Iraq’s Mosul Struggles to Rebuild without Funds

A wholesale foodstuffs store is seen at the Corniche market in Iraq’s second city of Mosul. (AFP)
A wholesale foodstuffs store is seen at the Corniche market in Iraq’s second city of Mosul. (AFP)
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Iraq’s Mosul Struggles to Rebuild without Funds

A wholesale foodstuffs store is seen at the Corniche market in Iraq’s second city of Mosul. (AFP)
A wholesale foodstuffs store is seen at the Corniche market in Iraq’s second city of Mosul. (AFP)

Iraqi shopkeeper Ahmad Riad is busy again serving customers at a Mosul market four years after the city was destroyed in battles against extremists, but he still awaits war reparations.

“Life has gradually resumed,” said Riad, who runs a shop selling rice, pasta and tins of tomato paste in the Corniche market, along the banks of the Tigris River.

“But we have not received any compensation from the government.”

Mosul, the country’s second city in Nineveh province, was the last major Iraqi bastion of the ISIS group’s failed so-called “caliphate” between 2014 and 2017.

The city was retaken by the Iraqi army and a US-led coalition after intense bombardment and fighting that left it in ruins.

The market was “devastated” in the battles, Riad said, with shopkeepers using their limited savings to rebuild.

“We are the ones who paid,” he said.

Of the 400 stalls that once crammed the market, just a tenth have returned to business, he added.

According to official sources, the cost of reconstruction for Nineveh would top $100 billion, a staggering sum for a country mired in an economic crisis.

It outstrips the total annual budget of oil-rich Iraq, which stands at nearly $90 billion in 2021.

Many buildings are still in ruins, their facades dotted with bullet holes and piles of rubble lie strewn all around.

100,000 claims, 2,600 paid
When Pope Francis visited Mosul last March, he held a mass with the partially collapsed walls of the centuries-old church behind him.

On Sunday, French President Emmanuel Macron is expected to visit Mosul, a day after attending a regional summit in the Iraqi capital Baghdad, some 355 kilometers (220 miles) to the south.

Mosul, capital of Nineveh province, is a melting pot of diverse ethnic communities and was once one of the key cities on the Middle East trade route, lying close to both Turkey and Syria.

Ammar Hussein runs a restaurant.

“The government should compensate the merchants who suffered damage so that they can rebuild their stores and the market can return to its former glory,” he said.

The list of claims is long.

Some 100,000 claims have been filed by those who suffered damage during “liberation operations”, according to Mahmud al-Akla, director of Nineveh’s compensation department.

Not even three percent have been paid: while more than 65,000 files have been examined, just 2,600 claimants have received cash, he said.

On top of that, the centralized nature of the Iraqi state -- and the graft-riddled bureaucracy that governs it -- means that disbursements are paid out extremely slowly.

Mosul district chairman Zuhair al-Araji blames officials in Baghdad.

Promises as elections approach
Progress is patchy.

While 80 percent of basic infrastructure such as sewers and roads have been restored, only around a third of health facilities have been rebuilt, according to Araji.

Mosul resident Saad Ghanem filed a claim for his destroyed home.

“As far as I know, the compensation department in Nineveh finalized the transaction and then submitted it to the government in Baghdad,” he said. “They still have not compensated us.”

Mosul did not take part in October 2019 popular protests decrying corruption and government misuse of power in Baghdad, as well as much of the country’s Shiite south.

Residents said they feared the benefit of reconstruction could be wiped out by the unrest.

With parliamentary elections in two months, the slow pace of reconstruction prompted Prime Minister Mustafa al-Kadhimi to visit earlier this month.

Kadhimi said he was “sorry” to see the problems, ordering a committee to draw up an “action plan”.

At his wooden furniture store, carpenter Ali Mahmoud said he is exhausted.

“I hope to rebuild my workshop, which was my livelihood, and return here,” he said. “But I don’t have enough money.”



Iran Leader Khamenei Sees His Inner Circle Hollowed Out by Israel 

Iran's Supreme Leader Ali Khamenei looks on, in a televised message following the Israeli strikes in Tehran, Iran, June 13, 2025. Office of the Iranian Supreme Leader/WANA (West Asia News Agency)/Handout via Reuters
Iran's Supreme Leader Ali Khamenei looks on, in a televised message following the Israeli strikes in Tehran, Iran, June 13, 2025. Office of the Iranian Supreme Leader/WANA (West Asia News Agency)/Handout via Reuters
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Iran Leader Khamenei Sees His Inner Circle Hollowed Out by Israel 

Iran's Supreme Leader Ali Khamenei looks on, in a televised message following the Israeli strikes in Tehran, Iran, June 13, 2025. Office of the Iranian Supreme Leader/WANA (West Asia News Agency)/Handout via Reuters
Iran's Supreme Leader Ali Khamenei looks on, in a televised message following the Israeli strikes in Tehran, Iran, June 13, 2025. Office of the Iranian Supreme Leader/WANA (West Asia News Agency)/Handout via Reuters

Iran's 86-year-old Supreme Leader Ali Khamenei cuts an increasingly lonely figure.

Khamenei has seen his main military and security advisers killed by Israeli air strikes, leaving major holes in his inner circle and raising the risk of strategic errors, according to five people familiar with his decision-making process.

One of those sources, who regularly attends meetings with Khamenei, described the risk of miscalculation to Iran on issues of defense and internal stability as "extremely dangerous".

Several senior military commanders have been killed since Friday including Khamenei's main advisers from the Revolutionary Guards, Iran's elite military force: the Guards' overall commander Hossein Salami, its aerospace chief Amir Ali Hajizadeh who headed Iran's ballistic missile program and spymaster Mohammad Kazemi.

These men were part of the supreme leader's inner circle of roughly 15-20 advisers comprising Guards commanders, clerics, and politicians, according to the sources who including three people who attend or have attended meetings with the leader on major issues and two close to officials who regularly attend.

The loose group meets on an ad-hoc basis, when Khamenei's office reaches out to relevant advisers to gather at his compound in Tehran to discuss an important decision, all the people said. Members are characterized by unwavering loyalty to him and the ideology of the regime, they added.

Khamenei, who was imprisoned before the 1979 revolution and maimed by a bomb attack before becoming leader in 1989, is profoundly committed to maintaining Iran's system of government and deeply mistrustful of the West.

Under Iran's system of government, he has supreme command of the armed forces, the power to declare war, and can appoint or dismiss senior figures including military commanders and judges.

Khamenei makes the final decision on important matters, though he values advice, listens attentively to diverse viewpoints, and often seeks additional information from his counsellors, according to one source who attends meetings.

"Two things you can say about Khamenei: he is extremely stubborn but also extremely cautious. He is very cautious. That is why he has been in power for as long as he has," said Alex Vatanka, director of the Iran Program at the Middle East Institute think-tank in Washington.

"Khamenei is pretty well placed to do the basic cost-benefit analysis which really fundamentally gets to one issue more important than anything else: regime survival."

KHAMENEI'S SON AT THE FORE

The focus on survival has repeatedly been put to the test. Khamenei has deployed the Revolutionary Guards and its affiliated Basij militia to quell national protests in 1999, 2009 and 2022.

However, while the security forces have always been able to outlast demonstrators and restore state rule, years of Western sanctions have caused widespread economic misery that analysts say could ultimately threaten internal unrest.

The stakes could barely be higher for Khamenei who faces an escalating war with Israel, which has targeted nuclear and military sites and personnel with air attacks, drawing retaliatory Iranian missile fire, insiders and analysts said.

The five people familiar with Khamenei's decision-making process stressed that other insiders who have not been targeted by Israel's strikes remain important and influential, including top advisers on political, economic and diplomatic issues.

Khamenei designates such advisers to handle issues as they arise, extending his reach directly into a wide array of institutions spanning military, security, cultural, political and economic domains, two of the sources said.

Operating this way, including in bodies nominally under the elected president, means Khamenei's office is often involved not only in the biggest questions of state but in executing even minor initiatives, the sources said.

His son Mojtaba has over the past 20 years grown ever more central to this process, the sources said, building a role that cuts between the personalities, factions and organizations involved to coordinate on specific issues, the sources said.

A mid-ranking cleric seen by some insiders as a potential successor to his ageing father, Mojtaba has built close ties with the Guards giving him added leverage within across Iran's political and security apparatus, the sources said.

Ali Asghar Hejazi, the deputy of political security affairs at Khamenei's office, has been involved in sensitive security decisions and is often described as the most powerful intelligence official in Iran, the sources said.

Meanwhile, the head of Khamenei's office, Mohammad Golpayegani, as well as former Iranian foreign ministers Ali Akbar Velayati and Kamal Kharazi, and ex-parliament speaker Ali Larijani, remain trusted confidants on diplomatic and domestic policies issues such as the nuclear dispute, the sources said.

The loss of the Revolutionary Guards commanders nonetheless decimates the top ranks of a military organization that he has put at the center of power since becoming supreme leader in 1989, relying on it for both internal security and Iran's regional strategy.

While the regular army chain of command runs through the defense ministry under the elected president, the Guards answer personally to Khamenei, securing the best military equipment for their land, air and sea branches and giving their commanders a major state role.

As he faces one of the most dangerous moments in the country’s history, Khamenei finds himself further isolated by the recent losses of other key advisers in the region as Iran's "Axis of Resistance" coalition has been hammered by Israel.

Hezbollah chief Hassan Nasrallah, who was personally close to the Iranian leader, was killed by an Israeli airstrike in September last year and Syrian President Bashar al-Assad was overthrown by opposition factions in December.