Saudi Arabia, Iraq Sign Air Transport Agreement

Saudi and Iraqi parties signing an agreement. Asharq Al-Awsat
Saudi and Iraqi parties signing an agreement. Asharq Al-Awsat
TT

Saudi Arabia, Iraq Sign Air Transport Agreement

Saudi and Iraqi parties signing an agreement. Asharq Al-Awsat
Saudi and Iraqi parties signing an agreement. Asharq Al-Awsat

Saudi Arabia and Iraq signed an air transport agreement during the first meeting of the Transport, Border Outlets and Ports Committee at the Saudi-Iraqi Coordinating Council in Riyadh on Tuesday.

The agreement was signed by Saudi Transport Minister Nabil al-Amoudi and Iraqi Transport Minister Kazim al-Hamami.

The two sides affirmed their commitment to the previously agreed executive plan, which started with regular and direct flights between the two countries.

They also agreed on the importance of concluding a cooperation agreement in the field of maritime transport to enhance transport services between the two countries’ ports, facilitate and develop them.

These include supporting logistics services and they pointed the importance of the shipping line between King Abdulaziz Port in Dammam and Umm Qasr port in Basra along with future shipping lines to transport containers between the two countries.

Regarding the increase in bilateral trade exchange, the two sides agreed to study the possibility of granting preferential treatment in terms of cargo handling between the Saudi and Iraqi ports and forming joint task forces of specialists to prepare the study of rail link and the development of road-linked routes.

They stressed the need to conclude an agreement to regulate the transport of passengers and goods on the roads between the two countries, contribute to the entry of loaded buses and trucks without intermediary and facilitate the process of granting the drivers entry visas.

The minutes of the meeting noted the importance of signing a memorandum of understanding for customs cooperation and one for the development of Arar Iraqi border crossing.

The Saudi Ministry of Transport is currently developing the road connecting the city of Arar and the Jadidah Arar border crossing and rehabilitating it completely.

“The signing of the air transport agreement between the two countries is the result of the directives of the Custodian of the Two Holy Mosques and his Crown Prince to promote and develop relations between Saudi Arabia and Iraq in various fields,” Amoudi said.

“This is what we have been working on in the transport system in cooperation with the Iraqi side and is reflected in boosting bilateral trade exchange and developing economic cooperation to reach an effective partnership in the maritime, air and land transport system.”

They agreed to form bilateral working groups, which will meet periodically to discuss and follow up issues of mutual interest in the fields of transport, border crossings, roads and ports.



Lebanon's Bonds Rally as Parliament Elects 1st President since 2022

Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir
Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir
TT

Lebanon's Bonds Rally as Parliament Elects 1st President since 2022

Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir
Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir

Lebanese government bonds extended their three-month-long rally on Thursday as the crisis-ravaged country's parliament voted in a new head of state for the first time since 2022.

Lebanese lawmakers elected army chief Joseph Aoun as president. It came after the failure of 12 previous attempts to pick a president and boosts hopes that Lebanon might finally be able to start addressing its dire economic woes.

The country's battered bonds have almost trebled in value since September, when the regional conflict with Israel weakened Lebanese armed group Hezbollah, long viewed as an obstacle to overcoming its political paralysis.

According to Reuters, most of Lebanon's international bonds, which have been in default since 2020, rallied after Aoun's victory was announced to stand 1.3 to 1.7 cents higher on the day and at just over 16 cents on the dollar.

They have risen almost every day since late December, although they remain some of the lowest-priced government bonds in the world, reflecting the scale of Lebanon's difficulties.

With its economy and financial system still reeling from a collapse in 2019, Lebanon is in dire need of international support to rebuild from the conflict, which the World Bank estimates to have cost the country $8.5 billion.

Hasnain Malik, an analyst at financial research firm Tellimer said Aoun's victory was "the first necessary step on a very long road to recovery".

Malik said Aoun now needs to appoint a prime minister and assemble a cabinet that can retain the support of parliament, resuscitate long-delayed reforms and help Lebanon secure international financial support.

The 61-year old Aoun fell short of the required support in Thursday's first round of parliamentary voting and only succeeded in a second round, reportedly after a meeting with Hezbollah and Amal party MPs.

"That presents significant ongoing risk to any new PM and cabinet, which need to maintain the confidence of a majority of parliament," Malik said.