Iraq and Saudi Arabia rebuild energy ties as oil minister pitches joint projects in Riyadh

Baghdad and Riyadh are back on speaking terms: Iraqi Oil Minister Bassem Al Abadi was in Riyadh on Friday pitching joint gas, power, and electricity projects, Iraqi daily Shafaq reports. Both sides agreed to “high-level coordination” and to explore joint projects, Al Abadi said.

This is the highest-profile Iraqi visit to the kingdom since Prime Minister Ali Al Zaidi called off his trip in late July over joint US-Saudi airstrikes on Iran-aligned PMF sites. Foreign Minister Fuad Hussein and his Saudi counterpart Prince Faisal bin Farhan spoke by phone earlier in the week to push de-escalation, Shafaq reports separately — with Riyadh renewing its invitation to Al Zaidi.

IN CONTEXT- Iraq needs all the investment partners it can get to achieve its self-proclaimed target of doubling oil production from some 4.5 mn bbl / d to 8-10 mn bbl / d.

Oman has a freezone pitch for its AI plans

Oman is establishing its first AI-focused special economic zone near Muscat International Airport, targeting OMR 106 mn (USD 275 mn) in investment across three phases, the Oman Observer reports. The zone will be developed and operated by Afouq Investment and Development United, and is planning to feature business incubators and accelerators, automation hubs, robotics labs, a data center, and cloud computing infrastructure.

What we know: Construction on phase 1 of the 104k sqm project is scheduled to begin in 4Q 2027. In the meantime, Afouq is in discussions with international tech firms — including IBM and Microsoft — as well as global universities to establish a specialized AI-focused university within the zone.

The question now is whether Oman has the right system in place to bring in the needed players to jumpstart its AI ecosystem, as it works on expanding the digital economy’s contribution to GDP to approximately 10% by 2040 (up from roughly 2% in 2021). The zone is planning to allow 100% foreign ownership and offer full tax exemption and streamlined corporate setup incentives — all usually solid pulls for foreign investors.

CEPA loading

Egypt and Qatar will begin negotiations in October on a Comprehensive Economic Partnership Agreement (CEPA), according to a Foreign Ministry statement. Cooperation on joint investments in African markets alongside Egyptian companies and the Sovereign Fund of Egypt was also under consideration at the seventh meeting of the Egypt-Qatar Joint Higher Committee in New Alamein in Egypt.

Solid partners already: Egypt-Qatar trade rose 10% to USD 72.4 mn in the first five months of 2026 compared to the same period last year. The planned talks follow the launch of the first phase of Qatari Diar’s Alam El Roum development on Egypt’s North Coast earlier this month. The first phase is expected to involve up to EGP 220 bn in investment across 4 mn sqm, while the wider project is expected to attract USD 29.7 bn and has initial deliveries targeted for 2030.