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UAE’s Masdar Signs Strategic Agreement with Iraq to Develop PV Projects

Officials at the virtual signing ceremony. (Asharq Al-Awsat)
Officials at the virtual signing ceremony. (Asharq Al-Awsat)
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UAE’s Masdar Signs Strategic Agreement with Iraq to Develop PV Projects

Officials at the virtual signing ceremony. (Asharq Al-Awsat)
Officials at the virtual signing ceremony. (Asharq Al-Awsat)

Masdar, a subsidiary of Mubadala Investment Company and one of the world’s leading renewable energy companies, announced that it signed a strategic agreement with Iraq to develop solar photovoltaic (PV) projects in the country with a minimum total capacity of two gigawatts.

Heads of Agreement were signed at a virtual ceremony by Iraq’s Minister of Electricity Majid Hantosh, President of Iraq’s National Investment Commission Suha al-Najar and Masdar CEO Mohamed Jameel al-Ramahi.

The ceremony took place in the presence of Iraqi Minister of Oil Ihsan Abdul Jabbar Ismail, UAE Minister of Energy Suhail al-Mazroui and UAE Minister of State for Foreign Trade Dr. Thani al-Zeyoudi.

“The government seeks to increase and enhance the national production of clean energy,” said Ismail.

Iraq targets 20 to 25 percent of energy coming from renewable sources, rather than fossil fuels, equivalent to 10 to 12 GW, he explained.

“This agreement with Masdar, a global leader in renewable energy, is a major step in the development of the clean energy investment sector and the exploitation of solar energy in Iraq.”

Mazroui stressed the UAE’s commitment to working with Iraq to develop sustainable energy resources.

“This initiative also highlights the importance of public and private sector partnerships in finding affordable solutions.”

“Masdar has been a pioneer in developing clean energy projects, and it is now active in more than 30 countries around the world, with a total value of more than $20 billion and a production capacity exceeding 11 gigawatts.”

Masdar will certainly leverage the expertise it has built up through these projects to support Iraq on its clean energy journey, he added.

Zeyoudi pointed out that the cooperation between Masdar and Iraq’ government will add significant value to the Emirati and Iraqi partnerships in addressing the challenges posed by climate change and keeping pace with the growing demand for energy.

It will also contribute to supporting Iraqi efforts aimed at implementing quality projects to produce 10 gigawatts of solar energy by 2025.

Commenting on the agreement, Najar said it is one of the largest renewable photovoltaic solar projects in the Middle East and falls within Iraq’ vision and its sustainable transition plan 2021-2030.

“This agreement will define the path for the development of clean energy solutions that will drive growth in Iraq and help the government meet its climate goals,” said Ramahi.

The UAE shares Iraq’s commitment to diversify energy sources and accelerate the transition to clean energy sources, he added.

Iraq, the second-largest oil producer in the Organization of Petroleum Exporting Countries (OPEC), is looking to increase the rate of renewables in its total power production capacity by the end of this decade.

It aims to address supply issues and meet climate objectives. Iraq, which this year ratified the Paris Agreement on climate change, enjoys some of the region’s most attractive solar irradiation levels.

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Business

US Economy Grew at Solid 3% Rate Last Quarter, Government Says in Final Estimate

FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)
FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)
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US Economy Grew at Solid 3% Rate Last Quarter, Government Says in Final Estimate

FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)
FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)

The American economy expanded at a healthy 3% annual pace from April through June, boosted by strong consumer spending and business investment, the government said Thursday, leaving its previous estimate unchanged.
The Commerce Department reported that the nation's gross domestic product — the nation's total output of goods and services — picked up sharply in the second quarter from the tepid 1.6% annual rate in the first three months of the year, The Associated Press reported.
Consumer spending, the primary driver of the economy, grew last quarter at a 2.8% pace, down slightly from the 2.9% rate the government had previously estimated. Business investment was also solid: It increased at a vigorous 8.3% annual pace last quarter, led by a 9.8% rise in investment in equipment.
The final GDP estimate for the April-June quarter included figures showing that inflation continues to ease, to just above the Federal Reserve’s 2% target. The central bank’s favored inflation gauge — the personal consumption expenditures index, or PCE — rose at a 2.5% annual rate last quarter, down from 3% in the first quarter of the year. Excluding volatile food and energy prices, so-called core PCE inflation grew at a 2.8% pace, down from 3.7% from January through March.
The US economy, the world's biggest, displayed remarkable resilience in the face of the 11 interest rate hikes the Fed carried out in 2022 and 2023 to fight the worst bout of inflation in four decades. Since peaking at 9.1% in mid-2022, annual inflation as measured by the consumer price index has tumbled to 2.5%.
Despite the surge in borrowing rates, the economy kept growing and employers kept hiring. Still, the job market has shown signs of weakness in recent months. From June through August, America's employers added an average of just 116,000 jobs a month, the lowest three-month average since mid-2020, when the COVID pandemic had paralyzed the economy. The unemployment rate has ticked up from a half-century low 3.4% last year to 4.2%, still relatively low.
Last week, responding to the steady drop in inflation and growing evidence of a more sluggish job market, the Fed cut its benchmark interest rate by an unusually large half-point. The rate cut, the Fed’s first in more than four years, reflected its new focus on shoring up the job market now that inflation has largely been tamed.
Some other barometers of the economy still look healthy. Americans last month increased their spending at retailers, for example, suggesting that consumers are still able and willing to spend more despite the cumulative impact of three years of excess inflation and high borrowing rates. The nation’s industrial production rebounded. The pace of single-family-home construction rose sharply from the pace a year earlier.
And this month, consumer sentiment rose for a third straight month, according to preliminary figures from the University of Michigan. The brighter outlook was driven by “more favorable prices as perceived by consumers” for cars, appliances, furniture and other long-lasting goods.
A category within GDP that measures the economy’s underlying strength rose at a healthy 2.7% annual rate, though that was down from 2.9% in the first quarter. This category includes consumer spending and private investment but excludes volatile items like exports, inventories and government spending.
Though the Fed now believes inflation is largely defeated, many Americans remain upset with still-high prices for groceries, gas, rent and other necessities. Former President Donald Trump blames the Biden-Harris administration for sparking an inflationary surge. Vice President Kamala Harris, in turn, has charged that Trump’s promise to slap tariffs on all imports would raise prices for consumers even further.
On Thursday, the Commerce Department also issued revisions to previous GDP estimates. From 2018 through 2023, growth was mostly higher — an average annual rate of 2.3%, up from a previously reported 2.1% — largely because of upward revisions to consumer spending. The revisions showed that GDP grew 2.9% last year, up from the 2.5% previously reported.
Thursday’s report was the government’s third and final estimate of GDP growth for the April-June quarter. It will release its initial estimate of July-September GDP growth on Oct. 30.