عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Shura Council Approves Saudi-Iraqi Power Grid Link, Maritime Transport Agreements

Saudi Arabia and Iraq signed the MoU on the joint cooperation in linking the power grids between their countries on January 25. (SPA)
Saudi Arabia and Iraq signed the MoU on the joint cooperation in linking the power grids between their countries on January 25. (SPA)
TT
20
TT

Shura Council Approves Saudi-Iraqi Power Grid Link, Maritime Transport Agreements

Saudi Arabia and Iraq signed the MoU on the joint cooperation in linking the power grids between their countries on January 25. (SPA)
Saudi Arabia and Iraq signed the MoU on the joint cooperation in linking the power grids between their countries on January 25. (SPA)

The Saudi Shura Council approved on Monday a memorandum of understanding of joint cooperation in the field of electrical interconnection between Saudi Arabia and Iraq.

The two countries signed an MoU to connect their national electricity grid in January.

“The signing of this MoU comes in implementation of the directives of the leaderships of the two countries, by taking everything that would strengthen the relations and the strategic partnership between the two countries in all fields,” Saudi Energy Minister Prince Abdulaziz bin Salman, said following the signing of the agreement.

The project comes within the framework of the Kingdom’s Vision 2030 and its executive programs.

“The memorandum came as a result of a comprehensive and detailed study of all leading investment opportunities to support the electricity grids between the two countries,” the minister added.

The electrical interconnection works between the Kingdom and Iraq will pave the way for establishing a regional market for electricity trade and support the two countries’ participation in such a market, according to the Saudi minister.

The agreement aims to share the electricity-generating reserves and exchange electricity between the two countries for emergency use in case of a power cut, the official Saudi Press Agency reported.

On a different note, the Shura Council issued its decision on a cooperation agreement with Iraq in the field of maritime transport, while a draft memorandum of understanding was approved between the governments of Saudi Arabia and Oman in food and water security.

Most Viewed

 
Business

Turkish Stocks Jump as PKK Disbandment Adds to Trade Relief

People walk on a small street leads that to the historical Galata Tower in Istanbul, Türkiye, April 25, 2025. (Reuters)
People walk on a small street leads that to the historical Galata Tower in Istanbul, Türkiye, April 25, 2025. (Reuters)
TT
20
TT

Turkish Stocks Jump as PKK Disbandment Adds to Trade Relief

People walk on a small street leads that to the historical Galata Tower in Istanbul, Türkiye, April 25, 2025. (Reuters)
People walk on a small street leads that to the historical Galata Tower in Istanbul, Türkiye, April 25, 2025. (Reuters)

Turkish stocks jumped on Monday, bonds climbed and the lira rallied against the euro as news the Kurdistan Workers Party (PKK) militant group was ending its four decade-long insurgency in the country added to US-China trade cheer.

Global share markets were enjoying a strong surge after the US and China agreed to slash tariffs, but Turkish equities outstripped most other bourses as they jumped more than 3%.

A PKK member said it was ceasing all military operations "immediately" following the group's decision to disband, a move that could boost NATO member Türkiye's political and economic stability.

The lira was up 1.3% against the euro and steady against the dollar, while its international market bonds, which have been losing ground for the last six months, were up nearly 0.7 cents.

The PKK decision followed an appeal from its jailed leader Abdullah Ocalan in February to disband. It is set to have far-reaching political and security consequences for the region, including in neighboring Iraq and also in Syria, where Kurdish forces are allied with US forces.

Omer Celik, spokesperson for President Recep Tayyip Erdogan's ruling AK Party, said the PKK's decision to dissolve was "an important step toward a terror-free Türkiye".

There have been intermittent peace efforts over the years, most notably a ceasefire between 2013 and 2015 that ultimately collapsed.

The PKK's move should now give Erdogan the opportunity to boost spending in the mainly Kurdish southeast of Türkiye, where the insurgency has handicapped the regional economy for decades.

Analysts welcomed the PKK move but added a note of caution.

"It can only be good news," said Christopher Granville, managing director of EMEA & Global Political Research at investment advisory firm TS Lombard. "But is it decisive for the difficult Turkish investment case?"

He said the PKK issue was ultimately "secondary" to questions about Türkiye's recent arrest of Erdogan's main political rival, Istanbul Mayor Ekrem Imamoglu, and the broader direction of its macroeconomic policy.

Those concerns have weighed on Turkish markets this year.

MSCI's Türkiye equities index is down more than 13% compared to a near 8% rise in its pan-emerging market index., while lira-denominated government bonds have cost investors more than 8% on a total returns basis.

The cost of insuring Ankara's government debt using Credit Default Swaps (CDS) has also shot up, although Monday's rally saw that ease back.

"A continuation of the pullback (in CDS levels) ... may support banking stocks, which have been the negatively differentiated sector in BIST (Turkish stocks index) in the last 2 months," Garanti BBVA Yatirim's Director Ozgur Yurtdasseven said.

Turkish banking stocks were up 3.8% on the day, but remain more than 16% down on the year in lira terms and more than 20% in dollar terms.