Shafaq News/ On Thursday, Prime Minister Mohammed Shia Al-Sudani met a delegation from the Russian oil company Lukoil, and discussed the aspects of cooperation with the company and its ongoing projects in Iraq.
According to Al-Sudani’s media office, the PM received a briefing on the company’s operations in the West Qurna 2 and Eridu oil fields and the progress of the work.
“Prime Minister Al-Sudani emphasized that the government places a high priority on the development of the oil industry and Iraq’s production capacities. He stressed the importance of executing development projects to maximize revenues, particularly in transitioning to the production of petroleum derivatives and various petrochemicals, supported by Iraq’s strong and extensive oil sector infrastructure, especially in extraction,” as per the media office.
A parallel market refers to the trade of goods or currencies through distribution channels that are not authorized by the original manufacturer or the official regulatory body...and is legal...
A black market refers to the illegal trade of good and services that are either prohibited by law or sold to avoid taxes and regulations.
Iraq has serious currency controls and this automatically facilitates the black market...Iraqi citizens are banned from drinking alcohol, so yes the alcohol black market is probably huge.
Iraq has another black market product, oil smuggling.
Iraq is one of the world's largest oil producers yet the country struggles with shortages in fuel supply.
The central bank vice governor said in March 2024 that Iraq is fighting a booming currency black market.
He made this statement...three months after it became illegal to use dollars in transactions in Iraq..
.Some economists propose a bold strategy to address these twin challenges by introducing currency flotation.
The would essentially remove the CBI's peg to the dollar allowing the dinars exchange rate to be determined by market forces.
It appears the more controls a country has the more room there is for a parallel market or a black market..
Iraq is making a significant comeback, presenting the private sector with an increasing array of opportunities to invest and contribute to its ongoing development. The Sudani government has not only introduced stability and reforms but is also investing in a wide range of infrastructure projects that promise growth and transformation.
At our December conference, IBBC will introduce the key stakeholders driving this project renaissance, spanning sectors as diverse as maritime development, the strategic Development Road, agriculture, energy, and the financing mechanisms supporting them all.
Where Growth Meets Opportunity
In September, Iraq’s Minister of Transport outlined ambitious plans to IBBC, focusing on critical areas such as the development of Al Faw Port, investments in the Development Road, freeports, new cities and business hubs along the route, the establishment of a maritime authority, rail links to western Iraq, direct UK-Iraq flights, and tourism. Other ministries are concentrating on water management, agricultural advancements, and the Central Bank’s modernization and digital transformation initiatives.
These initiatives will be a focal point on December 13th at our conference, Growing Opportunities, where you’ll hear from key decision-makers, including lead sponsors like Al Zaman Group, Sadar Group, Trade Bank of Iraq, Basra Gateway Terminal, SAP and London Sky (Travel Partner). Top Iraqi and UAE ministers, British officials, and leading IBBC companies will explore all facets of a sustainable Iraq, from economic growth and energy to finance, climate action, education, and agritech innovation. A special Education Day will also take place on December 12th at the Taj Hotel, featuring discussions with higher education ministers, UK universities, and schools, all centered on skills development and training for the modern economy, sponsored by GEMS.
Tech and Innovation Focus
The Tech Forum will be hosted online, featuring speakers from InnovationUK, fintech experts, and leaders in digital transformation. This session will highlight the latest technological advancements reshaping Iraq’s business landscape.
Geostrategic Insights and Business Environment
A high-level discussion on Iraq’s current geostrategic positioning and its regional context will precede panel and roundtable discussions on key sectors such as energy, finance, transport, and infrastructure. Business-focused roundtables on Kurdistan and Basrah will also delve into the unique opportunities these regions present.
The Iraqi government has already committed $400 billion in investments this year, and private sector de-risking is advancing rapidly, with significant investments from Saudi Arabia, Qatar, and the UAE flowing into real estate and related sectors.
Similarly, Iraq’s energy market is diversifying into gas and solar power, even as oil production continues to rise. Notably, Chinese companies now produce 50% of Iraq’s oil output. Iraq’s strategic location at the crossroads of Turkey, China, the Gulf, Iran, and Europe places it at the center of geopolitical developments. Under the Sudani government, Iraq has successfully balanced its relationships with these diverse forces, fostering internal and regional stability. While governance challenges remain, the outlook for business and investment has rarely been more promising. This positive sentiment is reflected in the Iraq Stock Market’s 128% growth over the past two years, and the rapid modernization of private universities and schools.
Iraq is Rising-Be Part of Its Future
Join us at the IBBC conference to meet our members, Iraqi government ministers, and officials leading this major transformation. Don’t miss the chance to engage with those shaping Iraq’s promising future.
Article: "Iraq Parlianment expects to vote on Economic Reform laws soon”
This has to do with the Industrial investment law, and to me this is very important and one of the clear signs that we saw in their “white papers”.
They are spelling out everything they have to do to support a higher rate. They are doing the economic reforms to support this higher rate and lift up all Iraqis.
[via PDK]
Slim news coming out of Iraq...But this is a good one…“Erbil provides Baghdad’s Treasury with 77 billion dinars”
this means look for that HCL (Hydro Carbon Law) at any moment…. They are trying to keep things under wraps till they pull the trigger…But they are behaving like it’s already done.