Iraq and the United Kingdom have entered into a series of agreements totaling $15 billion, marking a significant step in enhancing their trade partnership. The agreements, announced after a meeting in London between British Prime Minister Keir Starmer and Iraqi Prime Minister Mohammed Shia Al-Sudani, represent over ten times the value of last year’s bilateral trade between the two nations.
Key elements of the deal include:
- Energy Infrastructure: A $1.46 billion project to integrate UK-made power transmission systems into the grid interconnection between Iraq and Saudi Arabia.
- Water Projects: A UK-led consortium will export $6.61 billion in goods and services to develop water infrastructure, including large-scale desalination and water processing plants in Basra province to serve three million Iraqis.
- Urban Development: A British company will undertake the Hilla Phase 2 project, focusing on sewage and water processing for three million residents, generating exports worth $324 million.
- Telecom Innovation: Vodafone will design Iraq’s new 5G network, a $508 million initiative spanning 20 years.
- Border Security: The UK will supply $82 million in advanced security equipment to enhance Iraq’s border crossings, checkpoints, and airport safety.
Additionally, the UK will support Iraq in establishing a strategic investment fund, the Iraq Fund for Development, aimed at driving socio-economic infrastructure development and attracting private investment.
During the meeting, both leaders highlighted the urgency of addressing climate and environmental issues, with Iraq committing to end associated gas flaring by 2028.
In related developments, British oil giant BP finalized terms with the Iraqi government to redevelop the Kirkuk oil and gas fields, while UK contractor John Wood Group secured a $46 million contract in mid-2024 from TotalEnergies for a gas development project in southern Iraq.
These agreements underscore the deepening economic collaboration between Iraq and the UK, paving the way for mutual growth and development.
