Al Sudani struggles to maintain Iraq’s political stability

9 May 2024

 

Iraq’s Prime Minister Mohammed Al Sudani is now more than halfway through his term. While there have been some notable economic developments, such as the massive energy deal with TotalEnergies signed in July 2023, his main accomplishment may well be maintaining a fragile political settlement.

When he took office in late October 2022, it ended a year of tense political infighting following the 2021 election. The next national poll is expected in October 2025, but while the government itself may appear secure, Iraqi politics is as turbulent as ever.

The Council of Representatives has not had a permanent speaker since November, when Mohammed Al Halbousi was dismissed by the Federal Supreme Court and forced to step away from parliament. Mohsen Al Mandalawi was named acting speaker, but fierce debate continues over handing the job to anyone else on a more formal basis.

The latest figure to be proposed is Salem Al Issawi, who is backed by three Sunni blocs but opposed by the largest Sunni group, Al-Halbousi’s Taqaddum (Progress) party.

Under Iraq’s ‘muhasasa’ system of dividing the political spoils along religious and ethnic lines, the speaker’s job goes to a Sunni politician, while the federal presidency goes to a Kurd and the prime minister is Shia.

Al Sudani is now also facing a fresh challenge on the domestic front in the shape of a mooted return to the political scene by rival Shia leader Moqtada Al Sadr, who announced his retirement from frontline politics in August 2022. Earlier that year, he had pulled all his MPs from parliament, effectively handing power to Al Sudani’s Coordination Framework.

Al Sadr now looks set to change course. On 10 April, he renamed his organisation from the Sadrist Movement to the National Shiite Movement and further statements since then point to a possible return to the electoral battlefield. Given his past ability to mobilise large numbers of followers, he could have a significant impact on the next election and events leading up to it.

“Al Sadr maintains strong support from parts of the street, but it may prove difficult for him to reassert himself after ceding control over powerful institutions to the Coordination Framework,” said Winthrop Rodgers, an independent analyst focused on Iraq. “However, his return will certainly complicate dynamics within Shia politics.”

His likely return will also test Iranian influence on Baghdad. Tehran has been able to exert huge influence over Iraqi politics through its allied Shia politicians and militia groups, but Al Sadr has been the most prominent Shia figure to resist such ties in recent years.

Al Sudani has, though, been reaching out to other neighbours, too. In April, he hosted Turkish President Recep Tayyip Erdogan, who was making his first trip to the country since 2011. The visit resulted in more than 20 agreements and memoranda of understanding, including one covering the contentious issue of cross-border water resources, as well as security and trade. However, there was no sign of progress on re-opening an oil export pipeline from Iraqi Kurdistan to Turkey.

Trade route

Under Al Sudani, Baghdad and Ankara have also managed to get Abu Dhabi and Doha on board with the Development Road initiative, a $17bn plan to develop a 1,200km trade route from the Gulf through Iraq to Turkey and, from there, on to Europe. The UAE had previously thrown its weight behind the India-Middle East-Europe Economic Corridor initiative, launched in New Delhi in September – but that plan involves using Israeli ports.

“In light of the Gaza war, a trade route through Israel is unlikely to be something that many Gulf rulers want to be too closely associated with at the moment,” said one regional analyst.

For the Iraqi trade route to build up real momentum, the security situation around the country will need to improve further. While the Islamic State has been largely defeated, other pro-Iran groups continue to be active, including several that have banded together as the Islamic Resistance in Iraq (IRI).

Many of that umbrella group’s recent actions have been directed against Israel, including a cruise missile attack on 2 May, which targeted Tel Aviv. Such actions hold the potential for Iraq to be drawn into any expansion of the Israel-Hamas conflict, perhaps as a proxy battleground between Iran and Israel.

Other apparent IRI attacks have been directed at local targets, such as a drone attack on the Khor Mor gas field in the Kurdistan region in late April, which killed four Yemeni workers and forced UAE-based operator Dana Gas to suspend operations for several days.

Kurdistan election in doubt

Kurdistan, meanwhile, has other all-but-intractable political problems. Most recently, the Kurdistan Democratic Party (KDP) insisted it will not participate in the regional parliamentary election planned for 10 June – two years after it should have been held.

That stance was prompted by a Federal Supreme Court ruling in February that ended the practice of reserving 11 seats for minority groups including Turkmen, Christians and Armenians after ruling that the quota was “unconstitutional”. The MPs holding those seats had generally voted in step with the KDP – something that led its rival, the Patriotic Union of Kurdistan (PUK), and others to file a court case arguing that the communities were no longer properly represented.

The KDP has emerged as the largest party from every election in the region over the past two decades and its pledge to sit out this election creates a thorny issue for Baghdad, which is now in charge of the process – after the Supreme Court also ruled in February that oversight of the elections should be handed over from the Kurdish authorities to the federal Independent High Electoral Commission.

“If the KDP does not participate in the election, the Kurdistan Regional Government will effectively cease to function as a cohesive political entity; if Baghdad gives into the KDP’s gamesmanship, it sets a bad precedent that a single party can prevent an election if it feels it will be disadvantaged,” said Rodgers.

No solution has been found as yet. Kurdistan region president Nechirvan Barzani was in Tehran on 6 May, where he held talks with Iranian President Ebrahim Raisi and Supreme Leader Ali Khamenei, among others. Trade and cross-border security issues were at the top of the agenda, but some reports suggested Barzani had also tried to persuade Tehran to put pressure on the PUK to agree to a delay to the June poll.

On 8 May, a further element of chaos was leant to the proceedings when the High Electoral Commission suspended preparation for the Kurdish election in response to a lawsuit filed by the KDP over the distribution of constituencies.

Together, the prospect of a major rival Shia bloc returning to Baghdad politics ahead of the 2025 Iraqi parliamentary election and the risk of the breakdown of the political process in Kurdistan threaten to disrupt the relative political calm that Al Sudani has worked to cultivate. Handling the shifting political landscape will require astuteness.

Image: مكتب اعلامي لرئيس الوزراء, CC BY-SA 4.0, via Wikimedia Commons

https://image.digitalinsightresearch.in/uploads/NewsArticle/11755403/main.gif
Dominic Dudley
Related Articles
  • Kuwait receives bids for Al-Khairan phase one IWPP

    2 June 2026

     

    Two developer consortiums have submitted bids for the first phase of Kuwait’s Al-Khairan independent water and power producer (IWPP) project, according to a source.

    Bids were received by the Kuwait Authority for Partnership Projects (Kapp) on 1 June.

    The facility will have a capacity of 1,800MW and 150,000 cubic metres a day of desalinated water. It will be located in Al-Khairan, adjacent to the Al-Zour South thermal plant. 

    The bidders include:

    • Abu Dhabi National Energy Company (Taqa) / A H Al-Sagar & Brothers (Saudi Arabia) 
    • Acwa (Saudi Arabia) / Gulf Investment Corporation (Kuwait)

    The Al-Khairan IWPP is being procured by Kapp in partnership with the Ministry of Electricity, Water & Renewable Energy (MEWRE).

    The main contract was tendered last September. Three consortiums and two individual companies were previously prequalified to participate in the tender.

    Ernst & Young, BNP Paribas, AtkinsRealis and Addleshaw Goddard are financial advisers on the project. Chadbourne & Parke is acting as legal adviser.

    The winning bidder will sign a set of public-private partnership agreements covering financing, design, construction, operation and transfer of the project. The energy conversion and water-purchase agreement is expected to cover a 25-year supply period.

    Future phases

    The Al-Khairan IWPP project is expected to run on low-sulphur fuel oil as the primary fuel and to accommodate crude oil, gas oil and natural gas as backup fuels. Future phases will further expand capacity.

    It is understood that the estimated $750m second phase of the Al-Khairan IWPP project will add a further 1,800MW of generation capacity through a combined-cycle gas-fired power plant.

    The project, first mooted over a decade ago, remains in the early development stages, with no plans currently to advance to procurement in 2026, a source said.

    According to the source, the immediate focus is on advancing plans for the 3,600MW Nuwaiseeb power and water desalination IWPP project.

    The Nuwaiseeb IWPP plant will have a desalination capacity of 75 million imperial gallons a day.

    Kapp plans to release a transaction advisory tender for the project by the end of the year.


    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17072685/main.jpg
    Mark Dowdall
  • Doosan confirms Saudi Jafurah 2 cogen contract

    2 June 2026

    South Korea’s Doosan Enerbility has confirmed it has signed an engineering, procurement and construction (EPC) contract worth about $556m for the second phase of the Jafurah combined heat and power (CHP) plant in Saudi Arabia.

    The project is being developed by Korea Electric Power Corporation (Kepco) in partnership with Saudi Aramco.

    Doosan said the contract covers design, equipment supply, installation, construction and commissioning of the facility.

    The Jafurah CHP phase 2 project will be built near the Jafurah gas field, about 400 kilometres east of Riyadh. Once operational, it will generate 330MW of electricity and produce 465 tonnes of steam an hour for the nearby gas field.

    According to the firm, the project’s main steam turbine will be supplied by Doosan Skoda Power, a subsidiary of Doosan Enerbility.

    WSP is acting as the project management consultant for the project, which is scheduled for completion in 2029.

    The Jafurah gas development is part of Aramco’s $3.2bn unconventional resources programme, which aims to develop shale gas in three areas. Jafurah lies southeast of Ghawar, the world’s largest conventional oil field.

    The programme is part of Riyadh’s plans under Vision 20230 to ensure the kingdom remains self-sufficient in gas supply amid rising demand from the residential and industrial power sectors.

    Jafurah phase one

    In February 2025, MEED exclusively reported that talks were under way to expand the capacity of the $500m Jafurah cogeneration independent steam and power plant (ISPP).

    Construction works were completed on the facility last November.

    At the time of its procurement, the plant’s first phase was to have a power capacity of 270-320MW, and a low-pressure (LP) steam demand of 77-166 thousand pounds an hour (klb/hr) and high-pressure (HP) steam demand of 29-126 klb/hour by 2023.

    The LP and HP steam demand will increase to 283-373 klb/hr and 66-321 klb/hr by 2027, respectively.

    The oil giant issued the letter of award to Kepco for the contract to develop the Jafurah ISPP scheme in July 2022.

    Kepco subsequently awarded South Korea’s Doosan Heavy Industries & Construction the project’s EPC contract.

    US/India-based Synergy Consulting provided financial advisory services to Kepco on its bid.

    Sumitomo Mitsui Banking Corporation (SMBC) served as the client’s financial adviser for the project. Germany’s Fichtner Consulting Engineers is technical consultant, while the UK’s Wood Group is project management consultant.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17072199/main.jpg
    Mark Dowdall
  • Al-Mabanee submits lowest bids for Kuwait infrastructure

    2 June 2026

    Kuwait’s Public Authority for Housing Welfare (PAHW) has opened commercial bids for two major infrastructure and public buildings packages at South Al-Mutlaa Residential City.

    Local firm Al-Mabanee United Company has emerged as the lowest bidder for both contracts, submitting combined offers worth KD44m. Both packages entail the construction, completion and maintenance of services, infrastructure works and public buildings for different district centres within the city.

    The first contract covers the infrastructure and public buildings for the N3 District Centre. PAHW received proposals from eight bidders, with Al-Mabanee United Company submitting the lowest price at KD20.9m. The second-lowest offer was submitted by The Contractor General Trading & Contracting Company at KD22.4m, followed by Golden Engineering Group for General Trading & Contracting at KD22.7m, though Golden Engineering Group was flagged for not providing a bid bond.

    Al-Khonaini General Trading & Contracting Company, operating as Inshat Al-Khonaini, ranked fourth with a bid of KD22.7m, followed closely by Kuwait Industrial Centre Company at KD22.8m. Combined Group Contracting Company submitted a bid of KD23.8m, Al-Dar Engineering & Construction Company bid KD25.7m, and China’s Sichuan Road & Bridge Group Corporation submitted the highest active proposal at KD29m. 

    The second contract is for identical infrastructure and public building works at the N1 District Centre. Al-Mabanee United Company submitted the lowest bid of KD22.8m. Its closest competitor was The Contractor General Trading & Contracting Company, which submitted an offer of KD23.9m.

    Al-Khonaini General Trading & Contracting Company came in third with a bid of KD24.2m, followed by Kuwait Industrial Centre Company at KD24.4m and Golden Engineering Group for General Trading & Contracting at KD24.4m. Combined Group Contracting Company placed a bid of KD26m, Al-Dar Engineering & Construction Company bid KD26.5m, and United Construction Company, known as Al-Inshat Al-Muttahida, submitted an offer of KD 30.9m. Al-Ghanim International General Trading & Contracting filed the highest bid at KD344m and was also noted for lacking a bid bond.

    South Mutlaa Residential City is a large-scale planned development designed to accommodate around 400,000 residents in a modern, fully serviced urban environment. Once completed, it will offer contemporary housing alongside extensive logistical services and a wide range of public and commercial areas, including hospitals, schools and other social services.

    The project also includes major infrastructure works such as approximately 150 kilometres of roads and related structures, lighting and other public works, as well as integrated systems for water distribution, rainwater collection and sewage. In addition, it will provide the civil infrastructure needed for electricity distribution, telecommunications networks and traffic control to support a well-connected, functional city.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17071938/main.gif
    Colin Foreman
  • Local developer secures finance for three Riyadh projects

    2 June 2026

    Qimam Noshoz for Real Estate Development Company, a subsidiary of Saudi Arabia’s Banan Real Estate Company, has signed a sharia-compliant credit facility agreement worth SR84m ($22.4m) with Riyad Bank to fund three commercial, hospitality and sports developments in the kingdom.

    The financing agreement is split into two distinct tranches to align with the projects’ development timelines. The first tranche consists of SR49m with a maturity duration of seven years, while the remaining SR35m has been secured for an eight-year term.

    Qimam Noshoz will utilise the capital to fund construction works for the Al-Rahmaniyah Gem and Al-Wadi District Gem projects. Both of these projects are already leased to the fitness operator Armah Sports Company. The other project is an independent hotel located within the Al-Wadi District.

    The Al-Wadi development is designed as an integrated commercial complex spanning approximately 7,818.5 square metres of land, with a built-up area of about 975 square metres. It includes a men’s gym, a women’s gym and a hotel building.

    The Al-Rahmaniyah project is an integrated commercial development combining fitness facilities with retail. The asset features men’s and women’s gyms operating alongside an independent commercial zone.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17071628/main.jpg
    Colin Foreman
  • SLB wins $385m contract for Kuwait oil research centre

    2 June 2026

    Schlumberger Oilfield Eastern, a unit of the US-headquartered oilfield services company SLB, has been awarded a KD118m ($385m) contract to develop an oil and gas research centre in Kuwait.

    The contract was awarded by the state-owned upstream operator Kuwait Oil Company (KOC), according to a report by Kuwait’s Al-Rai newspaper.

    The Ahmadi Innovation Valley (AIV) project is planned as an advanced research and innovation hub equipped with specialised facilities and technical teams focused on applied research for Kuwait’s oil and gas sector.

    The contract was awarded after the Higher Purchase Committee (HPC) of Kuwait’s national oil and gas company Kuwait Petroleum Corporation (KPC) determined the bid to be compliant with the project’s technical and commercial requirements.

    In February 2025, KOC signed memorandums of understanding (MoUs) with five international oilfield service companies to support the development of the AIV initiative.

    These companies were:

    • SLB (US)
    • Baker Hughes (US)
    • Weatherford (US)
    • Halliburton (US)
    • National Energy Services Reunited (US)

    Under the preliminary agreements, each of the five companies agreed to establish a world-class research and development centre at the project site, focused on helping KOC meet challenges in the upstream sector.

    KOC’s CEO Ahmad Jaber Al-Eidan had said in February 2025 that the project will enable Kuwait to keep pace with global transformations while investing in advanced technologies to ensure the sector’s sustainability and achieve operational excellence.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17063475/main.gif
    Wil Crisp