In Iraq's Fields of Black Gold, Thousands Lose Livelihoods

Local worker Muhammad Subeih Haider, who was laid off amid the spread of the coronavirus disease (COVID-19), by private British security firm operating in West Qurna 1 oilfield, developed by Exxon Mobil, stands as he protests with others in front of the Basra Oil Company in Basra, Iraq, May 20, 2020. Picture taken May 20, 2020. REUTERS/Mohammed Aty
Local worker Muhammad Subeih Haider, who was laid off amid the spread of the coronavirus disease (COVID-19), by private British security firm operating in West Qurna 1 oilfield, developed by Exxon Mobil, stands as he protests with others in front of the Basra Oil Company in Basra, Iraq, May 20, 2020. Picture taken May 20, 2020. REUTERS/Mohammed Aty
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In Iraq's Fields of Black Gold, Thousands Lose Livelihoods

Local worker Muhammad Subeih Haider, who was laid off amid the spread of the coronavirus disease (COVID-19), by private British security firm operating in West Qurna 1 oilfield, developed by Exxon Mobil, stands as he protests with others in front of the Basra Oil Company in Basra, Iraq, May 20, 2020. Picture taken May 20, 2020. REUTERS/Mohammed Aty
Local worker Muhammad Subeih Haider, who was laid off amid the spread of the coronavirus disease (COVID-19), by private British security firm operating in West Qurna 1 oilfield, developed by Exxon Mobil, stands as he protests with others in front of the Basra Oil Company in Basra, Iraq, May 20, 2020. Picture taken May 20, 2020. REUTERS/Mohammed Aty

Mohammed Haider, a security worker in Iraq's southern oilfields, thought he was safe after signing a new one-year contract to guard oil facilities. Three days later, he was out of a job.

"I got laid off. They threw us out on the pavement," the 38-year-old said, speaking as he protested outside the Basra Oil Company headquarters, the national partner for foreign companies.

Haider had been hired to drive vehicles for a British security firm around the giant West Qurna 1 oilfield that produces hundreds of thousands of barrels of crude each day - part of OPEC member Iraq's principal source of wealth.

He now spends his days at home or searching in vain online for jobs that are hard to come by in a crisis-hit economy.

"I can't even fall back on taxi-driving work. The curfew because of coronavirus means I'd get arrested for driving around illegally," he said later at his home.

Haider is one of thousands of workers in Iraq's oil sector who were laid off this year after a fall in oil prices caused by the COVID-19 pandemic, and who struggle to find any other source of income.

Iraq in March asked international oil companies to cut their budgets by 30% because of plummeting oil prices. Energy companies in the south responded by cutting costs.

Subcontractors, including security, construction and transport firms, let thousands of workers go, according to local authorities.

"Of about 80,000 Iraqis working in the oilfields, some 10,000 to 15,000 are now out of work," said Mohammed Ibadi, a local government official in Basra province, where most of the southern fields are located.

Iraqi workers had been forced to take unpaid leave or had been laid off completely, mostly by subcontractors, he said.

'I'D TAKE HALF MY WAGES'

Ibadi's office received dozens of complaints from workers who asked Iraqi authorities to sanction companies that do not comply with contractual termination terms. The local authorities negotiated 50% and 25% salaries for four months for some 2,000 workers who had been laid off, he said.

Khalid Hamza, associate director of the Basra Oil Company, said the government body would not accept the arbitrary termination of local staff.

"We particularly need to protect the jobs of the local population," he said.

Iraq has pledged to cut nearly a million barrels of oil production per day (bpd) in line with OPEC cuts. Its exports stood at 3.2 million bpd in May. The cuts have slashed state revenue, of which it makes up more than 90%.

The government faces making cuts to public sector pay - a move that would further anger impatient Iraqis who staged protests last year against alleged government corruption and lack of jobs.

Ibadi fears the economic and social crisis will worsen as the COVID-19 pandemic hits Iraq harder.

With most jobs in Basra linked to the energy industry, it is near impossible for workers like Haider to find an alternative source of income.

The father of three, who worked for five years as a driver for the British company, subcontracted by an American oil corporation, is ready to take on any job to provide for his family.

Haider fears he might no longer be able to cover school or medical costs.

"I wish the company would take me back, even for half my wages," He said.



Cityscape Global in Saudi Arabia to Introduce Over 100,000 Housing Units

Photo from the second edition of the Cityscape Global Exhibition in Riyadh (SPA)
Photo from the second edition of the Cityscape Global Exhibition in Riyadh (SPA)
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Cityscape Global in Saudi Arabia to Introduce Over 100,000 Housing Units

Photo from the second edition of the Cityscape Global Exhibition in Riyadh (SPA)
Photo from the second edition of the Cityscape Global Exhibition in Riyadh (SPA)

The Cityscape Global exhibition, set to open on Monday in Riyadh, is expected to introduce more than 100,000 housing units, financing options with interest rates starting at 2.59%, and discounts of up to SAR 100,000 (around $26,600) on various projects. The event will also feature one of the largest real estate auctions in the Middle East, with an estimated value exceeding SAR 1 billion ($266.6 million).
This announcement was made by Abdullah Al-Hammad, CEO of the General Real Estate Authority, during the Cityscape Global introductory meeting held on Thursday in the Saudi capital.
Al-Hammad emphasized that Saudi Arabia’s hosting of this major real estate event reflects the economic momentum the Kingdom is experiencing under Vision 2030.
He explained that the exhibition will play a key role in showcasing investment opportunities by providing comprehensive insights into real estate market trends, noting that the Kingdom is witnessing unprecedented growth in real estate and economic projects.
The exhibition will primarily focus on the Kingdom’s mega-projects, with participation from over 400 exhibitors, 100 institutional investors, and more than 500 leaders from the global real estate sector.
He added that this major gathering will facilitate access to diverse investment opportunities within Saudi Arabia’s real estate market, thus boosting foreign investment, diversifying the national economy, and supporting sustainable development.
Al-Hammad highlighted that the previous Cityscape exhibition attracted over 160,000 visitors and secured investment projects and agreements valued at over SAR 110 billion ($29 billion), including $19 billion in foreign investments. This year, the second edition is expected to see a 50% increase in transactions, projects, and agreements.
Abdulrahman Altawil, the Deputy Minister for Residential Supply Stimulus and Real Estate Development, told Asharq Al-Awsat that this major real estate event will host leading global names from various areas of the real estate industry, including development, design, and operations.
“A large number of international real estate developers are expected to participate in the event, with over 10 developers already launching projects in Saudi Arabia. The aim is to attract even more developers in partnership with local counterparts”, Altawil said.
Altawil noted that Saudi Arabia’s real estate and investment environment is highly attractive, providing promising and accessible opportunities for investors. He mentioned that the ministry is working to create a diversified landscape focused on attracting global companies to invest in the Kingdom.
The exhibition will feature a selection of experts and CEOs and will include a Real Estate Investors Forum, hosting 150 investors from 22 countries. This event aims to strengthen collaboration on investment projects, establishing itself as a key center for opportunities and investment.