Securities announces the acceptance of foreign investors to trade in the Iraqi market
Al-Sudani confirms the continuation of financial and banking reform.
As part of its efforts to enhance transparency, consolidate governance, and enhance the credibility of state institutions before the international community, the government, headed by Prime Minister Mohammed Shia al-Sudani, continues to implement comprehensive reforms based on applying best financial and administrative practices, combating corruption, and ensuring compliance with laws and regulations, contributing to building a modern national economy.
In this context, the Prime Minister received a delegation from KPMG, a global auditing and financial consulting firm, yesterday, Tuesday. They reviewed existing cooperation with the Iraqi banking sector, ways to support transparency, and enhance the country's financial reputation internationally. Al-Sudani emphasized that banking reform has become a model of commitment and trust, praising the pivotal role of financial audit firms in consolidating governance and professionalism. He emphasized the importance of leveraging the company's expertise in restructuring government companies and raising their operational efficiency, managing public debt, and drafting contracts for major strategic projects. He also affirmed the government's support for the Central Bank and the Trade Bank of Iraq to ensure the rapid completion of audit tasks in accordance with international standards and the timetable for issuing banks' final accounts. Regarding administrative reform, the Prime Minister chaired the 40th regular session of the Council, during which he discussed the general situation and took the necessary decisions. In light of the unified report on violations of Law No. 28 of 2019 on the Cancellation of Financial Privileges for Officials, Al-Sudani directed all government agencies to comply with the law and return any excess vehicles or protection within seven days, while referring those who refrain from doing so to the Integrity Commission to ensure the protection of public funds and promote a culture of accountability.
The Council also voted to appoint (15) general managers in various government departments, while it decided to dismiss the Director of the Investments and Contracts Department at the Ministry of Electricity and transfer him to a lower level, based on performance evaluation. These decisions reflect the government's keenness to achieve administrative reform, enhance efficiency, and link responsibility to accountability, in line with the comprehensive objectives of the government's program for economic and financial reform.
Al-Sudani affirms Iraq's commitment to implementing the government's financial and banking reform program.
Prime Minister Mohammed Shia al-Sudani affirmed on Tuesday that Iraq is proceeding with the implementation of the government's financial and banking reform program.
Al-Sudani's office said in a statement received by Mail that "Prime Minister Mohammed Shia al-Sudani received a delegation from KPMG , a global company specializing in auditing and financial consulting, where the company's cooperation with the Iraqi banking sector was reviewed, as part of the government's efforts to enhance the transparency of this sector's work and sustainably improve Iraq's financial reputation."
Al-Sudani pointed out, according to the statement, that "banking reform in Iraq has become a model of commitment and trust, and he commended the role played by financial audit firms in establishing governance and professionalism in this sector." He emphasized that "the government views a strategic partnership with these firms as a way to enhance the credibility of Iraqi state institutions in the eyes of the international financial and economic community."
The Prime Minister explained that "Iraq is proceeding with the implementation of the government's financial and banking reform plans, which has contributed to improving the financial rating, increasing the confidence of international partners in Iraqi banks, and achieving significant progress in implementing compliance and anti-money laundering standards, as well as moving towards modern electronic reporting." He also pointed out "the importance of benefiting from the company's expertise in structuring government companies and raising their operational efficiency, public debt management issues, and specialized technical and legal consultations in drafting contracts for major strategic projects."
He affirmed the government's support for "the steps taken by the Central Bank of Iraq and the Trade Bank of Iraq to continue technical coordination with KPMG to ensure the rapid completion of audit tasks, adherence to international standards, and the timetable for issuing the banks' final accounts," emphasizing that "the government considers transparency and financial accountability to be a fundamental pillar in building a modern national economy."
Sudanese: Significant progress has been made in combating money laundering
Prime Minister Mohammed Shia al-Sudani stressed on Tuesday that banking reform in Iraq has become a model of commitment and trust.
His media office stated, in a statement received by (iq), that "Al-Sudani received, today, a delegation from the international company (KPMG), which specializes in auditing and financial consulting, where the progress of the company's cooperation with the Iraqi banking sector was reviewed, as part of the government's efforts to enhance the transparency of the work of this sector, and the sustainability of improving Iraq's financial reputation".
Al-Sudani pointed out that "banking reform in Iraq has become a model of commitment and trust, and he appreciated the role played by financial audit companies in consolidating governance and professionalism in this sector," stressing that "the government views the strategic partnership with these companies as a way to enhance the credibility of Iraqi state institutions before the international financial and economic community."
He pointed out, "Iraq has continued to implement the plans of the government's financial and banking reform program, which has contributed to improving the financial classification, raising the confidence of international partners in Iraqi banks, making significant progress in implementing compliance and anti-money laundering standards, and shifting towards modern electronic reports."
He stressed "the importance of benefiting from the company's expertise in structuring government companies and raising their operational efficiency, public debt management issues, and specialized technical and legal consultations in drafting contracts for major strategic projects."
He stressed "the government's support for the steps taken by the Central Bank of Iraq and the Trade Bank of Iraq to continue technical coordination with the company (KPMG) to ensure the speedy completion of audit tasks, adherence to international standards, and the timetable for issuing the banks' final accounts," stressing that "the government considers transparency and financial accountability a fundamental pillar in building the modern national economy."
The Iraq Development Fund signs memorandums of understanding with (4) major countries
Al-Sudani and Barzani agree on a US-sponsored financial deal. Iraq is losing its wealth to Erbil.
Recent amendments to the Iraqi budget have sparked widespread controversy over the granting of illegitimate financial privileges to the Kurdistan Region, amid accusations by MPs and government opponents of foreign influence over the country's financial policies.
Amid ongoing disputes between the federal government and the Kurdistan Region over the distribution of financial resources, the budget amendment has intensified criticism, with Kurdish officials accused of exploiting public funds for personal political gain.
Political deal or constitutional amendment?
Independent MP Yasser al-Husseini criticized the passage of the budget amendment, describing it as “serving foreign agendas at the expense of national autonomy.” He added that the Kurdistan Democratic Party (KDP) tends to prioritize its partisan and personal interests over the fair distribution of funds among citizens in the region.
Al-Husseini told Al-Maalouma, “Talk about autonomy and adherence to the constitution is unrealistic in light of the weakness of state institutions and the efforts of some parties to please the US at the expense of the interests of the Iraqi people.”
He stressed that "the continuation of these policies confirms that some forces continue to prioritize foreign interests over national autonomy, which requires a firm national stance to preserve Iraq's wealth and prevent its exploitation to serve non-Iraqi agendas."
Financial Flexibility Raises Concerns
In turn, economic researcher Abdul Salam Hassan Hussein pointed out that the budget was designed with great flexibility, allowing the region to dispose of oil revenues without clear restrictions. This opens the way for the funds to be used to pay off debts rather than develop the local economy.
Hussein added to Al-Maalouma, “The constitutional laws are clear, but political pressures allow for circumventing difficult provisions and passing decisions without strict adherence to the constitution.”
Persistence of Old Crises
Observers point out that the financial relationship between Baghdad and Erbil suffers from a lack of oversight and transparency. The region has continued to manage the oil fields and deduct funds for more than two decades without any real change, which increases fears of a recurrence of political deals that ignore the interests of the Iraqi people.
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Al-Sudani: We are confident in the people's awareness, and our priorities are clear in serving the citizen.
Prime Minister Mohammed Shia al-Sudani affirmed that the government is proceeding with its priorities to serve citizens and develop Iraq across various sectors. He expressed his high confidence in the people's awareness and ability to choose those who represent their aspirations in the upcoming elections.
Al-Sudani's office said in a statement received by the Iraq Observer that Prime Minister Mohammed Shia al-Sudani visited Sheikh Riyadh Younis al-Hamidawi's guest house in the Zayouna district of central Baghdad on Tuesday evening and met with a number of sheikhs and dignitaries of the al-Hamid family.
The meeting addressed the overall service situation in the capital, Baghdad, and the government's efforts to improve the service and social conditions of citizens.
Al-Sudani expressed his appreciation to Sheikh Al-Hamidawi for his generous invitation, highlighting the importance of tribes in supporting the state and its institutions. He also emphasized the need for officials to work to advance the public interest and serve their people.
He pointed to the legislative elections scheduled to begin on November 11, the results of which will determine the country's fate for the next four years. He emphasized his great confidence in the people's awareness and grasp of the importance of this phase, which necessitates widespread participation in the elections.
Below are the highlights of the Prime Minister's speech:
🔷 We have established a set of priorities within the government program, and we are proud of what we have accomplished, especially in the services sector.
🔷 The country needs more projects in various sectors, and we have achieved a lot across the country.
🔷 Reforms have been achieved in a short period of time in several sectors, including the banking and economic sectors, as attested to by international institutions.
🔷 Reconstruction projects will continue in Iraq, according to our estimates, for the next (15-20) years to cover all services.
🔷 In parallel with the reconstruction, we are working to activate development in the fields of agriculture, industry, trade, the development road, and the port of Faw.
🔷 True development will provide the country with an important economic resource other than oil, to achieve economic stability.
🔷Youth represent 60% of the population, and it is our duty to create job opportunities and care for them.
🔷 We are concerned with the interests of Iraq and its people, while adhering to our firm positions. We have been able, with wisdom and responsibility, to overcome crises and conflicts in the region and keep Iraq away from them.
World Bank: Iraq’s Economy to Lead Arab Region in 2026 with 6.7% Growth
According to the World Bank, Iraq’s economy is expected to record the highest growth rate among Arab countries in 2026, reaching 6.7 percent.
The World Bank said Tuesday that the strong projection marks a significant improvement compared to June 2025 forecasts. The growth is driven by energy sector recovery, increased oil exports, and government efforts to boost infrastructure investment and diversify revenue sources.
"This forecast is a positive indicator of Iraq’s economic recovery and renewal of activities amid global and regional challenges,” the report stated.
Djibouti ranked second with an expected growth of 6.1 percent, followed by Qatar (5.3%), Palestine (5.1%), and the UAE (5%). Saudi Arabia is projected to grow by 4.3 percent, while Egypt and Morocco each record 4.2 percent. Lebanon, Oman, and Libya range between 3.5 and 3.6 percent.
Algeria, Bahrain, and Kuwait are expected to post growth rates between 2.5 and 3.1 percent, while Jordan and Tunisia remain below 2.7 percent, and Yemen’s growth is projected to stay flat at 2.5 percent.
Anbar markets are unusually quiet. Purchasing power is at its lowest levels.
Unusually, markets in the cities of Anbar Governorate in western Iraq are calm. Repeated delays in salary disbursement delays in the release of financial allocations, and the failure to approve the budget have led to the suspension of several government projects, which in turn has affected the incomes of many residents .
Mohammed Hafez, a shop owner in Ramadi's Grand Market, says, "Sales have noticeably weakened in recent months, even during periods that typically see a boom, such as the start of the school year or religious occasions ."
Hafez added to Shafaq News Agency, "People are now buying only what is necessary, after previously purchasing large quantities in cartons or in small bulk. This indicates a decline in purchasing power due to delayed salaries and the lack of new employment projects ."
The seller points out that "the recession has even affected suppliers, truck owners, and large merchants, because demand has decreased, and consequently, commercial activity has declined in general ."
The economic stagnation is evident in Anbar's markets and commercial activity throughout its cities, as is the case in most Iraqi provinces, amid ongoing complaints from residents, both employees and government contractors .
Residents await a return to economic normalcy, while markets remain oscillating between recovery and financial neglect .
Anbar Provincial Council member Adnan al-Kubaisi told Shafaq News Agency, "The economic recession that the province and the country as a whole are experiencing is due to a number of factors, most notably the failure to approve the federal budget schedules and the delay in the arrival of financial allocations to the provinces ."
Al-Kubaisi added, "Anbar has many outstanding financial dues that have not yet been disbursed, including dues owed to contractors who implemented service projects, as well as salary differences for employees and other financial obligations related to government departments that have not been received for a long time." He pointed out that "all of this negatively impacts the lives of citizens and the local market, which relies heavily on government spending and its financial cycle ."
Al-Kubaisi believes that "the continuation of this situation will lead to a further decline in economic activity and a state of popular discontent, especially in light of rising prices and stagnant incomes ."
For his part, economic expert Taha Saadoun al-Janabi explained to Shafaq News Agency, "The current recession in Iraqi markets, including Anbar, is not only a result of weak government spending, but is also a direct reflection of the state's financial and administrative uncertainty and the delay in disbursing operational and investment budgets ."
Al-Janabi continues, "The local economy in the governorates relies on government projects by more than 70%, whether through contractor contracts or spending on employee salaries. Therefore, any interruption in spending leads to a slowdown in the economic cycle and a decline in demand for goods and services ."
He added, "The recession is not limited to the markets alone, but extends to the transportation, construction, restaurant, and small business sectors, creating a chain of contraction whose effects extend to citizens' livelihoods and purchasing power ."
This decline comes at a time when the 2025 federal budget remains incomplete, despite its approval by the House of Representatives in the middle of last year in a three-year format. Its implementation schedules and financial approvals have yet to be finalized .
Governorates have also been suffering from delays in disbursing their dues since the last quarter of last year, resulting in the suspension of dozens of service projects .
The Foreign Minister reveals everything to the Iraqis about relations with the United States, Iran, Turkey, and Syria.
Foreign Minister Fuad Hussein affirmed that Iraqi-American relations are solid and built on historical and strategic foundations. He denied any decline in American interest in Iraq, stressing that Washington's priorities have shifted to other global issues without this affecting the nature of bilateral cooperation. Hussein addressed Iraqi foreign policy issues and relations with the countries of the international coalition and the regional neighborhood, in addition to reviewing the path of democracy and the ongoing preparations for the upcoming elections. He also addressed the water crisis and climate challenges facing Iraq and the region, pointing to intensive diplomatic efforts to reach understandings that guarantee increased water flow in the Tigris and Euphrates rivers. Hussein addressed the issue of voting for new ambassadors and revealed an idea to change the name of the Ministry of Foreign Affairs to the Ministry of Foreign Affairs and Iraqis Abroad, to reflect the state's concern for its citizens abroad, whose number is estimated at about 6 million. He also revealed the reasons for Iraq's non-participation in Trump's meetings with eight Arab and Islamic countries regarding Gaza.
Hussein in an interview with the official agency:
Iraqi-American relations:
Iraq and the United States are bound by a series of comprehensive understandings and agreements covering multiple areas, including energy, the economy, culture, education, and health, in addition to security and military cooperation. With the invasion of Iraq by the terrorist ISIS gangs in 2014, Washington took the initiative to establish and lead the international coalition to support Iraq in its war against terrorism, reflecting the depth and complexity of bilateral relations.
The current US administration is focusing its priorities on other issues related to its relations with China, Russia, and Ukraine, as well as US domestic affairs. Meanwhile, Iraq is currently experiencing a period of stability and security that is radically different from the situation following the fall of the former regime, the rise of terrorism, and the war on al-Qaeda and ISIS.
Iraqi-American relations have not been neglected. Rather, their nature has changed in keeping with the current situation, becoming normal, balanced relations based on shared interests and mutual cooperation.
US President Donald Trump's meeting with eight Arab and Islamic countries was devoted to Gaza and Palestine and to discussing the so-called "two-state solution." Iraq therefore did not attend, as its position is not in favor of the so-called two-state solution. Iraqi law prohibits such discussions, and we are not isolated from the process. All Arab countries, including the Palestinian people, are calling for a two-state solution, a position that requires consideration by Iraqi national parties and parliamentary blocs.
Iraq and Palestine:
Iraq's position is firm and clear in supporting the Palestinian people's right to self-determination and the establishment of their independent state. This is a legitimate right that we fully support. Throughout all phases of the aggression against Gaza, Iraq was among the first to call for an end to the war and the opening of corridors for the delivery of humanitarian aid, while categorically rejecting any attempts to displace the Palestinian people.
US Diplomatic Representation:
The new Trump administration has left a number of positions vacant, particularly at the mid-level levels within government agencies, including the US State Department, which has seen a large number of employees who worked under former President Joe Biden dismissed, with no replacements yet appointed.
Part of this crisis relates to the appointment of US ambassadors abroad, which requires congressional approval and is a complex and lengthy process. This has left many embassies around the world without official ambassadors. In Iraq, a chargé d'affaires currently manages the US diplomatic mission.
International Coalition
Regarding relations with the countries of the international coalition, Hussein pointed out that “there are approximately 85 countries in the coalition, and Iraq has important and strong relations with many of these countries in several aspects, including security and military. There are currently discussions to enhance cooperation with France, Britain, the Netherlands, Italy, and other European countries, as well as the United States. These relations are transforming from relations with a coalition to bilateral relations through reaching security and military understandings, whether in the form of memoranda of understanding or agreements.”
The coalition forces arrived at the invitation of the Iraqi government to fight ISIS, not as occupying forces. The coalition's presence was limited to training, and ultimately, these relations will evolve into bilateral security and military relations.
Iraq's foreign relations:
Iraq's relations policy began with priorities such as building relations with neighboring countries, Arab and Islamic countries. After the fall of the former regime, relations began first with Western countries. We tried to establish balanced relations in many stages, and we became the mediator to restore normal relations between some countries, such as Saudi Arabia and Iran, as Baghdad hosted five rounds of dialogue between them. The first meeting to restore relations between Egypt and Qatar, as well as between Egypt and Iran, was also held in Baghdad.
Iraq has transformed from a country plagued by problems and challenges into a stable country that contributes to resolving conflicts between countries. It maintains strong relations with many countries and plays a significant role in many arenas.
Iraqi-Iranian relations:
Iraq shares a long border with Iran, and we have many common societal, cultural, religious, and economic ties. We also understand Iranian society, both through our shared culture and by virtue of our proximity.
Iraq and Syria:
Iraq's assessment of the situation in neighboring countries is based on expressing opinions and monitoring developments without direct intervention. This is because the stability of these countries has a positive impact on us, while their instability has a negative impact. Regarding Syria, there are still ISIS elements present in some areas near the Iraqi border, which poses a direct threat to us. Therefore, we need to coordinate and work together with the Syrian side to confront them.
Our view is that Syria needs a comprehensive political process that engages all its components to create true societal peace through partnership and mutual trust. Today, Syrian components need mutual trust, and all parties from north to south—including the Druze community—must be brought together before regional powers exploit this vacuum. We have warned the Syrian side about this, as I have met with my Syrian counterpart approximately eight times.
Iraqi democracy:
The democratic process in Iraq continues through the peaceful transfer of power. The country is preparing for its sixth democratic legislative elections. Freedom of expression, association, and the press, along with political party activity and demonstrations, all represent essential pillars of building a democratic system.
Iraq has made great strides in its democratic process and will continue to consolidate this path, because there is no alternative to democracy for Iraqi society and politics. All forms of government have been tried: monarchy, republic, military, party rule, and one-man rule, and all have led to destruction and war.
Democracy remains the optimal path to human development, investment in human capital, and economic growth. With the end of dictatorship, Iraqi citizens have become free; they can travel and express their opinions. Whereas previously, merely contemplating such a move was a crime punishable by death, now demonstrations are held in front of ministries, freely raising slogans critical of the government.
Elections and Postponement Fears:
There are currently no internal concerns about postponing the elections. The Independent High Electoral Commission continues its work regularly, and the candidates' media campaign has already begun. However, some are concerned about the possibility of war breaking out in the region, given the unpredictability of Israeli Prime Minister Benjamin Netanyahu, especially in light of the escalating threats against Iran. From this perspective, some believe that the outbreak of a large-scale regional conflict could impact the electoral process, but estimates indicate that there are no real risks threatening the elections at the present time.
Water crisis:
Iraq faces significant climate challenges not only within its borders, but across the region and the world. However, they are even more dangerous for our country. Drought and desertification are severely impacting the region, to the point that the Iranian president has floated the idea of relocating the capital, Tehran, to another region due to the water crisis. Türkiye has also been affected by climate change and the decline of its water resources.
He explained that “over the past decades, Iraq has not taken sufficient measures to address the effects of climate change. Climate challenges and drought in both Iran and Turkey have negatively impacted the Tigris and Euphrates rivers and their flows into Iraq. Most of the tributaries coming from Iran have disappeared, while Turkey has continued to build dams since the 1980s for the purpose of generating energy and regulating water resources, which has affected Iraq’s water share. Despite ongoing negotiations, no clear agreement has been reached to determine that share.”
The government is engaged in ongoing dialogue with the Turkish side. Two weeks ago, the Council of Ministers decided to form a high-level delegation headed by me and including the Ministers of Water Resources and Agriculture, in addition to water, environment, and foreign affairs experts. We will head to Ankara in the coming days to reach an interim agreement that guarantees increased water flow. A permanent agreement is currently difficult, as the issue requires legal understandings. The Turkish side considers the rivers to be local, while we consider them transboundary. Nevertheless, we are trying to reach practical solutions through dialogue that guarantee the continued flow of water in the Tigris and Euphrates rivers.
Weapons restriction:
The presence of any weapons outside the state framework is incorrect. All weapons must be within the state. To protect Iraq, we need to organize such internal matters, and they need to be seriously raised and discussed to reach solutions.
List of ambassadors:
The mechanism for selecting ambassadors was organized so that some were drawn from within the ministry and others from outside. We are facing a chronic crisis, as no new ambassador has been appointed since 2009, with the exception of Mr. Jaafar al-Sadr in 2016. The number of ambassadors stands at 27, 10 of whom have reached retirement age. The ministry comprises 20 departments, each of which requires an ambassador-level manager.
The selection process begins with the Ministry of Foreign Affairs submitting a list of names to the Council of Ministers for approval. This list is then referred to the House of Representatives for a vote. The issue of submitting ambassador lists has been repeatedly rejected in the past. Lists submitted during the tenures of former ministers Ibrahim al-Jaafari and Mohammed Ali al-Hakim were rejected, as were the lists we submitted during the previous government.
During the current period, a political consensus was reached that enabled the process of selecting and appointing new ambassadors, whose diplomatic careers will begin by first undergoing intensive training and educational courses.
The recent vote on the appointment of ambassadors contributed to filling the gap in 73 diplomatic representations and foreign missions, including missions to international organizations. This is an important development for strengthening bilateral relations with other countries and serving the millions of Iraqis living abroad who rely on these missions to manage their affairs.
The idea of changing the name of the ministry:
During the ministry's meetings, the idea of establishing a special department to oversee the affairs of Iraqi communities abroad was raised. However, this would require powers not currently available, so it was decided to establish a specialized department to monitor the conditions of Iraqis abroad.
Among the proposals is to change the name of the Ministry of Foreign Affairs in the next government to the Ministry of Foreign Affairs and Iraqis Abroad, reflecting the state's concern for its citizens abroad and strengthening communication with them at both the humanitarian and institutional levels.
6 million Iraqis abroad:
Iraq has not yet conducted an accurate census of Iraqis living abroad, but according to my field studies, their number is estimated at approximately 6 million. There are efforts to establish an organized and permanent Iraqi community abroad, similar to what is practiced in countries such as Lebanon, Morocco, Algeria, and Egypt, whose ministries bear names that combine the term "foreign affairs" and "emigration."
The Iraqi community abroad can play a significant role in the country's future, especially since a large segment of its members have completed their studies there and gained expertise in important disciplines. They can contribute to building the economy and transferring knowledge and technology to Iraq, thereby reducing the need for foreign experts.
Iraqis abroad also possess other advantages, including proficiency in foreign languages and openness to community movements, making them a vital bridge for communication and openness.
It is essential that the Ministry of Foreign Affairs in the next government be transformed into the Ministry of Foreign Affairs and Expatriates, to be concerned not only with consular work, but also with building bridges of cooperation between Iraqis abroad and their fellow citizens at home.
Completing the census to include expatriates will allow them to participate in the electoral process and become an active part of the political process. However, this first requires building real and sustainable communication channels with them.
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