Trump's tariffs create a new trade map... America's economic "window" opens to Iraq.
In a surprise move described as part of an escalating trade policy, the administration of US President Donald Trump announced the imposition of tariffs of up to 30% on imports from several countries, including Iraq, Algeria, and Libya, as part of a package that includes 18 countries around the world.
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The decision sparked mixed reactions in Iraqi economic circles, particularly amid growing debate about its impact on the Iraqi economy, which is primarily dependent on oil exports exempt from the new duties.
According to Reuters, the US administration sent official letters to six new countries—including Iraq—notifying them of the imposition of tariffs ranging from 25% to 30%. This comes in parallel with previous notifications to 12 other countries. Observers linked this move to the Trump administration's attempt to address trade surpluses in these countries at the expense of the US market.
The fees do not affect oil exports.
Trade between Iraq and the United States amounts to approximately $9 billion annually, with a $5.7 billion surplus favoring Iraq, most of which is due to crude oil exports.
Official data confirms that Iraq exports approximately 200,000 barrels of oil per day to the US market, worth $4.5 billion annually. These exports are exempt from the new US tariffs.
This trend has recently been reinforced with US imports of Iraqi oil rising to 212,000 barrels per day, according to US Energy Information Administration statistics, indicating continued relative reliance on Iraqi crude despite growing domestic US production.
Limited revenue
For his part, MP Moeen Al-Kadhimi, a member of the Parliamentary Finance Committee, stated that the US decision does not directly target Iraq, stressing that oil exports are exempt from the tariffs, and that the volume of trade in other goods remains limited.
"The tariffs imposed by the Trump administration do not include Iraqi exports, particularly oil exports, but rather target goods coming from China and the European Union," Al-Kadhimi told Al-Eqtisad News.
He added: "Iraq exports no more than $2 billion in petroleum products to the United States annually, with the potential to export other products worth nearly $2 billion as well, so the impact of the tariffs will be limited."
Al-Kadhimi confirmed that the Iraqi government, in turn, imposed new customs duties on imports from the United States and other countries, explaining that these measures aim to increase non-oil revenues and are not directed against any party.
Earlier, during a meeting chaired by Prime Minister Mohammed Shia al-Sudani, the Ministry of Trade revealed that most Iraqi exports to the United States pass through intermediary countries due to policies pursued by American companies. This prompted the government to take action to develop direct trade relations, enhance banking cooperation, and open an institutional dialogue with the US side to improve the foundations of the trade relationship and ensure mutual interests.
The Finance Committee member emphasized that the increase in fees should not be understood as a mere burden on the market, but rather as an incentive to encourage local production and reduce reliance on imports, particularly in the areas of food and basic commodities.
An important window between Iraq and America
In his message to Iraq, which he described as reflecting "the strength and commitment of the trade relationship between the two countries," US President Donald Trump affirmed that Washington has decided to move forward with the tariffs with the aim of achieving more balanced and fair trade, after years of what he described as a large trade deficit the United States has suffered with Iraq.
The US President explained that the imposed tariffs will include all Iraqi products, with the exception of Iraqi companies that choose to invest in the United States or relocate production operations there. He noted that these companies will not be subject to any tariffs, and that the required approvals will be granted within weeks.
He added: "We invite you to participate in the exceptional economy of the United States, the number one market in the world, and we will do our best to expedite approvals for those who invest in our country."
He also stressed that the United States considers the current trade deficit with Iraq an economic and national security threat, and that opening Iraqi markets to American products and lifting trade restrictions could pave the way for reconsidering the decision.
In a related context, economic expert Safwan Qusay emphasized that the US message calling on Iraqi companies to invest in the US market represents a new window for economic diversification and openness to global markets.
Speaking to Al-Eqtisad News, Qusay noted that this invitation could be the beginning of long-term economic partnerships, explaining that the US market offers real opportunities for Iraqi companies to gain expertise and benefit from knowledge and technological capital.
"Investing in the United States gives Iraq access to a stable economic environment and contributes to developing its productive tools in the fields of industry, agriculture, and financial services," the expert explained.
Qusay stressed the need for the government to reconsider the tariffs imposed on US goods in Iraq, within the framework of reciprocity and mutual trade understandings, to ensure a more balanced trade exchange.
He concluded his remarks by saying: "Activating the investment window in the US markets represents a realistic option for Iraq to transition from its dependence on oil to a more diversified and sustainable economy.
America loves Iraqi sesame and its skins, and angry Trump doesn't know how much we buy from it!
5 Views on Washington and Baghdad Taxes
Economic expert Ali Al-Furaiji,
• The goal is to address the trade deficit between the United States and Iraq, estimated at approximately $6.1 billion in 2024. The fees are part of a “reciprocal tariff” policy that starts at a minimum of 10% and reaches up to 30% depending on the country’s trade status.
Do these fees directly affect Iraq?
1. Oil exports:
• Generally exempt from traditional customs duties. Long-term contracts concluded by American companies with Iraq often stipulate special conditions that ensure oil is protected from these measures.
• As sources have stated, duties do not affect oil imports from Iraq.
2. Non-oil exports:
• These include dates, handicrafts (such as leather and handmade carpets), some metals and scrap, and limited quantities of agricultural commodities (such as sesame). These goods are exported to the United States in very small quantities.
• Therefore, the direct trade impact is very limited because Iraq's non-oil exports are relatively small.
Result:
Tariffs will effectively apply from August 1, 2025, to certain Iraqi imports, provided no agreement is reached.
• The oil exemption means that Iraqi oil is not directly affected.
• Iraq's non-oil share of the US market is small, making the direct impact of the tariffs limited.
• However, the broader political and economic impact cannot be ruled out.
Ahmed Hedhal, Professor of Financial Economics,
Despite Trump's message to al-Sudani about imposing a 30% tariff on some exports, the direct impact on Iraq appears relatively weak, given that Iraq's non-oil exports to the United States are limited and mainly include some agricultural products such as dates, and some handicrafts. Therefore, the tariffs will not affect oil exports, which constitute more than 90% of Iraq's total exports, given that they are exempt from these measures. However, this decision can be understood in a political-economic context as a form of indirect pressure or a warning message about the need to maintain balanced economic relations, especially in light of the presence of approximately 50% of Iraq's foreign exchange reserves in American banks, and 35% in European banks, which are part of the investment portfolio in US Treasury bonds. This makes the Iraqi economy closely linked to US financial and monetary policies. On the indirect side, Trump's escalation of protectionist policies and his imposition of tariffs on major industrial countries such as China and the European Union leads to a decline in the value of the dollar, as happened with its 2.4% decline against a basket of currencies, which weakens the value of dollar-denominated debt and forces the United States to raise bond yields. To attract investors, which could prompt the Federal Reserve to raise interest rates, this series of measures leads to inflationary pressures and a potential global economic recession, which negatively impacts oil demand and, consequently, oil prices. This directly harms Iraq's oil revenues and places its budget under additional pressure, given its heavy reliance on oil revenues. Therefore, while the direct impact of the tariffs is limited, the indirect consequences for the Iraqi economy could be more profound and threatening in the medium term.
Suham Youssef, professor of international economics,
Trump writes in the language of tariffs... and addresses the policy of economic blackmail.
In an official letter, the text of which was published by a number of Iraqi media outlets, US President Donald Trump announced the imposition of a 30% tariff on all Iraqi exports to the United States, starting August 1, 2025.
Trump's latest letter to the Iraqi government is not merely an administrative directive to impose a 30% tariff. Rather, it is a political statement in commercial garb, carrying within it a soft threat and veiled economic blackmail. On the surface, the letter speaks of an "unacceptable" trade deficit and demands "reciprocal treatment," but in essence, it crystallizes the logic of hegemony: we decide, and you must adapt or pay the price.
The letter contains a double flaw in the approach to the relationship between the two countries. First, it assumes that Iraq is a major trading partner, threatening the US balance, despite the fact that Iraqi exports (other than oil) to the US market are very small. Second, it uses the language of collective punishment (“30% on all goods”) rather than dialogue or bilateral understandings, reflecting a mentality of “trade contracts, not mutual sovereignty.”
Trump doesn’t just impose tariffs; he hints that Iraqi investments are welcome only if they are located in the United States. Trump views trade as a means of attracting jobs, not encouraging partnerships. In plain language: Make in
America, or we will make you lose.
In short, the message essentially reflects the principle of soft economic hegemony, where the trade balance is used as a pretext, but the real goal is to impose the terms of hegemony under the guise of “rebalancing.” It is not a partnership, but a conditional relationship, where the strong possesses the tools of pressure, and the weak are asked to adapt their policies to the interests of the stronger party.
Manar Al-Abidi, an economic expert:
Iraqi experts are busy trying to understand US President Trump's message to Prime Minister Mohammed al-Sudani regarding the imposition of a 30% tariff on Iraqi exports to the United States. They describe it as an expression of anger about the relationship between the two countries, and a demand that Iraq purchase more American products. According to White House calculations, we export oil, hides, sesame, and dates to the US worth about $4 billion, while we only purchase $2 billion from them. However, experts say this is inaccurate because Iraq buys cars, communication devices, and many other American items from regional markets, not directly from America. They call on Baghdad to clarify this to the US and launch negotiations to convert indirect purchases from Dubai and other markets to direct purchases from America.
S President Donald Trump announced, in a letter addressed to several heads of state, including the Iraqi Prime Minister, the imposition of a new 30% tariff on all Iraqi exports to the United States, excluding crude oil.
The primary reason for this tariff is the United States' perception of a trade imbalance with Iraq, as figures show a trade surplus in Iraq's favor worth approximately $2 billion. Iraqi oil exports to the US amount to approximately $4 billion annually, while Iraq imports US goods worth between $2 and $3 billion.
The second reason is Iraq's imposition of additional tariffs on some US goods under the Protected Areas program, which the United States considered a tariff directed against its own goods.
Based on these two reasons, the United States believed that trade with Iraq was causing a deficit in its balance of payments, which prompted it to impose this tariff.
This decision is illogical for two reasons:
First, a thorough analysis of the balance of payments reveals a surplus in favor of the United States when accounting for indirect exports, such as US cars that are exported to neighboring countries and then returned to Iraq.
Second, Iraq imports electronics (such as Apple phones) and services, such as Microsoft software and Meta ads, whose sales to other countries in the region account for more than the sales of these services to the Middle East.
These goods and services, which could be worth billions of dollars annually, demonstrate a clearly favorable trade balance for the United States.
In terms of impact, the decision will not have a significant impact on Iraq, as crude oil, which constitutes the largest portion of Iraq's exports to the US (about 5% of its total oil exports), is exempt from the tariff. Even if oil were included, the impact on the Iraqi economy would be limited.
Iraq now has two options: rapprochement or escalation.
The first option, rapprochement, requires a diplomatic response by sending an official letter from the highest level of the Iraqi government clarifying the volume of direct and indirect imports from the United States, confirming that the trade balance is tilted in America's favor, demonstrating the extent of the miscalculation and the necessity of raising this customs tariff based on a breakdown of direct and indirect imports of American goods and services, and requesting joint action between the two countries to transfer all Iraqi imports of goods and services directly, without the need to pass through other countries, through joint committees between the two countries. The
second option, escalation, involves imposing tariffs on American services and goods, such as cars and electronics. This may have only a symbolic sovereign impact, but it will harm Iraq more than the United States and may lead to additional American restrictions.
The first option is more appropriate, as ignoring the decision or escalating it could lead to negative future repercussions on economic relations between the two countries, and possibly other obstacles in the near future, especially given the recent stagnation in the economic relationship between the United States and Iraq. Iraq needs to redevelop this relationship to avoid future economic problems.
Ziad Al-Hashemi, International Consultant,
Trump's New Tariffs on Iraq: Their Dimensions, Reality, and Impact!
On July 9, the Trump administration sent six direct letters to six countries: the Philippines, Moldova, Brunei, Algeria, Libya, and Iraq!
These six letters were almost identical in form, as some agencies indicated, but the percentage of tariffs imposed varied from one country to another, ranging between 25-30%.
The day before, Trump sent 12 letters to 12 countries regarding the imposition of tariffs, bringing the number of countries that received Trump's letters to 18, and the number is likely to increase in the coming days as more letters are sent!
Iraq and its exports, in light of the vortex of US tariffs imposed on countries around the world, have a minor impact on the trade balance with the United States, after excluding oil exempted from the US tariff system (after pressure from US refineries)!
This means that the cost of Iraqi non-oil exports to the United States will increase, but its impact will be very marginal, almost negligible, due to the limited number of Iraqi exports to the US market!
Therefore, it can be said that the new customs duties that will be imposed on Iraq are a matter of balance and fairness in their application to all countries, and do not carry specific American objectives or aims aimed at punishing or restricting the official Iraqi regime.
Trump's real battle is with the major industrialized countries that export heavily to American markets, particularly China and the European Union, not with countries with weak exports, such as Iraq.
Iraqi News for July 10, 2025
Al-Nusairi: The Central Bank is leading the banking sector toward comprehensive reform, economic stimulation, and sustainable development.
Economic and banking advisor Samir Al-Nusairi affirmed that the Central Bank continues to lead the Iraqi banking sector in accordance with its third strategy and its comprehensive banking reform project for the next two years, based on a continuous daily work system in cooperation with international consulting and auditing companies currently operating with the aim of achieving banking reform and moving banks to a stage of contributing to stimulating the economy, revitalizing the economic cycle, achieving economic growth, and transforming banks into a lever for sustainable development.
Al-Nusairi explained in an interview with Al-Eqtisad News that in order to motivate banks and develop banking operations so they can fulfill their duties stipulated in the Banking Law and the applicable instructions and executive regulations issued by the Central Bank, and serve the national economy and customers, it is necessary to carefully implement the reform measures outlined for them, as well as to re-review, evaluate, and classify banks.
Al-Nusairi pointed out that there are international standard criteria for classifying central banks that are agreed upon in most countries, such as controlling inflation, economic growth, monetary stability, independence, and the extent to which economic goals are achieved. Since central banks are subject to classification and since they are the ones that monitor and supervise banks, the classification of Iraqi banks must be based on international standard criteria approved in most countries, the basis of which is compliance with international banking standards, enhancing financial inclusion, encouraging competition, preventing monopoly in the banking market, providing opportunities for shareholders and investors to obtain profitable and sustainable returns, accelerating digital transformation, and a rapid transition to a solid national economy.
He explained that the reform, evaluation, and classification of the banking sector should be based on criteria of capital, assets, liquidity, profitability, and risk management. Additional programs should be adopted that are consistent with the Iraqi reality, such as approving the banks' operating results and final accounts for the last five years, focusing on analyzing assets, revenues, expenses, capital adequacy, indicators of capital investment, cash credit granted and its sectoral distribution, the return on capital ratio, return on assets, liquidity ratio, and the extent of banks' compliance with applicable banking instructions, particularly activating the national strategy for bank lending to finance small and medium-sized enterprises and applying environmental, social, and corporate governance standards.
Rafidain Bank increases electronic tax settlements to more than 4 trillion dinars during the first half of 2025.
A statement from the bank, a copy of which was received by {Euphrates News}, stated: “Data from the Electronic Collection Settlements Department showed an expansion in the number of government agencies activating the system from 1,395 by the end of January 2024 to 1,979 by the end of June 2025, which directly contributed to the increase in the pace of electronic collection.”
He added, "May 2025 recorded the highest monthly settlement value, at 761 billion dinars, compared to 571 billion dinars in May 2024, confirming the improved operational efficiency of the system and the strengthening of government institutions' confidence in the electronic payment services provided by the bank."
The bank explained that "this performance falls within its comprehensive strategy to support the government's digital transformation program and enhance collection efficiency and public revenues, while adhering to the highest standards of transparency and financial governance, in line with official directives aimed at building an integrated and effective financial system."
Parliamentarians in the last legislative session before the elections: MPs' sleep is an act of worship!
Rejection of ratification of the "Khor Abdullah" project and a single session expected for the"budget schedules"
Parliament is likely to hold a maximum of two formal sessions during the remaining four months of its term, pending the holding of elections scheduled for before the end of this year.
Most likely, according to estimates, the expected sessions will not include discussions on the "amendment to the Election Law," the "Mobilization Law," or the "Khor Abdullah Agreement."
Parliament entered a two-month legislative recess last May (ending on July 9), after failing to hold sessions for nearly four months.
Yesterday, the House of Representatives published an agenda for a session scheduled for next Saturday, which does not include any significant bills.
It is estimated that approximately 150 laws are pending in parliament, accumulated from previous sessions, while the "three presidencies" recently added the "Khor Abdullah" issue, which has sparked political and legal controversy.
Go to sleep!
Mustafa Sanad, a parliamentarian who opposes the government and is close to the "factions," believes he will "go to sleep" if Parliament decides to include a vote on the "Khor Abdullah" agreement.
The "three presidencies," in a meeting last Tuesday, expected Parliament to fulfill its role in "deciding the agreement's legislation" and not exploiting it politically, after the authorities dropped a previous lawsuit regarding the "creek."
On his Facebook page, Sand displayed a section of the Iraqi Treaty Law, which requires a "two-thirds" parliamentary vote for important agreements such as those related to regional sovereignty.
The MP wrote in a post on his page: "Before we do, the Council of Ministers must vote... Is it true that Parliament has two-thirds present so that two-thirds can vote?!"
Over the past six months (before the parliament's recess last May), Parliament failed to hold sessions due to a lack of quorum (half plus one, approximately 165 MPs).
The MP emphasized that he refuses to "ratify the agreement," adding: "I can sleep and not wake up... a MP's sleep is worship."
The agenda for next Saturday's session did not include any item related to re-ratifying the "Al Khor Agreement," the old version of which had been challenged by the judiciary and which is believed to have triggered the "mass resignations" crisis at the Federal Court.
According to the Parliament's media center, the agenda for the next session includes seven items, including voting on laws
and reading draft laws, most of which are unimportant.
The Final Call
: Meanwhile, Parliament Speaker Mahmoud al-Mashhadani called on political blocs and members of parliament to attend the final legislative session.
Al-Mashhadani assumed the presidency of the parliament in October 2024, and since then, he has only been able to hold 10 sessions.
Al-Mashhadani said in a statement: "We call on all political blocs, their heads and members, and independent members of parliament to shoulder their national and historical responsibilities at this sensitive stage and attend the upcoming parliament sessions."
He added: "Parliamentarians must commit to attending parliament sessions during the remainder of the current parliamentary term, with the aim of passing important laws that are still pending."
According to the statement, Al-Mashhadani reiterated his call for "the necessity of prioritizing the country's supreme interest, overcoming differences, and working to ensure the success of the democratic experiment and create a stable political environment ahead of the upcoming legislative elections."
For about seven months (from October 2024 to May 2025), Parliament has only held 10 sessions, but in return, MPs received salaries of approximately 18 billion dinars per month.
"Elections are more important,"
said Rahim al-Aboudi, a member of the Hikma Movement led by Ammar al-Hakim. "Parliamentarians are busy preparing for the elections, and this will affect the upcoming sessions. One or two sessions may be held to preserve the structure of Parliament."
Al-Aboudi added to Al-Mada that "Parliament is obligated to hold a session regarding the 2025 budget tables (which have not yet reached Parliament), because they (the tables) include provisions related to completing the commission's arrangements for holding the elections."
As for other laws, such as the "amendment to the Election Law" or the "Popular Mobilization Law," Al-Aboudi, whose bloc has nine MPs in Parliament, "does not expect them to be discussed in Parliament."
After the recent Eid al-Adha holiday, Parliament attempted to revive the Council with "extraordinary sessions," but failed even to hold a session titled "violation of sovereignty" during the Iran-Israel war, instead transforming the session into a "consultative one."
Why are sessions being suspended?
The Shiite group opposing Prime Minister Mohammed al-Sudani, including the "State of Law" coalition led by Nouri al-Maliki, believes that the sessions were suspended due to fears of passing the "elections law." They
also sought to prevent the passage of the "Popular Mobilization Law" because it would harm al-Sudani's ally, Faleh al-Fayyadh, the head of the Popular Mobilization Forces, forcing him into retirement.
These parties still believe that holding full quorum sessions is "almost impossible" for these reasons, which may be behind the delay in
sending the budget tables for more than six months.
MP Raed al-Maliki had previously called for an "open sit-in" inside Parliament if Parliament sessions were suspended after the end of its legislative recess and the budget tables were not sent.
Al-Maliki tweeted: "We demand that the parliament presidency quickly set a date for resuming sessions, include important laws, oblige the government to send budget tables, and set dates for interpellations submitted to ministers."
The MP, who submitted a draft amendment to the electoral law last April, continued: "We may be forced to call for an open sit-in inside parliament and for the people to demonstrate if parliament sessions continue to be disrupted and the government fails to send budget tables, enact important laws that have been stalled, and conduct interpellations."
Parliament's Finance Committee previously said it did not know the reason behind the government's "ambiguity" in not sending the 2025 budget tables.
Iraq launches project to issue local electronic payment cards
link aljazeera
Iraq has launched a project to issue a local electronic payment card, aiming to enhance financial trust between the public and the government. This is part of Baghdad's efforts to strengthen its digital infrastructure and provide secure and reliable electronic payment solutions that support the national economy.
The Central Bank of Iraq confirmed - in an official letter addressed to all banks and electronic payment companies - that this national system for local electronic payment cards will be implemented gradually, and that the card identifiers (BIN) and application identifiers (AID) will be issued exclusively by the Central Bank.
The cards represent an additional local option for use within Iraq exclusively in Iraqi dinars. The bank emphasized that they do not replace or restrict existing international cards such as Visa Card and MasterCard, but rather complement the financial system and provide a national alternative, according to the bank.
Release date
Government economic advisor Alaa Al-Fahd expects the national electronic payment card to be launched before the end of 2025, as part of the Central Bank of Iraq's efforts to implement comprehensive financial and banking reforms.
Al-Fahd told Al Jazeera Net that this national card will achieve several key objectives, most notably improving the quality of financial services and reducing fees. It will be a purely local card, he emphasized, noting that it will not replace existing international cards, such as Visa and MasterCard, but will work in tandem with them to enhance the options available to citizens.
Alaa Al-Fahd: The new cards will be exclusively local
He added that the Central Bank will be responsible for issuing this card, and that this approach is already in place in many developed countries.
He continued, "The card is unique in that it is intended for local use, and aims to build public confidence and enable control over its operations and procedures nationally and locally." He described this measure as "natural and legal, aiming to create a competitive environment, improve the quality of services, increase financial inclusion, and enhance public confidence in the local banking sector."
On February 10, the General Secretariat of the Iraqi Council of Ministers announced the suspension of cash transactions in all state institutions, effective at the end of June. All transactions would be fully electronic beginning July 1.
This decision is the culmination of Iraq's efforts, which began more than two years ago. The country has witnessed a gradual expansion in the use of electronic payment tools. Government departments have begun implementing this system in several vital sectors, such as traffic, fuel filling, and electricity collection.
This gradual expansion has helped citizens become accustomed to using electronic payments, encouraging the government to move toward full compliance with these transactions.
Positive project
For his part, financial and economic expert Mustafa Hantoush emphasized that the launch of the national plan for a local card system is a very positive project that aligns with the rapid development of electronic payment processes.
Hantoush told Al Jazeera Net that the system will include an internal network and a national center that will allow companies to subscribe and issue their own payment cards. He noted that the system will be independent of any international sanctions or restrictions and will operate in Iraqi dinars to ensure the continuity of financial transactions on a permanent and stable basis.
He added that existing international cards, such as Visa and MasterCard, will remain valid for those who need to use them outside Iraq, stressing that the local card will feature reasonable fees and transparent data.
He continued: "This card will enhance competition among companies that obtain card issuance services from the Central Bank, providing an easier and more convenient mechanism for dealing in Iraqi dinars, thus meeting the needs of a broad segment of the Iraqi population and ensuring greater data confidentiality."
Hantoush emphasized the importance of developing the capabilities of the National Electronic Payments Center at the Central Bank of Iraq, suggesting that the central bank will work in the future to establish a national electronic payments company to provide services and issue cards.
There are several types of electronic payment cards available in Iraq, including debit, credit, and prepaid cards issued by banks and payment companies. These cards enable users to make online purchases, withdraw cash, and pay at merchants.
Prominent examples of these cards in Iraq include Visa and MasterCard, which are the most common, as well as the "Ki Card," a widely used local payment card. The Rafidain credit card also offers special facilities.
Banks such as Ashur , Middle East Bank, and Al-Ahli Bank of Iraq offer a variety of debit cards, MasterCards, and other electronic payment services.
Towards the better
Iraqi businessman Abdul Hassan Al-Ziyadi welcomed the Central Bank of Iraq's move to launch a national electronic payment card, describing it as a "step towards the better."
Al-Ziyadi told Al Jazeera Net that this initiative comes in light of previous experiences with unscrupulous companies that caused harm to citizens, as some of their systems were compromised by internet hackers.
He explained that issuing a dedicated card for dealing in the Iraqi local currency and controlling the situation within the country, so that it accommodates the most important projects and transactions of companies, the government, and economic institutions, is an absolutely necessary step.
Al-Ziyadi predicted the success of this card, given that it is a well-considered step managed by the Central Bank of Iraq, despite some concerns about the bank's work.
He pointed out that Iraq is in dire need of a local identity card to address the challenges of corruption and the numerous problems that lead to the waste of public funds and, consequently, the weakening of public confidence.
Al-Sudani: The government is open to cooperation with all companies.
Prime Minister Mohammed Shia al-Sudani affirmed today, Thursday, July 10, 2025, that "the government is open to cooperation with all companies."
A statement from the Prime Minister's Office, received by Baghdad Today, stated that Al-Sudani "received the Deputy CEO of Shell Oil Company, Richard Howe, and during the meeting, they discussed aspects of cooperation in the field of developing the energy sector and investment opportunities to contribute to achieving the common interest of both parties."
According to the statement, Al-Sudani indicated that "the government is harnessing all capabilities and efforts to implement major projects in light of contracts concluded with international companies, particularly those related to gas investment and achieving self-sufficiency in its production."
He emphasized that "Shell's proposals for developing and reforming the oil sector are in line with the government's vision and plans," noting that "the government is open to cooperating with all companies that possess the technology, expertise, and competence to implement important projects to develop the energy sector and modernize its infrastructure."
For his part, Shell's Executive Vice President affirmed that "Iraq is a ripe investment environment," emphasizing his company's commitment to developing gas investments in Basra, as well as exploration development projects in Dhi Qar and the western region, to enhance and raise the level of energy production in Iraq.
Rafidain Bank to increase electronic tax settlements to more than 4 trillion dinars by 2025
Rafidain Bank announced, today, Thursday, July 10, 2025, that electronic collection settlements had increased to more than 4 trillion dinars during the first half of 2025, with a growth of more than 113%.
A statement received by Baghdad Today stated that "Rafidain Bank has achieved a qualitative leap in the volume of electronic tax settlements transferred to government departments, as the total settlements implemented in the first half of 2025 exceeded 4.03 trillion dinars, compared to approximately 1.89 trillion dinars in the same period in 2024, reflecting an annual growth of nearly 113%."
The statement added, "Data from the Electronic Collection Settlements Department showed an expansion in the number of government agencies activating the system from 1,395 by the end of January 2024 to 1,979 by the end of June 2025, which directly contributed to the increase in the pace of electronic collection."
He pointed out that "May 2025 recorded the highest monthly settlement value, at 761 billion dinars, compared to 571 billion dinars in May 2024," emphasizing "the improvement in the system's operational efficiency and the strengthening of government institutions' confidence in the electronic payment services provided by the bank."
Rafidain Bank explained that "this performance falls within its comprehensive strategy to support the government's digital transformation program and enhance collection efficiency and public revenues, while adhering to the highest standards of transparency and financial governance, in line with official directives aimed at building an integrated and effective financial system."
The Iraqi Foreign Ministry discusses financial challenges and Kurdistan's oil management with Washington.
Iraqi Deputy Prime Minister and Minister of Foreign Affairs Fuad Hussein discussed on Thursday the financial challenges between the federal government and the Kurdistan Regional Government, and the management of oil extracted from fields within the region, during his meeting with the Chargé d'Affaires of the United States Embassy in Iraq, Ambassador Stephen Fagin.
The Iraqi Ministry of Foreign Affairs stated in a statement received by Shafaq News Agency that the two sides discussed the latest developments in the political situation in Iraq, particularly the relationship between the federal government and the Kurdistan Regional Government, with a focus on financial challenges and related issues.
According to the statement, the two sides also discussed the situation of American companies operating in the Kurdistan Region and relations between Baghdad and Erbil regarding the management of oil extracted from fields within the region. Fuad Hussein emphasized the importance of reaching realistic solutions that ensure the fair management of national resources and achieve the overall benefit of Iraq.
During the meeting, Fuad Hussein affirmed the Iraqi government's commitment to strengthening cooperation with the United States in various fields and supporting political and economic stability in the country, in a way that serves the common national interest, according to the statement.
Iraqis Voice Growing Despair: ‘No Production, No Hope’ as Economic Crisis Deepens
Iraqis face worsening economy & security fears amid government failures. Citizens cite no real reforms, oil dependence persists as Iran-Israel tensions fuel anxiety. Calls grow for jobs, sector revival before term ends.
Since early 2024 until now, Iraqi citizens have been enduring intensifying economic and political turmoil, giving rise to widespread frustration and anxiety over the federal government's performance, particularly its failure to revive the country's ailing economy.
Fluctuating economic indicators and deteriorating living conditions have become defining features of life across Iraq over the past year and a half. A growing number of citizens are now openly questioning the government’s ability to execute meaningful economic reforms, particularly as the state continues to rely heavily on oil revenues while failing to diversify income sources or stimulate production.
Speaking to Kurdistan24 from Baghdad, one citizen remarked: “Since Prime Minister Al-Sudani took office, we haven’t witnessed any real economic achievement. We’ve seen bridges and infrastructure projects—but that’s not an economy. Real economy means production and reducing our dependence on oil.”
Another added, “There’s an obvious governmental failure. They’ve been unable to reform the economy comprehensively. This is clear from the harsh reality we’re living in. People feel hopeless because there are no genuine solutions.”
Security fears compound economic woes
Adding to the economic despair are rising security concerns. Recent escalations between Iran and Israel have reawakened Iraqi fears of being pulled into broader regional conflict, particularly with the resurgence of activities by armed factions within Iraq.
A resident from Baghdad told Kurdistan24: “The economy keeps getting worse, poverty and unemployment are rising, and people are genuinely distressed. Even the Iran-Israel conflict affected us psychologically—there was real fear that Iraq could get dragged into it.”
Mounting criticism as government term nears end
With the current government's mandate nearing its end, observers and analysts are highlighting multiple areas of underperformance, foremost among them the economy, which has seen erratic policy decisions, acute setbacks, and a lack of clear fiscal strategies.
Citizens continue to demand urgent action—chief among them the creation of job opportunities, inflation control, and revitalization of Iraq’s long-neglected industrial and agricultural sectors. These demands reflect a broader push to break the country's chronic over-reliance on oil and rebuild a sustainable economic model.
Iraq declares its "full" readiness to avoid any negative impacts from Trump's decision.
Iraq has about $100 billion in its coffers: withheld reserves and citizens left out of the equation - Urgent
In a country where people's suffering is measured by the dollar exchange rate, and development is summed up by questions about electricity, water, and jobs, a staggering figure stands out in international institution reports: $106.7 billion in Iraq's foreign exchange reserves, ranking it third in the Arab world after Saudi Arabia and the UAE.
But behind this dazzling figure lies an unanswered question: Is this money truly available to Iraqis? Or is it frozen in accounts that can only be moved with the permission of the US Treasury?
The truth, confirmed by experts, is that the largest portion of these reserves is deposited in US banks, and the Iraqi government can only use them within narrow margins subject to international approval, specifically from Washington.
Economic expert Haider Al-Sheikh told Baghdad Today on Thursday (July 10, 2025) that cash liquidity in Iraq is "fully available, whether in dinars or dollars," noting that "foreign exchange reserves have exceeded $106 billion, while gold reserves have exceeded 163 tons, making Iraq fourth in the Arab world after Saudi Arabia, Lebanon, and Algeria."
Al-Sheikh added, "This abundance came after years of sharp declines during the COVID-19 pandemic, when oil prices collapsed. However, the subsequent rise in prices and the change in the dollar exchange rate helped rebuild the cash reserve and raise reserves to unprecedented levels."
Advanced ranking in the Arab region
. According to data from the International Monetary Fund (IMF), Iraq ranked third in the Arab world in terms of foreign exchange reserves, ahead of countries such as Libya, Algeria, Qatar, Egypt, Kuwait, and Morocco. The rankings were as follows:
Saudi Arabia: $449 billion
UAE: $210 billion
Iraq: $106.7 billion
Libya: $80
billion Algeria: $72 billion
Qatar: $69 billion
Egypt: $47.1 billion
Kuwait: $41 billion
Morocco: $32.8 billion
Jordan: $21 billion
A promising market on paper, but constrained in reality.
Al-Sheikh points out that the advance in reserve size gives Iraq "great economic attractiveness" and makes it a target for competition among major countries for investment opportunities, such as the United States, China, Japan, and France, due to its vast resources and sensitive geographical location.
But this attraction, experts believe, is hampered by a fragile administrative reality, an unstable legal environment, and a volatile political climate. This makes the flow of funds into Iraq a thorny process, requiring more than hard numbers and cash reserves; it requires a genuine will to reform.
Moreover, despite these impressive figures, the question still lingers in the minds of Iraqi citizens: When will the state's funds become a tool for their service?
While the state is piling billions into banks abroad, the majority of the population continues to struggle to secure the basic necessities of life amid high unemployment, high prices, and deteriorating services.
The deeper problem is that this massive reserve, which is supposed to be the country's safety valve, is not actually in hand. Rather, the bulk of it is deposited in foreign banks, specifically the US Federal Reserve, and is subject to strict controls that prevent Iraq from using it freely or employing it in development or emergency projects without complex international approvals.
According to observers, ultimately, any financial figure is worthless unless it is translated into living reality. While the state celebrates its ranking on reserve lists, citizens are not looking for a ranking but rather an outcome: Will this money be used to protect the dinar? To support prices? To build factories? To free the market from dependency? Or will it remain a mere mortgaged asset, from which Iraqis see nothing but slogans of sovereignty and headlines in international reports?
After targeting two ships and kidnapping the crew, the Houthis bombed Tel Aviv airport with an Iranian missile.
The United States announced that the Houthis in Yemen, following a bloody attack on a cargo ship in the Red Sea, had taken several crew members hostage. At the same time, the Iranian-backed group announced the launch of a missile toward Ben Gurion Airport in Tel Aviv.
On Thursday, July 10, the Houthis reported that they had targeted Israel's Ben Gurion Airport with a "Zulfiqar" missile.
The Zolfaqar ballistic missile is a surface-to-surface missile manufactured by Iran and was first unveiled during the 2021 Great Prophet maneuvers.
The Israeli army announced on the morning of July 10 that air raid sirens sounded in several areas following a Houthi missile attack.
He added that Israeli air defense systems were able to intercept and shoot down the missile.
The new Houthi attack on Ben Gurion Airport comes as the war between the Iranian regime and Israel has ceased following a ceasefire.
A Houthi attack on a cargo ship in the Red Sea killed four people, while several crew members were taken hostage.
This is the second time in just a few days that an attack by the Iranian-backed Houthis on a ship in territorial waters has led to its sinking.
CNN reported on Thursday, July 10, that the cargo ship "Eternity Sea" was carrying 25 crew members, four of whom were killed, and six others were rescued after 24 hours of drifting at sea. However, the fate of 15 crew members remains unknown.
The Houthis claimed responsibility for the attack and said they were holding a number of crew members captive.
Attempts to rescue the Eternity Sea failed, and the ship eventually sank in the Red Sea on Wednesday, July 9.
Following the outbreak of the conflict between Hamas and Israel and the Gaza War, the Houthis launched a series of attacks on international vessels in the Red Sea, the Bab al-Mandab Strait, and the Gulf of Aden, jeopardizing maritime security in the region.
These attacks extended even to the Indian Ocean, and this Tehran-affiliated group has repeatedly attempted to target Israeli territory as well.
The US delegation responsible for Yemen accused the Houthis of kidnapping several rescued crew members of the Eternity Sea and demanded their immediate, safe, and unconditional release.
In contrast, a Houthi spokesman denied the accusation, saying that the group's members "intervened to rescue a number of crew members, provide them with medical care, and transport them to a safe location."
On July 6, the Houthi group targeted another ship, the Magic Seas, causing it to sink, but all of its crew members were rescued.
Major shipping industry bodies, including the International Chamber of Shipping, the International Maritime Council, and BIMCO, condemned the Houthi attacks in a joint statement on July 9 and called for enhanced security measures in the region.
The statement read: "These ships were attacked with no regard for the lives of civilian seafarers. This disaster once again underscores the urgent need for meaningful support from nations to protect commercial fleets and vital sea lanes."
The US State Department issued a statement on July 9 condemning the "terrorist" and "unjustified" attacks by the Houthis on civilian cargo ships in the Red Sea.
The statement affirmed that the United States will take "necessary measures" to "protect freedom of navigation and commercial shipping" from terrorist attacks carried out by the Tehran-backed Houthis.
On May 6, US President Donald Trump announced that the Houthis had agreed to halt attacks on US ships, and that Washington would therefore halt bombing Houthi sites in Yemen.
Next Monday, the Federal Court will consider two lawsuits related to the payment of salaries to Kurdistan Region employees.
The Federal Supreme Court is scheduled to hold its first session next Monday (July 14, 2025) to consider two lawsuits related to the payment of salaries to employees in the Kurdistan Region.
In the first lawsuit, filed against Federal Finance Minister Taif Sami, the plaintiffs demanded “to ensure that the Federal Ministry of Finance continues to pay salaries in the Kurdistan Region on a monthly basis and on the specified dates, without regard to disputes between the federal government and the regional government due to the interpretation of the federal general budget law or any other reasons.”
According to the text of the lawsuit, the request included issuing a judicial order obligating the Federal Ministry of Finance to pay the salaries of employees, retirees, martyrs’ families, and social welfare beneficiaries in the region “immediately,” starting this month and until the resolution of this lawsuit.
In the same context, the court is considering another lawsuit, also without pleading, filed against the Prime Minister and the Federal Minister of Finance, each in his official capacity.
In their statement of claim, the plaintiffs demanded “a ruling to keep the salaries of employees in the Kurdistan Region away from political conflicts and actual agreements.”
Implications of Trump's "Great Iraq" Speech: A Courtship with the Opposition or a Conditional Message to the Government?
Political and strategic affairs researcher Ali Nasser confirmed today, Thursday (July 10, 2025), that US President Donald Trump's recent message to Iraq, in which he described the country as "great Iraq," carries symbolic and political dimensions that may shape the relationship between Baghdad and Washington in the coming period, especially in light of the accelerating regional changes.
Nasser told Baghdad Today , "Trump's message included striking phrases such as 'Great Iraq' and 'We will never disappoint you.' These are not just diplomatic compliments, but carry profound implications related to the future of bilateral relations between the two countries."
He explained that "the United States continues to view Iraq as a key pillar of its Middle East strategy, amid shifts related to tariffs, investment, and military alliances."
"Great Iraq" is a term with a double effect.
Trump's description of Iraq as "great" has sparked various interpretations within Iraqi political circles. According to Nasser, some analysts linked the term to attempts to court Iraqi opposition groups abroad, who had previously officially called for changing the country's name from "Iraq" to "Great Iraq," as a symbol of a break with the current political regime.
But Nasser believes that "the United States uses this symbolic language as part of its balanced messages, especially if it obtains Iraqi guarantees regarding the protection of its regional interests and the expansion of economic and security partnerships."
Nasser points out that the other phrase in Trump's message, "We will never let you down," represents what he described as a "double-edged sword," as it could be interpreted as a conditional commitment from Washington to continue support if the Iraqi government proves its ability to fulfill its commitments, most notably protecting American interests, stabilizing the region, and signing new bilateral agreements beyond the strategic framework.
He also warned that "the absence of these guarantees could push the United States to strengthen its alliance with Iraqi opposition groups abroad," referring to what he described as "a soft, open-ended political escalation."
Observers: The message has more than one meaning.
According to observers, Trump's message goes beyond diplomatic courtesy. Rather, it may mark the beginning of a new phase of the US carrot-and-stick policy toward Iraq, based on a clear trade-off between supporting the current government and opening broader channels with the opposition, should disagreements over security presence and regional influence persist.
Popular readings suggest that the phrase "Great Iraq" may not be entirely innocent, but may instead serve as a cover for a more distant purpose: to enable alternative narratives of political legitimacy within Iraq, and perhaps to reshape national identity from abroad.
Implications of Trump's "Great Iraq" Speech: A Courtship with the Opposition or a Conditional Message to the Government?
Political and strategic affairs researcher Ali Nasser confirmed today, Thursday (July 10, 2025), that US President Donald Trump's recent message to Iraq, in which he described the country as "great Iraq," carries symbolic and political dimensions that may shape the relationship between Baghdad and Washington in the coming period, especially in light of the accelerating regional changes.
Nasser told Baghdad Today , "Trump's message included striking phrases such as 'Great Iraq' and 'We will never disappoint you.' These are not just diplomatic compliments, but carry profound implications related to the future of bilateral relations between the two countries."
He explained that "the United States continues to view Iraq as a key pillar of its Middle East strategy, amid shifts related to tariffs, investment, and military alliances."
"Great Iraq" is a term with a double effect.
Trump's description of Iraq as "great" has sparked various interpretations within Iraqi political circles. According to Nasser, some analysts linked the term to attempts to court Iraqi opposition groups abroad, who had previously officially called for changing the country's name from "Iraq" to "Great Iraq," as a symbol of a break with the current political regime.
But Nasser believes that "the United States uses this symbolic language as part of its balanced messages, especially if it obtains Iraqi guarantees regarding the protection of its regional interests and the expansion of economic and security partnerships."
Nasser points out that the other phrase in Trump's message, "We will never let you down," represents what he described as a "double-edged sword," as it could be interpreted as a conditional commitment from Washington to continue support if the Iraqi government proves its ability to fulfill its commitments, most notably protecting American interests, stabilizing the region, and signing new bilateral agreements beyond the strategic framework.
He also warned that "the absence of these guarantees could push the United States to strengthen its alliance with Iraqi opposition groups abroad," referring to what he described as "a soft, open-ended political escalation."
Observers: The message has more than one meaning.
According to observers, Trump's message goes beyond diplomatic courtesy. Rather, it may mark the beginning of a new phase of the US carrot-and-stick policy toward Iraq, based on a clear trade-off between supporting the current government and opening broader channels with the opposition, should disagreements over security presence and regional influence persist.
Popular readings suggest that the phrase "Great Iraq" may not be entirely innocent, but may instead serve as a cover for a more distant purpose: to enable alternative narratives of political legitimacy within Iraq, and perhaps to reshape national identity from abroad.
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American magazine: Iraq quietly re-enters international trade
report by the American economic analysis magazine Procurement Magazine examined the significant economic and geopolitical benefits and returns of the Iraqi Development Road initiative, extending from the Grand Faw Port to the Turkish border. The report noted that it will be a viable alternative to other trade channels, competing with them in terms of shorter distances and lower costs, transforming the country into a regional logistics hub while creating a multi-source economy beyond oil alone.
The report notes that Iraq's Development Road project represents a transformative $17 billion infrastructure initiative aimed at connecting the Gulf to Europe. With global shipping facing challenges stemming from regional instability and bottlenecks such as the Suez Canal, Iraq is quietly redefining its role in international trade. This logistics corridor, stretching from the Grand Faw Port in southern Iraq to the Turkish border, represents a strategic alternative that will reshape supply and transportation chains between Asia and Europe.
This major project has been described as "one of the most important infrastructure projects in Iraq since the 1920s." This faster route delivers direct benefits to procurement by enabling faster supply routes, reducing storage costs, and improving responsiveness to market changes.
The global importance of Iraq's development route has been highlighted amid the ongoing Red Sea crisis, exacerbated by conflicts in the Middle East, where shipping delays have become commonplace. In this context, the Iraqi land corridor offers a practical alternative. In recent weeks, truck drivers from Poland and Germany have completed journeys from Europe to the Gulf via Iraq in just ten days, less than half the time required by sea through the Suez Canal.
The journey from Turkey to Kuwait now takes just seven days, and digital border crossings have reduced waiting times by 92%. The TIR (Terrestrial International Transports International) system, which ensures the safe and efficient movement of goods across borders, is already operational, enhancing the flow of cross-border procurement and supply chains. Hamad Al-Hakim, a transport infrastructure expert at the University of Baghdad, told the Middle East Observer earlier this year: “The development road is expected to become a vital trade corridor, not only for Iraq but for the entire region. By connecting the Gulf to Europe via Turkey, it will serve as a new Silk Road, revitalizing ancient trade routes and promoting economic integration.” This corridor provides a practical alternative to the Suez Canal, meaning greater route diversification and a reduced risk of disruption, thus ensuring more reliable supply chains.
At the heart of the Iraq Development Road project is the Grand Faw Port, currently under construction in the city of Al-Faw. This deep-water port features the world's longest breakwater, at 14.5 kilometers long, and is expected to handle 7.5 million containers annually, capable of receiving the world's largest container ships. A 1,200-kilometer road and railway extend from the port to Turkey, and the project is expected to be fully operational by 2028. In addition to the transportation infrastructure, the project plans to develop at least ten new cities along the railway route, along with several industrial zones and logistics centers. The development of these areas will provide new opportunities for local supply.
The development road is not just a logistics project; it represents a geopolitical transformation, charting Iraq's transformation from a war-torn country to a pivotal regional link. The project is supported by Turkey, Qatar, and the United Arab Emirates, who recognize its potential to boost regional trade and reduce reliance on vulnerable maritime routes.
Kurdistan Region President Nechirvan Barzani said of the project: "The Development Road Project represents a crucial step towards building a more stable and prosperous Iraq, based on a diversified economy and enhancing regional cooperation with neighboring countries."
Türkiye's participation is pivotal, as it represents the northern endpoint of the corridor, which will connect to Europe via the cities of Mersin and Istanbul.
"The project provides a catalyst for economic prosperity that can benefit the entire region," said Ranj Alaaldin, a fellow at the Middle East Council on International Affairs. As global trade networks seek to bolster their resilience in the face of geopolitical volatility, Iraq is proving to offer not just a backup plan but potentially a major new artery for trade. This project will redraw the region's economic map, transforming Iraq into an alternative trade artery at the heart of Eurasia. This means transforming the country from an importer of opportunities to an exporter of corridors, creating a diversified economy that moves away from its reliance on oil alone.
Customs: Implementing the TIR system will move Iraq to advanced levels in the field of international trade.
IMF sounds alarm bell over 'economic collapse': Iraq needs reform, not slogans
The International Monetary Fund warned of a dangerous financial trajectory that threatens economic stability in Iraq. This is due to an overreliance on oil revenues and a rapid expansion in current expenditures, most notably salaries and pensions, amid a near-total stagnation in the non-oil sectors. This places the country at a critical economic and political crossroads.
In a detailed report issued Wednesday, the International Monetary Fund indicated that Iraq's non-oil sector growth rate declined sharply from 13.8% in 2023 to an estimated 2.5% in 2024, indicating a gradual contraction in real economic activity outside of oil.
According to the report, the fiscal deficit is expected to reach 7.5% of GDP in 2025, before jumping to 9.2% in 2026, driven by lower revenues and higher expenditures, particularly salaries and pensions, which drain most of the budget's resources in the absence of any corresponding production.
Time Bomb:
Professor of International Economics Nawar Al-Saadi commented on the report, saying, "The IMF's warnings must be taken very seriously, not just as technical observations, but as a clear warning of the failure of Iraq's current financial model."
Al-Saadi explained to Baghdad Today that "the model based on employment rather than production, and on salaries rather than development, has become unviable," adding that the expected deficit is not surprising, but rather the inevitable result of an expansionary budget approach that relies solely on oil without building a sustainable economic base.
Al-Saadi believes that the Iraqi government "did not invest the temporary oil surpluses to build a productive system, but rather resorted to expanding employment and increasing salaries, which turned the state into an overburdened and unproductive apparatus."
He pointed out that the private sector remains "besieged by corruption and bureaucracy, preventing the creation of real job opportunities or an effective contribution to GDP," which, he believes, explains the collapse in non-oil growth despite rising global oil prices.
Reform or Borrow and Collapse:
Regarding the proposals contained in the IMF report, the Fund called for a radical overhaul of the budget structure, by rationalizing unnecessary spending, increasing non-oil revenues through taxes and customs duties, reforming the personal income tax, raising the retirement age, and reviewing the retirement benefits system.
In this context, Al-Saadi emphasized that "the Fund is not calling for random austerity, but rather for a rational review of spending," noting that "imposing progressive taxes on high incomes and expanding the tax base to include real estate and commercial projects is a national necessity before it is an international demand."
Al-Saadi warns that "failure to heed these warnings could lead to a real liquidity crisis, forcing the state to borrow domestically and abroad to pay salaries, eroding its cash reserves and plunging the country into a cycle of simultaneous inflation and deflation."
He concluded by saying that Iraq is facing a watershed moment: "Either it will capitalize on these warnings in a comprehensive review of its economic structure, or it will continue its policy of evasion until the country's financial capacity collapses and the oil abundance transforms from a blessing into a heavy burden."
Commerce: Implementing a package of qualitative initiatives to boost the national economy.
The Ministry of Trade announced, on Friday, the implementation of a package of qualitative initiatives to advance the national economy and stimulate sustainable growth.
Ministry spokesman Mohammed Hanoun said, "The Ministry, in coordination with the Private Sector Development Council, has prioritized creating a stable and investment-friendly economic environment by addressing challenges and facilitating procedures for investors and entrepreneurs in line with the requirements of the national economy."
He added, "Based on the Iraqi government's directives to support the business environment and enhance partnerships between the public and private sectors, the Ministry of Trade, through the Private Sector Development Council and the Private Sector Development Department, continues to implement a package of qualitative initiatives and effective measures aimed at advancing the national economy and stimulating sustainable growth."
He explained that "the measures taken include strengthening channels of joint dialogue between representatives of the public and private sectors to develop practical solutions to the challenges facing the business environment, reviewing and updating commercial and regulatory legislation with the aim of simplifying procedures and stimulating local and foreign investment, in addition to launching programs to support small and medium enterprises and providing financing and training packages to support entrepreneurs."
Hanoun pointed to the possibility of supporting digital transformation and developing electronic services to facilitate commercial and investment transactions and enhance the principles of transparency and economic governance by publishing periodic reports on economic performance indicators and the business environment, creating an appropriate investment, legal, and financial climate for major partnerships, and encouraging quality investments in vital sectors. He also stressed the importance of working hard to improve Iraq's ranking in international business environment indicators by implementing global best practices in facilitating the establishment of companies and protecting investors.
Hanoun affirmed that "the Ministry of Trade is committed to supporting the private sector and empowering it to be a key partner in building a diversified and sustainable economy and achieving comprehensive economic development that positively impacts citizens' lives." He called for continued cooperation and integration between all state institutions and the private sector to create a competitive economic environment that contributes to stimulating growth and providing job opportunities.
After imposing tariffs on Iraq, does Trump know what he's importing from Baghdad?
US President Donald Trump's announcement of a 30% tariff on imports from Iraq has sparked a wave of surprise in Iraqi economic circles, amid questions about the US administration's understanding of the nature of trade relations with Baghdad, especially given that Iraq is not a significant source of goods to the US market other than crude oil.
The decision came in an official letter Trump sent to Prime Minister Mohammed Shia al-Sudani, published on his online platform, Truth Social. Trump stated that the United States would impose tariffs starting August 1, with a warning that "if the Iraqi government decides to retaliate in kind, the tariffs will be increased above the 30%," according to the text of the letter.
This action is part of a series of similar messages Trump has sent to several countries, including Libya, the Philippines, and Sri Lanka, as part of a campaign to re-market his well-known "America First" campaign slogan ahead of the upcoming presidential election.
Observers point out that trade relations between Iraq and the United States are almost entirely focused on the export of crude oil, which is imported under long-term contracts and is often exempt from customs duties due to its strategic nature, making imposing duties on it technically unfeasible.
According to Iraqi Oil Ministry data, the country's oil exports to the United States range between 5 and 6 million barrels annually, as part of a general export mix of approximately 3.4 million barrels per day. This makes the US market one of several secondary markets that the Iraqi Oil Marketing Organization (SOMO) relies on.
Experts confirm that the US decision, if implemented, will have little economic impact on Iraq. Rather, it could negatively impact US companies themselves if the supply of Iraqi oil is disrupted. This oil is used to operate a number of US refineries whose technology is compatible with Basra crude.
Oil Only.
In this context, economic expert Dawood Al-Halfi said that the tariffs announced by Trump "do not affect Iraq in practice, as it does not export industrial or commercial goods to the United States." He pointed out that "Iraqi exports to the American market are limited to oil alone, which is in global demand, and any attempt to impose taxes on it will primarily affect the American consumer, not Iraq."
Al-Halfi added to the Iraq Observer that “Iraq sells oil as a raw material, while American companies refine and re-export it. Therefore, imposing duties on Iraqi oil could disrupt the domestic market in America, not the other way around.” He stressed that “it is illogical to include Iraq among the countries exporting goods subject to taxation, in the absence of any actual exports.”
Al-Halfi called on the Iraqi government to "approach the move with caution, by clarifying the position to official US authorities and confirming that the decision is not based on any real commercial basis," adding that "designating Iraq in this manner reveals a flaw in the US administration's understanding of global trade patterns and reflects confusion in the decision-making process."
Kurdistan Region Makes Bold Strides Toward Digital Governance in Ninth Cabinet
The KRG’s e-governance push under its ninth cabinet marks a major modernization milestone, boosting efficiency and transparency. This digital shift aims to strengthen public trust and establish Kurdistan as a Middle East leader in tech-driven governance.
In alignment with global trends in digital transformation, the ninth cabinet of the Kurdistan Regional Government (KRG) has taken significant steps to digitize its institutional operations, initiating dozens of pioneering projects aimed at modernizing public administration, improving service delivery, and enhancing fiscal transparency.
A Strategic Push for E-Government
On Thursday, Hiwa Afandi, Head of the Information Technology Department at the KRG, told Kurdistan24 that the government had made remarkable progress in replacing outdated bureaucratic structures with integrated digital platforms. He stated that the transition has successfully contributed to reducing administrative complexity, cutting unnecessary expenditures, and improving government revenues.
Afandi emphasized that the shift to digital systems is not only a modernization effort but a strategic priority aligned with the government’s broader agenda under the slogan: “Stronger Kurdistan.”
Among the most notable initiatives implemented by the ninth cabinet are more than 24 major digital transformation projects, including:
- My Account initiative: A digital platform facilitating citizen engagement with government assets, backed by $900,000 in funding for participants.
- Digital Border Control System: Incorporating an electronic services portal, request management tools, and statistical border data to enhance transparency at entry points.
- Business and Trade Registry System: Designed to digitally record traders, business owners, and commercial licenses.
- Citizens' Complaints System: In order to convey the voice of citizens and their complaints.
- KRG Asset Management System: Tracks and manages external government assets digitally for greater accountability.
Digital system for managing pension schedules: A System for Managing the Salary Schedule of the Kurdistan Regional Government Employees The purpose of this system is to reorganize the process of digitally preparing the salary schedules among the public.
Building Infrastructure for a Digital State
To support this transition, the KRG has established several foundational platforms, including:
- KRD Domain Initiative: The Kurdish domain represents the Kurdish people in the world.
- KRG’s Official Portal (GOV.KRD): Official website of the Kurdistan Regional Government
- Information update system: A system used between all government institutions and the Media and Information Office to send their news and announcements for publication on the official website of the Kurdistan Regional Government.
- Runaki Project System: A KRG-wide performance monitoring platform for Runaki project
- Population Information Systems: Population Information System, which consists of two other systems, Digital Identity & Digital recognition.
- Central Government Data Center: An infrastructure that is generally a central location for collecting and delivering government digital services.
KRG Data Center: The main hub for storing and processing government data.
administrative systems that conduct citizens' affairs electronically: Digital forms, Identify taxi driver, Management of operational units, Managing documents
Citizen-Focused Systems
The ninth cabinet also introduced systems that directly serve citizens:
- Digital Systems of the Ministry of Education : E-school, E– evaluation, E– Library, E– Education, E– Family, E– Training, E- Follow-up. Where these systems identify the relationship between the student's family and the teacher, the school and the Ministry of Education
- Electronic mails: All documents from the General Directorate of Education reach the Ministry electronically and do not rely on manual mail.
Funding and Institutional Oversight
The KRG's digital transformation is over-sighted by the Ministry of Information and Technology, ensuring the proper implementation of data handling, reporting, and cyber security mechanisms. The system also includes frameworks for smart reporting, secure communication, and data-driven governance.
Strategic Objectives
The core goals of the transformation include:
- Reducing Bureaucracy: By replacing manual procedures with efficient digital alternatives.
- Enhancing Transparency: Through accurate, real-time tracking of financial and administrative processes.
- Improving Public Services: Providing fast, reliable, and citizen-focused services through online platforms.
- Cutting Costs: Eliminating redundant expenses tied to paper-based or inefficient operations.
- Increasing Revenues: Enabling better tax collection and financial monitoring through intelligent systems.
A Model for the Future
Kurdistan Region’s shift to e-governance under the ninth cabinet represents a significant leap forward in public sector modernization. As these digital platforms continue to evolve, officials expect the transformation to further enhance administrative efficiency, strengthen public trust, and position the region as a leader in digital governance in the Middle East.
With continued investment in digital infrastructure, the Kurdistan Region appears poised to usher in a new era of smart governance, responsive public service, and institutional transparency.
Zain Iraq CEO Emre Gurkan on empowering Iraq’s digital future
The CEO of Zain Iraq outlines the company’s strategic roadmap, the role of innovation and inclusion, and how public-private collaboration is shaping a digitally empowered Iraq
As Iraq accelerates its digital transformation, Zain Iraq is emerging as a key architect of this new future. From pioneering 5G readiness and network modernization to investing in youth empowerment, tech entrepreneurship, and eSports, the telecom giant is leveraging its capabilities and partnerships to redefine connectivity and innovation in the country.
In this exclusive interview, Emre Gurkan, CEO of Zain Iraq, outlines the company’s strategic roadmap, the role of innovation and inclusion, and how public-private collaboration is shaping a digitally empowered Iraq.
Iraq’s digital transformation is gaining momentum. How is Zain Iraq driving this journey forward?
Iraq’s digital transformation presents significant opportunities, and at Zain Iraq, we are committed to playing a pivotal role in its advancement. We are investing in network modernisation, with a focus on 5G readiness and expanded fiber deployment. Additionally, we are forging partnerships with global technology leaders like Ericsson, Nokia, and Huawei to bring advanced solutions to Iraq.
Beyond connectivity, our ecosystem companies such as Horizon Scope and Next Generation are delivering ICT services, cloud and data center solutions, cybersecurity, and distribution. These efforts, combined with government collaboration, are reshaping Iraq’s telecom experience and enabling a digitally inclusive future.
What challenges does Iraq’s digital ecosystem face, and how is Zain Iraq addressing them?
Zain Iraq plays a strategic role in Iraq’s public-private partnership framework. We leverage regional expertise and our ecosystem of sister companies to bridge infrastructure gaps and support the digital economy. We also advocate for forward-looking policies and introduce digital tools that benefit sectors like education and healthcare.
A major priority is youth skills development. Through our Zain Youth programme and partnerships with organisations like The Station, we offer mentorship, digital literacy training, and innovation platforms to prepare young Iraqis for future careers in tech.
Tell us what initiatives you have launched to empower youth and foster innovation?
Iraqi youth are at the heart of our transformation strategy. Under our Zain Youth program, we have launched coding bootcamps, innovation labs, and entrepreneurship competitions in partnership with The Station, Google Developers, and others. We also support digital literacy initiatives in schools and universities to build a more inclusive, future-ready society.
How is Zain Iraq using innovation to ensure digital inclusion across sectors?
Innovation is embedded in everything we do. Whether it’s data analytics for public service improvement or tailored telecom products like the Kafoo plan, our approach is to adapt global tech to local needs. We are enabling smart cities, supporting SMEs, and delivering customer-centric platforms to ensure no one is left behind in Iraq’s digital journey.
How is the company supporting Iraq’s growing entrepreneurial ecosystem?
We are deeply invested in fostering tech entrepreneurship. Zain Iraq supports incubation programs, co-working spaces, and mentorship platforms in partnership with educational institutions and government bodies. We also back events like ITEX Iraq and the Baghdad International Fair, in collaboration with Horizon Scope.
Additionally, our tailored connectivity and cloud solutions help startups scale their operations, with the goal of expanding their reach regionally and globally.
How is Zain Iraq collaborating with the government and global tech firms to support 5G and broader digital expansion?
Public-private collaboration is central to our strategy. We work with regulators to shape digital policy and partner with global tech leaders such as Huawei, Nokia, and Ericsson. We are technically ready to launch 5G services across all Iraqi governorates and are focused on initiatives that unlock digital value across sectors like healthcare, education, and fintech.
With eSports on the rise in Iraq, how is the company nurturing this space?
eSports is one of Iraq’s fastest-growing sectors, and we are supporting it with low-latency connectivity, local tournament sponsorships, and dedicated gaming platforms. Through our Zain eSports arm, we are bringing Iraqi talent to regional and global platforms.
In 2024 alone, Zain eSports held 50 activations across our operations, reflecting our commitment to building a vibrant gaming ecosystem.
Iraqi ministerial committee on Erbil-Baghdad budget issues holds first meeting
Iraq’s newly formed ministerial committee tasked with resolving outstanding disputes between Erbil and Baghdad held its first meeting on Wednesday, focusing on key financial and energy issues, including oil exports, domestic consumption, and public sector salaries in the Kurdistan Region.
The meeting, chaired by Deputy Prime Minister and Minister of Planning Mohammed Ali Tamim, brought together federal and Kurdistan Regional Government (KRG) representatives to address stalled budget transfers and oil obligations, according to a planning ministry statement.
“A review of the two papers submitted by the federal government and the [Kurdistan] Region, where both papers addressed a number of vital topics, foremost among them the oil export file and its regulatory mechanisms, the volume of local consumption of oil products, as well as the region's delivery of the federal treasury's share of non-oil revenues, in addition to discussing the localization of Kurdistan Region employees' salaries” were discussed, the statement said.
On Monday, a senior KRG delegation arrived in Baghdad to resume talks with federal officials over the prolonged financial dispute, which has led to repeated salary delays in the Kurdistan Region. The committee was established on Tuesday following the visit, per a directive by Iraqi Prime Minister Mohammed Shia’ al-Sudani.
The planning ministry said the committee stressed “the importance of continuing technical and administrative discussions regarding these files with the aim of reaching quick, fair, and realistic solutions and treatments that guarantee the rights of Kurdistan Region employees, similar to their colleagues in the rest of the Iraqi provinces, within the framework of the state's unified financial policy.”
Tensions between Erbil and Baghdad flared in late May when Iraq’s federal finance ministry halted all budget transfers to the KRG, including payments for public employee salaries. The ministry claimed the KRG had exceeded its 12.67 percent share of the 2025 federal budget and failed to deliver its designated share of oil to SOMO.
The situation has been exacerbated by the ongoing suspension of oil exports through the Iraq-Turkey pipeline, which has remained offline since March 2023 following an international arbitration ruling.
The committee is tasked with aligning both sides’ demands and drafts to pave the way for a formal agreement.
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