Economic experts: Obstructing oil supplies threatens the Iraqi government with “inability” to pay expenses
[You must be registered and logged in to see this image.]
2024-01-19 13:32
Share
Font
Shafaq News/ Geopolitical tensions and continuing unrest in the Middle East, with the Yemeni Houthi movement continuing to attack oil tankers in the Red Sea region, threaten the Iraqi economy, which depends on oil in the process of financing public expenditures, at a time when Iraq has turned into an investment-repulsive environment despite the urgent need for it to move the wheel. Economic decline as a result of the escalation between the armed factions, the United States of America, and Iran inside the country, according to specialists.
The Iraqi Oil Minister, Hayyan Abdul-Ghani, confirmed yesterday, Thursday, that Iraq's oil exports were not affected by the recent attacks on ships in the Red Sea.
Abdul Ghani said in statements on the sidelines of the World Economic Forum in Davos, reported by Reuters, that about 90 percent of Iraq's oil exports go to Asia and therefore do not need to pass through the Red Sea.
The volume of Iraqi revenues in the federal budget during 11 months exceeded 121 trillion dinars, according to what the Ministry of Finance revealed the day before yesterday, Wednesday, confirming that the oil contribution to the budget had risen to 93%.
Shafaq News Agency followed the data and tables issued by the Ministry of Finance this January, for the 11-month accounts of the last fiscal year, which showed that oil is still the main resource for Iraq’s general budget, reaching 93%, which indicates that the rentier economy is the basis for the budget. General countries.
The flows are continuous
Iraq's oil trade balance is mainly concentrated with Asian countries, at a rate of more than 75% of the country's oil exports. Export lines to Iraq and all countries of the Gulf region, whose oil trade is linked to Asia, and at a rate of 90% of their oil exports, flow to the East and South Asia region, are still stable, according to the financial advisor. To the Iraqi Prime Minister, Mazhar Mohammed Saleh.
Saleh added in an interview with Shafaq News Agency, “These flows are matched at the same time by import flows that are also still stable until the moment, and these are commercial flows that are mostly outside the current high-risk maritime threat areas.”
He continues, "However, this does not prevent the relative impact on the fluctuation of insurance and maritime freight costs, which witnessed record highs directly and indirectly linked to the security tensions taking place in Bab al-Mandab due to the war on Gaza."
He explains, "Note that Iraq enjoys high commercial flexibility because it is surrounded by a wide regional group with views of the diverse maritime trade communication areas with neighboring countries."
He continues, "The country's necessary stocks of foodstuffs and essential and durable goods are in an ideal and reassuring situation in our country, and the country's capabilities in financing foreign trade cover approximately 15 months of imports, which expresses the strength and efficiency of Iraq's foreign reserves, which is the basis of strategic hedging that strengthens its position." Our country is free from any potential trade risks due to the geopolitical situation and its possibilities.”
The Houthi attacks in Yemen on ships in the Red Sea forced many companies to divert sailing away from the Red Sea and pass through the Cape of Good Hope route around Africa, which increased the time and costs of trips.
The attacks launched by the Houthis, which they say are in support of the Palestinians, target a route that represents about 15 percent of global shipping traffic and serves as a vital channel between Europe and Asia.
Lack of dollar revenues from oil
Exporting oil via ships affects the Iraqi economy because it depends on oil in the process of financing the government’s public expenditures, according to the economic researcher, Ali Abdul Kadhim. He notes that if the process of transporting oil via ships becomes bad or difficult, this will negatively affect oil exports, leading to There will be a decrease in dollar revenues from oil, and this will be reflected in the general budget and its deficit will increase further.”
Abdul Kadhim points out during his talk to Shafaq News Agency, “The two countries that import Iraqi oil the most are China and India, so oil revenues will be affected, and then the Iraqi government will not be able to pay the budget expenses.”
Regarding the incident of Iran detaining a commercial ship flying the Tanzanian flag inside Iraqi waters, he explains that “these incidents affect the Iraqi economy, as this tanker was carrying oil from Basra.”
He stresses the need for "Iran to intervene to resolve this current crisis, as Iraq is the best market for its products, and that the continuation of the unrest will harm its economic sector, especially if the Iraqi private sector and merchants turn to other countries to import from."
Investment-repellent environment
For his part, economic researcher, Omar Al-Halbousi, says, “The security situation that Iraq is witnessing, including an escalation between armed factions, the United States of America, and Iran inside Iraq, is negatively affecting the economy and turning it into an environment that is replete with foreign and even national capital.”
Al-Halbousi explained in an interview with Shafaq News Agency, “Attracting investment requires security stability, but this escalation leads to investors being reluctant to enter Iraq or completely refraining from investing at a time when the country is in dire need of attracting foreign investors to move the economic wheel.”
He continues, "The security escalation between the factions, America, and Iran comes in conjunction with the Baghdad International Fair, which witnessed an important international presence, and it is an intended escalation as a message to the international companies participating in the fair not to come and invest in Iraq."
He added, "Especially since the exhibition was the best among its previous sessions in terms of organization, international participation, and public attendance, but there are countries that want Iraq to remain a market for selling their goods and not move the wheel of investment in it."
He notes that "these attacks inflict great economic losses on Iraq due to the loss of current and future investment opportunities, as the process of attracting investments is complex and difficult in light of an unstable security situation, which makes Iraq lose the most important economic element that it needs."
Yesterday at 4:55 pm by Rocky
» utube 5/9/24 MM&C 0:02 / 46:46 PM - Al-Sudani - Golden Opportunity - Private Sector - Contra
Yesterday at 9:38 am by Rocky
» A leader in the National Bank: We are committed to the federal decision and to postpone the election
Yesterday at 9:28 am by Rocky
» Al-Hakim: Iraq's future cannot be mortgaged to volatile oil prices
Yesterday at 9:24 am by Rocky
» The conflict of the corridors: the path to development from a historical perspective and the door to
Yesterday at 9:22 am by Rocky
» The Kurdistan Region demands that the federal government spend 1.1 billion dinars.. What is the reas
Yesterday at 9:21 am by Rocky
» Tomorrow, Iraq is preparing to launch a complementary round of gas licensing
Yesterday at 9:19 am by Rocky
» A government move to restore the funds of the Trade Bank of Iraq
Yesterday at 9:17 am by Rocky
» The Central Bank informs France of plans to restructure the banking sector
Yesterday at 9:15 am by Rocky
» A government advisor reveals the fate of the budget tables
Yesterday at 9:13 am by Rocky
» Iranian mediation between Baghdad and Erbil... Revealing the most prominent files of Raisi’s visit t
Yesterday at 9:10 am by Rocky
» Reconstruction and development is a priority.. A parliamentary committee follows up and monitors gov
Yesterday at 9:08 am by Rocky
» Al-Hakim comments on the agreements concluded with Türkiye and confirms: Iraq is on the right path
Yesterday at 9:06 am by Rocky
» Tomorrow... Iraq takes a step that will give it gas equivalent to 200% of imported Iranian gas
Yesterday at 9:04 am by Rocky
» A long and disturbing message.. The Iraqi government “blames” the United Nations because of “other p
Yesterday at 9:00 am by Rocky
» The Governor of the Central Bank and the French Ambassador discuss developments in the banking secto
Yesterday at 5:18 am by Rocky
» Al-Bajari: Iraqi companies will have a great opportunity to work after opening the door to investmen
Yesterday at 5:16 am by Rocky
» Transparency: Imports from Sulaymaniyah and Halabja during the past week amounted to more than 10 bi
Yesterday at 5:13 am by Rocky
» Al-Sudani: The delayed projects left great damage to the level of services in Babylon
Yesterday at 5:12 am by Rocky
» Economist: The fluctuation of the dollar is “the balance of speculators”
Yesterday at 5:10 am by Rocky
» {Al-Furat News} publishes the text of Al-Sudani’s request to Guterres to end UNAMI’s work in Iraq
Yesterday at 5:08 am by Rocky
» A former MP accuses Türkiye of transferring its conflict with the workers to Iraq
Yesterday at 5:05 am by Rocky
» A call to the Sudanese to remove American forces from Iraq
Yesterday at 5:03 am by Rocky
» Oil Parliament: Ankara holds Erbil responsible for the oil fines it owes
Yesterday at 5:02 am by Rocky
» The government is silent...the reality of removing American forces from Iraq
Yesterday at 5:01 am by Rocky
» The radiation protection law in the first session of the next legislative term
Yesterday at 5:00 am by Rocky
» A Spanish company raises controversy and a representative reveals a parliamentary movement against i
Yesterday at 4:59 am by Rocky
» Sudanese officially requests the end of the United Nations mission in Iraq / documents
Yesterday at 4:58 am by Rocky
» Because its sessions were not held, the Kirkuk Council faces a judicial complaint, and its members d
Yesterday at 4:56 am by Rocky
» Former US Chief of Staff: We slaughtered huge numbers of innocent people in Iraq and other countries
Yesterday at 4:55 am by Rocky
» The Association of Private Banks counts the percentage of shares traded on the stock market during a
Yesterday at 4:53 am by Rocky
» The European Union and Iraq agree to increase cooperation between them
Yesterday at 4:52 am by Rocky
» American Bank: Expectations to increase Iraq’s oil capacity in 2025
Yesterday at 4:50 am by Rocky
» Central Bank Governor to the French Ambassador: The plan to restructure government banks will change
Yesterday at 4:48 am by Rocky
» Integrity confirms working to conclude a memorandum of understanding with the Kuwaiti Anti-Corruptio
Yesterday at 4:47 am by Rocky
» Highlights of the Prime Minister's visit to Babylon
Yesterday at 4:46 am by Rocky
» The Minister of Transport discusses with a Turkish delegation the latest developments in the develop
Yesterday at 4:44 am by Rocky
» Free of charge.. Issuing approximately 13 thousand unified cards for those covered by social protect
Yesterday at 4:42 am by Rocky
» A parliamentary committee advises the government to deter trespassers: Slums are one of the reasons
Yesterday at 4:41 am by Rocky
» Embassy Protection confirms to “Baghdad Today”: The missions are safe and we have taken proactive me
Yesterday at 4:38 am by Rocky
» Water resources resolve the controversy of the “Wadi Al-Tea” project.. It will nourish the Hamrin ic
Yesterday at 4:37 am by Rocky
» After approving the National Security Strategy...a parliamentary movement to host “responsible” figu
Yesterday at 4:36 am by Rocky
» Al-Hakim calls for the distribution of plots of land to the families of the martyrs of the Popular M
Yesterday at 4:34 am by Rocky
» Order 160 Committee completes the “port scandals” papers... and searches for a legal outlet for impl
Yesterday at 4:33 am by Rocky
» It revealed the details of its contract with four companies to complete the census requirements... P
Yesterday at 4:31 am by Rocky
» Egypt, Morocco and Qatar praise the Iraqi Integrity proposal to establish the Arab Law Enforcement C
Yesterday at 4:30 am by Rocky
» The Iraqi Parliament enters its legislative recess and requires holding an “extraordinary” session o
Yesterday at 4:28 am by Rocky
» The Sudanese has not rested since the morning.. He carried out 12 activities and allocated a trillio
Yesterday at 4:27 am by Rocky
» Blinken's agent: Erbil is a strategic ally of Washington in a 360-degree relationship
Yesterday at 4:25 am by Rocky
» Oil seeks to convert refinery products to “Euro 5”... high quality and environmentally friendly
Yesterday at 4:24 am by Rocky
» A leader in the framework: There is no need for early elections...the “legislative” elections will t
Yesterday at 4:23 am by Rocky
» Parliament decides to extend its legislative term by 30 days
Yesterday at 4:22 am by Rocky
» Iraq has the tenth worst economic growth in the world during the last 5 years
Yesterday at 4:19 am by Rocky
» Al-Hakim: The future cannot be mortgaged to volatile oil prices
Yesterday at 4:17 am by Rocky
» It will change the reality of Iraqi banks.. Al-Alaq reveals a plan that enjoys Sudanese support
Yesterday at 4:15 am by Rocky
» MM&C 5/9/24 The Federation of Chambers of Commerce and the European Union discuss cooperation to fin
Thu 09 May 2024, 9:27 am by Rocky
» MM&C 5/9/24 Customs, security and economic aspects
Thu 09 May 2024, 9:24 am by Rocky
» Union of Arab Banks: Iraq's environment encourages investment
Thu 09 May 2024, 6:57 am by Rocky
» Government advisor: Movement to recover bad debts for the benefit of the Iraqi Trade Bank
Thu 09 May 2024, 6:55 am by Rocky
» The International Development Bank announces the opening of its new branch in Erbil
Thu 09 May 2024, 6:52 am by Rocky
» Oil seeks to convert refinery products to “Euro 5”... high quality and environmentally friendly
Thu 09 May 2024, 6:50 am by Rocky
» Budget delay: the cry for help for paralyzed services and disrupted dreams
Thu 09 May 2024, 6:47 am by Rocky
» Oil: Completion of projects to improve the quality of petroleum products, and others are under imple
Thu 09 May 2024, 6:44 am by Rocky
» Chairman of the Securities Commission: 3 million shares, average daily trading volume
Thu 09 May 2024, 6:43 am by Rocky
» Tamim calls on the countries participating in the meetings of the Arab Administrative Development Or
Thu 09 May 2024, 6:41 am by Rocky
» Parliamentary Endowments: 39 thousand pilgrims, Iraq’s share, and waiving the religious obligation i
Thu 09 May 2024, 6:39 am by Rocky
» Washington refers to Iraqi legislation that “does not harm” his international presence, and Baghdad
Thu 09 May 2024, 6:34 am by Rocky
» Deputy: Extending the legislative term depends on sending the budget schedules
Thu 09 May 2024, 6:30 am by Rocky
» Parliamentary Legal: 88 draft laws on the parliamentary shelf
Thu 09 May 2024, 6:29 am by Rocky
» The head of the movement denies any Iraqi-American negotiations to remove the coalition
Thu 09 May 2024, 5:23 am by Rocky
» A deputy expects to resolve the issue of electing the Speaker of Parliament next week
Thu 09 May 2024, 5:22 am by Rocky
» Obtaining the approval of the Minister of Electricity to fill the energy shortage in Dhi Qar
Thu 09 May 2024, 5:21 am by Rocky
» Economist on the decline in dollar prices: My time and it will not reach its official price
Thu 09 May 2024, 5:20 am by Rocky
» The Iraqi Ministerial Council for National Security approves the 2024-2028 strategy
Thu 09 May 2024, 5:18 am by Rocky
» Mulla Bakhtiar: Nechirvan Barzani's visit to Iran melted the ice between Erbil and Tehran
Thu 09 May 2024, 5:17 am by Rocky
» Password "78"... Why did the Sudanese government's interrogations and noisy sessions decline?
Thu 09 May 2024, 5:16 am by Rocky
» JP Morgan forecasts an increase in the oil capacity of Iraq and other countries in 2025
Thu 09 May 2024, 5:15 am by Rocky
» Turkish Minister of Transport: The development road will cost $20 billion
Thu 09 May 2024, 5:13 am by Rocky
» The Supreme Committee for Reconstruction and Investment approves a package of strategic projects
Thu 09 May 2024, 5:12 am by Rocky
» Work: Preparing a unified national strategy to create job opportunities for youth
Thu 09 May 2024, 5:11 am by Rocky
» The Prime Minister's financial advisor reduces the risks of the budget deficit
Thu 09 May 2024, 5:10 am by Rocky
» Sudanese announces the signing of an agreement with Japan to finance small and medium enterprises in
Thu 09 May 2024, 5:09 am by Rocky
» Government Advisor: The Securities Commission represents the governance base for promoting financial
Thu 09 May 2024, 5:08 am by Rocky
» A unified national strategy to create job opportunities for youth
Thu 09 May 2024, 5:07 am by Rocky
» A one-week deadline to decide the position of Speaker of Parliament
Thu 09 May 2024, 5:06 am by Rocky
» Parliament: We coordinate with the competent regulatory authorities to examine medicines
Thu 09 May 2024, 5:04 am by Rocky
» The Commission suspends the Kurdistan Parliament's voting procedures
Thu 09 May 2024, 5:03 am by Rocky
» $100 million to localize the pharmaceutical industry
Thu 09 May 2024, 5:01 am by Rocky
» Increase in external remittances at the Central Bank
Thu 09 May 2024, 5:00 am by Rocky
» A government advisor reduces the risks of a budget deficit
Thu 09 May 2024, 4:54 am by Rocky
» Culture: We seek to invest in the stability of the country to advance the tourism sector
Thu 09 May 2024, 4:53 am by Rocky
» Integrity announces the results of a questionnaire on bribery in real estate registration department
Thu 09 May 2024, 4:50 am by Rocky
» Parliament comments on Sudanese plan to restructure the government apparatus: It needs radical refor
Thu 09 May 2024, 4:49 am by Rocky
» The dollar rises again against the Iraqi dinar in Baghdad
Thu 09 May 2024, 4:45 am by Rocky
» Politician: The government does not deal transparently with the issue of expelling the Americans
Thu 09 May 2024, 4:43 am by Rocky
» A government bank participating in an accounting project
Thu 09 May 2024, 4:42 am by Rocky
» Masrour Barzani: The Kurdistan Regional Government has implemented all its obligations and duties
Thu 09 May 2024, 4:41 am by Rocky
» French Consul: France strengthens relations with the Kurdistan Region
Thu 09 May 2024, 4:39 am by Rocky
» Studies Center: Sudanese faces the challenges of maintaining sustainable relations with the United S
Thu 09 May 2024, 4:38 am by Rocky