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Iraq Plans Energy Contracts Worth Billions with Saudi Arabia

Iraqi Oil Minister Ihsan Abdul Jabbar during an interview with Reuters in Basra (Reuters)
Iraqi Oil Minister Ihsan Abdul Jabbar during an interview with Reuters in Basra (Reuters)
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Iraq Plans Energy Contracts Worth Billions with Saudi Arabia

Iraqi Oil Minister Ihsan Abdul Jabbar during an interview with Reuters in Basra (Reuters)
Iraqi Oil Minister Ihsan Abdul Jabbar during an interview with Reuters in Basra (Reuters)

The Iraqi government plans to sign energy contracts worth tens of billions of dollars with Saudi Arabia, the state newspaper al-Sabaah cited Iraqi Oil Minister Ihsan Abdul Jabbar as saying.

Baghdad is discussing a partnership with Saudi Aramco to explore and develop natural gas fields in Iraq's western desert, it said.

It added that the Iraqi government is also in talks with Saudi Arabia's Acwa Power to build water desalination plants and solar energy stations in Iraq. The two countries are also discussing joint petrochemical projects.

The talks focused on establishing long-term relationships that allow Iraq to benefit from Acwa Power's flexibility in implementing low costs and high-efficiency projects.

He explained that the Ministry of Oil and the Saudi SABIC Company have been in "intensive and positive" talks since April, which led to a special memorandum that will be presented to the Iraqi government.

The government is expected to discuss the Saudi company's participation in an investment in the Nibras petrochemical project in Basra under an agreement between the Energy Ministry and Royal Dutch Shell to establish a petrochemical complex with a capacity of 1,800 tons annually.

The minister hoped there would be a clear law regulating and protecting Saudi, Emirati, and foreign companies operating in the country.

The Iraqi National Oil Company signed agreements with major international energy companies, including the French Total, the UAE's Masdar, and the Norwegian Scatec.

The contracts will provide revenues and added profits to the Iraqi market and offer thousands of job opportunities.

The minister noted that it is natural for Saudi companies to be interested in a country such huge as Iraq.

Saudi Arabia sees that the sustainable development plans in the two countries fall in line with the 2030 Agenda for Sustainable Development and its institutional frameworks.

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Japan Says Economy Recovering, but Flags Risks from Trump Trade Policies 

Pedestrians walk along a sidewalk past the Bank of Japan (BoJ) headquarters complex in central Tokyo on March 19, 2025. (AFP)
Pedestrians walk along a sidewalk past the Bank of Japan (BoJ) headquarters complex in central Tokyo on March 19, 2025. (AFP)
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Japan Says Economy Recovering, but Flags Risks from Trump Trade Policies 

Pedestrians walk along a sidewalk past the Bank of Japan (BoJ) headquarters complex in central Tokyo on March 19, 2025. (AFP)
Pedestrians walk along a sidewalk past the Bank of Japan (BoJ) headquarters complex in central Tokyo on March 19, 2025. (AFP)

Japan's government stuck with its cautiously optimistic outlook for the economy US President Donald Trump's trade policies could dampen global growth and higher inflation could hurt consumer spending.

The government maintained its view on the world's fourth-largest economy, saying it is "recovering moderately" in its monthly report for March, citing strong corporate earnings and wage increases which policymakers hope will boost consumption.

"There are US trade policies which could have direct and indirect impact on Japan, so we highlighted them as risks to the economy," said an official at the Cabinet Office.

Trump's wide-ranging tariff actions and pledges including automobiles, steel and aluminium have spurred worries about the global economy. His policies have ignited trade wars with key commercial partners such as China, Canada, Mexico and Europe.

Referring to Japan's potential trade exposure to those economies, the Cabinet Office report said intermediate good exports including electronic devices account for 60% of Japan's goods exports to China.

The ratio of intermediate goods such as auto parts in the nation's goods exports to Mexico accounts for 60%, while those to Canada account for nearly 50%, the report said.

Still, the government retained its assessment on exports, saying they picked up recently for March as Japan's shipments to Asia were on the rise.

Higher prices were also risks to the economy as Japan's nationwide overall consumer price index rose 4.0% in January, the highest in two years, boosted by fresh food prices.

"It is necessary to pay close attention to the impact on consumer spending from rising prices which dampens consumer sentiment," the official said.

The Cabinet Office raised its view on corporate profits for the first time since September 2023, saying they were "improving".

Private consumption, which accounts for more than half of the economy, was picking up, and capital spending was also recovering, according to the report.