Jordan to Export Electricity to Iraq

Employees walk grounds of Dhi Qar Combined Cycle Power Plant near Iraqi city of Nasiriyah (File photo: AFP)
Employees walk grounds of Dhi Qar Combined Cycle Power Plant near Iraqi city of Nasiriyah (File photo: AFP)
TT
20

Jordan to Export Electricity to Iraq

Employees walk grounds of Dhi Qar Combined Cycle Power Plant near Iraqi city of Nasiriyah (File photo: AFP)
Employees walk grounds of Dhi Qar Combined Cycle Power Plant near Iraqi city of Nasiriyah (File photo: AFP)

Jordan signed an agreement to sell electricity to Iraq and connect the two countries' power grids, according to an official Jordanian source.

The agreement was signed via videoconferencing and attended by Jordanian Minister of Energy and Mineral Resources Hala Zawati and her Iraqi counterpart Majed Emarah.

The deal says that Jordan will provide Iraq with 1,000 gigawatt-hours per year in the first phase of the project.

Zawati said that supplying Iraq with electricity will begin after the completion of the construction of al-Risha plant in Jordan, and the establishment of the 300-km power line connecting it with the al-Qaim conversion plant in Iraq.

It will be completed within 26 months of the signing date of the contract, the Minister added.

She highlighted the importance of the Jordanian-Iraqi power grid connection, pointing out that the project enhances the stability and reliability of power networks in both countries.

It serves the intention of establishing a joint power market in the Arab world, which would promote Arab economic integration, announced Zawati.

Baghdad currently imports gas and electricity from Tehran following a US waiver allowing Iraq to import energy sources from Iran without risking sanctions.

Despite rich oil sources, Baghdad relies heavily on Iran in the field of energy and imports a third of its gas and electricity consumption. Iraq is unable to achieve energy self-sufficiency to secure the needs of its 40 million people because of a decaying infrastructure.

The US extended the waiver granted to Iraq for two additional months, an Iraqi official told AFP.

When Iraqi Prime Minister Mustafa al-Kadhimi formed the government in May, Washington granted Baghdad an exemption for a period of four months.

Meanwhile, Iraq’s General Company for Passenger Transport and Delegations at the Ministry of Transport announced preliminary talks to open a new route to Egypt, via Jordan.

Local media quoted the Company’s general director, Karim Hussein, who said there is a priority to open a new route to Egypt.

Hussein said the company's financial performance was profitable between 2018 and until the first two months of 2020, when it faced many losses due to travel bans and lockdowns imposed to prevent the spread of the coronavirus pandemic.



IMF Projects Pessimistic Outlook on MENA Economies

Traffic moves during a sandstorm in Doha on April 15, 2025. (AFP)
Traffic moves during a sandstorm in Doha on April 15, 2025. (AFP)
TT
20

IMF Projects Pessimistic Outlook on MENA Economies

Traffic moves during a sandstorm in Doha on April 15, 2025. (AFP)
Traffic moves during a sandstorm in Doha on April 15, 2025. (AFP)

The International Monetary Fund (IMF) on Tuesday gave a pessimistic outlook for economic growth in the Middle East and North Africa (MENA) for the next two years, the second similar projection in a row in 2025.

The IMF released an update to its World Economic Outlook compiled in just 10 days after US President Donald Trump announced universal tariffs on nearly all trading partners and higher rates - currently suspended - on many countries.

Across the broader MENA region, the IMF anticipated economic growth to average 2.6% in 2025, before climbing to 3.4% in 2026, representing a decrease by around 0.9 percentage points and 0.5 percentage points compared to previous forecasts.

The IMF had downgraded its growth forecast for the region last January from its October projection. According to figures from the fund, the region's economy grew by 1.8% last year.

Within MENA, IMF projected oil exporters including Saudi Arabia, the UAE, Iraq, Algeria and Qatar, to witness a 2.6% growth this year and 3.1% next year.

In return, in oil-importing nations such as Egypt, Jordan, Morocco and Tunisia, economies are projected to grow to 3.6% in 2025 and to 4.1% in 2026.

The Fund said futures markets indicate that oil prices will average $66.9 per barrel in 2025, a 15.5% decline, before falling to $62.4 in 2026.

The IMF cut the forecast for Saudi Arabia's GDP growth in 2025 to 3% versus a January estimate of a 3.3% increase. IMF also reduced the projection for growth in 2026 by 0.4 percentage point to 3.7%.

In Iraq, the IMF expected a modest rebound in 2026, with growth forecast at 1.4%. This marks a steep downgrade from October 2024, when it had projected 4.1% growth for Iraq in 2025.

In Egypt, it saw growth coming in at a 3.8% y-o-y clip this fiscal year, up 0.2 percentage points from its January forecast.

In Morocco, IMF said the economy could grow by 3.9% in 2025 and maintain steady momentum with 3.7% the following year.