Iraqi Government Intensifies Efforts to Reform Banking Sector, Address Exchange Rates

Iraqi Prime Minister Mohammed Shiaa Al-Sudani directs the directors of government banks to submit a plan within one month to enhance their operations (Iraqi National News Agency)
Iraqi Prime Minister Mohammed Shiaa Al-Sudani directs the directors of government banks to submit a plan within one month to enhance their operations (Iraqi National News Agency)
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Iraqi Government Intensifies Efforts to Reform Banking Sector, Address Exchange Rates

Iraqi Prime Minister Mohammed Shiaa Al-Sudani directs the directors of government banks to submit a plan within one month to enhance their operations (Iraqi National News Agency)
Iraqi Prime Minister Mohammed Shiaa Al-Sudani directs the directors of government banks to submit a plan within one month to enhance their operations (Iraqi National News Agency)

Iraqi Prime Minister Mohammed Shia al-Sudani has instructed the directors of government banks to present a development plan within one month.

In light of this news, government sources revealed a set of measures taken by the Iraqi government to address disruptions and the continuous decline in the exchange rates of the Iraqi dinar against foreign currencies, especially the US dollar.

Al-Sudani chaired on Tuesday a meeting, which brought together the Minister of Finance, the Central Bank Governor, and directors of government banks, to discuss the mechanisms and measures implemented in the administrative and banking reforms initiated by the government.

These reforms are among the top priorities of the comprehensive economic reform in the country, according to a statement from al-Sudani’s media office.

The statement revealed that the development plan ordered by al-Sudani should include optimal use of financial, human, and technological resources.

It also marks a significant shift from paper-based to electronic work, and from manual to online transactions for all banking activities.

The plan also involves developing work mechanisms, including control and regulatory tools.

Al-Sudani confirmed that the bank directors would be evaluated based on their application of the plan and the level of achievement.

This performance-based assessment will ensure that those at the helm of the banking sector are held accountable for its advancement.

The meeting, as per the statement, also discussed the implementation of the comprehensive banking system through the use of advanced e-programs and modern technology in all banking transactions.

The premier directed the banking administrations to draw upon international expertise by contracting specialized consultants in banking and financial work.

This move, which includes the development plan presented by Ernst & Young for the restructuring of Rafidain Bank, indicates a commitment to adopting global best practices and standards in the banking sector in an effort to scale up growth and development.



Saudi Arabia Opens Education Sector to Private and Non-Profit Investment

Ministry of Education building in Riyadh (SPA)
Ministry of Education building in Riyadh (SPA)
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Saudi Arabia Opens Education Sector to Private and Non-Profit Investment

Ministry of Education building in Riyadh (SPA)
Ministry of Education building in Riyadh (SPA)

Saudi Arabia is moving to reshape the public education market by creating greater scope for participation by the private and non-profit sectors under a new system that establishes a clearer regulatory framework for sector governance and service delivery. The move is expected to expand investment opportunities and improve the efficiency of the education system.

The system comes as Saudi Arabia’s education sector gradually expands its investor and listed-company base, alongside growing interest in commercial opportunities in education, training and support services, in line with the objectives of Vision 2030.

A royal decree approving the General Education System was issued last month. The system aims to strengthen the governance framework for public education, provide the necessary enablers to achieve its objectives, improve the quality of the educational environment and its outcomes, and regulate the role of the private and non-profit sectors in line with the goals of Vision 2030.

The system defines the roles of the Ministry of Education, the General Education Affairs Council and relevant entities, supporting the alignment of education policies, plans and programmes, improving decision-making efficiency, and enabling the ministry to develop regulatory, monitoring and supervisory tools for the public education sector.

It also seeks to support investment in education by regulating the participation of the private and non-profit sectors in providing educational services and enhancing the attractiveness of investment and partnerships under clear rules. The aim is to improve service quality, expand educational options and support the sustainable development of public and private educational institutions.

Experts say the significance of the system extends beyond increasing investment volumes, arguing that it could change the nature of the market itself by clarifying regulatory roles, expanding public-private partnership models and strengthening governance. These factors could help reduce risks for both domestic and foreign investors.

In this context, Dr Abdullah Al-Salloum, professor of finance and investment at Imam Muhammad ibn Saud Islamic University, said Saudi Arabia’s public budgets have traditionally placed education among the government’s largest expenditure items. He noted that around 200 billion riyals ($53.3 billion) was allocated to education in the latest budget, representing roughly 18 percent of total government spending.

He added that education spending is estimated at between 5 and 7 percent of gross domestic product, a level that puts Saudi Arabia above the global average for education spending and among the highest in the G20.

Foreign Investment Expands

On investment, Al-Salloum said foreign direct investment stocks in the education sector reached 3.43 billion riyals ($914.7 million) at the end of 2024, more than 13 times their level a decade earlier.

He said the figure remains limited compared with some other economic sectors, but the compound annual growth rate of foreign direct investment, according to the data he cited, was close to 130 percent. This reflects a significant increase in the sector’s attractiveness to foreign investors over the past decade.

From this perspective, Al-Salloum expects the new system to help strengthen this trend by expanding investment options and providing a clearer and more flexible regulatory framework for private-sector and foreign-investor participation.

He noted that the scale of the impact will remain dependent on the effectiveness of implementing regulations and the extent to which investors respond to the opportunities.

8 Listed Companies

Al-Salloum also pointed to the recent listing of education companies on the Saudi market, saying the trend has become increasingly notable. He said the Saudi stock market currently has eight listed companies operating in education and training.

According to Al-Salloum, these companies generated revenues of about 3.4 billion riyals ($906.7 million) in 2025, representing annual growth of around 12 percent.

He said the figures show that the sector is not only one of the largest in terms of government spending, but also has a gradually expanding investment and commercial base. This could support continued growth in the coming years as the new regulatory framework is completed.

Sharing Roles and Improving Market Efficiency

Al-Salloum does not expect the system’s impact to be limited to increasing investment volumes. Rather, he sees its more important effect as changing the nature of the market. Clear regulations, expanded public-private partnership models and stronger governance could all contribute to reducing investment risks.

He stressed that reducing investment risk is “the most important factor for both domestic and foreign investors when deciding to enter any market.”

The system also affirms the protection of human rights in education and the rights of students and teachers, while providing a safe and stimulating educational environment to support the quality of the education process and improve the experience of male and female students. It also reinforces the role of families in supporting students’ educational journeys.

It supports the quality of care and education in early childhood, reflecting the importance of the early years in developing children’s personalities and skills. It also contributes to providing educational and support services better suited to the needs of students with disabilities within educational institutions, while supporting the care and development of gifted students.

During the next phase, the Ministry of Education, in coordination with relevant entities, will complete the implementing and regulatory provisions to ensure that the system is applied through a clear methodology and supports the objectives of developing public education and improving its outcomes.

The General Education System includes a number of provisions governing education stages, the General Education Affairs Council, educational institutions, education pathways, e-learning, continuing education, the educational environment, and the rights of students and teachers.


Sources: New Syria-Iraq Crude Pipeline Still Years Away

FILE PHOTO: A worker checks an oil pipeline at Nahr Bin Umar oil field, north of Basra, Iraq March 22, 2022. REUTERS/Essam Al-Sudani/File Photo
FILE PHOTO: A worker checks an oil pipeline at Nahr Bin Umar oil field, north of Basra, Iraq March 22, 2022. REUTERS/Essam Al-Sudani/File Photo
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Sources: New Syria-Iraq Crude Pipeline Still Years Away

FILE PHOTO: A worker checks an oil pipeline at Nahr Bin Umar oil field, north of Basra, Iraq March 22, 2022. REUTERS/Essam Al-Sudani/File Photo
FILE PHOTO: A worker checks an oil pipeline at Nahr Bin Umar oil field, north of Basra, Iraq March 22, 2022. REUTERS/Essam Al-Sudani/File Photo

Iraq's plans to export oil via a pipeline through Syria to avert future disruptions in the Strait of Hormuz will likely require four years of construction and cost at least $15 billion, sources with knowledge of the project told Reuters.

US officials and energy executives are billing the plan, which is receiving initial support for feasibility studies from a consortium including Chevron, as part of a strategy to reduce the industry's reliance on a waterway that has been largely shut by the Iran war.

"Over the next two years, the strait is going to become irrelevant. It is going to become just another body of water," US Treasury Secretary Scott Bessent said last week.

While a fifth of the world's oil and liquefied natural gas was shipped through Hormuz before the conflict, Bessent said "more than 50% or 70%" of those exports would instead be exported via underground pipelines.

But two sources directly involved in ‌the project told Reuters ‌the plans for the Iraq-Syria pipeline would take twice that long due to the need ‌for ⁠new infrastructure and ⁠could face other hurdles.

Both sources asked not to be named due to the sensitivity of the matter.

NEW INFRASTRUCTURE TO REPLACE EXISTING WAR-DAMAGED PIPELINE

Iraq has been among the countries most affected by the Hormuz shutdown.

It exported around 3.6 million barrels of oil per day before the war, mainly through Gulf terminals near Basra, but shipped just 35.5 million barrels in total via Hormuz in July, according to state-run oil firm SOMO.

A pipeline linking Iraq's northern Kirkuk region to Syria's Mediterranean port of Banias already exists but was badly damaged by wars in Iraq and Syria and has not been in regular use since the 1980s.

Both sources said the plan would require laying entirely ⁠new infrastructure rather than rehabilitating the existing pipeline and cost at least $15 billion.

While part of the ‌new pipeline would run largely along the same Kirkuk-Banias route, intact sections of ‌that pipeline are not compatible with newly developed specifications and would be unusable, one of the sources said.

The second source said the project ‌would include developing an entirely new integrated crude oil pipeline system that would link Iraq's southern and northern fields to a ‌central hub in Haditha in western Iraq, then onwards to Banias.

The US has welcomed the "rehabilitation and reconstruction" of the pipeline, saying it will have initial transport capacity of 2 million bpd of crude oil.

That would imply a major expansion of the old pipeline's capacity of about 300,000 bpd, which is less than a tenth of the oil volume Iraq exported through the Strait of Hormuz before the Iran war. Iraq has also ‌restarted oil exports from its Kirkuk fields via pipeline to Türkiye’s Ceyhan port with targeted capacity of around 250,000 bpd.

Both sources said work on the Iraq-Syria pipeline would take around ⁠four years, though one added ⁠that the timeline may also need to accommodate clearing old infrastructure and acquiring fresh land use rights from Syria's new administration.

ANOTHER POSSIBLE 'ACCESS TO MARKET' BUT STUDIES STILL NEEDED

Syria and Iraq have both signed separate memorandums of understanding with a consortium comprised of US major Chevron, TI Capital and Qatar's UCC Holding to carry out technical and financial studies in preparation for the project.

Iraq's oil ministry and state-owned Syrian Petroleum Company did not respond to Reuters requests for comment on the project and the sources' timeline and cost assessments. TI Capital and UCC Holding did not immediately respond to requests for comment. Chevron pointed to an earlier statement about the preliminary agreement and said it does not comment on details related to commercial matters.

During a press briefing last month, a Chevron executive said the project could offer "another access route to market" through the Mediterranean. The executive said any pipeline would also need to connect to Iraq's southern fields of West Qurna 2 and Nassiriya, which Chevron is in negotiations to enter.

Chevron still needs to complete technical studies to determine whether the existing Iraq-Syria pipeline would need refitting, expanding or rebuilding, the executive said.

The company has not yet given estimates of the project's future export capacity.

"Usually, as these pipelines go, it's not 100% capacity available on day one," the executive said.


China Leads Wave of Clean Power Wastage as Grids Globally Hit Limits

Solar panels at the Dalad Banner Photovaltic Base in Kubuqi desert during organized media tour, in Ordos, Inner Mongolia Autonomous Region, China, June 12, 2026. (Reuters)
Solar panels at the Dalad Banner Photovaltic Base in Kubuqi desert during organized media tour, in Ordos, Inner Mongolia Autonomous Region, China, June 12, 2026. (Reuters)
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China Leads Wave of Clean Power Wastage as Grids Globally Hit Limits

Solar panels at the Dalad Banner Photovaltic Base in Kubuqi desert during organized media tour, in Ordos, Inner Mongolia Autonomous Region, China, June 12, 2026. (Reuters)
Solar panels at the Dalad Banner Photovaltic Base in Kubuqi desert during organized media tour, in Ordos, Inner Mongolia Autonomous Region, China, June 12, 2026. (Reuters)

China turned away enough clean energy to power Mexico for a year in the six months through June as its grids hit their limits, while networks in many other nations such as Australia and Japan also failed to keep pace with a surging renewables buildout.

Curtailments, or the pre-emptive rejection of wind or solar power because a grid reaches capacity, are emerging as a growing challenge to renewables globally and underscore continued reliance on fossil fuels.

China, the world's top producer of solar power, rejected 360 terawatt-hours (TWh) of clean power from January to June, up 49% from the same period a year earlier, according to a report this month by Global Energy Monitor (GEM) and the Center for Research on ‌Energy and Clean ‌Air (CREA).

The report's estimates for curtailments far exceed figures given by the Chinese ‌government.

Insufficient ⁠transmission infrastructure and ⁠supply contracts that guarantee operations of newly built coal-fired power plants in China are forcing the rejection of abundant renewable output, analysts say.

"Curtailment in China is structural, not a temporary bottleneck. We expect curtailment pressure to continue through the rest of this decade," said Yuan Ren, analyst at consultancy Wood Mackenzie.

Curtailments, along with a new policy that removes a guaranteed fixed price for renewables, have contributed to a 66% drop in new solar installations this year in China. At the same time, China's coal-fired power generation is expected to rise again this year, reversing a first-in-a-decade ⁠decline.

CURTAILMENTS AFFECTING RENEWABLE INVESTMENTS

China's National Energy Administration, which stopped publishing monthly data on ‌curtailment by province in March, said in a statement last ‌month that 8.6% of the country's solar output and 9.1% of its wind output were curtailed in the first half ‌of 2026.

But GEM and CREA estimate China rejected 26.1% of its total wind and solar output in ‌the six months through June, using weather-adjusted data to account for unreported curtailment.

The National Energy Administration did not respond to a faxed request for comment.

With curtailment worsening, it's harder "to do pre-assessment of the financial viability of projects," said Shawn Shuwei Zhang, chief economist at Beijing-based consultancy Draworld Environment Institute.

Clean power investments are already shifting from standalone solar projects towards solar-plus-storage ‌to reduce exposure to curtailment, Wood Mackenzie's Ren said.

CURTAILMENT RISING GLOBALLY

Rising curtailment extends beyond China, to the rest of the Asia Pacific and Europe.

In Australia's ⁠National Electricity Market, curtailments surged ⁠37% to 2.93 TWh, or 7% of its wind and solar output, in the first half of 2026, while Japan's grid rejected 2.35 TWh — a jump of 34% and representing 4% of renewable output, data from their electricity markets showed.

India, the No.3 global solar generator, curtailed 8.13 TWh of solar power in the quarter ended June, its renewable energy minister said. That accounts for 14% of its solar output in the three months through June, grid data showed.

That compared with March quarter curtailment of 0.47 TWh of renewable output that includes both solar and wind, according to energy think tank Ember. Indian solar generation is, however, typically much higher in the June quarter, meaning curtailments will be higher too.

Efficient deployment and an immediate scale-up of battery storage could help stall curtailment globally, Ember analyst Kostantsa Rangelova said, adding that Bulgaria and Chile provided effective models that could be emulated.

"Chile added 4 GWh of batteries in 2025, more than doubling its installed capacity. Most of this new storage was co-located with solar plants, helping reduce curtailment," Rangelova said.