Iraq Oil Exports Fall to 1.75 Million Barrels Per Day

Iraq's Oil Minister, Basim Mohammed Khudair speaks during a press conference in Baghdad, Iraq, Augaust 8, 2026. REUTERS/Thaier Al-Sudani
Iraq's Oil Minister, Basim Mohammed Khudair speaks during a press conference in Baghdad, Iraq, Augaust 8, 2026. REUTERS/Thaier Al-Sudani
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Iraq Oil Exports Fall to 1.75 Million Barrels Per Day

Iraq's Oil Minister, Basim Mohammed Khudair speaks during a press conference in Baghdad, Iraq, Augaust 8, 2026. REUTERS/Thaier Al-Sudani
Iraq's Oil Minister, Basim Mohammed Khudair speaks during a press conference in Baghdad, Iraq, Augaust 8, 2026. REUTERS/Thaier Al-Sudani

Iraq’s crude oil production currently stands at 2.75 million barrels per day (bpd), while crude exports this month have fallen to 1.75 million bpd, Oil Minister Basim Mohammed Khudair Al-Abadi said on Saturday.

Khudair said at a press conference that Iraq had exported about 3.4 million bpd through the Strait of Hormuz before the war, but shipments through the waterway had declined since the conflict began.

He said Iraq needed to find long-term solutions to diversify its oil export routes.

That means Iraqi crude exports have fallen by about 1.65 million bpd this month from their pre-war level.

Iraq is now working to gradually increase crude exports through Türkiye’s Ceyhan port to 750,000 bpd from fields in Kirkuk and the Kurdistan region, Khudair said. Crude from fields in Basra is also being transported by tankers, in addition to volumes moved north from southern Iraq through the strategic pipeline.

Khudair said Iraq had agreed with a consortium led by US energy major Chevron to build a pipeline carrying crude from Basra to Iraq’s far north, with a capacity of 2 million bpd and an estimated cost of $15 billion.

He said the consortium, which includes Chevron and Qatar’s USS, would build the new pipeline alongside the existing strategic pipeline, linking Iraqi oil exports to Syria’s Baniyas and Jordan’s Aqaba.

The Basra-Fishkhabour pipeline would be developed under a build-operate-transfer (BOT) model, with a company building and operating the pipeline under an investment arrangement, he said.

Khudair said Iraq’s current oil export capacity could not handle the volumes shipped before the war, but exports could return to previous levels once the conflict ended.

“All oil fields are ready to restore exports to their previous levels,” he said, adding that the government was working to provide a secure environment for companies.

On Iraq’s oil agreement with Türkiye, Khudair said the deal had been renewed after previously containing certain conditions. Türkiye had proposed limiting the arrangement to oil transport and involving Iraq in certain projects, he said.

He added that the planned volume of 700,000 bpd could not be supplied through Kirkuk alone.

The Oil Ministry is seeking to develop Iraq’s export infrastructure, Khudair said, adding that a recent visit to the United States marked a new phase of cooperation with international companies.

He said the presence of US companies in Iraq reflected the attractiveness of the country’s investment environment.

International companies could train Iraqi personnel, help provide infrastructure and create large numbers of jobs, he said.

Khudair said the ministry had signed memorandums of understanding and contracts covering seven items, including two contracts related to development and investment in oil and associated gas.

An annex to an agreement covering Qurna-2, the Nasiriyah project and four blocks was also signed, he said.

Three memorandums of understanding were signed with US companies and could bring significant investment capacity, Khudair said, adding that another step concerned the oil export project through Aqaba.

Turning to oil and gas in the Kurdistan region, Khudair said there was a tripartite agreement between the federal government, the regional government, and oil companies that could be amended through negotiations.

He said the ministry did not distinguish between citizens in Kurdistan and those in any other Iraqi province.

The Kurdistan oil issue required considerable dialogue, he said, stressing the importance of continued negotiations to reach solutions serving the national interest.

Khudair also said one of the ministry’s objectives was to establish oil storage facilities in some countries, adding that talks and work on the plan were continuing.

He later put Iraq’s current oil production at 2.7 million bpd and exports at 1.5-1.7 million bpd.

The minister said the Oil Ministry was moving ahead with the government’s program to put Iraq at the forefront of energy production, while the government had a plan to end gas flaring.

Speaking at the press conference, according to the Iraqi News Agency, Khudair said the ministry had managed to secure petroleum products for citizens despite challenges and problems related to the strait.

He said the ministry was working around the clock in line with the prime minister’s directives.

Khudair said the ministry was seeking to develop the oil industry, increase production and exports, build infrastructure, expand investment, and attract international companies to develop Iraq’s oil and gas resources.

Iraq needed to build modern infrastructure after “50 lean years” marked by wars and terrorism, he said.



Saudi Economy Relies on Non-Oil Growth Engines to Absorb External Shocks

Oil fields operated by Saudi Aramco (Aramco)
Oil fields operated by Saudi Aramco (Aramco)
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Saudi Economy Relies on Non-Oil Growth Engines to Absorb External Shocks

Oil fields operated by Saudi Aramco (Aramco)
Oil fields operated by Saudi Aramco (Aramco)

Saudi Arabia's economic indicators show a growing ability to withstand external shocks, supported by an expanding non-oil sector that has continued to grow despite geopolitical tensions and disruptions to regional trade and energy routes.

Although gross domestic product (GDP) contracted by 3.8% year on year in the third quarter of 2026, the pace of decline slowed from a 4.7% contraction in the second quarter. Non-oil activities grew by 1.9%, accelerating from 0.9% in the previous quarter, while oil activities declined by 20.4%.

The significance of this performance is particularly evident given the exceptional circumstances of the third quarter, including disruptions to shipping through the Strait of Hormuz and the temporary shutdown of the East-West Pipeline in September.

Seasonally adjusted real GDP also grew by 1.3% compared with the second quarter, indicating an improvement in economic activity on a quarterly basis and reflecting the ability of certain sectors to continue expanding despite the sharp contraction in oil activities.

Annual and Quarterly Performance

According to data from the General Authority for Statistics, oil activities were the main driver of the GDP contraction, contributing a negative 4.7 percentage points, while government activities subtracted 0.4 percentage points.

By contrast, non-oil activities made a positive contribution of 1.1 percentage points, while net taxes on products added approximately 0.1 percentage points.

The data also showed an improvement in economic performance on a quarterly basis, with seasonally adjusted real GDP increasing by 1.3% in the third quarter compared with the second quarter of this year.

The growth was driven by a 5.7% increase in oil activities and a 0.6% rise in non-oil activities, while government activities declined by 1.2%.

Last month, the International Monetary Fund (IMF) noted that Saudi Arabia's available fiscal buffers and alternative oil export facilities were helping limit the economic damage caused by the war. The Fund considered the Kingdom better positioned than its Gulf peers to contain the fallout from the disruptions.

The IMF projected a strong recovery in the Saudi economy in 2027, forecasting growth of 7.9% amid expectations of a rebound in oil activities and improvements in trade and shipping.

These projections are particularly significant in light of Saudi government estimates that the economy will contract by 3.6% in 2026, with the projected budget deficit rising to 4.9% of GDP.

The contrasting performance of oil and non-oil activities underscores the importance of the structural transformation underway in the Saudi economy.

Non-oil activities are no longer merely an additional contributor to GDP. They are playing an increasingly important role in absorbing shocks and limiting the transmission of volatility in the energy sector to the broader economy.

Promising Sectors

Since the launch of Vision 2030, the Saudi government has pursued a clear strategy to diversify income sources and broaden the economic base by accelerating non-oil growth and developing promising sectors.

These include information technology and artificial intelligence, transportation and logistics, tourism, entertainment and quality of life, renewable energy and sustainability, as well as mining, manufacturing and other targeted industries.

These efforts have helped diversify sources of economic activity and strengthen the contribution of non-oil sectors, giving the Saudi economy greater flexibility to withstand external fluctuations by diversifying sources of value added and expanding the role of domestic businesses and the private sector.

Consumer Spending

In this context, Dr. Abdullah Al-Mir, Assistant Professor of Economics at King Fahd University of Petroleum and Minerals, told Asharq Al-Awsat that the contraction in the Saudi economy during the third quarter was not broad-based. Instead, it was concentrated largely in oil activities, which declined by approximately 20%.

Non-oil activities, meanwhile, continued to grow by 1.9%, playing an important role in cushioning the impact of the sharp decline in the oil sector.

According to Al-Mir, government spending and private sector activity are two key pillars of this resilience. Continued consumer spending by households and the private sector helps sustain domestic demand in trade, retail, hospitality, services and transportation, all labor-intensive activities directly linked to the non-oil economy.

He noted that the Riyad Bank Purchasing Managers' Index (PMI) reached 55.3 in September 2026, remaining in expansion territory for the sixth consecutive month, reflecting continued improvement in non-oil private sector activity.

Al-Mir explained that the importance of non-oil activities becomes even clearer when the energy sector slows. Sustained activity in services, entertainment and domestic tourism helps small and medium-sized enterprises remain operational, preserves local supply chains and supports employment opportunities.

He emphasized the importance of strengthening the resilience of the non-oil private sector against external volatility.

Al-Mir added that one of the most significant signs of Saudi Arabia's economic transformation was the increase in the share of non-oil activities to 57.3% of the economy, describing it as a historic level that reflects a structural shift in the country's economic composition.

He linked this transformation to the decline in the unemployment rate among Saudi nationals to 6.5%, highlighting the potential impact of expanding non-oil activity on the labor market.

Al-Mir noted that sectors such as tourism, entertainment, technology and manufacturing continued to expand despite geopolitical disruptions that affected oil production and shipping, further demonstrating the structural transformation of the Saudi economy.

"Non-oil activities have a greater capacity to withstand shocks, while sustained investment momentum associated with Vision 2030 provides an alternative source of growth," he said.


Saudi Arabia Records 6,484 Franchise Registrations, Up 53%

A consumer goods store in Saudi Arabia (SPA)
A consumer goods store in Saudi Arabia (SPA)
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Saudi Arabia Records 6,484 Franchise Registrations, Up 53%

A consumer goods store in Saudi Arabia (SPA)
A consumer goods store in Saudi Arabia (SPA)

Commercial franchise registrations in Saudi Arabia grew by 53% during the first nine months of 2026, reaching 6,484, compared with 4,227 at the end of 2025, according to the Ministry of Commerce.

The ministry said the food and beverage, fuel and petroleum, and fashion and apparel sectors accounted for the highest number of franchise registrations in the Kingdom.

It explained that the Commercial Franchise Law aims to regulate and develop the sector, enhance transparency, protect the rights of all parties involved, and create an attractive investment environment.

It also seeks to improve the quality of goods and services and support the sustainability, growth and expansion of commercial activities.


Saudi Stock Market Falls 0.8% for Second Consecutive Session

A man walks past the Tadawul logo at the Saudi stock exchange (AFP)
A man walks past the Tadawul logo at the Saudi stock exchange (AFP)
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Saudi Stock Market Falls 0.8% for Second Consecutive Session

A man walks past the Tadawul logo at the Saudi stock exchange (AFP)
A man walks past the Tadawul logo at the Saudi stock exchange (AFP)

Saudi Arabia's benchmark Tadawul All Share Index (TASI) closed Sunday's session down 0.8% at 9,838 points, shedding 83 points amid total trading turnover of approximately SAR 3.1 billion.

The decline marked the index's second consecutive losing session after it fell 1% on Thursday to 9,922 points, ending a three-day winning streak that began with a 3.4% surge on Monday, followed by gains of 2.3% on Tuesday and 0.4% on Wednesday.

Despite Thursday's losses, the index ended last week up approximately 2.4%.

During Sunday's session, the benchmark fluctuated between a low of 9,789 points and a high of 9,923 points, moving further away from the 10,000-point threshold it had surpassed during trading last week.

Market Declines

Among heavyweight stocks, Al Rajhi Bank edged down approximately 0.1%, while ACWA Power fell around 3%.

Shares of Alujain and SPIMACO dropped approximately 10% each, while Saudi Reinsurance (Saudi Re) declined 8% and Jabal Omar Development fell around 7%.

Dr. Sulaiman Al Habib Medical Services Group and ZOUJAJ closed at SAR 214 and SAR 35.02, respectively, down 3% and 2% following the passing of their dividend eligibility dates.

Elm Leads Gains

In contrast, Elm shares surged approximately 9% following the release of the company's financial results.

SAHL rose around 4%, Sports Clubs Company gained more than 4%, and Watani Iron Steel advanced more than 2%.

BinDawood Holding and Sumou Real Estate each jumped 5%.