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
  • Chinese firm wins Qiddiya Janadriyah cultural district hotels

    30 June 2026

     

    Beijing-headquartered China State Construction Engineering Corporation (CSCEC) has won a contract to deliver the Janadriyah cultural district at Qiddiya entertainment city on the outskirts of Riyadh.

    The contract was awarded by gigaproject developer Qiddiya Investment Company (QIC).

    The scope covers the construction of six structures, including a heritage building, a gateway hotel, a wadi hotel, a creative hub, a community centre and an open-air market.

    QIC tendered the contract in December last year, as MEED exclusively reported.

    The award is CSCEC’s second major win at Qiddiya in recent weeks.

    Earlier this week, MEED exclusively reported that QIC had awarded CSCEC a contract to build a new transport hub at Qiddiya entertainment city.

    The project is located within the resort core zone of the development.

    MEED understands the scope includes construction of a parking structure for up to 2,000 vehicles; a transport hub comprising a passenger flow system and ticketing and transit-related facilities; retail, food and beverage and hospitality facilities; mechanical, electrical and plumbing (MEP) systems; and soft and hard landscaping works.

    QIC is accelerating plans to develop additional assets at Qiddiya City.

    Last week, MEED reported that QIC had invited contractors to prequalify for a contract to build an indoor sports arena within its Qiddiya entertainment city project.

    The multipurpose arena is designed to International Olympic Committee standards.

    It will be located in District 18, in the Uptown South area of Qiddiya.

    Once completed, the indoor arena will be capable of hosting a wide range of sports, cultural and entertainment events.

    The arena will feature numerous sports courts for basketball, handball, futsal, volleyball, tennis, boxing and gymnastics.

    It will have a seating capacity of 18,000 spectators.

    QIC’s other major projects include an e-sports arena, the National Tennis Centre, Prince Mohammed Bin Salman Stadium, a motorsports track, a racecourse, the Dragon Ball and Six Flags theme parks, and Aquarabia.

    QIC opened the Six Flags theme park to the public in December last year.

    The park covers 320,000 square metres and features 28 rides and attractions, including 10 thrill rides and 18 aimed at families and young children.

    The Qiddiya project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17489285/main.jpg
    Yasir Iqbal
  • Aldar launches Yas Island community park project

    30 June 2026

    Abu Dhabi-based real estate developer Aldar, in partnership with the Abu Dhabi Department of Community Development (DCD), has announced the launch of Yas Community Park on Yas Island.

    A key feature of the park is Nabdh Yas, a community hub developed in collaboration with DCD.

    Once open, Nabdh Yas will serve as a central gathering space and host a range of community-led programmes.

    In a statement, Aldar said: “Nabdh Yas will be delivered on a public-private partnership (PPP) basis, marking the first time private sector investment has been directed towards this type of community infrastructure.

    “With DCD overseeing the hub’s development and long-term management, the initiative reflects Abu Dhabi’s focus on innovative approaches that generate lasting social value and enhance community wellbeing,” the statement added.

    A memorandum of understanding was signed between Aldar and DCD.

    The agreement establishes a framework to expand the Nabdh Community Hub model across Aldar developments in Abu Dhabi, Al-Ain and Al-Dhafra.

    Last month, Aldar announced its Q1 financial results, reporting a 20% year-on-year increase in net profit after tax to AED2.3bn ($626m).

    Aldar Development recorded a 14% year-on-year rise in revenue to $1.7bn, while earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 23% to $599m.

    UAE revenue backlog rose to $17bn at the end of March from $16.6bn at the end of December, with an average duration of 29 months.

    The group attributed its performance to revenue from its development backlog and steady income from its investment properties.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17489270/main.jpeg
    Yasir Iqbal
  • Dubai sets August deadline for Airport Express metro bids

    30 June 2026

     

    Dubai’s Roads & Transport Authority (RTA) has given consultants until 10 August to submit proposals for a contract to study and design the Airport Express Line, which will extend from Dubai International airport (DXB) in the Al-Garhoud area to Al-Maktoum International Airport (DWC) in the Jebel Ali area.

    The previous deadline was 8 July.

    The proposed line will stretch about 55 kilometres and include five stations, providing passengers with facilities such as remote airline check-in, baggage drop-off and security screening.

    The RTA issued the tender in April, with an initial deadline of June, as MEED reported.

    The new line will run from the Red Line metro station at DXB through Al Jaddaf, along Al-Khail Road to a new station at Jumeirah Village Circle (JVC), before continuing to DWC.

    There will be two spur lines. The first will run from the new JVC station to Al-Fardan Exchange metro station at Emirates Golf Club, while the second will branch towards Business Bay, where another station will be built.

    The new line appears to follow a similar route to the Etihad Rail high-speed railway project, which is under construction and due to be completed by 2030.

    The Airport Express Line scheme is the latest metro project to be tendered by the RTA this year. Earlier this month, MEED exclusively reported that the RTA had issued the request for qualification notice for a contract to build the new Gold Line, as part of its expansion of the Dubai Metro network.

    Tendering activity is also ongoing for the Route 2020 extension, which will start from the Expo 2020 metro station and connect to DWC’s West Terminal.

    MEED exclusively reported in April that consultants had submitted bids for the project.

    The extension to the line will run for about 3km and will feature two stations.

    The existing Route 2020 metro link is a 15km-long line that branches off the Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks and 3.2km of tunnels, and has five elevated stations and two underground stations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17489266/main.jpg
    Yasir Iqbal
  • Eni increases gas production in Libya

    30 June 2026

    The Italian oil and gas company Eni has announced the startup of offshore gas production enabled by the Sabratha compression project in Libya.

    The client on the project was Mellitah Oil & Gas (MOG), a joint venture of Eni and Libya’s state-owned National Oil Corporation (NOC).

    The Sabratha compression project was designed to increase gas output from the Bahr Essalam gas field, located approximately 100 kilometres off Libya’s coast.

    The scope of the project included the installation of a new 1,600-tonne compression module on the Sabratha platform, equipped with new compression trains, providing an overall compression capacity of about 440 million cubic feet a day.

    In a statement, Eni said: “The new module enables production under low-pressure conditions, offsetting the natural decline of the Bahr Essalam field and maximising gas recovery, ensuring increased volumes of gas of about 800 million cubic metres per year and associated condensate.

    “This additional production will play a critical role in sustaining national power generation, reinforcing Libya’s energy security, and supporting export to Italy via the Greenstream pipeline.”

    The company also said that the project strengthened the resilience of Libya’s gas infrastructure and represented “a tangible contribution to the stability and growth of the country’s energy sector”.

    MOG also has two other projects in Libya that are currently under execution.

    The first is the Bouri gas utilisation project, whose tie-in and commissioning activities are under way following the recent installation of the Bouri gas recovery module.

    The other project, known as ‘Structures A&E’, will develop two offshore gas fields.

    Eni has been present in Libya since 1959 and last year had average equity production in the country of approximately 162,000 barrels of oil equivalent a day.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17489032/main3444.jpg
    Wil Crisp
  • Jordan faces fresh round of challenges

    29 June 2026

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17479483/main.gif
    MEED Editorial