meed-logo

line1 line2 line3
SIGN IN / REGISTER

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

https://image.digitalinsightresearch.in/uploads/NewsArticle/10834536/main.gif
Dominic Dudley

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Read the October 2026 MEED Business Review

    30 September 2026

    Download / Subscribe / 14-day trial access

    For all the talk of cancellations and cutbacks, Neom is still building – and its biggest completed project to date offers a clue to where the $500bn gigaproject is heading. Our October Agenda feature examines how Oxagon is moving to the centre of Neom’s strategy, as investment shifts towards projects with the potential to generate tangible commercial returns, from green hydrogen and ports to AI data centres and logistics infrastructure.

    Read the full analysis in the October issue of MEED Business Review.

    As Neom reshapes its priorities, Saudi Arabia’s wider project market continues to show resilience. Contract awards have reached $68bn in 2026, despite regional conflict and economic uncertainty, with activity spanning energy, infrastructure, power and the future economy.

    But with $91.5bn of projects completed this year, new awards will be crucial to maintaining momentum into 2027.

    This edition also includes MEED’s 2026 power developer ranking, revealing the companies driving the region’s rapidly expanding power market.

    The issue also explores key trends shaping the region, from AI’s growing demands on grid capacity and the implications of ICE Futures Abu Dhabi’s wind-down for Gulf commodity markets, to how the Hormuz crisis is redirecting oil companies’ focus to North Africa. Our Leadership feature asks whether the future city really needs to hang above the ground.

    We hope our valued subscribers enjoy the October 2026 issue of MEED Business Review. 

     

    Must-read sections in the October 2026 issue of MEED Business Review include:

    > AGENDA: Oxagon takes centre stage at Neom

    INDUSTRY REPORT:
    MEED’s 2026 power developer ranking
    > Regional power market diversifies
    > Battery storage broadens IPP market

    > POWER: AI is creating a grid capacity problem

    > LEGAL: What IFAD’s wind-down means for Gulf commodity markets

    > OIL: Oil companies focus on North Africa amid Hormuz crisis

    > LEADERSHIP: The future city does not need to hang above the ground

    > SAUDI ARABIA MARKET FOCUS: 
    > 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 shift

    > MEED COMMENTS: 
    >     Dubai Inc steps in as developers turn cautious
    > Saudi Arabia redirects towards AI
    > Kuwait plans biggest oil and gas contract award in 10 years
    > Saudi Arabia battery storage awards provide fresh lift

    > GULF PROJECTS INDEX: Saudi Arabia and UAE lead Gulf index gains

    > AUGUST 2026 CONTRACTS: Middle East contract awards

    > ECONOMIC DATA: Data drives regional projects

    > OPINION: The boomers’ last act

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20134595/main.gif
    MEED Editorial
  • Aramco receives interest for major gas processing plant

    30 September 2026

     

    Saudi Aramco has received expressions of interest from contractors to participate in the main tendering exercise for a project to expand the Alhada gas processing plant, located about 85 kilometres northwest of Jubail in Saudi Arabia’s Eastern Province.

    The Alhada gas processing plant expansion is critical to Aramco’s goal of increasing gas production capacity by 80% by 2030 from a 2021 baseline.

    Aramco issued a solicitation of interest document for the main tendering exercise in early September, with contractors submitting responses by 17 September, sources told MEED.

    The engineering, procurement and construction (EPC) scope of work has been divided into three main packages, sources said.

    The first EPC package relates to the main gas treatment facilities, primarily three processing trains, along with:

    • Three acid gas removal units
    • Triethylene glycol (TEG) dehydration unit
    • Two high-pressure and two low-pressure flares
    • Two flare gas recovery units
    • Two T&l flares
    • Two burn pits
    • A digital twin

    The acid gas removal units will treat sour gas by removing hydrogen sulphide and carbon dioxide to produce sales gas, as well as acid-gas feed for the downstream acid gas enrichment unit and sulphur recovery unit.

    The acid gas removal units will also process gas from the flare gas recovery units through a dedicated amine contactor to meet specifications for use as fuel gas. The TEG dehydration unit will then remove water from the treated gas to meet sales-gas specifications.

    The project’s second EPC package covers the sulphur recovery units. The third package involves inlet channels for monoethylene glycol, as well as common utilities and supporting structures.

    ALSO READ: Contractors express interest in sixth Jafurah expansion phase
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20127671/main4900.jpg
    Indrajit Sen
  • Libya refinery expected to be worth more than $600m

    30 September 2026

     

    The main contract for Libya’s planned South Refinery project is expected to be worth more than $600m, according to industry sources.

    The project, located in Ubari in southern Libya, has gained momentum over the past year. The main contract is expected to be procured under an engineering, procurement and construction (EPC) model.

    In March, US-based engineering company KBR was awarded a contract by Zallaf Exploration, Production & Refining of Oil & Gas Company to provide project management and technical services for the project.

    Under the terms of the contract, KBR will provide contract management, project management and supporting technical services throughout the project’s EPC phases.

    The EPC work is expected to take 50 months, and the facility will be designed to process 30,000 barrels a day (b/d) of crude oil.

    The refinery is expected to produce:

    • Propane and butane for domestic and industrial uses
    • Gasoline
    • Kerosene
    • Diesel
    • Fuel oil

    In March, KBR said that the project was aligned with its “long-standing commitment to advancing vital oil and gas infrastructure in Libya”.

    Libya currently operates five main refineries with a combined nameplate capacity of 380,000 b/d, but actual throughput is closer to 180,000 b/d due to poor maintenance and damage from military clashes.

    In addition to the South Refinery project, Libya also plans to upgrade the Zawiya refinery and carry out projects at the Serir, Brega, Tobruk and Ras Lanuf refineries.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20124329/main.jpg
    Wil Crisp
  • Joint venture wins $230m Ras El-Hekma buildings

    30 September 2026

    A joint venture of UK-based Innovo Build and Egypt’s Redcon Construction has won a contract worth about E£12bn ($230m) to carry out infrastructure and construction works for the DP03 East package of the Wadi Yemm development at Ras El-Hekma on Egypt’s North Coast.

    Wadi Yemm is being developed by the UAE’s Modon Development as the first phase of its Ras El-Hekma masterplan, which will comprise 17 planned districts.

    DP03 East has a built-up area of 323,000 square metres and is scheduled for completion within 21 months.

    The scope of work includes more than 660 residential units – comprising standalone villas and townhouses – as well as public service areas, lakes, a commercial mall, landscaping and roadworks.

    The delivery of units at Wadi Yemm is expected to begin in the third quarter of 2029.

    Ras El-Hekma is located on a spur of land on Egypt’s northern Mediterranean coast, about 240 kilometres west of Alexandria.

    Abu Dhabi-based holding company ADQ appointed Modon Holding as master developer for the Ras El-Hekma project in 2024. Modon will oversee the overall development, which covers more than 170 million square metres (sq m).

    Modon will develop the first phase, covering 50 million sq m. The remaining 120 million sq m will be developed in partnership with private developers, under the supervision of the recently established ADQ subsidiary Ras El-Hekma Urban Development Project Company and Modon.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20123189/main.jpg
    Yasir Iqbal
  • Neom tenders Oxagon freight rail design

    30 September 2026

     

    Register for MEED’s 14-day trial access 

    Neom has tendered a contract to prepare a concept design, feasibility study and route-alignment studies for a freight rail network connecting to the Port of Neom at Oxagon.

    Neom issued the tender last week, with a submission deadline of 29 October.

    Consultants expressed interest in the contract on 16 September, as MEED previously reported.

    The estimated 400-kilometre (km)-plus rail line is expected to connect the Port of Neom with Saudi Arabia Railways’ (SAR) North-South Railway at the Al-Baseeta junction.

    SAR’s North-South Railway is a 2,750km network built primarily to move minerals from mines in the north of the kingdom to industrial and export hubs on the Gulf coast. Its core route links the Al-Jalamid and Baitha phosphate and bauxite mines to Ras Al-Khair, Jubail and Dammam, with branch lines to Riyadh and to the Jordanian border at Al-Haditha.

    Al-Baseeta junction, where Oxagon’s proposed line would connect, sits on this network in Al-Jawf province, in the northwest of the country. The railway also carries passengers between Riyadh and Qurayyat, and has transported commercial freight such as sulphur and phosphoric acid.

    The Port of Neom currently has no rail link to the rest of Saudi Arabia, meaning cargo landing there depends on road transport or a further sea leg to reach Riyadh, the Gulf coast or export markets beyond.

    Connecting to the North-South network at Al-Baseeta would give the port direct rail access to the kingdom’s interior and, via existing branch lines, to Jordan and the Gulf coast industrial cluster around Ras Al-Khair, Jubail and Dammam.

    The proposed link would also give SAR’s network a new outlet to the Red Sea. To date, the North-South Railway has focused on Gulf coast export points, but a connection to Oxagon would provide a second maritime gateway on the opposite coast, allowing mineral and freight traffic from the north of the kingdom to reach either coastline.

    The latest development follows Saudi Arabia’s Public Investment Fund (PIF) naming Neom as one of six strategic ecosystems in its 2026-30 strategy.

    This backing comes as Neom’s operational focus appears to be evolving in response to shifting regional dynamics and global economic conditions. For example, on 15 April, Neom posted on its official X account about a new Europe-Egypt-Neom-GCC corridor, describing it as a faster route for time-sensitive goods.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20122376/main.jpg
    Yasir Iqbal