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
Exclusive from Meed
-
Contractors prepare bids for more Qiddiya infrastructure8 October 2026
-
Chinese contractors begin Jordan rail construction8 October 2026
-
-
Drilling resumes at Iraq’s Akkas field8 October 2026
-
Neom extends bid deadline for Oxagon wastewater plant8 October 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Contractors prepare bids for more Qiddiya infrastructure8 October 2026

Saudi gigaproject developer Qiddiya Investment Company (QIC) has tendered a design-and-build contract covering infrastructure works at District 0 in Qiddiya City.
The scope includes the design, supply, construction, testing, commissioning and defects liability period for Road I in District 17, Road Q in District 19 and the District 18 Ring Road.
In total, the package covers approximately 17.4 kilometres of roads, including 1.4km of bridge structures.
Contractors have until 14 October to submit proposals.
Beirut-headquartered Dar Al-Handasah is the lead design consultant for districts 17 and 19, with a remit that also includes potable water and recycled water storage tanks and pumping stations.
US-based Jacobs is the lead design consultant for the District 18 Ring Road.
The tender is the third infrastructure package for Qiddiya’s District 0. The first two packages, tendered in March, remain under procurement, as MEED exclusively reported.
MEED understands that bid evaluation for these packages is in its final stages and that awards are expected shortly.
QIC is also advancing plans to develop additional assets at Qiddiya City.
Last month, MEED exclusively reported that QIC had awarded an estimated $500m-$600m contract to build an e-games arena, known as the Fortress Arena.
The scope of work includes the construction of an auditorium with a capacity of about 5,100 seats, as well as commercial areas, hospitality facilities and other associated infrastructure.
The Fortress Arena is one of several major projects within the wider Qiddiya development.
Other projects include the Dragon Ball theme park, Prince Mohammed Bin Salman Stadium, a horse-racing venue, a performing arts centre, the Speed Park, the National Tennis Centre, Six Flags Qiddiya City and Aquarabia water park.
The project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom. According to UK analytics firm GlobalData, leisure tourism in Saudi Arabia has grown significantly in recent years.
MEED’s October 2026 report on Saudi Arabia includes:
> COMMENT: Saudi projects hold steady
> GOVERNMENT: Riyadh looks to reset its regional defence outlook
> ECONOMY: Conflict bolsters case for Saudi economic diversification
> BANKING: Saudi lenders readjust to lower lending and deposit climate
> UPSTREAM: Aramco upstream spending gathers pace
> DOWNSTREAM: Sabic steps up Saudi petchems investment
> POWER: Saudi Arabia’s power award activity slows
> WATER: Saudi water sector hits sharp slowdown
> CONSTRUCTION: Saudi construction defies the headwinds
> TRANSPORT: Saudi infrastructure pushes forward amid conflict
> DATABANK: Saudi data indicates project spending shiftTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20384978/main.jpg -
Chinese contractors begin Jordan rail construction8 October 2026

Beijing-headquartered firms China Civil Engineering Construction Corporation (CCECC) and China First Highway Engineering Company (CFHEC) have started construction work on the Aqaba-Al-Shidiyeh-Maan Railway project in Jordan.
The 403-kilometre rail network is divided into six packages. CCECC is executing packages one to four, while CFHEC is undertaking packages five and six.
The scope of work covers constructing railway tracks, about 55 bridges, six tunnels and related structures.
The project aims to link Aqaba with key mining and production sites and the Maan logistics zone, establishing an integrated system for transporting bulk cargo and containers between ports, production centres and inland logistics facilities.
The network is expected to carry around 16 million tonnes of phosphate and potash each year from production sites to Aqaba’s ports.
In April 2025, a French-Swiss joint venture of Egis and Arx was awarded the project’s design consultancy contract.
The estimated $2.5bn project is being developed by the Jordan-UAE Railway Company, which is jointly owned by Abu Dhabi’s L’imad Holding and Jordanian entities including the Jordan Phosphate Mines Company, the Government Investments Management Company, the Social Security Investment Fund and the Arab Potash Company.
Jordanian and UAE officials attended a groundbreaking ceremony held earlier this week to mark the formal start of construction work.
READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDFIndustry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.
Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
> AGENDA: Oxagon takes centre stage at Neom> MARKET FOCUS: Saudi projects hold steady> INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking> LEADERSHIP: The future city does not need to hang above the groundTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20371915/main.jpg -
Iraq discusses starting operations at $3.78bn refinery project8 October 2026
Iraq’s Minister of Oil, Basem Muhammad Khudair Al-Abadi, has met with Japanese officials to discuss plans to commission the fluid catalytic cracking (FCC) unit at the Basra refinery upgrade project, according to a ministry statement.
The meeting was attended by the Japanese Embassy’s executive officer as well as representatives from the Japan International Cooperation Agency (Jica) and Japan-based JGC, which is the main contractor on the project.
According to the ministry, discussions focused on direct implementation steps and coordination between Iraqi authorities and the Japanese partners to bring the unit online using Japanese refining technologies.
Iraq’s South Refineries Company (SRC) sent JGC notice of the main contract award for the Basra refinery upgrade project’s FCC package in August 2020.
JGC was awarded the contract in consortium with South Korea’s Hyundai E&C.
The official contract signing ceremony was held in Baghdad on 1 October 2020.
The contract awarded to JGC, which uses the engineering, procurement, construction and commissioning model, was worth $3.78bn.
Project delays
The project has faced issues related to the ongoing regional conflict, which started when the US and Israel attacked Iran on 28 February.
JGC evacuated its personnel from the site in the southern oil hub of Basra following the start of the regional war, stopping work on the project, which was in its final stages of construction.
In August, JGC signed an agreement to restart work.
The project will produce around 5 million litres a day of gasoline and 7 million litres a day of diesel.
The FCC package is part of a broader project to upgrade the Basra refinery.
Oil Ministry officials said in late 2025 that the Basra refinery upgrade project aims to slash Iraq’s fuel import bill and convert heavy refining residues into high-value petroleum products.
The project site is located about 12 kilometres east of Iraq’s southern city of Basra.
The wider upgrade project is installing new facilities on land adjacent to the existing Basra refinery, including a vacuum distillation unit and a diesel desulphurisation unit.
In April 2021, France’s Axens won a contract to provide four process technologies to SRC for the Basra refinery upgrade project.
The technologies that SRC selected are:
- Diesel hydrotreatment unit (Prime-D)
- Vacuum gasoil (VGO) hydrotreating unit
- VGO fluid catalytic cracker unit
- Oligomerisation unit (polynaphtha)
In addition, Axens is providing catalysts and adsorbents and proprietary equipment, training and technical services.
READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDFIndustry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.
Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
> AGENDA: Oxagon takes centre stage at Neom> MARKET FOCUS: Saudi projects hold steady> INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking> LEADERSHIP: The future city does not need to hang above the groundTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20366574/main.png -
Drilling resumes at Iraq’s Akkas field8 October 2026

Drilling has resumed as part of the project to further develop Iraq’s Akkas gas field, according to industry sources.
In March, MEED reported that development of the field had been disrupted by security issues related to the US and Israel’s war with Iran.
Activity at the project site had been significantly reduced due to security concerns, which led to the evacuation of most non-Iraqi workers.
Now, the project is progressing and drilling at the field is ongoing, sources said.
One source said: “Many of the major issues that stopped drilling at the site have been dealt with in various ways, and the development of the field is proceeding.”
Iraq held a ceremony in January to mark the start of drilling operations under the current phase of development. In July of the previous year, the Iraqi Oil Ministry announced a contract with US-based oilfield services provider SLB to develop the field. Under the agreement, SLB is drilling wells to raise initial output to 100 million cubic feet a day (cf/d), with a long-term production target of 400 million cf/d.
The contract with SLB replaced a previous deal with Ukraine-based Ukrzemresurs, which has been terminated.
It also covers the construction of surface infrastructure and pipelines to connect Akkas to central processing units.
The gas produced at Akkas will fuel the Anbar combined-cycle power plant, which the Electricity Ministry is building.
Akkas gas field development
Located in western Anbar province, Akkas holds an estimated 5.6 trillion cubic feet of proven natural gas reserves. The field was discovered in 1992 and entered initial production in 1993, but efforts to develop it commercially have faced repeated delays.
Development rights were originally awarded to a consortium of South Korea’s Kogas and Kazakhstan’s KazMunaiGas (KMG) during Iraq’s third licensing round in 2010. After KMG withdrew, Kogas took over as sole operator under revised contractual terms before work was subsequently halted.
In April 2024, the Oil Ministry signed an agreement with Ukraine’s Ukrzemresurs targeting 100 million cf/d within two years and 400 million cf/d within four years. However, the deal faced strong domestic political resistance.
Iraq’s parliamentary Oil and Gas Committee opposed the award, with committee member Ali Al-Mashkour telling Shafaq News Agency: “This contract involves a great waste of Iraq’s wealth, and there will be a waste of Iraq’s oil, and this confirms that Iraq is once again failing to choose reputable companies to work with in the most important economic field in the country.”
He added: “We will work to uncover and expose the suspicions in this contract during the next stage, especially since this contract was made by some representatives for specific interests, which we will reveal soon with evidence.”
The deal was subsequently terminated, paving the way for the current contract with SLB.
The development of Akkas is central to Baghdad’s broader ambition to transition from a net gas importer into an exporter. Iraq remains heavily dependent on gas imports from Iran to meet domestic electricity demand. Both the US and Saudi Arabia have backed Iraq’s efforts to develop non-associated gas fields to reduce its economic and energy dependence on Tehran.
READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDFIndustry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.
Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
> AGENDA: Oxagon takes centre stage at Neom> MARKET FOCUS: Saudi projects hold steady> INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking> LEADERSHIP: The future city does not need to hang above the groundTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20366494/main5816.jpg -
Neom extends bid deadline for Oxagon wastewater plant8 October 2026

Neom has extended the bid submission deadline for a contract to build a wastewater treatment plant for Oxagon, its industrial cluster.
According to a source, the new deadline is 25 October. The original deadline was 2 October.
Enowa, Neom’s energy and water utility, is tendering the contract.
The industrial wastewater treatment package will have an initial capacity of 35,000 cubic metres a day (cm/d), supplied in modular trains of 5,000 cm/d each. A separate sanitary wastewater treatment package will have a capacity of 1,000 cm/d.
The contract is structured as a design-build-operate project and covers the supply, installation and commissioning of industrial and sanitary wastewater treatment packages, as well as three years of operation and maintenance.
According to sources, local contractor Alfanar, Beijing-based PowerChina and France-based Veolia are among the companies preparing bids.
The project follows an earlier tender for the Oxagon Village Water Recycling Plant, which was cancelled despite contractors submitting bids in 2024.
MEED reported at the time that PowerChina, Alfanar and Cairo-headquartered Orascom had submitted bids for that project.
The earlier scheme included truck-receiving facilities, pretreatment, biological treatment using food chain reactor technology, tertiary treatment, sludge handling and recycled-water storage.
The latest procurement appears to take a reworked approach to wastewater treatment at Oxagon Industrial Quarter. It replaces the previous engineering, procurement and construction scheme with an interim modular and demountable facility.
The plant is designed to provide “interim wastewater treatment” capacity for Oxagon Industrial Quarter as industrial development progresses.
As MEED understands, this includes treatment systems that can be installed and subsequently removed or relocated as requirements at Oxagon evolve. The plant can be expanded to a maximum capacity of 45,000 cm/d.
The tender documents also state that Neom may consider export credit agency (ECA) financing for the project. The strength of bidders’ ECA financing proposals will form part of the commercial evaluation.
READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDFIndustry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.
Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
> AGENDA: Oxagon takes centre stage at Neom> MARKET FOCUS: Saudi projects hold steady> INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking> LEADERSHIP: The future city does not need to hang above the groundTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20347018/main.jpg