Economic Development in Iraq Requires Energy Transition

Energy production gap in Iraq likely to increase, reinforcing the transition to renewable sources (AP)
Energy production gap in Iraq likely to increase, reinforcing the transition to renewable sources (AP)
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Economic Development in Iraq Requires Energy Transition

Energy production gap in Iraq likely to increase, reinforcing the transition to renewable sources (AP)
Energy production gap in Iraq likely to increase, reinforcing the transition to renewable sources (AP)

Iraq is one of the world’s largest energy exporters and has the potential to be a reliable global source for energy production and distribution, according to the Managing Director of Siemens Energy in the Middle East Dietmar Siersdorfer.

The Middle Eastern country, however, faces many challenges to secure energy at the local level and in many areas at the state level.

Iraq’s energy production capacity currently stands at about 24 gigawatts, with a shortage of 8 gigawatts. As energy demand is expected to grow to 57 gigawatts by 2030, the gap between production and demand will likely widen unless quick measures are taken.

Siersdorfer added that access to stable and reliable energy is necessary since it helps societies thrive and develop homes, schools, hospitals, and other industrial sectors.

The energy expert noted that Iraq needs to boost its capacity for energy production. This, according to Siersdorfer, requires initially increasing the use of conventional sources while working on a gradual transition toward renewable energy sources.

“It is necessary to take advantage of associated gas and raise the capacity of national transmission networks to provide electricity to all parts of Iraq,” said Siersdorfer, adding that the country must enhance the ability of networks to secure electricity more effectively.

Siersdorfer also recommended reducing waste and raising the operational efficiency of power plants.

After taking these steps, Iraq may shift towards a renewable energy transition.

Siemens Energy has been operating in Iraq’s energy generation and security field for a century.

Siersdorfer added that to move towards renewable energy, it is necessary to first take advantage of tech solutions available to increase energy production efficiency from conventional sources.

The managing director noted that Iraq has abundant natural gas reserves.

“Emissions can be reduced by undertaking many initiatives, including the use of associated gas for energy generation,” explained Siersdorfer, affirming that “the shift towards renewable energy will contribute to building more prosperous societies in Iraq and achieving social and economic development in the country.”

Iraq currently uses more than 40% of its natural gas resources. This is a significant source of carbon emissions, but it offers an excellent opportunity for the country to remove carbon by converting associated gas into energy.
If Iraq does so, it will reduce both costs and carbon emissions.

Siersdorfer noted that Iraq could reduce emissions, achieve economic recovery, and put itself on an accelerated path toward renewable energy.

“The national grid’s infrastructure must be developed to ensure that energy reaches every region in Iraq. The electricity supply must be flexible, efficient, and stable,” he said, adding that this was vital in light of increasing reliance on renewable energy.

Siersdorfer affirmed that the Iraqi government is keen to move towards renewable energy sources.

Last week, Iraqi Prime Minister Muhammad al-Sudani announced government plans for a regional conference on climate change in Baghdad in the near future.

The conference will focus on enhancing cooperation and joint coordination and exchanging experiences and programs between regional countries confronting climate impacts.

Al-Sudani pointed out that the government is proceeding with efforts to confront climate change and mitigate its effects.

In this regard, he said that the country had implemented several solutions to alleviate climate change’s economic, environmental, and social fallout.

The premier also called for following up on everything related to implementing the Iraqi vision for climate action, especially clean and renewable energy projects.

Moreover, Siersdorfer stressed the need to ensure that significant assets invested in constructing gas-fired power plants uphold high standards in the long term.

He added that energy storage solutions would grow in size and feasibility as technology advances, and new industrial opportunities would emerge.

Siersdorfer pointed out that technology gives gas-fired power plants a new lease of life in a zero-emissions world. He emphasized that special gas turbines use hydrogen up to 75%.

He added that Siemens Energy aims to reach 100% by 2030 to protect Iraq’s energy infrastructure in the future.

Siersdorfer believes that working with the Iraqi government will enable acquiring long-term benefits that extend beyond energy provision.

These benefits include qualifying cadres, providing job opportunities, and accelerating the pace of economic transformation in Iraq.

Siersdorfer highlighted the importance of cooperation in accelerating the implementation of Iraq’s energy agenda.



Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
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Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.


IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.