Iraq PM Calls for Investing in High Oil Prices to Support Economic Reform

Students gather in a schoolyard in Sulaymaniyah in the Kurdistan Region on Sunday, which marked the first day they were opened after a closure forced by the COVID-19 pandemic. (AFP)
Students gather in a schoolyard in Sulaymaniyah in the Kurdistan Region on Sunday, which marked the first day they were opened after a closure forced by the COVID-19 pandemic. (AFP)
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Iraq PM Calls for Investing in High Oil Prices to Support Economic Reform

Students gather in a schoolyard in Sulaymaniyah in the Kurdistan Region on Sunday, which marked the first day they were opened after a closure forced by the COVID-19 pandemic. (AFP)
Students gather in a schoolyard in Sulaymaniyah in the Kurdistan Region on Sunday, which marked the first day they were opened after a closure forced by the COVID-19 pandemic. (AFP)

Iraq’s Prime Minister Mustafa al-Kadhimi underscored the importance of investing in high oil prices to help ease economic burdens on the people.

During a meeting with the parliament’s finance committee on Sunday, Kadhimi said the draft budget submitted by the government aims to achieve economic and financial reform and support vital sectors to help address the majority of problems suffered by the country’s economy for decades.

According to a statement by his media office, the premier stressed the need to activate automation mechanisms, digital trading and the Federal Service Council’s role, in line with the economic reform plan.

He further highlighted the significance of the fair distribution of wealth among all Iraqi regions, in line with the constitution.

He said the country was facing several challenges, adding: “We have been working hard to reform the current situation and put the country’s economy on the right track, in implementation of the government’s agenda that was passed by the House of Representatives.”

The financial committee has held more than 300 meetings within a month with several ministers and senior officials in various sectors to decide on the frameworks that would balance between spending and revenues.

“The committee handed over a copy of the amendments made on the budget to the government,” the statement added, noting that they cover reducing expenditures and maximizing revenues in a practical manner.

The committee stressed it worked on supporting the private sector and taking bold steps to address and support industrial, agricultural and real estate banks to achieve comprehensive development in these sectors.

Meanwhile, disagreements are still ongoing between the federal government in Baghdad and the Kurdistan Regional Government (KRG) on the Kurds’ share in the budget and the mechanism for implementing the oil in exchange for salaries deal.

Deputy Prime Minister of the Kurdistan Region Qubad Talabani said on Sunday that the region is ready to conclude a deal with the federal government to implement all the obligations, provided that the deal is fair and enforceable.

The Kurdistan Region’s share in the federal government’s budget does not exceed five percent after the deduction of sovereign expenses, he noted.

Talabani called for re-establishing Iraqi state-oil marketer SOMO in a new way that guarantees the transparent management of selling and marketing oil, including the region’s oil.

“We have been in contact with Baghdad for nearly a year, and our current talks are different and numerous and focused on many issues,” he said.

Head of the Kurdistan Democratic Party’s (KDP) bloc in the Iraqi parliament Vian Sabri told Asharq Al-Awsat that negotiations will continue a final agreement on the region’s share is reached, according to the constitution and regulations.

“Our position is to support the region’s commitment to deliver 250,000 barrels of oil per day to the federal government and half of the non-oil revenues.”

“In return, the federal government will commit to paying the region’s dues according to their legal deadlines,” she stressed.



Syria and DP World Ink $800 Million Deal for Port Development

A person holds up the flag adopted by the new Syrian rulers, as people celebrate after fighters of the ruling Syrian body ousted Bashar al-Assad, in the Damascus old city, Syria, December 13, 2024. REUTERS/Ammar Awad
A person holds up the flag adopted by the new Syrian rulers, as people celebrate after fighters of the ruling Syrian body ousted Bashar al-Assad, in the Damascus old city, Syria, December 13, 2024. REUTERS/Ammar Awad
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Syria and DP World Ink $800 Million Deal for Port Development

A person holds up the flag adopted by the new Syrian rulers, as people celebrate after fighters of the ruling Syrian body ousted Bashar al-Assad, in the Damascus old city, Syria, December 13, 2024. REUTERS/Ammar Awad
A person holds up the flag adopted by the new Syrian rulers, as people celebrate after fighters of the ruling Syrian body ousted Bashar al-Assad, in the Damascus old city, Syria, December 13, 2024. REUTERS/Ammar Awad

The Syrian government and DP World signed a memorandum of understanding (MoU) worth $800 million to develop Syria's port of Tartous, Syrian state news agency SANA said on Friday, after the lifting of US sanctions cleared the way for the deal.

The deal to develop, manage and operate a multi-purpose terminal at Tartous includes cooperation in establishing industrial and free trade zones. DP World is a subsidiary of United Arab Emirates investment company Dubai World.

Syria is seeking to attract foreign investments to boost its struggling economy, and the deal was signed in the same week that US President Donald Trump announced plans to lift of sanctions on Syria during a visit to Riyadh, Reuters said.

Trump said he made the decision to lift sanctions after discussions with Saudi Crown Prince Mohammed bin Salman and Turkish President Tayyip Erdogan, whose governments have both strongly urged the lifting of sanctions.

Trump had also met with Syrian President Ahmed al-Sharaa ahead of the GCC summit in Riyadh on Wednesday.

US Secretary of State Marco Rubio said on Thursday that Trump intends to issue waivers under the "Caesar Syria Civilian Protection Act", through which Washington imposed stiff sanctions on former President Bashar al-Assad's government and secondary sanctions on outside companies or governments that worked with it.

Removing US sanctions that cut Syria off from the global financial system will also clear the way for greater engagement by humanitarian organizations working in Syria, easing foreign investment and trade as the country rebuilds.