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
-
Dubai inflation slows to 5.3% in July24 August 2026
-
Libya oil project on track for 2027 completion24 August 2026
-
Tunisia extends bid deadline for gas pipeline project24 August 2026
-
Saudi Arabia signs $1.16bn bess agreements21 August 2026
-
Contractors confirm $683m Oman power plant contract21 August 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
-
Dubai inflation slows to 5.3% in July24 August 2026
Dubai’s annual inflation rate slowed to 5.3% in July, down from 5.7% in June, as a decline in transport costs eased pressure on consumer prices, according to Emirates NBD.
The bank said the slowdown supported its view that price growth peaked at mid-year, and it expects inflation to continue easing through the rest of 2026. Monthly price growth slowed to 0.1% in July, from 0.4% in June, the weakest pace since February.
Transport was the clearest sign of the moderation. Annual price growth in the category slowed to 11.9% in July, from 18.1% in June, as transport costs fell 3.7% over the month. Fuel and lubricant inflation eased to 24.1% year on year, from 48.3%, tracking a decline in local petrol prices.
Petrol remains the main swing factor in the emirate’s inflation. Transport contributed 1.1 percentage points to headline inflation in July, down from 1.7 percentage points in June. Emirates NBD said the relief may prove temporary, with Super 98 petrol prices climbing 5.9% in August to leave them 33.8% higher than a year earlier. The bank expects headline inflation to edge higher in the August figures before easing again later in the year.
The UAE deregulated petrol and diesel prices in 2015 and reviews them monthly against global prices, meaning changes in global fuel costs pass through to consumers quickly. Transport, which includes fuel, accounts for 9% of Dubai’s consumer price index basket.
Housing remained the largest contributor to inflation even as its impulse faded. Housing and utilities, which account for about two-fifths of the basket, added 2.8 percentage points to headline inflation. Annual price growth in the category slowed to 7.0%, from 7.4% in January.
Food inflation edged up to 7.8% year on year, from 7.6% in June, which the bank attributed to lingering supply-chain disruption from the regional conflict. Inflation in restaurants and hotels accelerated to 4.5% year on year, from 1.7% in June.
Emirates NBD forecasts inflation of 2.9% by year-end but said risks to that projection were tilted to the upside, given lingering pressures in food and housing.
https://image.digitalinsightresearch.in/uploads/NewsArticle/18961735/main1839.jpg -
Libya oil project on track for 2027 completion24 August 2026

The project to develop a workers’ camp at Libya’s Erawin oil field is on track for completion next year, according to industry sources.
The project, estimated to be worth about $50m, is being executed by the Libyan oil services company Al-Saraya Al-Hamara, headquartered in the city of Sebha.
The Libyan company was awarded the contract in February 2025.
The scope of the project includes:
- Construction of an accommodation camp
- Construction of the camp maintenance warehouse
- Construction of the camp office
- Construction of a fire brigade shelter
- Construction of a kitchen and mess hall
- Construction of a mosque
- Construction of a laundry room
- Construction of a clinic
- Construction of parking facilities
- Installation of a fire and gas system
- Installation of a power generator
- Construction of associated facilities
The client on the project is Zallaf Libya Oil & Gas Exploration & Production Company.
Zallaf Libya Oil & Gas Exploration & Production Company was established in Libya in 2013 and is wholly owned by Libya’s state-owned National Oil Corporation.
The Erawin field development project is located about 800 kilometres south of Tripoli and 100km southwest of the El-Sharara field.
Libya shipped its first cargo of crude from the Erawin oil field in November 2023.
The shipment departed from Libya’s Zawiyah port and consisted of 600,000 barrels of crude.
Australia-based Worley Parsons was appointed as the front-end engineering and design (feed) contractor for the early production facility project in 2019.
https://image.digitalinsightresearch.in/uploads/NewsArticle/18953632/main.jpg -
Tunisia extends bid deadline for gas pipeline project24 August 2026
State-owned Tunisian Company of Electricity & Gas (Steg) has extended the bid deadline for a project to develop gas pipelines in the North African country.
Earlier this year, the project was tendered with a bid deadline of 15 July. The new deadline is 30 September 2026.
The scope of the project includes conducting studies, procuring equipment and materials, and performing construction work.
Steg has received financing from the Islamic Development Bank to fund the project.
The tender has been split into two packages.
The first pipeline runs from the Tunisian town of Mourouj, in the suburbs of Tunis, to the town of Zriba.
Along this route, the pipeline will be split into two sections.
The first extends from Mourouj to the town of Fouchana, which lies to the south of the capital.
Under existing plans, the pipeline will have a diameter of 20 inches and extend for 3.8 kilometres.
The second section will extend for 43km to Zriba and have a diameter of 24 inches.
The contract for package one has a 450-day completion period.
The project’s second package focuses on a gas pipeline extending from Zriba to the town of M’saken.
This pipeline will extend for 78km and have a diameter of 24 inches.
The contract for this package also specifies a 450-day completion period.
The procedure for the tender of both packages is an international call for tenders under the Islamic Development Bank guidelines for design, supply and installation.
The Middle East and North Africa (Mena) region is currently seeing a surge in oil and gas pipeline projects as countries attempt to diversify routes through which hydrocarbons can be transported.
The increased concerns about overreliance on a small number of transportation routes are a result of the regional conflict that started when the US and Israel attacked Iran on 28 February.
The conflict severely disrupted oil and gas flows through the Strait of Hormuz, highlighting the importance of having a diverse range of import and export routes.
https://image.digitalinsightresearch.in/uploads/NewsArticle/18953537/main.jpg -
Saudi Arabia signs $1.16bn bess agreements21 August 2026
Register for MEED’s 14-day trial access
Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), has signed four storage service agreements for battery energy storage system (bess) projects with a combined capacity of 2,000MW.
The projects will provide four hours of storage, equivalent to 8,000 megawatt-hours (MWh), and involve total investment of more than SR4.35bn ($1.16bn).
The agreements cover the first group of independent storage provider (ISP) bess projects being procured by SPPC under a build, own and operate model. The projects are supervised by the Energy Ministry.
Three projects have been awarded to a consortium comprising Saudi Energy, Acwa and Al-Sharif Contracting & Commercial Development Company.
These comprise the Al-Muwyah and Haden bess ISPs in the Mecca region, and the Al-Kahafa bess ISP in the Hail region. Each has a capacity of 500MW for four hours.
The fourth project, the Al-Khushaybi bess ISP in the Qassim region, has been awarded to a consortium of France's Engie and local firm Haji Abdullah Alireza & Co. This also has a capacity of 500MW for four hours.
In July, MEED exclusively reported that Acwa and Engie were frontrunners for the Group 1 bess contracts. SPPC launched the qualification process for the scheme in November 2024, with bids submitted last year.
The projects form part of Saudi Arabia’s efforts to achieve an electricity generation mix comprising approximately 50% renewable energy by 2030.
Bess 2
As exclusively reported by MEED, SPPC issued the request for proposals for the second phase of its independent bess projects in July.
The Group 2 programme comprises six ISP projects with a total capacity of 3GW, equivalent to 12,000MWh based on a four-hour storage duration.
The six bess projects are:
- Samha bess ISP: 500MW (Qassim)
- Al-Leeth bess ISP: 500MW (Mecca)
- Al-Henakiyah bess ISP: 500MW (Medina)
- Khulis bess ISP: 500MW (Mecca)
- Sadawi bess ISP: 500MW (Eastern Province)
- Ashyrah bess ISP: 500MW (Mecca)
According to a source, developers have since submitted a first round of clarification requests to SPPC as they prepare their bids in advance of an October deadline.
On 1 July, MEED reported that up to 27 firms had prequalified to participate in the second phase. SPPC previously received statements of qualification on 13 May.
It is understood that Abu Dhabi National Energy Company (Masdar, UAE), Acwa (Saudi Arabia), EDF (France), Korea Electric Power Corporation (Kepco, South Korea), International Power (Engie, France) and Marubeni Corporation (Japan) are among the companies likely to make offers for the contracts.
Winning bidders will hold 100% equity in a special purpose vehicle (SPV), with each SPV entering into a storage services agreement with SPPC as part of the ISP structure.
US/India-based Synergy Consulting is advising SPPC on the energy storage Group 1 and Group 2 programmes.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18911926/main2457.jpg -
Contractors confirm $683m Oman power plant contract21 August 2026
Register for MEED’s 14-day trial access
China-headquartered Shandong Electric Power Construction No. 3 Company (Sepco 3) and South Korea’s Doosan Enerbility have confirmed their involvement as contractors on the 1,700MW Misfah combined-cycle gas turbine (CCGT) project in Oman.
In a statement, Sepco 3 said it signed the contract on 20 August. On 21 August, Doosan disclosed a KRW930bn ($683m) contract with Jabel Power, the project company for the Misfah plant. The contract runs from 20 August 2026 to 1 April 2029.
The same consortium signed the engineering, procurement and construction (EPC) contract for the 890MW Duqm CCGT power plant in June. At the time, Doosan disclosed a contract worth about $350m.
In May, MEED exclusively reported that the group had been appointed as the main contractor for the two power plants, subject to the official signing.
State offtaker Nama Power & Water Procurement (Nama PWP) had previously signed power-purchase agreements (PPAs) for the development and operation of the plants.
The developer’s contract was awarded to a consortium comprising Korea Western Power (Kowepo), Qatar’s Nebras Power, the UAE’s Etihad Water & Electricity (EtihadWE) and Oman’s Bhawan Infrastructure Services.
As MEED understands, construction works have already commenced on the power plant projects. A China-based procurement listing in June shows that civil works procurement was under way for the Misfah independent power producer (IPP).
The civil package F tender covered piling, reinforcement cages, concrete works and pile testing, with work scheduled to start in July and finish by November
As reported in July, Germany’s Siemens Energy will supply power generation technology and long-term service agreements for the Misfah and Duqm IPP projects.
This includes the supply of six F-class gas turbines, six generators and 20-year long-term service agreements for the equipment.
The Misfah IPP will be led by Nebras Power and located in Wilayat Bousher in Muscat Governorate. The Duqm IPP will be led by Kowepo and located in Wilayat Duqm in Al-Wusta Governorate.
According to Nama PWP, the total investment for the two projects is estimated at approximately RO1bn ($2.6bn).
Synergy Consulting is the financial adviser and lead adviser to Nama PWP for these projects.
In November, Oman’s OQ Gas Networks received final investment approval to proceed with gas supply connections for the facilities.
The Misfah IPP will receive 8.5 million cubic metres a day (cm/d) of natural gas. The Duqm IPP will be supplied with 4.5 million cm/d of natural gas.
In March 2025, the same Sepco 3 and Doosan Enerbility consortium signed an EPC contract with Saudi Electricity Company to expand Riyadh Power Plant 12 (PP12). Located about 150 kilometres northwest of Riyadh, the 1,863MW power plant is expected to be completed in 2028.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18911106/main.jpg