Iraq Committed to Faw Port Project Despite Economic Woes, May Turn to China

Workers load concrete at the al-Faw port project site in Faw, southern province of Basra. (Reuters)
Workers load concrete at the al-Faw port project site in Faw, southern province of Basra. (Reuters)
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Iraq Committed to Faw Port Project Despite Economic Woes, May Turn to China

Workers load concrete at the al-Faw port project site in Faw, southern province of Basra. (Reuters)
Workers load concrete at the al-Faw port project site in Faw, southern province of Basra. (Reuters)

Despite the economic crisis in Iraq and the authorities’ inability to fulfill their financial obligations, especially with regard to paying the salaries of civil servants, the government insists on building al-Faw Grand Port in the southern province of Basra.

The port is considered the country’s most important outlet to the Gulf and Iraqis have been looking forward to establishing it for many years, given its promising economic potential for the country, according to experts in finance, ports and trade.

During his visit to Basra last week, Prime Minister Mustafa al-Kadhimi said that al-Faw port is one of the government's priorities, despite the great challenges that the country is facing.

Kadhimi stressed that the government will work hard to sign with foreign companies to launch operations in the port.

However, the Iraqi cabinet’s desire to proceed with the construction works may face challenges which could delay the expected opening in 2024.

Over the past two days, another issue emerged as the Korean company, Daewoo, announced it wanted to change the terms relating to the duration and the payments of the contract.

The Iraqi Ministry of Transport issued a statement Sunday, addressing the issues with Daewoo, which is implementing the port project.

The Ministry indicated that the company has successfully implemented the port’s western breakwater, adding that the negotiations were held for three months, leading to a preliminary agreement.

The agreement stipulated that the company will implement five projects, with a navigation canal at a depth of 19.8 meters, at a total cost of $2.37 billion, in three years.

The statement noted that after the appointment of the new director of al-Faw port, Daewoo demanded increasing the cost to $2.8 billion if the ministry wanted to reach depths of 19.8 meters.

The former director of Daewoo in Iraq, Park Il-ho, was found dead last month in an apparent suicide at the company’s headquarters in Basra.

Transport Minister Nasser al-Shibli rejected the company's request and granted it three days to abide by the initial agreement.

The Iraqi News Agency (INA) quoted Shibli as saying that the ministry will continue to negotiate with Daewoo regarding al-Faw port, noting that the company has two contracts for the port that end in 2021.

He pointed out that Daewoo has an exception from the General Secretariat of the government to refer to it directly, noting that the work done so far has been excellent.

Shibli hinted at the possibility of turning to Chinese companies in the event that no agreement is reached with the Korean company.

On Sunday, the reconstruction and services parliamentary committee met with the Minister of Transportation to discuss the issues that have recently arisen with the Korean company.

Committee member Burhan al-Mamouri announced that they addressed the controversial points, including the manipulation of the technical specifications set by the Italian consultant.

He added that the new management executing the project requested a gradual reduction of the depths, an extension of the period of the contract, and an increase in the agreed payments.

The Iraqi officials stressed the importance of adhering to the technical specifications, especially with regard to the depths.



Royal Commission for Riyadh City Announces 'Riyadh Creative District'

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)
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Royal Commission for Riyadh City Announces 'Riyadh Creative District'

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)

The Board of Directors of the Royal Commission for Riyadh City (RCRC) announced the launch of the “Riyadh Creative District,” a transformative initiative that aims to position the Saudi capital as a global creative and media hub while reinforcing the Kingdom’s leadership in the creative economy.

The new project is set to become a cornerstone in Riyadh’s evolution into a world-class metropolis, integrating seamlessly with the capital’s major development initiatives, reported the Saudi Press Agency on Thursday.

The project aims to foster a thriving ecosystem where creative minds, industry leaders, and emerging talent can collaborate to develop content and new ideas, drive cultural and technological advancements, and contribute to the Gross Domestic Product (GDP).

The Creative District aligns with Saudi Arabia’s long-term strategic vision by emphasizing the role of media, technology, culture and innovation in economic diversification and sustainable growth.

Minister of State, Member of the Council of Ministers, and CEO of RCRC Eng. Ibrahim bin Muhammad Al-Sultan expressed profound appreciation to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister, and Chairman of the Royal Commission for Riyadh City, for their continued support of the commission’s projects, which are pivotal in shaping the future of Riyadh and enhancing its global competitiveness.

“The Riyadh Creative District is designed to be a vital extension of the capital’s creative, cultural, and economic landscape, reinforcing the city’s status as a dynamic hub for content creation and innovation. Through this initiative, we are not only establishing an inspiring space for creative industries to thrive, but also providing a gateway for global talent to engage with the Kingdom’s creative economy,” he said.

“This initiative embodies Saudi Arabia’s forward-looking vision to cultivate a knowledge-based society, and develop a globally integrated creative sector that generates sustainable economic and social impact,” he added.

A key milestone in the project’s launch is the signing of a strategic partnership agreement between RCRC and the King Abdullah Financial District (KAFD), ensuring a structured and integrated approach to its implementation. This collaboration is expected to catalyze the expansion of the creative industries in Saudi Arabia, bridging the gap between local and international expertise and fostering cross-sector innovation.

The Creative District is set to redefine the role of creativity in economic development, by offering a dynamic platform that connects designers, artists, entrepreneurs, and technology pioneers. It will serve as an incubator for new business models, cultural enterprises, and digital transformation projects, ultimately reinforcing Riyadh’s position as the regional epicenter for creative excellence.

Beyond GDP contributions, the district will play a crucial role in cultural exchange and community engagement by hosting interactive programs, industry events, and knowledge-sharing initiatives that empower emerging talent and facilitate the exchange of ideas. Its impact is expected to extend beyond Riyadh, influencing the broader Middle East creative ecosystem and elevating the Kingdom’s standing as a destination for investment in the creative economy.

Aligned with the goals of Saudi Vision 2030, the Creative District underscores the Kingdom’s commitment to fostering a globally competitive creative sector, that not only boosts the quality of life but also drives innovation-led economic transformation. By offering a supportive environment for creatives, startups, and established enterprises, the district is poised to shape the future of creative industries in Saudi Arabia, offering new employment opportunities, accelerating digital adoption, and laying the groundwork for a knowledge-driven economy.

With a focus on sustainability and long-term impact, the Creative District will also contribute to Riyadh’s broader urban transformation, integrating smart infrastructure, cutting-edge technology, and sustainable design principles to create an environment where creativity and innovation can flourish. The Creative District will be instrumental in attracting both regional and international investment in the creative industries, ensuring that Saudi Arabia remains at the forefront of global creative and cultural advancements.

As Riyadh continues its journey toward becoming a premier global destination for business, culture, and innovation, the Creative District will serve as a testament to the Kingdom’s unwavering commitment to fostering talent, advancing creative industries, and building a prosperous future driven by ingenuity, collaboration, and forward-thinking policies.