Video: Iraq's Economy between US, Iran: Perceptions & Realities
By John Lee.
The London School of Economics (LSE)'s Middle East Centre has hosted a talk by Ahmed Tabaqchali, exploring the economic and financial interactions of the Iraqi economy with the outside world, particularly the use of the dollar in relation to Iran and the US.
While the US' Iraq policy is still fluid, there have been signs that America's 'maximum pressure campaign' towards Iran will have spillover effects in Iraq, with the Trump administration viewing policy towards Iraq solely through the lens of a perceived threat of Iranian dominance in the country. Iran's economic footprint in Iraq, both perceived and real, will be an issue for Iraq and its relationship with the US and the West.
According to Tabaqchali's data, in 2024 China imported about 95 percent of Iran's 1.55 mbpd of oil exports, worth $36 billion; $3bn of LPG, and $11 billion in other imports, for a total of $50 billion, using an extensive global financial web. In the same period, Iraq imported $3 billion in gas and electricity (which Iran does not receive and which are governed by waivers for humanitarian goods), and $7.7 billion of private sector imports. "So," argues Tabaqchali, "which is the lung here?"
The session, chaired by Toby Dodge, ended by a lively 40 min Q&A session.
Click here to view the full discussion.
(Source: LSE)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Iraq Business
6 hours ago
- Iraq Business
EU Maintains Flight Ban on Iraqi Carriers
By John Lee. The European Union (EU) has confirmed it will maintain operational restrictions on Iraqi air carriers following a technical review that found insufficient progress in the country's aviation safety oversight capabilities. Iraqi Airways and Fly Baghdad remain on the EU's banned carrier list, with both airlines subject to operating restrictions imposed in December 2015 and November 2023 respectively under Commission regulations. The decision follows a technical meeting held on 23 April 2025 between the European Commission, the European Union Aviation Safety Agency, member states and the Iraqi Civil Aviation Authority (ICAA). During discussions, Iraqi officials presented updates on legislative and regulatory framework improvements alongside oversight performance enhancements. The ICAA outlined ongoing efforts including personnel recruitment, training initiatives and drafting of updated national aviation regulations. However, European officials noted these measures remain in early implementation stages with significant concerns persisting over timing, consistency and alignment with international safety standards. Critical reforms including adoption of revised primary aviation law and strengthening of safety oversight systems remain incomplete without verifiable outcomes, according to the assessment. The planned Union on-site assessment visit scheduled for September 2025 has been deemed premature given the need for further demonstrable progress across core aviation safety oversight areas. Under current arrangements, EU member states must continue prioritising ramp inspections of all Iraqi-certified carriers to verify compliance with international safety standards. The Commission stated it would take further action if safety information reveals imminent risks from non-compliance with international standards. The restrictions affect commercial operations within European airspace, maintaining safety protocols established under EU aviation safety regulations. Full statement from European Union. (Source: EU)
Iraq Business
6 hours ago
- Iraq Business
Iraq offers support for Lebanese Investors and Workers
By John Lee. Iraq's Minister of Labour and Social Affairs, Mr Ahmed Al-Asadi, has confirmed his country's readiness to provide all possible facilitation for Lebanese workers in Iraq, provided that they comply with legal procedures designed to ensure their rights and protection. The remarks were made during a meeting with Lebanon's Minister of Labour, Dr Mohammad Bahjat Haidar, on the sidelines of the 113th session of the International Labour Conference in Geneva. The two ministers discussed ways to enhance bilateral cooperation, particularly in investment and encouraging Lebanese business owners to return to invest in Lebanon. Mr Al-Asadi acknowledged the impact of Lebanon's economic crisis on capital flows, especially in light of past failures in the banking sector. However, he affirmed Iraq's commitment to supporting Lebanon's economic recovery by encouraging Iraqi investors to explore opportunities there. He described investment as fundamental to national development, noting that Iraq has seen significant investment-driven growth over the past two to three years. On the subject of foreign and Arab workers in Iraq, Al-Asadi highlighted concerns about the large number of workers entering the country illegally. He stated that Iraq's Council of Ministers has issued a decision to regularise the status of such workers, enabling them to obtain residency and register with the Ministry of Labour. This step ensures their eligibility for legal wages, social security registration, and broader labour rights. The Minister reiterated Iraq's openness to Lebanese labour, stressing the importance of legal registration as a guarantee for protection and rights. (Source: Ministry of Labour and Social Affairs)
Iraq Business
6 hours ago
- Iraq Business
Iraq to become "a Massive Success Story"
By Padraig O'Hannelly. Iraq is experiencing unprecedented stability and security, creating significant opportunities for international businesses, according to Abir Burhan, Company Director of Al-Burhan Group (ABG), speaking at the Iraq Britain Business Council (IBBC) Spring Conference in London. Burhan outlined how the operating environment has transformed dramatically over the past year, with the Iraqi government actively inviting international investment and reducing hostility towards foreign businesses. " We've been through the worst of it, and we finally see that Iraq is becoming really stable and secure, " he told delegates. ABG has positioned itself as a facilitator for international companies entering the Iraqi market, partnering with established firms including Menzies Aviation and Air BP to operate ground fuelling services at Iraqi airports. The company has achieved international operational standards with no reported incidents, demonstrating the viability of high-quality service delivery in the country. " We allow companies to operate in a safe environment, to actually do their job, rather than worrying about the hurdles of dealing with the Iraqi infrastructure, " Burhan explained. The group has made substantial investments in Iraq's infrastructure over the past two years, including: A 300-room hotel development near Baghdad airport Construction of 1,200 affordable housing units in Wasit province Establishment of an operations centre to support international business activities Burhan noted that ABG's security division has experienced reduced demand over the past year, which he views as a positive indicator of improving conditions. " We don't mind our security company not being busy, because we know that there are big advantages for businesses as well, " he said. The Operations Director expressed optimism about Iraq's economic prospects, predicting the country will become " a massive success story " within the next five to ten years. He emphasised the current government's commitment to attracting international investment and the noticeable improvement in security conditions. Burhan acknowledged the pivotal role of the Iraq Britain Business Council in facilitating international business opportunities in Iraq over the past decade, describing their work as instrumental in bringing projects to fruition despite various challenges. The comments reflect growing confidence in Iraq's business environment as the country continues to rebuild and modernise its economy following years of instability.
