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.



Lebanon’s Struggling Economy Slides Toward Full Recession

The Jousieh crossing between Lebanon and Syria following an Israeli strike on October 25. (AFP)
The Jousieh crossing between Lebanon and Syria following an Israeli strike on October 25. (AFP)
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Lebanon’s Struggling Economy Slides Toward Full Recession

The Jousieh crossing between Lebanon and Syria following an Israeli strike on October 25. (AFP)
The Jousieh crossing between Lebanon and Syria following an Israeli strike on October 25. (AFP)

The ongoing Israeli war on Lebanon has led to significant economic losses estimated between $10 billion and $20 billion.

This range reflects the difficulty in accurately assessing the damage amid Israel’s ongoing military operations, including airstrikes and ground attacks.

The destruction of homes, infrastructure, and farmland has contributed to a state of uncertainty, along with an unprecedented wave of displacement affecting many families.

Experts agree that reliable economic data is hard to obtain while the conflict continues.

Reports from the Ministry of Health and international organizations said nearly 3,000 people have been killed and around 15,000 injured, mostly civilians.

Additionally, about 1.4 million people have been displaced from their homes, representing roughly a quarter of Lebanon’s population.

Growing economic crisis ahead

The war came at a time when Lebanon’s economy was already struggling after five years of crisis.

According to Mohammad Choucair, head of the Economic Bodies Association, the situation is worsening rapidly, threatening serious economic and social consequences.

Current estimates suggest that direct losses from the conflict could reach between $10 billion and $12 billion, impacting various sectors.

As the war continues, key sectors like tourism, agriculture, and trade are experiencing a sharp decline in business activity.

Many small and medium-sized enterprises are being forced to close or suspend operations due to direct damage from attacks, reduced consumer demand, and disruptions in trade and supply chains caused by the influx of displaced people.

International financial institutions are warning that the ongoing Israeli attacks could continue for several more months, possibly lasting until mid-2025.

The Institute of International Finance (IIF) forecasts a 7% contraction in Lebanon’s GDP by the end of this year, followed by a 10% decline next year.

This would bring the total economic decline to nearly 60% from the peak GDP of around $53 billion recorded at the end of 2018.