Former banker Ali Al Zaidi tapped as Iraq’s new prime minister

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Iraq now has a businessman and former banker running its government after Iraqi President Nizar Amede tapped Ali Al Zaidi as the country’s new prime minister earlier this week. Al Zaidi — who was nominated by the country’s majority Shia faction, the Coordination Framework — is now tasked with forming a new cabinet within 30 days that must also land a vote of confidence from nearly half of the 329-seat parliament.

The appointment comes as Washington has been ratcheting up pressure on Baghdad to form a new government, with that pressure taking different forms in the past several months. Iraq’s outgoing prime minister, Mohammed Shia Al Sudani, failed to secure parliament backing for a second term, while former prime minister Nour Al Maliki withdrew from the race after US President Donald Trump threatened to withdraw US support for Iraq if Al Maliki took the position. Al Zaidi is considered a politically neutral choice, particularly as he has no political background.

Egypt, Turkey angle for more of Hormuz disruption tailwinds: Turkey and Egypt are reportedly working on plans to invest in oil storage and logistics projects, as interest builds up in projects that can help GCC-based oil producers hedge against Hormuz closure. Egypt — already leveraging existing oil storage infrastructure on the Red Sea — is reportedly moving to build a USD 600 mn integrated petroleum logistics zone at Alexandria Port. Turkey, meanwhile, said it will roll out a multi-year development to quadruple oil storage capacity at Ceyhan Port to reach 45 mn barrels by 2031.

BACKGROUND- Egypt has around 29 mn barrels of storage across its main ports — a figure that positions it as a viable option for traders looking for optionality and a strategic location.

More details on Turkey’s anticipated tax incentives package: Transit trade and Turkish services exports — including gaming, software, and medical tourism — are set to get 100%corporate tax exemptions under a new package the government is rolling out to boost competitiveness and attract foreign capital, Finance Minister Mehmet Simsek said at a presser on Monday. Other incentives that Turkey previously said would be included in the package include extending tax benefits to foreign firms that set up offices in the Istanbul Financial Center, and reducing taxes for export manufacturers to 9% from 20%,

The new details showcase the level of ambition Turkey has as it pushes its “safe haven”pitch to investors, particularly while the conflict in the region undermines other hubs in the region, like Dubai and Doha.

Sign of the times

Gulf-backed transactions worth USD 106 bn across North America and Europe are currently in limbo as the war forces investors in the region to revisit their strategies, according to Pitchbook data cited by the Financial Times. Rising defense spending and energy risks are pushing governments to prioritize domestic investment over assets like VC or entertainment, says Oxford’s Ana Nacvalovaite. Still, high-profile transactions like the USD 110 bn Paramount-Skydance and the USD 55 bn Electronic Arts takeovers reportedly remain on track.

IN CONTEXT- Six of the world’s 10 largest SWFs are based in our part of the world, controlling nearly USD 5 tn in assets. Even marginal shifts in their allocation can filter through to global M&A pipelines that depend on their anchor investments.