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
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Dubai real estate buys time17 March 2026
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The outbreak of the Iran-US-Israel war has injected a powerful dose of uncertainty into Dubai’s residential real estate market, a sector already bracing for a cyclical cooldown.
A new report from S&P Global Ratings, published on 16 March, outlines the parameters of the risk.
The core argument is that while Dubai is not facing an immediate 2008-style collapse, the market’s resilience is now a function of time. If the conflict intensifies beyond a one-month horizon, the strains on prices, investor confidence and developer balance sheets could become severe.
Momentum stalls as caution takes hold
The most immediate impact of the conflict has been psychological. According to S&P, official sources are already reporting lower transaction volumes since the war began. The prolonged war could mark the end of the post-pandemic boom, shifting the market into a phase of guarded caution.
The luxury segment, which has driven much of the recent growth, is seen as the most vulnerable. High-net-worth individuals who relocated to Dubai for its perceived safety and tax advantages may now reconsider their positions, given that the city’s ‘safe haven’ status is being tested.
S&P’s baseline forecast assumes the most intense phase of fighting will last up to four weeks. Under this scenario, the market will likely experience a slowdown in both volumes and prices, with the declines being more pronounced the longer the uncertainty drags on.
The report notes a flight to liquidity, predicting that secondary market transactions will become more prevalent as investors seek to offload properties, further suppressing values.
Apartments are expected to suffer steeper price drops than villas due to a robust supply pipeline.
Regulatory shields and the threat of a prolonged conflict
One of the central tenets of the report is that Dubai’s post-2008 regulatory framework provides a crucial buffer. Escrow accounts and stringent payment plans mean that for projects already under way, developers should be able to complete construction, barring a wave of mass investor defaults.
The rules offer significant protection: developers can retain up to 40% of the property value if construction is on schedule, refund the remainder, and repossess the unit for resale.
However, this protection has limits. S&P warns that a prolonged war scenario would test these regulations. If the Strait of Hormuz remains closed, supply chains for construction materials could bottleneck, driving up input costs. More critically, the rules that protect developers would only be effective up to a point.
In a deep and lasting downturn, project cancellations would become likely, particularly for newly launched developments that have not secured substantial presales.
The analysis suggests that while top-tier developers weathered past downturns with delinquency rates of just 3-10%, the figure for newer, less experienced players could be much higher.
Rated developers have headroom, but it is not infinite
The four major developers rated by S&P with exposure to Dubai are Emaar Properties, Damac Properties, PNC Investments and Omniyat Holdings. All of these players enter the period of uncertainty from a position of relative strength.
The report highlights that years of strong sales have created significant revenue backlogs covering several years.
Emaar leads with the revenue backlog of about $37bn, equivalent to 2.7 years, while Damac holds about $22bn of backlog, representing 2.3 years.
Their leverage is low, and cash positions are meaningful. As of 31 December 2025, Emaar held $7.5bn in cash and liquid investments, with $11.7bn as escrow cash balance.
Damac holds $1.7bn in total cash, including $6bn in escrow, while PNCI and Omniyat hold more modest balances of $600m and $600m, respectively.
S&P has built “substantial headroom” into their credit ratings to absorb sudden shocks.
The liquidity assessments for all four companies are adequate, with manageable debt maturities in 2026.
The critical question is duration. If the conflict grinds on, the buffers will narrow.
S&P states that in a prolonged scenario, its reassessment will focus on construction progress, cash collection and working capital.
The financial policies of management teams, specifically their willingness to maintain low leverage and cut dividends, will be key to preserving creditworthiness.
Capex and dividends under review
The war will also force a recalibration of corporate strategy. The report notes that investment decisions are likely to be postponed or cancelled. While commitments for projects nearing completion will proceed, companies will prioritise liquidity over new land purchases.
This is most pronounced for Emaar, which has sizeable capital expenditure plans of AED10bn-AED11bn ($2.7bn-$3bn) annually in 2026-27 for projects such as Dubai Creek Tower, Dubai Creek Mall and the expansion of Dubai Mall. S&P believes a significant portion of this spending is flexible and can be delayed if needed.
Dividend policies will also be tested. The report expects dividend distributions to remain substantial but potentially adjustable.
S&P’s analysis paints a picture of a market that is braced for impact but not yet broken. The fundamentals are stronger than they were in 2008, thanks to tighter regulations and well-capitalised developers with $10bn in combined cash reserves.
However, the market’s fate is now externally determined. If the conflict remains contained and short-lived, Dubai’s real estate sector should absorb the shock with manageable declines.
But if the war becomes a protracted regional crisis, the meaningful correction that S&P flags as a possibility will move from the realm of the theoretical to the probable, testing the resilience of both the developers and the regulatory framework designed to protect them.
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Saudi Energy pushes back deadlines for power projects17 March 2026
Saudi Energy, formerly Saudi Electricity Company (SEC), has extended bid submission deadlines for three substation projects in Riyadh Province.
The utility has pushed back the deadline for the estimated $50m King Khalid International airport 132/13.8kV substation project to 9 April.
The contract was originally tendered in December, and the deadline had previously been extended to 9 March.
Local firms Al-Babtain Contracting and Al-Haider are understood to have prequalified to bid for the scheme.
The company has also extended the deadline for a $40m engineering, procurement and construction (EPC) contract for a 132kV underground cable project in Al-Kharj, Riyadh Province.
The new bid submission date is 26 March.
The project covers the installation of underground cable circuits linking a proposed substation (S/S #8721) north of Al-Kharj to BSP #9028. The scope also includes associated civil works and infrastructure.
Prequalified bidders include Saudi Services for Electro Mechanic Works, Al-Babtain Contracting and Al-Haider, according to regional project tracker MEED Projects.
In addition, the utility has extended the deadline for a $50m contract to replace the existing 132/13.8kV substation (S/S #8044) with the new Al-Sharafiyah-2 substation (S/S #8407) in Riyadh.
The revised submission date is 9 April.
The scope includes construction of the new substation, installation of switchgear and conductors, and associated infrastructure works.
Saudi Services for Electro Mechanic Works, Al-Babtain Contracting and Al-Haider are expected to submit bids for the project.
Riyadh Expo substations
Separately, Saudi Energy is understood to be moving forward with procurement for a project to develop three 132/13.8kV substations in Riyadh to support Expo 2030.
The utility is said to have invited bids for the engineering, procurement and construction (EPC) contract to deliver the three substations along with associated works to connect the facilities to the national grid.
The project forms part of wider infrastructure preparations for Expo 2030 Riyadh, scheduled to take place from October 2030 to March 2031
No bid submission deadline has been publicly disclosed.
Last September, Saudi Energy outlined plans to invest $58.7bn in power projects between 2025 and 2030.
This includes $36bn and $22.7bn for transmission and distribution, respectively, and is part of long-term plans to meet growing electricity demand while improving grid efficiency and reliability.
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Fujairah oil hub targeted in fresh drone strike17 March 2026
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The Fujairah Oil Industry Zone (FOIZ) was hit by another drone attack early on 17 March, causing a fire, authorities in Fujairah said.
No injuries have been reported in the attack, and the emirate’s civil defence teams are dealing with the situation and trying to control the fire, the official Emirates News Agency (Wam) reported, citing the media office of the Government of Fujairah.
This is understood to be the fifth attack since the start of March that FOIZ has suffered from drone or debris resulting from interceptions by the UAE’s air defence systems, as Iran continues to hit energy and industrial facilities in the UAE.
Fujairah benefits from its strategic geopolitical location outside the Strait of Hormuz, which Iran has blockaded in its ongoing conflict with Israel and the US, choking about a fifth of the world’s oil and gas supplies.
Consequently, oil prices have soared since the start of the conflict on 28 February. Global benchmark Brent broke the $100 mark on 9 March, for the first time since Russia’s invasion of Ukraine in February 2022, rising to a high of $119 a barrel on that day. Prices have dropped since, but it is still trading well above the $100 mark, with Brent recorded at $103.87 a barrel as of 12pm GST on 17 March.
Major midstream oil and gas companies operate key storage and export hubs for oil and refined products in Fujairah, including Abu Dhabi National Oil Company (Adnoc Group), Saudi Aramco – through its subsidiary Aramco Trading – Vopak Horizon, VTTI, Shell, Fujairah Oil Terminal, Brooge Petroleum & Gas Investment Company (BPGIC), Emirates National Oil Company (Enoc), Ecomar, Mount Row and GPS Chemoil.
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Fujairah is crucial to the operations of Adnoc Group subsidiary Adnoc Onshore, which operates a main oil terminal (MOT) there. Located approximately 300 kilometres north of Abu Dhabi, the terminal facilitates the import and export of various crude oil grades, particularly Murban, from the company’s onshore and offshore fields.
Meanwhile, the Abu Dhabi Crude Oil Pipeline (Adcop) connects milestone pole (MP) 21 at the Habshan oil facility in Abu Dhabi, where stabilised crude produced from Adnoc Onshore fields is gathered for dispatch, to the Fujairah MOT.
BPGIC is an oil storage and services firm that was established in 2013 in Fujairah and started operations with a capacity of 400,000 cubic metres spanning 14 tanks. In March 2022, it announced its intention to increase the storage capacity of four of those storage tanks in the first phase complex.
Separately, in September 2021, BPGIC began operations at the second phase of its Fujairah oil storage complex, adding 600,000 cubic metres of storage capacity across eight tanks. As a result of that expansion, BPGIC’s storage capacity more than doubled to 1 million cubic metres, or 6.3 million barrels, from 400,000 cubic metres.
BPGIC then undertook a third expansion phase of its oil storage facility, which is understood to have been commissioned in 2023.
The third phase increased BPGIC’s oil storage capacity by 3.5 times, raising it to 3.5 million cubic metres, or 22 million barrels, and making the firm the largest oil storage services provider in the UAE emirate of Fujairah.
The third-phase expansion project consists of an oil storage facility with a capacity of 2.5 million cubic metres, a modular 25,000-barrel-a-day (b/d) refinery, and a larger 180,000-b/d conventional refinery.
BPGIC also co-owns a topping refinery in Fujairah with Nigeria-based Sahara Energy Resources, which produces low-sulphur bunker fuel for ships and vessels. It is understood that the new naphtha upgradation unit could be integrated with the existing topping refinery unit.
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Oman signs $2bn real estate deals at Mipim 202617 March 2026
Oman has signed 17 international investment and development agreements worth over RO762m ($1.98bn) at the Mipim 2026 event held in Cannes, France.
The deals were concluded through the Ministry of Housing & Urban Planning (MHUP) and partners at the Oman pavilion, and span mixed-use real estate, healthcare, agri-investment and digital planning tools.
A key agreement was a memorandum of understanding with Turkiye’s Artas Holding for the Al-Khuwair Downtown project, with planned investments exceeding RO150m ($390m).
In Sultan Haitham City, an agreement was signed with Saudi Arabia’s Retal Development to develop neighbourhoods 3, 15 and 17, covering more than 1.39 million square metres, with a combined investment of over RO320m ($832m).
Other agreements include Vogue Homes Portugal investing more than RO25m ($65m) in the Al-Thuraya City project, and another residential scheme led by international firms including Avant Garde Properties, F&M International, Metrogramma and The One Atelier, with an investment of about RO50m ($130m).
MoHUP also signed agreements covering smart planning and project delivery, including advanced 3D digital modelling, with investment exceeding RO408,000 ($1m).
Healthcare-related agreements include a partnership between local Al-Daham Real Estate and Kubba to develop hospital and stem-cell treatment facilities, valued at RO11.5m ($30m), and a deal between local firm Al-Abrar Real Estate Group and Vienna Hospital & University to operate Ibn Al-Haitham Hospital in Sultan Haitham City, with an investment of more than RO40m ($104m).
In Dhofar, investments will be made in planting one million olive trees under a usufruct arrangement, valued at RO15m ($39m), as part of agriculture sustainability plans.
The programme also includes architectural and branding collaborations involving international firms such as Chapman Taylor Architects, 3DTouch Studio, Hawk & Impact Communication and Atelier Entropic, alongside luxury brands including Pagani, Armani and Elie Saab for branded residential concepts.
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Ashghal tenders northern Smaisma infrastructure17 March 2026

Qatar’s Public Works Authority (Ashghal) has issued a tender covering infrastructure development in the northern Smaisma area.
The tender was floated on 14 March, with a bid submission closing date of 12 May.
The scope includes the airstrip road, coastal road and connections to the existing Al-Khor Expressway, spanning an area of about 18.5 kilometres.
The contract duration is four years from the start of construction works.
The latest tender follows Ashghal’s announcement of contract awards for 12 new projects, with a total value exceeding QR4.5bn ($1.2bn).
According to a notice published on its website, these include six building projects, most notably the redevelopment of Hamad General Hospital, with a contract value of about QR1.1bn ($301m).
The other projects awarded include the construction of a post office building in Al-Thumama, the renovation of the Qatar Racing & Equestrian Club and the Qatar Equestrian Federation, as well as the implementation of phase four of the Al-Uqda Equestrian Complex development.
In the roads and infrastructure sector, four projects have been awarded, led by packages one and two of the road and infrastructure development works in Izghawa and Al-Thumaid.
The awards also include a project covering landscaping and an air-conditioned walkway at Qatar University, as part of broader public facilities improvement initiatives.
According to UK analytics firm GlobalData, Qatar’s construction industry is expected to expand by 4.3% in 2026, supported by investments in renewable energy and transportation infrastructure.
According to the Planning & Statistics Authority, Qatar’s construction value-add grew by 6.6% year-on-year in the first half of 2025.
GlobalData expects the industry to grow at an annual average growth rate of 4.6% in 2027-29, supported by investments in construction, energy and infrastructure projects.
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Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
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