritize Iraq's security, making the country a favorable investment environment.
As Baghdad seeks to redefine its relationship with Washington, emphasizing cooperation on energy and security could directly serve U.S. goals of countering Iranian and Chinese influence, creating new economic opportunities, stabilizing the broader Middle East, and reducing ungoverned spaces often exploited by hostile actors.
Tehran reopens negotiations with Washington, and Araghchi calls on Trump to respect Khamenei.
Iranian Foreign Minister Abbas Araqchi confirmed on Saturday his country's readiness to resume nuclear negotiations with the United States.
"If President Trump is sincere in his desire to reach an agreement, he must put aside his disrespectful and unacceptable tone toward Supreme Leader Ali Khamenei and stop harming millions of his loyal followers," Araqchi said in a post on the X platform, as monitored by Shafaq News Agency.
Earlier on Saturday, Iran sent a letter to the United Nations and the UN Security Council protesting what it described as "impudent statements" made by Israeli and US officials against Iranian Supreme Leader Ali Khamenei.
Today, Reuters quoted US President Donald Trump as saying, "Why does Khamenei claim he won the war with Israel when he knows his statements are a lie, which they are not?" He asserted that he was fully aware of Khamenei's whereabouts but did not allow US or Israeli forces to eliminate him.
Trump added, "In the final phase of the war, Israel demanded the return of a large group of aircraft that were headed to Tehran."
It's worth noting that Trump had declared on Friday that he had saved Iranian Supreme Leader Ali Khamenei from what he described as a "horrible death," saying that the latter should "thank him," referring to a previous decision not to target him during the 12-day war with Israel.
Iraq iGaming Market Research Report
raq has a population of over 40 million people, with a median age of about 20 years old, and digital transformation is beginning to identify the leisure and entertainment sectors in this nation. The iGaming sector is one of the most noticeable segments of digital maturation, embracing areas like online gambling, online casinos, and digital lottery. There are several factors that are fuelling growth in the iGaming sector, such as improved internet connectivity and increased cell phone adoption, combined with a tech-savvy younger generation with a desire for entertainment.
The regulatory environment for gaming activities in Iraq has historically been conservative, but the increase in online gaming and gambling consumption over recent years is attracting local and international investors to reassess the market potential.
Traditionally, gambling is prohibited and illegal under the 1969 Penal Code, but the explosive growth in digital platforms, coupled with ambiguous legal definitions for a multitude of online gambling activities, is generating complex and interesting opportunities.
This report explores the factors shaping the market in Iraq, including market trends, regulatory activity, market competitors, and prospective market opportunities for operators, investors, and regulators.
Table 1: Key Statistics
| Metric | Value |
|---|---|
| Population | ~40 million |
| Median Age | ~20 years |
| Active Online Players | ~5 million |
| Online Gaming Market CAGR | 9.2% (2025–2031) |
| Gambling Market CAGR | 3.1% (2020–2026) |
| Most Popular Game Types | Mobile action, strategy, multiplayer, casino, sports betting |
| Legal Status | All gambling prohibited; online gambling unregulated/ambiguous |
| Payment Trends | Cryptocurrencies, e-wallets, international cards |
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Iraq's Budget Breakdown: Will 2025 Meet Iraq’s Hopes?
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