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
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As Saudi Arabia’s gigaprojects move from vision to delivery, the kingdom’s projects market continues to evolve at an unprecedented pace. Billions of dollars’ worth of contracts are being awarded across infrastructure, real estate, tourism and critical industries, creating huge opportunities — but also new layers of complexity.
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Hosted by: Edward James, head of content and analysis at MEED
A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region. Haroon Niazi, partner, construction claims and expert services lead, International·HKA
Haroon is a dual-qualified Chartered Quantity Surveyor (FRICS) and barrister with over 18 years of experience in the construction industry. He leads HKA’s Construction Claims and Expert Services Line across Europe, the Middle East, and Africa, overseeing a team of more than 200 consultants with responsibility for strategy and delivering the growth plan. His practice focuses on the resolution of complex and high-value construction disputes. He has been appointed as a quantum expert and has delivered expert testimony in international arbitration and litigation, including in the Kingdom of Saudi Arabia. Haroon is known for his ability to analyse, quantify, and communicate the financial aspects of construction claims with clarity and independence.https://image.digitalinsightresearch.in/uploads/NewsArticle/16116602/main.gif -
Diriyah tenders media district north offices
25 March 2026
Saudi gigaproject developer Diriyah Company has tendered a contract inviting firms to bid for the construction of offices in the media district in the second phase of the Diriyah Gate development (DG2).
The tender was released in March, with a bid submission deadline of 27 April.
The scope covers the construction of five office plots comprising nine buildings, spanning over 50,000 square metres (sq m).
The tender follows the Diriyah Company’s award of an estimated SR2.5bn ($666m) contract to build the Pendry superblock package in the DG2 area.
The Pendry superblock encompasses the construction of a hotel, known as the Pendry Hotel, along with residential and commercial assets.
The project will cover an area of 75,365 sq m and is located in the northwestern district of the DG2 area.
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Trojena terminates Ski Village steel structure contract
25 March 2026
Neom has terminated its contract with Malaysian contractor Eversendai Corporation for the steel structural works on the Ski Village project in Trojena, Saudi Arabia.
In a statement published on its website, Eversendai said it had received an official notice that the termination will take effect from 26 March.
Eversendai is jointly executing the construction works on the project with Riyadh-based contractor Albawani. The contract was formally awarded in March 2024.
In July 2024, UAE-based steel producer Emirates Steel announced that it had signed a steel supply agreement for the Trojena Ski Village project.
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Trojena had been chosen to host the event in October 2022.
This latest public announcement comes shortly after Neom cancelled contracts for the construction of the tunnel sections of The Line in northwest Saudi Arabia.
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Ashghal tenders more infrastructure contracts
25 March 2026
Qatar’s Public Works Authority (Ashghal) has issued two tenders covering infrastructure development in the northern section of the New Industrial Area and the Wadi Al-Banat area.
Ashghal issued the tender for consultancy services for the design of roads and infrastructure in the northern part of the New Industrial Area on 16 March. The bid submission deadline is 26 April.
The project is located in the Small and Medium Industries Area within Zone 81.
The scope includes developing road infrastructure for the northern expansion area, which spans more than 100 hectares, and improving Energy Street by upgrading three signalised intersections. It also includes new access roads and surface-water and groundwater networks.
The project also requires a masterplan study for surface-water and groundwater drainage covering an area of about 2,743 hectares.
The second tender covers the construction of roads and infrastructure in the Wadi Al-Banat area (Zone 70).
The tender was issued on 16 March, with a bid submission deadline of 12 May.
The scope includes the development of about 25 kilometres of roads.
The latest tender follows Ashghal’s announcement earlier this month of contract awards for 12 new projects, with a total value exceeding QR4.5bn ($1.2bn).
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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War likely to boost oil and gas activity in North Africa
25 March 2026
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The US and Israel’s ongoing war with Iran is likely to boost oil and gas project activity in North Africa, as the high-price environment encourages the region’s national oil companies to push ahead with projects that will allow them to increase exports.
In recent weeks, international oil and gas prices have stayed consistently far higher than levels seen before the US and Israel launched their attack on Iran on 28 February, killing Iran’s Supreme Leader, Ali Khamenei.
For the past two weeks, the price of Brent crude has remained above $90 a barrel and has hit a high of more than $109.
Similarly, the Dutch TTF natural gas benchmark has stayed above €45 per megawatt hour and hit a high of more than €62, up from €31 prior to the 28 February attack.
Gulf disruption
Over the same period, the long-term outlook for oil and gas exports from the GCC and Iraq has dimmed significantly as disruption to transport through the Strait of Hormuz has continued and damage to key regional oil and gas infrastructure has increased.
Damage to infrastructure has included attacks on oil and gas fields, as well as strikes on oil refineries, storage facilities and gas processing plants.
This damage means that even if the disruption to the transport of oil and gas via the strait ends quickly, the war will have a long-term impact on oil and gas production and exports in the GCC and Iraq.
On 18 March, Saad Sherida Al-Kaabi, QatarEnergy’s CEO and minister of state for energy affairs, said Iranian strikes on Ras Laffan Industrial City – home to the world’s largest liquefied natural gas (LNG) production and export facility – had knocked out about 17% of its LNG export capacity.
He said the attacks were expected to cause an estimated $20bn in lost annual revenue and that repairs could take three to five years to complete.
In Bahrain, the Sitra oil refinery, which has a throughput capacity of 405,000 barrels a day (b/d), has been attacked and damaged, leading Bapco to declare force majeure.
Strikes also hit the Ras Tanura refinery in Saudi Arabia, as well as the Habshan gas processing complex in the UAE.
North Africa
The high-price environment and the long-term impact of the ongoing conflict represent an opportunity for North Africa’s oil-producing nations, especially the region’s biggest oil and gas exporters: Algeria and Libya.
Higher prices will dramatically increase government revenues for these countries, giving them more capacity to invest in infrastructure projects, while also providing a significant financial incentive to boost production in the short term.
Both Algeria and Libya are close to European markets that have relied on oil and gas from the GCC and Iraq, and neither country relies on the Strait of Hormuz to transport exports.
The two countries also appear to be seeking to accelerate oil and gas projects at a time of heightened demand from energy-importing nations to secure reliable supplies.
Libya push
Earlier this month, MEED revealed that talks were under way at Libya’s National Oil Corporation (NOC) to potentially launch a new licensing round to award some of the unawarded exploration blocks from the 2025 licensing round.
In the downstream sector, Libya also seems to be pushing to progress projects.
Recently, US-based KBR was awarded a contract by Zallaf Exploration, Production & Refining of Oil & Gas Company to provide project management and technical services for the South Refinery Project in Libya’s southern city of Ubari.
Algeria drive
Algeria is also advancing projects in the country’s oil and gas sector.
On 8 March, Algeria’s president signed a decree ratifying the development agreement for a $5.4bn oil and gas project in the country’s Illizi South block.
The decree approved a contract signed in Algiers on 13 October 2025 between Algeria’s national oil and gas company Sonatrach and Saudi Arabia’s Midad Energy North Africa.
The contract granted both companies the rights to explore and exploit hydrocarbons in the Illizi South area.
The total investment of about $5.4bn will be fully financed by Midad Energy, including approximately $288m allocated to the exploration phase.
Amid disruption to global LNG supplies from Qatar, Italy and Spain are currently in talks with Algeria in an effort to secure increased LNG shipments from the North African country.
Algeria’s prime minister has also received requests from Asian countries, including Vietnam, seeking to secure both gas and oil shipments.
It is unclear how much spare capacity Algeria has to supply LNG to new customers, as much of the country’s production is sold in advance under long-term supply agreements.
However, current market conditions are still expected to increase the country’s revenues significantly, as Algiers is likely to be able to command much higher prices in any new agreements.
While the ongoing war is expected to deepen the crisis for many companies operating in the GCC and Iraq oil and gas sector, the opposite could be true for companies established in Libya and Algeria.
Although in recent years these two countries have been viewed as having more challenging business environments than the UAE or Saudi Arabia, companies that have invested in building positions in North Africa’s oil- and gas-exporting states could be well placed to make windfall profits.
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