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Crude Oil Exports from Iraq’s Kurdistan to Restart on Saturday, SOMO Says

The Iraqi-Turkish pipeline is seen in Zakho district of the Dohuk Governorate of the Iraqi Kurdistan province, Iraq, August 28, 2016. (Reuters)
The Iraqi-Turkish pipeline is seen in Zakho district of the Dohuk Governorate of the Iraqi Kurdistan province, Iraq, August 28, 2016. (Reuters)
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Crude Oil Exports from Iraq’s Kurdistan to Restart on Saturday, SOMO Says

The Iraqi-Turkish pipeline is seen in Zakho district of the Dohuk Governorate of the Iraqi Kurdistan province, Iraq, August 28, 2016. (Reuters)
The Iraqi-Turkish pipeline is seen in Zakho district of the Dohuk Governorate of the Iraqi Kurdistan province, Iraq, August 28, 2016. (Reuters)

Crude exports from Iraq’s semi-autonomous Kurdistan region are scheduled to restart on Saturday, the state news agency said on Friday, citing state marketer SOMO, which will transport the oil via pipeline to Türkiye's Ceyhan port.

Three sources familiar with the plans told Reuters that exports were scheduled to restart at 6 a.m. local time (0300 GMT).

An agreement between Iraq's federal government, the Kurdistan Regional Government and eight international oil companies to reopen the Kirkuk-Ceyhan pipeline after 2-1/2 years will allow 180,000 to 190,000 barrels per day of crude to flow, Iraq's federal oil minister told Kurdish broadcaster Rudaw.

Baghdad has come under US pressure to resume the Kurdish oil flows as US President Donald Trump seeks to cut Iranian oil exports to zero under a maximum pressure campaign against Tehran. The reopening of the pipeline also comes as OPEC+ producers boost output to gain market share.

One of the sources said Kurdistan's Ministry for Natural Resources sent a notification to oil companies operating in Kurdistan about the planned startup.

The Kurdistan Regional Government and the Iraqi oil ministry did not immediately respond to emailed requests for comment. Flows through the Kirkuk-Ceyhan pipeline were halted in March 2023 when the International Chamber of Commerce ordered Türkiye to pay Iraq $1.5 billion in damages for unauthorized exports by the Kurdish regional authorities.

The preliminary plan agreed on Wednesday calls for the KRG to commit to delivering at least 230,000 bpd to SOMO, while keeping an additional 50,000 bpd for local use, according to Iraqi officials with knowledge of the agreement.

An independent trader will handle sales from the Turkish port of Ceyhan using SOMO's official prices.

For each barrel sold, $16 is to be transferred to an escrow account and distributed proportionally to producers, with the rest of the revenue going to SOMO, the officials said.

Norway's DNO said it has no immediate plans to export through the pipeline but that its local buyers could still ship its crude through it. The company and its joint venture partner Genel Energy have said the issue of Kurdistan's around $1 billion in arrears to producers, of which DNO is owed about $300 million, needs to be addressed.

The eight oil companies and the KRG have agreed to meet within 30 days of exports resuming to work on a mechanism for settling the outstanding debts.

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Business

GCC, India Launch Free Trade Agreement Negotiations  

Officials pose for a photo following the signing of the agreement between the Gulf Cooperation Council and India. (Asharq Al-Awsat)
Officials pose for a photo following the signing of the agreement between the Gulf Cooperation Council and India. (Asharq Al-Awsat)
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GCC, India Launch Free Trade Agreement Negotiations  

Officials pose for a photo following the signing of the agreement between the Gulf Cooperation Council and India. (Asharq Al-Awsat)
Officials pose for a photo following the signing of the agreement between the Gulf Cooperation Council and India. (Asharq Al-Awsat)

The Gulf Cooperation Council (GCC) and India have formally launched negotiations for a free trade agreement (FTA), in a move officials described as a new chapter in their strategic partnership.

GCC Secretary-General Jasem Albudaiwi and India’s Minister of Commerce and Industry Piyush Goyal signed the joint statement initiating the talks during a meeting in New Delhi on Tuesday.

Albudaiwi said the launch of negotiations reflects the depth of ties between the Gulf states and India, stressing that the relationship extends beyond transient economic interests.

It is a longstanding partnership strengthened by centuries of cultural and social exchange and guided by a shared commitment to broad-based cooperation that serves mutual interests, he added.

India is one of the GCC’s most significant trading partners, Albudaiwi noted, pointing to steadily expanding trade volumes and growing integration in key sectors such as energy, food security and technology.

Deepening cooperation has become a strategic economic imperative, he remarked.

GCC Secretary-General Jasem Albudaiwi and India’s Minister of Commerce and Industry Piyush Goyal sign the agreement. (Asharq Al-Awsat)

“New Delhi is not only a vast and promising market, but also a global hub for innovation and industry,” he stated.

The terms of reference signed in February establish a comprehensive framework for the negotiations. The two sides agreed to explore cooperation across a wide range of areas, including trade in goods and services, customs procedures and digital trade.

The framework also addresses sanitary and phytosanitary standards, intellectual property rights, and support for micro, small and medium-sized enterprises, among other issues of mutual interest. Albudaiwi said the scope of the talks reflects an ambition to craft an agreement aligned with the evolving global economy.

He hoped that the negotiations would culminate in a comprehensive and forward-looking FTA that eliminates tariff and non-tariff barriers, facilitates investment flows in both directions and strengthens trade and investment liberalization between India and the GCC.

Such an agreement would create a more competitive business environment, expand private-sector opportunities, reinforce supply chains and accelerate economic growth in line with the Gulf states’ development strategies, he said.

The GCC General Secretariat is ready to host the first round of negotiations at its headquarters in Riyadh in the second half of this year, he added.

Business

Saudi Telecom Sector Solidifies Leadership with $28 Billion in Revenue in 2025

The Saudi Telecom Company (stc) pavilion at the LEAP International Conference in Riyadh (Asharq Al-Awsat)
The Saudi Telecom Company (stc) pavilion at the LEAP International Conference in Riyadh (Asharq Al-Awsat)
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Saudi Telecom Sector Solidifies Leadership with $28 Billion in Revenue in 2025

The Saudi Telecom Company (stc) pavilion at the LEAP International Conference in Riyadh (Asharq Al-Awsat)
The Saudi Telecom Company (stc) pavilion at the LEAP International Conference in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s telecommunications sector has reaffirmed the strength of its operating model and growth potential, reporting a solid rise in combined revenues in 2025.

The performance reflects continued customer growth and an expanding portfolio of digital solutions, underscoring the sector’s central role in advancing Vision 2030.

Companies listed on the Saudi Exchange (Tadawul) posted a 3.8 percent increase in total revenue, exceeding SAR108.4 billion ($28.9 billion) in 2025, compared with SAR104.46 billion ($24.9 billion) in 2024.

However, despite strong top-line growth, aggregate net profits for the sector fell by 33.4 percent. The three largest operators — Saudi Telecom Company (stc), Etihad Etisalat Company (Mobily), and Mobile Telecommunications Company Saudi Arabia (Zain KSA) — reported combined earnings of SAR18.9 billion ($5 billion), down from SAR28.39 billion ($7.6 billion) the previous year.

The sector comprises four listed firms. Three — stc, Mobily and Zain KSA — follow a December fiscal year-end, while Etihad Atheeb Telecommunication Company (GO Telecom) closes its fiscal year at the end of March.

The decline in profitability was largely driven by stc, which accounts for 78 percent of the sector’s earnings. Its net profit fell 39.9 percent to SAR14.83 billion. Analysts attributed the drop mainly to a high comparison base in 2024, when exceptional and non-recurring items boosted profits to unusually elevated levels.

By contrast, Mobily reported an 11.55 percent increase in profit to SAR3.47 billion in 2025, up from SAR3.1 billion in 2024, supported by revenue growth across all business segments and an expanding customer base.

Zain KSA recorded a 1.3 percent rise in profit to SAR604 million, compared with SAR596 million the previous year. The improvement was driven by higher revenues from consumer and wholesale segments, the expansion of 5G services, and growth in Tamam Finance’s operations.

Rising Costs and Investment Pressures

Dr. Sulaiman Al-Humaid Al-Khaldi, a financial market analyst and member of the Saudi Economic Association, said the sector’s results highlight a clear divergence between revenue growth and declining profits, pointing to mounting operational and financial pressures.

Revenue growth has not translated into higher profits, as costs have increased at a faster pace than income.

Al-Khalidi expects short-term pressure on margins to persist due to continued high capital expenditure and strong price competition. Over the medium term, however, he anticipates gradual improvement supported by growing demand for data services, digital solutions and cloud computing, as well as expansion into non-traditional areas such as fintech and data centers.

He noted that the sector is undergoing a strategic shift from traditional telecom services toward integrated digital offerings, which could strengthen profitability in the future.

Profit Normalization After an Exceptional Year

Mohamed Hamdy Omar, chief executive of G World, described 2025 as a year of profit normalization following an exceptional 2024, when non-recurring gains significantly lifted stc’s net income.

He added that fourth-quarter earnings were weighed down by a strong comparison base and higher seasonal, marketing and financing costs tied to capital investments in networks and infrastructure.

At the same time, improved operational performance at Mobily and Zain KSA helped partially offset stc’s earnings decline. Omar stressed that the pressure on profits reflects accounting and financing factors rather than weakening demand or structural challenges in the sector.

Looking ahead, he expects the medium-term outlook to remain positive, driven by sustained demand for data, continued digital expansion and growth in telecom-linked financial and technology services. Profitability is projected to stabilize further in 2026 as operational efficiency improves.

Business

IMF: Kuwait Real GDP Will Expand by 3.8% in 2026

A view of Kuwait City (AFP)
A view of Kuwait City (AFP)
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IMF: Kuwait Real GDP Will Expand by 3.8% in 2026

A view of Kuwait City (AFP)
A view of Kuwait City (AFP)

The International Monetary Fund has said that economic activity in Kuwait is “rebounding,” adding that real GDP will expand by 3.8 percent in 2026.

In concluding the 2025 Article IV consultation with Kuwait, IMF Executive Directors endorsed staff’s appraisal, as follows: “An economic recovery is underway, in spite of lower oil prices. Growth is rebounding, driven by the unwinding of OPEC+ production cuts and robust non-oil growth. Inflation continues to moderate, reflecting lower core and food inflation.”

“Real GDP will expand by 3.8 percent in 2026, driven by the unwinding of OPEC+ production cuts and robust non-oil growth, estimated at 3.0 percent of GDP,” the IMF said in a statement.

“Headline CPI inflation will moderate to 2.1 percent in 2026 and then stabilize just below 2.0 percent over the medium term,” it added.

“Staff welcomes the authorities’ Vision 2035 aspirations to implement economic reforms in pursuit of a more diversified economy. To sustainably boost non-oil growth, a comprehensive and well-sequenced package of fiscal and structural reforms is needed,” said the statement.

It said that to reform energy subsidies, retail fuel, electricity and water prices should be gradually raised towards their GCC-average levels while providing targeted cash transfers to vulnerable groups.

To improve infrastructure, on-budget public investment should be further scaled up, by around 2 percent of GDP over the medium term, the statement added.