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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Dewa and Masdar reached financial close for the $1.5bn project in 2024. Once completed, the sixth phase will increase the solar park’s total production capacity to 4,660MW.
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Three groups bid for $5bn Asir-Jizan highway3 August 2026

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Adnoc Onshore extends bid deadline for field facilities project3 August 2026

Abu Dhabi National Oil Company’s onshore business (Adnoc Onshore) has given contractors extra time to prepare bids for a project to build on-plot and off-plot facilities at the Rumaitha and Shanayel fields, part of the Northeast Bab cluster of oil fields in Abu Dhabi.
The project aims to enhance and sustain oil production at the Rumaitha and Shanayel fields at a rate of 45,000 barrels a day (b/d). It forms part of Adnoc Onshore’s contribution to parent company Adnoc Group’s broader objective of increasing oil production capacity to 5 million b/d by 2027 through its Accelerated Integrated Programme 5 (AiP5). Adnoc Group currently has a production capacity of 4.85 million b/d.
Adnoc Onshore issued the main tender for the engineering, procurement and construction (EPC) works package for the Rumaitha and Shanayel on-plot and off-plot facilities project on 19 June, MEED previously reported.
The project operator has now extended the deadline for contractors to submit technical bids to 5 August, from 2 August previously, according to sources. The prior deadline had been 30 July.
Adnoc Onshore issued the expression of interest for the Rumaitha and Shanayel on-plot and off-plot facilities project in early December, with contractors submitting their responses later that month, MEED previously reported.
The prequalification and ongoing tendering process is understood to result from Adnoc Onshore revising its strategy for executing EPC works on an earlier, larger project covering the Northeast Bab cluster, which comprises the Al-Nouf, Rumaitha and Shanayel fields.
MEED reported in December that Adnoc Onshore had cancelled the engineering, procurement and construction management (EPCm) phase it launched in 2024 for the Northeast Bab on-plot and off-plot facilities project in favour of executing the scheme under a conventional EPC model.
The operator awarded a contract to state-owned China Petroleum Engineering & Construction Corporation (CPECC) to carry out EPCm services for the Northeast Bab off-plot facilities package in October 2024. However, the contract was subsequently cancelled last year.
Separately, Adnoc Onshore received bids during the second quarter of 2025 for the EPCm tender covering the Northeast Bab on-plot facilities package, but that procurement process was also later cancelled.
Project scope of work
The detailed scope of work on the Rumaitha and Shanayel on-plot and off-plot facilities project is as follows:
On-plot facilities:
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- Produced water treatment (PWT): New produced water treatment package to enable 100% produced water reinjection (PWRI), including chemical dosing, tanks, pumps, all associated controls and blending with aquifer water, etc.
- Water injection system: New water injection system, including surface water injection pumps, necessary connections and controls from produced water systems, headers, chemical dosing, power and controls, etc.
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- Low-pressure gas compression system
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- Export gas compression system
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- Modifications in existing systems, including, but not limited to, installation of a slug catcher at phase-I, connectivity of gas systems, water systems, existing high-pressure compressors modifications, etc
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- Overhead line (220 kV): Installation and extension of overhead lines and 220 KV GIS compound or equivalent power distribution solutions to the central processing plant and other designated areas, as necessary.
Off-plot facilities:
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- New clusters with facilities such as control panels, ITR, production and test manifolds, headers, chemical injection skids, multiphase flow meters, closed drain systems, HIPPS valves, WHCPs, pig traps, ICSS/telecom extensions, etc.
- Modifications in existing clusters, including the addition or extension of manifolds, headers, additional pipelines with pig traps, ICSS/telecom extensions, chemical injection kids, etc.
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- Export gas pipelines and Adnoc Gas interface: Provision for export gas pipeline and facilities from Rumaitha central processing plant to new manifold station and from NMS to Adnoc Gas, including isolation/blowdown, etc.
- Overhead line: Installation and extension of 33kV overhead lines to clusters, etc., as required.
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MEED previously reported that Adnoc Onshore had awarded EPC works on the Southeast off-plot facilities project to state-owned China Petroleum Engineering & Construction Corporation (CPECC), with the value of the contract estimated to be around $1.2bn.
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MEED also recently reported that CPECC awarded subcontracts on the Southeast off-plot facilities project, in its capacity as the main EPC contractor.
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CPECC is also performing EPC works on the Southeast on-plot facilities project in a consortium with Greece-headquartered Archirodon. Adnoc Onshore awarded an estimated $1.5bn contract for that project to the consortium in December 2024, with EPC works scheduled for completion in 2027.
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Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
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Lebanon seeks interest for power generation projects3 August 2026
Lebanon’s Electricity Regulatory Authority (ERA) has invited the private sector to submit expressions of interest (EoIs) for several upcoming power generation projects.
The EoI covers up to five grid-connected solar photovoltaic projects with a combined installed capacity of 350MWp. The projects are also expected to include battery energy storage systems (bess) with a combined capacity of 1,000MWh.
The regulator is also seeking proposals for distributed dual-fired thermal power plants with net capacities ranging from 20MW to 100MW. The plants are expected to operate on natural gas as the primary fuel and heavy fuel oil as a backup fuel.
The submission deadline is 31 August.
Regulatory progress
The EoI follows the establishment of Lebanon’s Electricity Regulatory Authority earlier this year, more than two decades after it was envisaged under Law No. 462/2002 but not implemented due to political delays. The electricity sector had previously been overseen by the Ministry of Energy & Water and state utility Electricite du Liban.
Lebanon’s electricity sector continues to face insufficient generation capacity, fuel supply constraints, ageing generation assets and limited grid flexibility. These challenges have led to prolonged electricity shortages and increased reliance on private diesel generation and distributed solar systems, prompting the government to seek additional private investment in new generation capacity.
IPP model
According to the EoI document, the projects are expected to be structured as independent power producer (IPP) schemes. Any future contractual arrangements, including power-purchase agreements, will be determined by the competent public authority under the applicable legal framework.
The ERA said the EoI is open to private investors, IPP operators, engineering, procurement and construction contractors, equipment suppliers and consortiums. It is intended to assess market interest, identify potential generation projects and evaluate the technical and financial capabilities of prospective developers.
Respondents are required to provide information on their technical and financial capabilities, proposed project locations, grid connection plans and relevant project experience.
For solar projects, developers are required to provide details including module and inverter technology, annual generation estimates and battery storage specifications where applicable. Thermal project submissions must include information on technology type, efficiency, fuel strategy, emissions performance and readiness for future natural gas operation.
The EoI states that developers will be responsible for land acquisition or leasing, permitting, financing, design, construction, grid interconnection, commissioning, and long-term operation and maintenance of the projects.
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Saudi economy swings to 4.8% contraction3 August 2026
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Saudi Arabia’s economy contracted 4.8% year-on-year in the second quarter of 2026, as a sharp fall in oil activities outweighed continued growth in the non-oil economy, according to flash estimates from the General Authority for Statistics (Gastat).
The contraction was driven by a 24.7% year-on-year drop in oil activities, which cut 5.4 percentage points from the headline figure. Non-oil activities grew 0.6% and government activities rose 0.9%, contributing 0.4 and 0.1 percentage points respectively. Net taxes on products added a further 0.1 percentage points.
On a seasonally adjusted basis, real GDP fell 4.9% from the first quarter, with oil activities down 21.5% quarter-on-quarter. Non-oil activities eased 0.5% over the same period, while government activities rose 0.2%.
The second-quarter figures mark a reversal from the first quarter, when the economy grew 3% year-on-year. In the first quarter, both oil and non-oil activities expanded by 2.9% and government activities rose 1.5%, with growth recorded across all major sectors. Oil activities have since swung from that modest expansion to a steep contraction, while non-oil growth has slowed from 2.9% to 0.6%.
The divergence between the oil and non-oil economy has widened as a result. While crude output fell steeply in the second quarter, the broader non-oil sector, the focus of the kingdom’s economic diversification programme, continued to expand, albeit at a slower pace than in the opening months of the year.
Public finances
The contraction came in a quarter when higher oil revenue improved the public finances. The budget deficit narrowed to SR34.29bn in the second quarter, down from SR125.71bn in the first, as oil revenue rose 22% year-on-year to SR185.13bn, according to the Finance Ministry’s quarterly budget performance report. Total revenue reached SR338.78bn, up 12% on the same period of 2025, while non-oil revenue increased 3% to SR153.66bn.
Total spending rose 11% year-on-year to SR373.07bn. The sharpest increases were in grants, up 199% to SR1.24bn, subsidies, up 73% to SR13.27bn, and financing expenses, up 41% to SR16.81bn. Capital spending rose 16% to SR46.23bn.
For the first half, the deficit totalled SR160bn, financed entirely through borrowing with no drawdown on government reserves. Revenue for the six months rose 6% year-on-year to SR599.76bn, while spending increased 15% to SR759.76bn. Actual first-half spending reached 58% of the full-year budget of SR1.312tn. Health and social development recorded the highest sectoral outlay at SR170.61bn, followed by the military at SR124.57bn and education at SR109.73bn.
Public debt reached SR1.684tn by the end of the first half, up from an opening balance of SR1.519tn. Domestic debt stood at SR1.060tn and external debt at SR624.9bn. The government reserve closing balance was SR399.07bn.
The kingdom has continued to tap the domestic debt market. The National Debt Management Centre closed its July 2026 issuance under the Saudi Arabian Government riyal-denominated sukuk programme at SR5.35bn, divided into five tranches. The largest, at SR3.83bn, matures in 2031, with further tranches of SR515m maturing in 2033, SR204m in 2036, SR300m in 2039 and SR500m in 2041.
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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/18015899/main.gif