Sudani makes fitful progress as Iraq’s premier
10 May 2023
Mohammed al-Sudani has served almost 200 days as Iraq’s prime minister since being sworn into office in late October.
In that time, he has launched a high-profile anti-corruption drive, sought to repair relations between Baghdad and the Kurdistan region, find an amiable balance in relations with Iran on the one hand and the Arab Gulf states and Western powers on the other, as well as giving greater stability to the state’s finances.
These are challenging issues and it remains too soon to judge if he can succeed, but progress on many fronts has often appeared fitful at best.
Soon after coming into office, Sudani threw his weight behind a high-profile anti-corruption drive, prompted by the multibillion-dollar ‘Heist of the Century’, which emerged just before his government took charge. The scandal involved the theft of an estimated ID3.7tn ($2.5bn) from the General Commission for Taxes.
However, after some early positive signs, observers say that the anti-graft drive appears to be losing momentum. One of the main suspects, Haitham al-Jubouri, was released on bail in January. The assets of another suspect, Nour Zuhair Jassim, were unfrozen by a court in April.
Corruption has been endemic in Iraq for years and continues to hobble the economy. There has also been limited progress in other areas of economic activity.
As the Washington-based IMF pointed out in its most recent Article IV report on Iraq, issued in early February, the economy has been growing, but that is in large part due to high oil prices. Indeed, it said Iraq’s dependence on oil revenues has increased rather than decreased.
Gas deal success
The importance of the energy sector is unlikely to diminish anytime soon, given current project activity. Sudani was involved in broking a deal with French oil major TotalEnergies in early April over the $10bn Gas Growth Integrated Project (GGIP), following four meetings with its chief executive Patrick Pouyanne.
The mammoth scheme had been announced in September 2021, but had stalled amid a dispute between Baghdad and Total over what size holdings each side would have. A resolution was helped by the arrival of QatarEnergy, which has taken a 25 per cent stake, leaving Iraq with 30 per cent (held via state-owned Basra Oil Company) and Total with 45 per cent.
That should enable more productive use of the country’s gas resources in the future and will also see the development of a 1GW solar power plant.
On the other hand, oil exports through Turkey have stopped since the International Chamber of Commerce (ICC) arbitration court in Paris ruled in favour of Baghdad in late March over Kurdish oil flows to Turkey via a cross-border pipeline.
Sudani has been building good publicity and a positive image for himself domestically and abroad, but it’s a rather thin veneer, behind which the machinery of entrenched interests is carrying on as usual
Omar al-Nidawi, Enabling Peace in Iraq Centre
Mixed reception
The former Iraqi ambassador to the US, Rend al-Rahim, has described Sudani as an “energetic and shrewd politician” – both necessary qualities to rise to the top in Baghdad and even more important to survive. Others have been less impressed by Sudani’s performance, though.
“He has been building good publicity and a positive image for himself domestically and abroad, but it’s a rather thin veneer, behind which the machinery of entrenched interests is carrying on as usual,” says Omar al-Nidawi, director of programmes at the Washington-based Enabling Peace in Iraq Centre (Epic).
Sudani came to power due to the support of former prime minister Nouri al-Maliki and the Coordination Framework, the grouping of Shia-majority parties with close links to Iran. They and their related militias remain influential to this day – part of a political system in which groups continue to use the state’s resources to entrench their own influence.
Budget concerns
Sudani’s budget plans have prompted concern among some about how that system of patronage might grow even larger. A three-year budget covering the period 2023-25 was finalised by the cabinet in mid-March and then sent to parliament in what was his administration’s first major piece of legislative action.
It included record spending of some ID198tn ($152bn) a year, including current spending of ID150tn and capital expenditure of ID48tn, as well as record annual deficits of some ID63tn, based on an average oil price of $70 a barrel and output of 3.5 million barrels a day (b/d). The plans include a sharp rise in the public sector wage bill, taking that item to a total of ID88tn.
That approach was the opposite of what the IMF had urged Sudani to do. In February, it said the government should save “the bulk of the oil windfall” and added that the 2023 budget “should avoid a procyclical spending boost and aim to increase savings with a gradual tightening of the fiscal stance”.
According to Nidawi, the budget plans point to a government that is more focused on using the state’s resources to bolster its support and minimise criticism rather than rebuild the economy. He described the budget as “exceptionally disappointing”, adding that the spending measures “threaten to waste the financial surplus from high oil prices by expanding the already bloated public payroll”.
The budget also included an attempt to find a new modus vivendi with the Kurdistan Regional Government (KRG), allowing for a 12.7 per cent budget share for Kurdistan and joint management of some 400,000 b/d of oil from the region. Sudani said on 13 March that Baghdad and Erbil had reached “a comprehensive agreement”. However, it remains to be seen if the system they have agreed will work effectively in practice.
In addition, Sudani’s budget has yet to be passed by parliament, and MPs could still force him to change his approach – a final vote may not happen until late May. What is not expected to change, for a time at least, is the parliament itself. When Sudani took office, it was amid speculation that an early election could be called, following the resignation of Moqtada al-Sadr’s bloc of MPs.
Since then, the idea of an early poll has faded and Sadr has remained in the background. Should he decide to change tack once again, Sudani could quickly face a far more challenging political situation, given Sadr’s past ability to quickly fill the streets with his supporters. At that point, Sudani’s political strengths and weaknesses will become far more apparent.
Iraq power projects make headway
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
Local contractor wins $143m Jeddah sewage contracts19 February 2026
-
Saudi Arabia prequalifies firms for gas transmission grids19 February 2026
-
SAR tenders phosphate rail project management deal18 February 2026
-
Veolia wins Jordan water services contract18 February 2026
-
PIF-backed firm signs worker accommodation deal17 February 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
-
Local contractor wins $143m Jeddah sewage contracts
19 February 2026
Register for MEED’s 14-day trial access
Saudi Arabia’s National Water Company (NWC) has awarded two sewage network contracts worth a combined SR536.3m ($143m) to local contractor Civil Works Company.
The projects will be implemented over 32 months from site handover and will serve northern Jeddah districts.
The first contract, valued at SR278.5m ($74.3m), covers incomplete main lines and secondary sewage networks serving parts of the Al-Bashair, Al-Asala and Al-Falah neighbourhoods.
The scope includes pipelines ranging from 200mm to 800mm in diameter with a total length of about 54.8 kilometres (km).
The package also includes sewage tunnels with diameters ranging from 600mm to 1,800mm and a total length of approximately 6.5km. Works will also serve the Taybah, Abhar Al-Shamaliyah and Al-Hamdaniyah districts.
The second contract is valued at SR257.8m ($68.8m). It covers the implementation of main lines and sub-networks to serve part of the Al-Hamdaniya neighbourhood.
The works include pipelines ranging from 200mm to 1,500mm in diameter with a total length of about 78.5km. The scope also includes horizontal drilling works for sewage tunnels with diameters from 1,200mm to 1,400mm and a total length of approximately 205 metres.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15699620/main.jpg -
Saudi Arabia prequalifies firms for gas transmission grids
19 February 2026
Register for MEED’s 14-day trial access
Saudi Arabia's Energy Ministry has prequalified companies to develop natural gas distribution networks in five industrial cities in the kingdom on a build-own-operate (BOO) basis.
The industrial zones earmarked are Al-Kharj Industrial City; Sudair City for Industry and Business; and the First, Second and Third Industrial Cities in Jeddah, the Energy Ministry said in a statement.
The contractors prequalified to bid for the natural gas transmission grids BOO scheme include eight standalone firms and seven consortiums:
- East Gas (Egypt)
- Natural Gas Distribution Company (Saudi Arabia)
- Egyptian Kuwaiti Advanced Operation and Maintenance (Saudi Arabia)
- Modern Gas (Egypt)
- Saab Energy Solutions (Saudi Arabia)
- Sergas Contracting (Saudi Arabia)
- Bharat Petroleum Corporation (India)
- UniGas Arabia (Saudi Arabia)
- Best Gas Carrier / Khazeen / Mubadra (Saudi Arabia)
- Al Sharif Contracting (Saudi Arabia) / Anton Oilfield Services Group (China) China Oil and Gas Group
- Hulul (owned by Saudi Arabia’s National Gas and Industrialization Company) /Al-Fanar Gas Group (UAE)
- Indraprastha Gas (India) / Masah Contracting (Saudi Arabia)
- Expertise Contracting / PGL Pipelines (UK)
- National Gas Company (Egypt) / Egypt Gas (Egypt)
- Taqa Arabia (Egypt) / Taqa Group (UAE)
The Energy Ministry has set a deadline of 23 April for these prequalified contractors to submit technical bids.
The ministry added in its statement that it has identified a total of 36 industrial cities in Saudi Arabia for gas infrastructure development.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15699582/main0334.png -
Veolia wins Jordan water services contract
18 February 2026
Register for MEED’s 14-day trial access
France's Veolia has signed a four-year performance-based management contract with the Water Authority of Jordan to support water and wastewater services in the country’s northern governorates.
Under the contract, Veolia will provide operations, maintenance and management services to Yarmouk Water Company, the public utility responsible for water supply and wastewater services in the region.
The agreement covers Irbid, Jerash, Ajloun and Mafraq, an area spanning nearly 30,000 square kilometres and covering about 3 million people.
The scope includes water and wastewater operations, maintenance, billing and collection, and customer service.
According to the firm, the performance-based structure prioritises measurable improvements, including service delivery, cost efficiency and revenue management.
The company said it will deploy technical and management specialists to support operations, rehabilitation works and investment initiatives.
The contract builds on Veolia’s existing operational role in Jordan’s water sector. The company operates the Disi-Amman scheme, which supplies about 100 million cubic metres of drinking water a year, under an operations and maintenance contract.
It also operates the Al-Samra wastewater treatment plant, which produces about 133 million cubic metres of treated wastewater annually for agricultural reuse.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15684109/main0535.jpg -
SAR tenders phosphate rail project management deal
18 February 2026
Register for MEED’s 14-day trial access
Saudi Arabian Railways (SAR) has floated another tender inviting firms to bid for a contract covering the project management consultancy services for its Phosphate 3 rail programme.
The tender was issued on 15 February with a bid submission deadline of 5 April.
The contract duration is 54 months.
The latest tender follows SAR floating a multibillion-riyal tender to double the tracks on the existing phosphate transport railway network connecting the Waad Al-Shamal mines to Ras Al-Khair in the kingdom’s Eastern Province.
The tender – covering the second section of the track-doubling works, spanning more than 150 kilometres (km) – was issued on 9 February. The bid submission deadline is 15 April.
Earlier this month, MEED reported that SAR received bids from contractors on 1 February for the project’s first phase, which spans about 100km from the AZ1/Nariyah Yard to Ras Al-Khair.
The scope includes track doubling, alignment modifications, new utility bridges, culvert widening and hydrological structures, as well as the conversion of the AZ1 siding into a mainline track.
The scope also covers support for signalling and telecommunications systems.
The tender notice was issued in late November with a bid submission deadline of 20 January.
Switzerland-based engineering firm ARX is the project consultant.
MEED understands that SAR is expected to tender a total of four packages for the phosphate railway line.
The other packages expected to be tendered shortly include the depot and the systems package.
In 2023, MEED reported that SAR was planning two projects to increase its freight capacity, including an estimated SR4.2bn ($1.1bn) project to install a second track along the North Train freight line and construct three new freight yards.
Formerly known as the North-South Railway, the North Train is a 1,550km-long freight line running from the phosphate and bauxite mines in the far north of the kingdom to the Al-Baithah junction. There, it diverges into a line southwards to Riyadh and a second line running east to downstream fertiliser production and alumina refining facilities at Ras Al-Khair on the Gulf coast.
Adding a second track and the freight yards will significantly increase the network’s cargo-carrying capacity and facilitate increased industrial production. Project implementation is expected to take four years.
State-owned SAR is also considering increasing the localisation of railway materials and equipment, including the construction of a cement sleeper manufacturing facility.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15684025/main.jpg -
PIF-backed firm signs worker accommodation deal
17 February 2026
Register for MEED’s 14-day trial access
Saudi Arabia's Smart Accommodation for Residential Complexes Company (Sarcc) has signed an agreement with Riyadh-based Mawref Company to develop a 12,000-bed worker accommodation project in North Riyadh.
The project will cover about 120,000 square metres (sq m), with a total built-up area of 150,000 sq m.
The development is expected to cost over SR669m ($178m), with the first phase slated for completion in 2029.
Sarcc is backed by the Public Investment Fund (PIF), the Saudi sovereign wealth vehicle.
The agreement follows Sarcc signing another agreement in September last year with privately-owned local firm Tamimi Global Company to explore collaboration in developing worker accommodation facilities in the kingdom.
The PIF launched Sarcc in October 2024 with the aim of developing and operating staff housing and accommodation assets in the kingdom.
Sarcc will develop and operate the staff accommodation facilities at major construction projects in Saudi Arabia.
The company will seek opportunities to invest in the sector to strengthen staff housing standards. Sarcc will also look to engage the private sector by enabling investment and partnership opportunities in sectors including construction, catering, transportation and retail.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15672262/main.gif