Latest from Iraq Business
Iraq Business
10 hours ago
- Health
- Iraq Business
Solar Power Initiative for Iraqi Health Centres
By John Lee. In a coordinated effort with the Ministry of Health, Iraq's National Investment Commission (NIC) has launched a pioneering initiative to equip health centres with solar power systems, marking a step toward expanding investment in critical public service sectors and accelerating the country's shift to renewable energy. The initiative was announced on Wednesday, 18th June, during a high-level coordination meeting held at the Ministry of Health. The session was attended by Minister of Health Dr. Saleh Mahdi Al-Hasnawi, NIC Chairman Dr. Haider Mohammed Makkia [Makiyya], and senior officials from the Ministry of Higher Education and Scientific Research. Dr. Makkia said the programme reflects government directives to open new investment pathways in key sectors affecting citizens' daily lives. He stressed the importance of creating innovative public-private investment models in healthcare, particularly those that enhance sustainability by incorporating clean energy and supporting Iraq's sustainable development goals. Minister Al-Hasnawi welcomed the initiative as a "qualitative leap" in adopting clean energy in health institutions, adding that it would improve service reliability. The Ministry pledged full support for this type of transformative project. The NIC presented a comprehensive technical briefing outlining the project's scope, which begins with the installation of solar systems in select health centres in Baghdad. The pilot phase aims to evaluate technical, financial, and operational aspects before rolling out nationwide. The initiative targets improved healthcare service efficiency and reduced dependence on unreliable grid electricity and diesel generators, especially in areas with unstable power supply. It forms part of a broader national plan to promote investment in renewable energy, public services, and smart infrastructure. (Source: NIC)
Iraq Business
19 hours ago
- Politics
- Iraq Business
Iraq's Fragile Stability "is Threatened by a Shifting ME Order"
By Dr Renad Mansour, for Chatham House. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News. Iraq's fragile stability is threatened by a shifting Middle Eastern order For the first time in recent memory, Iraq has found itself on the margins of a major Middle Eastern conflict rather than at its epicentre. Open conflict between Iran and Israel arrived during a rare window of relative stability and developmental progress. Yet, this moment of fragile calm is unlikely to endure. Iraq is on the brink of being drawn into what appears to be a transformative upheaval in the regional order. Click here to download the full report. Tags: Chatham House, Iran, Israel, Renad Mansour, United States
Iraq Business
19 hours ago
- Business
- Iraq Business
Iraqi Dinar Q&A: RV Prospects Two Weeks on from Airstrikes on Iran
By Guest Blogger. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News. Q: Following your recent article on the Dinar Revaluation (RV) and Israeli Airstrikes on Iran, the situation in the region has progressed. What is your current assessment as it relates to the dinar (IQD)? A: It has now been two weeks since the initial Israeli airstrikes on Iran, and the situation has continued to evolve. While a US-brokered ceasefire was announced on 23rd June, following a 12-day conflict that saw exchanges of missile and drone attacks, the broader implications for Iraq and the Iraqi Dinar's potential revaluation remain complex and largely negative. Here's a follow-up based on the latest developments: Lingering Instability and Uncertainty Despite the ceasefire, the underlying tensions between Israel and Iran persist, and this continued regional instability is a significant factor for Iraq. While Iraq itself largely avoided direct involvement in the recent fighting, its geographic proximity means it remains highly susceptible to any fallout. Political and Security Concerns: The conflict highlighted the potential for regional power struggles to spill into Iraq, impacting its already fragile domestic stability. There have been reports of continued efforts to manage the influence of Iran-aligned Iraqi groups, and the risk of renewed hostilities involving these groups remains. The conflict highlighted the potential for regional power struggles to spill into Iraq, impacting its already fragile domestic stability. There have been reports of continued efforts to manage the influence of Iran-aligned Iraqi groups, and the risk of renewed hostilities involving these groups remains. Economic Vulnerability: Iraq's economy, heavily reliant on oil exports, is particularly vulnerable. While there was a short-term rise in oil prices during the conflict, which generated some additional revenue, this was largely offset by increased import costs due to disruptions in maritime insurance markets, global price fluctuations, higher shipping expenses, and a decline in air transport and religious tourism. An Iraqi government adviser described the conflict's impact as a "double-edged shock," leaving the Iraqi economy in a state of "neutral uncertainty." Dinar Under Pressure The Iraqi Dinar has continued to face headwinds, largely due to the pervasive uncertainty and ongoing economic challenges. Dollarisation and Parallel Market: The increased regional tension has reinforced the demand for the US dollar as a safe haven. While the official Central Bank of Iraq (CBI) rate remains stable at 1,320 IQD to $1, the parallel market has seen fluctuations. Recent reports indicate that USD/IQD exchange rates have edged lower in Baghdad and Erbil, with selling prices for $100 ranging from 141,750 IQD to 142,250 IQD, still significantly above the official rate. This persistent gap is a clear indicator of market pressure and a lack of confidence in the Dinar. The increased regional tension has reinforced the demand for the US dollar as a safe haven. While the official Central Bank of Iraq (CBI) rate remains stable at 1,320 IQD to $1, the parallel market has seen fluctuations. Recent reports indicate that USD/IQD exchange rates have edged lower in Baghdad and Erbil, with selling prices for $100 ranging from 141,750 IQD to 142,250 IQD, still significantly above the official rate. This persistent gap is a clear indicator of market pressure and a lack of confidence in the Dinar. Smuggling Concerns: The issue of dollar smuggling to Iran, aimed at circumventing US sanctions, continues to plague Iraq's financial system. This illicit flow of currency further limits the CBI's ability to effectively manage the Dinar's value and build confidence for a revaluation. The issue of dollar smuggling to Iran, aimed at circumventing US sanctions, continues to plague Iraq's financial system. This illicit flow of currency further limits the CBI's ability to effectively manage the Dinar's value and build confidence for a revaluation. Budgetary Challenges: Iraq is facing significant fiscal strains, with the 2025 federal budget unlikely to be submitted to Parliament anytime soon. This delay is attributed to "severe financial deficits, unstable revenue streams, the absence of a coherent economic vision, and the looming legislative elections." A parliamentary finance committee member noted a budget deficit of nearly 80 trillion IQD (approximately $61 billion), which puts immense pressure on government spending and the overall economic outlook. Delays in the budget can directly impact public salaries and infrastructure projects, further dampening economic sentiment. Outlook for Revaluation Given these ongoing developments, the prospect of an Iraqi Dinar revaluation in the near future appears highly improbable. The confluence of factors including: Continued regional instability and potential for escalation. Persistent demand for the US dollar and challenges in the parallel market. Ongoing issues with dollar smuggling and US sanctions. Significant internal budgetary deficits and political uncertainty within Iraq. all contribute to an environment that is not conducive to a revaluation. While Iraq's vast oil reserves are a long-term asset, the immediate economic and geopolitical landscape presents too many hurdles. The Iraqi government's focus is currently on managing the existing economic challenges and navigating the complex regional dynamics, rather than pursuing a revaluation. For more information on the Iraqi dinar, check out IBN's Dinar Page here:
Iraq Business
a day ago
- Business
- Iraq Business
New Iraqi TIR Route "a Game-Changer" for Europe-GCC Logistics
By John Lee. The opening of new Iraqi TIR corridors has enabled a dramatic reduction in transit times between Europe and the Gulf Cooperation Council (GCC), with journey durations cut from 24 days to just 10, according to a press release from the International Road Transport Union (IRU). Polish logistics company Milton Group recently completed a round-trip from Poland to the UAE using Iraq's overland TIR transit system. Carrying yacht engines and spare parts, the truck travelled through Poland, Bulgaria, Türkiye, Iraq, Jordan, and Saudi Arabia before reaching the UAE. The return leg to Poland was also completed overland, maintaining the 10-day timeframe for each direction. The route passed into Iraq through the Ibrahim Al-Khalil border and exited via Traibeel [Terbil], highlighting Iraq's emergence as a strategic land bridge for trade between Europe and the GCC. The corridor was made fully operational three months ago, with support from IRU members General Company for Land Transportation (GCLT) and Transforat. It forms part of Iraq's wider ambition to become a regional logistics and trade hub. Milton Group COO Waleed Kassem called the development " a game changer, " noting substantial time savings and enhanced logistics resilience by avoiding congested seaports. IRU Secretary General Umberto de Pretto praised Iraq's efforts, saying this new connectivity offers " faster and more secure journey times " and greater resilience amid regional uncertainties. See our Comprehensive Guide to Logistics in Iraq here. Full statement from the International Road Transport Union (IRU): From Europe to the GCC: New resilient Iraqi TIR routes slash journey times With Iraq now fully operational in the TIR system, new faster and more flexible transport routes are opening between Europe and the Gulf Cooperation Council (GCC) region. One example: from Poland to the United Arab Emirates in 10 days, more than halving the traditional 24-day journey. Polish transport operator the Milton Group has successfully completed a roundtrip journey linking Poland to the GCC entirely by road, via Iraq's newly operational TIR corridors, with a journey time of 10 days compared to 24 days for traditional maritime-based multimodal routes. The truck, with two drivers, transported yacht engines and spare parts from a Polish factory through the EU to Bulgaria, then through Türkiye, Iraq, Jordan and Saudi Arabia before arriving at the customer's facility in the UAE. With the support of IRU members GCLT and Transforat and other partners, TIR corridors in Iraq became fully operational three months ago, reinforcing the country's aim to become a strategic regional logistics and trade hub. Milton, already experienced in multimodal routes between Europe and the Middle East, has been among the first companies to test the new road links. In this case, the trucks entered Iraq from Türkiye via the Ibrahim Al-Khalil border crossing and exited to Jordan via Traibeel. The results were striking: the full road journey took just 10 days, compared to the 24 days typically required for a multimodal route. To further enhance the economic viability of the trip, Milton organised a return load from the UAE back to Poland, completing the roundtrip within the same timeframe. Milton Group Chief Operating Officer Waleed Kassem said, "This new inland TIR transit corridor through Iraq is a game changer for trade between Europe and the Middle East. "By bypassing congested seaports and offering a fully overland route, we've already reduced our door-to-door transit time from 24 days to just 10, a tremendous improvement. "We see a huge opportunity in the development of this corridor and are proud to have taken part. At Milton, we look forward to scaling this route into a core pillar of efficient, secure, and time-sensitive logistics to the GCC region." IRU Secretary General Umberto de Pretto said, "It is truly inspiring to witness the successful launch of this new TIR route through Iraq, seeing the fruits of years of preparations and planning by the Iraqi authorities come to life. "This marks only the beginning of what promises to be a landmark development for resilient regional connectivity across the Middle East via Iraq, not only providing faster and more secure journey times, but offering significantly more route flexibility and resilience to transport and logistics operators to better manage regional uncertainty." TIR is the only globally recognised trade facilitation tool, backed by the UN TIR convention and managed by IRU, ensuring the seamless, secure and cost-effective transit of goods across international borders. (Source: IRU)
Iraq Business
a day ago
- Business
- Iraq Business
IMF: Iraq should Simplify Access to Foreign Exchange
By John Lee. The Central Bank of Iraq (CBI) has issued a press release claiming extensive praise from an International Monetary Fund (IMF) mission, led by Jean-Guillaume Poulain, following meetings from 4th to 13th of May, 2025. The CBI statement, widely reported in local and international press, cites the post-meeting report from the IMF, which Iraq Business News publicised here. The report takes a more nuanced view of achievements to date. It does, however, commend the CBI for the successful transition to the new trade finance system, saying: " Trade finance is now fully processed by commercial banks through their correspondent banking relationships. "This has also supported the recent decline in the spread between the official and parallel market exchange rates. "Nonetheless, further efforts are needed to further reduce the spread, including by imposing Iraqi dinar usage for car and real estate transactions, improving customs controls to curb smuggling, and simplifying FX access. " Original report from IMF. Press release from CBI. [Arabic] (Sources: CBI, IMF)
