Iraqi Economic News Highlights Thurs Afternoon

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Thursday Afternoon Iraq Economic News Highlights 9-22-22

 

Finance Reveals The Size Of Government Expenditures From The Beginning Of 2022 Until Last July

 

Money  and business   Economy News-Baghdad  The Ministry of Finance announced the volume of its spending since the beginning of the year until last July, which amounted to 58.2 trillion dinars .

 

The ministry said in a report published on its website and seen by “Economy News”, that “the total budget amounted to 58.2 trillion dinars, divided into 53.7 trillion dinars as a current budget and 4.4 trillion dinars as an investment budget .”

 

She added that the spending of the Ministry of Finance is the highest with 18.3 trillion dinars, then the Council of Ministers with 4.1 trillion dinars, and then the Ministry of Defense with 3.9 trillion dinars .

 

She stressed that “the salaries of employees in current expenditures amounted to 25.19 trillion dinars, while in special programs they amounted to 5.4 trillion dinars .”

 

She noted that “non-oil revenues constituted 4% of the total revenues and represented 3.5 trillion dinars .”

 

24 . views   Added 09/22/22 – 12:11 PM   Update 09/22/22 2022 – 1:11 PM

 

https://economy-news.net/content.php?id=29838

 

France’s Total Refuses To Complete A $27 Billion Contract With The National Oil Company

 

Energy    Economy News-Baghdad  The independent deputy, Basem Khashan, revealed today, Thursday, the reason for the French company’s refusal to complete a contract worth 27 billion dollars with the National Oil Company .

 

Khashan wrote in a Facebook post, saying, “The French Total refused to complete a contract worth 27 billion dollars because of its refusal to participate in the National Oil Company, which the new government and parliament have not yet announced its full legal status,” stressing that “this is a direct indication of the illegality of this transaction.” the company .”

 

He added, “The decision issued by the Federal Court yesterday cut the way for this deal and other deals that the Minister of Oil and Al-Kazemi wanted to complete before their departure to ensure a very appropriate retirement !”   37 . views   Added 09/22/2022 – 12:06 PM   Update 09/22/22 – 1:15 PM

 

https://economy-news.net/content.php?id=29837

 

Labor Announces The Formation Of A Joint Team With International Support To Organize The Work Of The Private Sector

 

Money  and business   Economy News-Baghdad   Today, Thursday, the Ministry of Labor and Social Affairs confirmed its progress in preparing the national policy to organize the Iraqi labor market, and announced the formation of a joint team to organize the work of the private sector .

 

The Director General of the Department of Labor and Vocational Training in the Ministry, Raed Jabbar Nahed, told the Iraqi News Agency (INA), that “there is a decision of the Council of Ministers that set the proportion of local employment at 50% compared to 50% of foreign labor,” noting that “the Ministry of Labor has taken several measures regarding Foreign companies, public companies and private sector companies that violate this percentage through the inspection body of the ministry, and the violators are referred to the labor court for labor issues .”

 

And regarding the organization of the Iraqi labor market, Nahed stressed that “the ministry is working on preparing the national policy for employment and vocational training to organize the Iraqi labor market,” expressing his hope that “work on this policy will begin at the end of this year .”

 

And he continued, “A working group was formed headed by the Ministry of Labor and a group of labor organizations experts and (NG) or with the support of the international organization, and this policy regulates work in the private sector,” noting that “the ministry is implementing the effective labor law that coordinates the relationship between the worker and the owner.” work .”

 

The Ministry of Labor and Social Affairs had announced earlier that most of the foreign workers in Iraq were illegal, while indicating that 100,000 permits had been granted to foreign workers since 2012 . Today, Thursday, the Ministry of Labor and Social Affairs confirmed its progress in preparing the national policy to organize the Iraqi labor market, and announced the formation of a joint team to organize the work of the private sector .

 

The Director General of the Department of Labor and Vocational Training in the Ministry, Raed Jabbar Nahed, told the Iraqi News Agency (INA), that “there is a decision of the Council of Ministers that set the proportion of local employment at 50% compared to 50% of foreign labor,” noting that “the Ministry of Labor has taken several measures regarding Foreign companies, public companies and private sector companies that violate this percentage through the inspection body of the ministry, and the violators are referred to the labor court for labor issues .”

 

And regarding the organization of the Iraqi labor market, Nahed stressed that “the ministry is working on preparing the national policy for employment and vocational training to organize the Iraqi labor market,” expressing his hope that “work on this policy will begin at the end of this year .”

 

And he continued, “A working group was formed headed by the Ministry of Labor and a group of labor organizations experts and (NG) or with the support of the international organization, and this policy regulates work in the private sector,” noting that “the ministry is implementing the effective labor law that coordinates the relationship between the worker and the owner.” work .”

 

The Ministry of Labor and Social Affairs had announced earlier that most of the foreign workers in Iraq were illegal, while indicating that 100,000 permits had been granted to foreign workers since 2012 .

 

18 . views   Added 09/22/2022 – 12:00 PM   Update 09/22/22 2022 – 1:17 PM

 

https://economy-news.net/content.php?id=29836

 

Some Political Forces Disrupt The Project For The Benefit Of Countries.. Warnings Of The Extinction Of The Port Of Faw

 

Reports   Economy News-Baghdad   A high-ranking official in the Ministry of Transport confirmed that the completion rates of the projects of the Grand Faw Port amounted to 25%, and revealed that the initial designs for the dry canal linking it with the Turkish ports are nearing completion .

 

The Director General of the General Company for Ports, Farhan Al-Fartousi, said, “The financial allocations are good and cover the port’s work for the next year, and that there is support from the Ministry of Planning and the Ministry of Finance with direct support from the Minister of Transport and government follow-up to the project .”

 

Al-Fartousi added, according to a statement issued by the Ministry of Transport, received by (Al-Mada), that “the Directorate will soon give indications of the completion of the initial designs for the Iraqi Dry Canal or the Iraq Silk Road, which connects the port of Faw to the Turkish ports .”

 

Al-Fartousi pointed out that “there is a discussion with the General Company for Iraq Railways and BEG about these designs .”

 

He explained, “All the works are linked with each other and are proceeding at a clear and strategic pace, whether in the implementation of the Faw port projects or the implementation of the Dry Canal or the Iraq Silk Road .”

 

Al-Fartousi went on to say that “the completion rate is very high in the Faw port projects and exceeds 25 percent, despite the fact that the project is nine months old out of four years, which is the period of its completion .”

 

And the deputy from Basra, Zahra Al-Bajari, warned of the suspension of work in the great port of Al-Faw due to the continued disruption of parliamentary sessions and the failure to approve the budget. Al-Bajari said that “the allocations for completing work in the port of Al-Faw from the budget exclusively, as it is one of Iraq’s strategic projects, and the failure to approve the general budget will lead to the suspension of work and the departure of companies operating in it now .”

 

She added, “Iraq is in dire need to complete the port, because it will bring about a qualitative leap in the Iraqi economy through the large financial returns that Iraq will earn.” Former Basra MP, Wael Abdel Latif, said in a previous interview with (Al-Mada) that “the great port of Faw was planned in 1985, because Iraq was preoccupied at that time with the war with Iran, and then it was postponed .”

 

Abdel Latif added, “A complete investment file was submitted in 2003 when I was the governor of Basra from a British company, with an Egyptian firm.” He pointed out, “The local administration at that time wanted to give Basra a project worthy of it, and that was the great port of Faw .”

 

Abdel-Latif stressed, “This project has been punished by a number of heads of government, none of them have taken a decision on it as if the issue did not concern them .”

 

And he noted, “Some political forces are disrupting the great port of Faw in favor of the Kuwaiti side, Iran, the Emirates or Egypt .”

 

Abdul Latif finds that “these politicians prefer these countries to the interests of Iraq,” noting that “it was intentionally disrupted since 2003 until the present time .”

 

He believed, “With the continued presence of these effective and influential political forces, the Faw port will not be completed, especially after it was reduced from 108 berths to 90 berths, and the rest of it has not been accomplished .”

 

Abdul Latif continues, “The competent authorities have been preoccupied with the breaking waves that neither advance nor delay, as if the one who wants to build a house starts it with the fence, and does not lay the foundation for it .”

 

Abdel Latif concluded, “The Ministry of Transport, whose formations are considered five ministries, has been run by personalities who have nothing to do with it, and this had a clear impact on the failure to complete the Faw port .”    26 . views   Added 09/22/2022 – 9:52 AM   Update 09/22/22 2022 – 1:08 PM

 

https://economy-news.net/content.php?id=29833

 

The World Bank: The Annual Food Inflation In Iraq Reached 6.4%.. Expert: It Is Not Alarming

 

2022-09-22 05:22  Shafaq News/ The World Bank announced that the annual food inflation in Iraq amounted to 6.4% between May and August of 2022, while an economist considered that this is not alarming.

 

The bank said in a report seen by Shafak News Agency that “domestic food price inflation is still high in various parts of the world, and information for the period between May and August 2022 shows high inflation rates in almost all low- and middle-income countries,” noting that “According to the mid-year update of the Global Report on Food Crises 2022, the number of people suffering from a food crisis or malnutrition is expected to reach 205.1 million people in 45 of the 53 countries/territories.”

 

 

He added that “the annual inflation of food in Iraq amounted to 6.45% between the months of May and August of the current year 2022,” noting that “this inflation is considered relatively high in relation to global inflation indicators.”

 

The World Bank also indicated in its report that “the annual food inflation in Kuwait reached 7.75%, in Saudi Arabia 3.9%, in Lebanon 240%, in Oman 6.09%, in Jordan 3.8%, in Egypt 23.1%, in Algeria 17.3%, and in Morocco 12.4 %.

 

The report noted that “the highest food inflation witnessed by countries was in Lebanon, followed by Turkey 90.25%, followed by Iran 81.2%, followed by Argentina 66.35%, and then Ethiopia 35.5%.”

 

For his part, the economic expert, Muhammad Al-Hasani, considered in an interview with Shafaq News that “the rates of food inflation in Iraq are not terrifying, but at the same time it puts unhealthy indicators in the Iraqi economy,” attributing the cause to Iraq’s “rentier” economy.

 

And he indicated that “the war in Ukraine has significantly raised the prices of foodstuffs globally, especially the basic ones, and the deterioration of the agricultural situation in Iraq and its dependence on imports to meet its domestic needs of foodstuffs has led to a rise in the inflation index of food prices,” adding that “the government has She rushed to provide the ration card during this period, which greatly limited this rise.”

 

He pointed out that “the months of August and September decreased food prices globally, which was reflected on Iraq, but these prices remain much higher than the prices of last year.”   LINK

 

Hamid Awad: Iraq’s Industrial Cities Reduce Random Import And Unemployment

 

Arab economy   Baghdad   Hossam Muhammad Ali   September 22 2022

 

Hamed Awad during the interview (The New Arab)

 

Iraq has witnessed official moves towards the establishment of industrial cities, the aim of which, according to the director of the Industrial Cities Authority Hamid Awad, in an interview with Al-Araby Al-Jadeed, is to encourage the local product and make it competitive with the importer and provide job opportunities to absorb unemployment.

 

He added that the industrial cities are vital projects to enhance the country’s economy in terms of supporting the local product, reducing its production costs, improving its quality and making it competitive with the importer, as well as limiting random import because the local product will be more desirable. Work in the provinces. Below is the text of the interview:

 

– During the past two years, the government has officially adopted the announcement of projects for the establishment of industrial cities. How far have these projects reached? After the issuance of the Industrial Cities Law No. 2 of 2019, the real work of establishing them began, followed by activating the role of the authorities during the second half of 2020, and then a directive from the Board of Directors represented by the Minister of Industry to resolve the issue of these cities, which were implemented according to the investment budgets allocated to the Ministry in the past and were not completed.

 

It was represented in several industrial cities in Anbar, Basra, Najaf and Dhi Qar, and the latter entered into operation after the completion of the first phase, which included 105 factories, 60% of which were distributed to beneficiaries in the governorate in coordination with the sectoral departments in it through joint committees with us.

 

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As for the Najaf Industrial City, it will be environmentally friendly in its activity, with a construction cost of up to 60 million dollars and a completion period of two years, and it will be implemented on an area of6,000 acres and with 20 different factories.

 

There are also factories for carpentry, aluminum, electricity pipes, water drainage, the production of cassettes (tiles) and blocks (concrete bricks), and a factory for the production of heat-insulated ceilings and pillars of concrete bridges. As for Basra Industrial City, it was granted a license to invest and went into effect at a cost of 15 billion and 400 million dinars ($10.5 million). .

 

It is hoped that it will witness the construction of 7 factories specialized in the production of asphalt, concrete, paving stones and other industries. With regard to Anbar Industrial City, we have completed the first phase of it, and the completion rate in the second phase has reached 95%, and it will be a model industrial city.

 

– What about the cities of Wasit for industry and Karbala for petrochemical industries?

 

We announced an industrial city in Karbala for the petrochemical and engineering industries on an area of 5,300 dunums, which it is hoped will provide 5,000 job opportunities. two other cities; The first is in Maysan, which we have completed all approvals, and the second is a food and pharmaceutical industrial city in Nineveh.

 

We have a project to establish an industrial city in Wasit on an area of 5,000 acres, which will contribute to providing 4,500 job opportunities for the people of the province in various industrial and commercial fields. suitable and stable, and its wealth in the fields of energy, agriculture, minerals, soil, as well as livestock.

 

We have industrial cities in other governorates waiting to be prepared after obtaining the financial allocations required to put them up as development contracts, and we receive investment requests from developers (investors or investment companies), and we expect to start reaping the fruits of these industrial cities in 2025.

 

– What are the state’s gains from these cities? Are the privileges granted to investors sufficient?

 

The industrial cities are vital projects to enhance the country’s economy in terms of supporting the local product, reducing its production costs, improving its quality and making it competitive with the importer, as well as limiting random import because the local product will be more desirable, and these investments will provide a lot of job opportunities that will reduce the rates of the unemployed. in the provinces.

 

These cities were implemented through the Ministry of Industry and managed by the resident engineer department in the ministry. Most of the beneficiaries are people from the same governorates, and we, in turn, have prepared the infrastructure for them to help them produce, in addition to many facilities that will increase their profits and reduce costs.

 

– How serious are the military industrial cities that have been recently leaked, and for whom?

 

Planned cities will not stop at the limits of civilian production. According to the economic feasibility study prepared by the ministry, the factories of these cities will produce the food, pharmaceutical, medical, construction and mechanical industries, and the work will generally be summarized in light and medium industries.

 

 

The projects of the industrial cities do not depend on these aspects. Rather, we have a request submitted by the Military Industrialization Authority to establish a city specialized in military industries on the land belonging to the Hittin factory in Babylon, which used to produce ammunition and mortars in the past, and we are working to be the first city specialized in military industries.

 

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– What about the joint industrial cities with Jordan, Egypt and other countries, and where will they be established?

 

We have completed the approvals for the Iraqi-Jordanian Economic City, which was agreed upon during the Iraq-Jordan Summit between former Prime Minister Adel Abdul-Mahdi and his Jordanian counterpart Omar Al-Razzaz in February 2019. Its area is 4800 dunums, half of it in Iraq and the other in Jordan, and working in it according to the Iraqi Council of Ministers Resolution No. 75 of 2019 concerning this city.

 

Cooperation took place between the Iraqi Industrial Cities Authority and the Iraqi-Jordanian Joint Company to study the technical and economic feasibility of the project after determining its requirements and estimated costs. It will be implemented under a joint administration and facilities will be provided for the private industries of the two countries. The Egyptian side has a desire to enter this area, but the issue as a first stage will be implemented in coordination between Baghdad and Amman.

 

The Ministry of Industry held a series of meetings last August to overcome all obstacles and facilitate all requirements for the implementation of the city project with Jordan, and the fact that the greatest benefit from this city is that it will allow Iraq to export its products to the European Union through Jordan by investing in a free trade agreement between the Kingdom and the Union, and also The city will provide more than 100,000 job opportunities equally between the two sides.

 

– There are requests from neighboring countries to establish joint industrial cities.. Please shed light on them? What are the main obstacles in this regard?

 

All neighboring countries have a desire to establish industrial cities with Iraq, and we have received invitations and official requests in this regard from Saudi Arabia, Kuwait, Turkey, Iran and Syria.

 

Frankly, what hinders implementation is an Iraqi problem related to deciding the allocation of the required land for each industrial city because of the bureaucratic procedures, and currently we are communicating with the provinces that have borders with those countries to end the matter.\   LINK

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