Latest news with #MohammedAlSudani
Zawya
5 days ago
- Business
- Zawya
Iraq's oil revenues up $1bln in 2024
Iraq earned nearly $1 billion more in 2024 over the previous year despite a decline in average crude prices last year, official data show. The crude export earnings of OPEC's second largest oil producer stood at around $95.5 billion in 2024 against $94.4 billion in 2023, the Central Bank of Iraq said. The report gave no reason for the rise but according to the Kuwaiti-based Arab Energy Organisation (AEO), Iraq exported around 3.35 million barrels per day (mbpd) in 2024, slightly higher than in 2023, when exports stood at nearly 3.34 mbpd. Average Brent crude prices stood at around $81 a barrel in 2024 compared with nearly $83 in 2023, according to the US Energy Information Administration. Iraq's oil revenues soared to one of their highest levels of around $113 billion in 2022, when crude prices soared above $100. The surge allowed Iraq to record a large budget surplus despite high spending in 2022, enabling it to ease borrowing from the local banks. An adviser to Prime Minister Mohammed Al-Sudani said last week Baghdad intends to borrow again this year to fund the budget shortfall after oil prices dipped below Iraq's forecast price of around $70. 'The 2025 budget envisages a deficit of 64 million Iraqi dinars while spending was forecast at IQD200 trillion ($153 billion)…the Finance Ministry will resort to borrowing whenever needed to cover the deficit,' financial adviser Mudhar Saleh said. In June 2023, Iraq approved a three-year budget for the period 2023-2025 based on an average oil price of $70 a barrel and crude exports of 3.4 million bpd. Annual spending was set at around $153 billion with a shortfall of $49 billion but Parliament allowed the Finance Ministry to revise expenditure through the year depending on oil market conditions. (Writing by Nadim Kawach; Editing by Anoop Menon) (
Zawya
22-05-2025
- Business
- Zawya
Iraqi official proposes joint funds with GCC
An adviser to Iraq's Prime Minister Mohammed Al-Sudani is proposing the creation of joint sovereign funds with Gulf oil producers to finance domestic projects. Mudhar Saleh, a financial advisor to Sudani, said such ambitious initiatives require intensive talks with the countries which possess massive sovereign wealth funds (SWFs), particularly Saudi Arabia, Qatar and the UAE. Quoted by Iraq's Al-Forat news agency on Monday, Saleh said these funds aim to support major projects at the regional levels, noting that there is a tendency in the region to expand the scope of financial and economic cooperation. 'Like Saudi Arabia, the UAE and Qatar, which possess huge SWFs to diversify their economies, Iraq also possess vast resources which need to be invested through strong partnerships with the aim of funding infrastructure, energy and industrial projects…these initiatives will help re-direct financial surpluses to the Arab region in an effective manner,' Saleh said. 'This strategy requires in-depth Gulf-Iraq dialogue for joint investment and the creation of a multilateral sovereign wealth fund that represents a new model for investment cooperation between Iraq and Gulf countries with financial surpluses.' Iraq, OPEC's second largest oil producer, does not have a SWF apart from dinar-denominated national funds as the Pension and Social Security Funds, the Education Fund and the Development Fund. In a recent study, the UN Economic and Social Commission for West Asia (ESCWA) said regional states need to take steps to face the planned increase in US tariffs on in imports despite the exemption of their oil exports. These steps include strengthening fiscal buffers and resilient financing strategies to address vulnerabilities to trade shocks as low oil prices will adversely impact the oil-exporting countries, increasing the risk of fiscal vulnerabilities, it said. (Writing by Nadim Kawach; Editing by Anoop Menon)
Zawya
07-05-2025
- Business
- Zawya
Iraq to form energy investment firm
Iraq intends to create a company with a capital of 250 billion Iraqi dinars ($192 million) to invest in energy projects inside the OPEC country. The cabinet, which met under Prime Minister Mohammed Al-Sudani on Tuesday, approved the venture, which will group several local public establishments. The venture will focus on investment, execution and operation of energy projects inside Iraq, a statement by Sudani's office said after the meeting. 'The new company will have a preliminary capital of IDQ250 million …the capital can be increased later,' the statement said. Shareholders include the State Pension Fund and the government-owned Trade Bank of Iraq, the statement said, adding that other parties can subscribe to the venture, including the Electricity and Oil Ministries, the State Organisation for Marketing of Oil (SOMO) and other Iraqi institutions. (Reporting by Deva Palanisamy; Editing by Anoop Menon) (
