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
Exclusive from Meed
-
Egypt seeks consultant for major inland waterway study18 November 2025
-
Kuwait to make decision on four oil pipeline packages18 November 2025
-
Indian firm wins Oman chemicals project EPC contract17 November 2025
-
Egypt starts production from strategic gas field17 November 2025
-
Major Iraq refinery project stalls17 November 2025
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
-
Egypt seeks consultant for major inland waterway study18 November 2025
Egypt’s Transport Ministry has issued an expressions of interest (EOI) request, through the River Transport Authority, to appoint a consultancy firm for a study on a proposed inland waterway linking Lake Victoria to the Mediterranean.
The consultant will carry out basin-wide data collection and prepare a strategic environmental and social assessment for the project.
The assignment includes hydrological, topographic, bathymetric and geotechnical surveys across the Nile Basin.
The consultancy is expected to run for about 15 months, starting in February or March 2026.
Firms must submit EOIs by 6 December.
The study forms part of the Vic-Med project, a multi-country plan to establish a continuous inland waterway from Lake Victoria to the Mediterranean Sea.
The masterplan project aims to reduce transport costs for landlocked countries and provide a lower-carbon alternative to road freight along the Nile corridor
The work is part of phase two, part one of the feasibility study, funded through a $2m grant from the New Partnership for Africa's Development – Infrastructure Project Preparation Facility (NEPAD–IPPF), the African Development Bank’s (AfDB) fund for early-stage project development.
The first phase, completed in July 2019 with $650,000 in AfDB funding, developed the project’s legal and institutional framework and launched two regional inland water transport programmes.
The second phase, valued at $11.7m, covers updated feasibility studies and expanded technical assessments supporting detailed engineering design and cost-benefit analysis in the next stage.
This phase also covers the establishment of a regional operating unit for the project in Cairo.
READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDFMena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market
Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
> AGENDA 1: Gulf LNG sector enters a new prolific phase> INDUSTRY REPORT 1: Region sees evolving project finance demand> INDUSTRY REPORT 2: Iraq leads non-GCC project finance activity> GREEN STEEL: Abu Dhabi takes the lead in green steel transition> DIGITISATION: Riyadh-based organisation drives digital growth> UAE MARKET FOCUS: Investment shapes UAE growth storyTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15108707/main.jpg -
Kuwait to make decision on four oil pipeline packages18 November 2025

Kuwait is evaluating bids on four packages for a major pipeline project after prices were submitted earlier this month, according to industry sources.
The four separate packages cover pipeline work in the north, south, east and west regions of the country, sources said.
Although the total of all bids submitted by Kuwait-based Alghanim International General Trading & Contracting is the lowest at KD419m ($1.4bn), the company submitted the lowest individual bid on only one package, located in northern Kuwait.
Its bid for the north Kuwait package was KD149.8m ($488.3m).
Mechanical Engineering & Construction Company submitted the lowest bids for pipeline work on two packages located in the south and east of the country.
Both of these bids were valued at KD97,868,394 ($319m).
Al-Dar Engineering & Construction Company is the low bidder on the fourth package, for pipe work in western Kuwait, submitting a bid of KD64,825,398 ($211.3m).
Together, all four contracts are expected to be worth about $1.4bn when awarded.
The scope of all four packages focuses on developing new flowlines and connecting pipelines for oil-producing wells and water wells.
In some cases, companies are also required to replace old flowlines.
The contracts are based on work orders, so when KOC needs to connect wells it will issue a request for work execution, industry sources said.
Kuwait is trying to boost project activity in its upstream sector.
The country’s national oil company, Kuwait Petroleum Corporation, is aiming to increase oil production capacity to 4 million barrels a day (b/d) by 2035.
In August, Kuwait announced that it was producing 3.2 million b/d.
Earlier this month, KOC said it was planning to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15106496/main.png -
Indian firm wins Oman chemicals project EPC contract17 November 2025
Register for MEED’s 14-day trial access
Indian contractor Nuberg EPC has won a contract to perform engineering, procurement and construction (EPC) works on a project to build chlor alkali and calcium chloride plants in Oman for privately-owned Al-Ghaith Chemical Industries.
The project involves expanding Al-Ghaith’s existing chlor alkali plant in Sur Industrial City, by adding 120 tonnes a day (t/d) of capacity, taking the unit’s total output capacity to 190 t/d. The project also involves building a calcium chloride plant that will have a production capacity of 80 t/d.
Nuberg EPC said the contract is being executed on a lump sum turnkey basis, with its scope covering design, front-end engineering and design (feed), detailed engineering, procurement, fabrication, construction, commissioning and handover.
Project execution is already under way, with completion targeted within 19 months, Nuberg EPC said.
The project marks the second phase of Al-Ghaith’s integrated chemicals complex in Sur and represents a first-of-its-kind large-scale chlor alkali expansion in Oman.
Nuberg EPC also performed EPC works on the original chlor alkali plant, which has a capacity of 70 t/d.
In addition to the Oman project, Al-Ghaith has, in the previous decade, also brought on board Nuberg EPC for its chlor alkali and calcium chloride plants in Abu Dhabi. Those contracts covered the commissioning of a 60 t/d chlor alkali plant that was later expanded to 120 t/d, and the execution of a 125 t/d calcium chloride plant and a 50 t/d carbon dioxide plant.
Nuberg EPC has also executed the expansion of a 45 t/d chlor alkali plant and a greenfield 80 t/d calcium chloride plant for Oman Chlorine in Sohar, increasing the total chlor alkali output capacity to 75 t/d.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15104096/main5048.jpg -
Egypt starts production from strategic gas field17 November 2025
Egypt has started gas production from the West Burullus field in the Mediterranean Sea, after connecting the first wells to the national gas grid, according to a statement from the country’s Petroleum & Mineral Resources Ministry.
Productivity testing showed an output rate approaching 45 million cubic feet a day (cf/d).
Kareem Badawi, Egypt’s Petroleum & Mineral Resources Minister, said he intends to accelerate development of the field and confirmed that work is under way to connect two additional wells, with the aim of increasing production to 75 million cf/d in the coming months.
He added that the ministry aims to cut the county’s gas import bill by boosting domestic production.
The operator of the concession is Cheiron, an Egyptian independent exploration and production company.
Egypt’s oil ministry said in its statement that the West Burullus field development project represents a model for future integrated projects and investment plans.
It said that a range of domestic and foreign companies are involved in bringing the field into production.
In February, a banking consortium led by Banque du Caire, alongside Arab International Bank, Al-Baraka Bank Egypt and Saib Bank, arranged $75m in syndicated medium-term financing for Cheiron Egypt Delta, a subsidiary of the Cheiron Group.
This financing will help cover part of the investment costs for the gas field development project.
At the time, Cheiron said that the financing will provide up to 45.5% of the total $165m investment required for the project.
READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDFMena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market
Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
> AGENDA 1: Gulf LNG sector enters a new prolific phase> INDUSTRY REPORT 1: Region sees evolving project finance demand> INDUSTRY REPORT 2: Iraq leads non-GCC project finance activity> GREEN STEEL: Abu Dhabi takes the lead in green steel transition> DIGITISATION: Riyadh-based organisation drives digital growth> UAE MARKET FOCUS: Investment shapes UAE growth storyTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15102295/main3406.jpg -
Major Iraq refinery project stalls17 November 2025

Construction has yet to start on Iraq’s Al-Faw Investment Refinery project due to a range of problems, according to industry sources.
In May last year, a statement released by the Iraqi Prime Minister’s Office said that Iraq’s state-owned Southern Refineries Company and China National Chemical Engineering Company (CNCEC) had signed a contract to develop the project.
Iraq’s Oil Ministry previously said the project would be worth $7bn-$8bn.
One source said: “This project is failing to make progress despite the efforts of senior political figures in the country.”
A meeting was chaired by Iraqi Prime Minister Mohammed Shia Al-Sudani in August this year to discuss and try to resolve the problems that are stopping the commencement of construction, according to industry sources.
It is believed that financing remains a key obstacle for the project.
The Al-Faw project is part of the Iraqi government’s plan to increase Iraq’s refining capacities, attract foreign investment and increase the production of petroleum products domestically.
The refinery will have a capacity of 300,000 barrels a day and will produce oil derivatives for both domestic and international markets.
The project will be carried out in two stages.
The first phase will involve refining operations, while the second will involve constructing a petrochemicals complex with a capacity of 3 million tonnes a year.
The project also includes the construction of a 2,000MW power plant and the establishment of the Al-Faw Academy for Refinery Technology, to train 5,000 Iraqi workers that will eventually work at the facility.
Hualu, a subsidiary of CNCEC, signed a preliminary principles agreement for the project in December 2021.
At the time, Iraq’s Oil Ministry said that the project would have a value of $7bn-$8bn.
Due to material price inflation since December 2021, some insiders believe that the project value may now be significantly higher.
READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDFMena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market
Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
> AGENDA 1: Gulf LNG sector enters a new prolific phase> INDUSTRY REPORT 1: Region sees evolving project finance demand> INDUSTRY REPORT 2: Iraq leads non-GCC project finance activity> GREEN STEEL: Abu Dhabi takes the lead in green steel transition> DIGITISATION: Riyadh-based organisation drives digital growth> UAE MARKET FOCUS: Investment shapes UAE growth storyTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15102287/main.jpg
