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Iraq PM risks new crisis as tensions with Kurds resurface


After more than a year of political deadlock, Iraqi Prime Minister Mohammed Shia al-Sudani could face a debilitating new crisis with Kurdish leaders that risks undermining his efforts to set policy and compile a badly needed state budget.

Sudani, whose government was approved in October, has vowed to reform the economy, fight corruption, improve deteriorating public services and combat poverty and unemployment — tall orders in a country that has been craving stability and cash since the 2003 US-led invasion.

Without support from the powerful Kurdish Democratic Party (KDP) which helped him come to power and holds 31 seats in parliament, he would find it difficult to advance his agenda.

The central government's strained relations with the Kurds — often part of Iraq's political landscape since Saddam Hussein was toppled in the 2003 invasion — could hamper Sudani's efforts after a long period of paralysis.

The KDP may withdraw its support for the federal government if he fails to fulfil his promises to fix long-standing disputes between Erbil and Baghdad, according to two Iraqi lawmakers and a Kurdish government official.

That could leave him struggling to pass bills in parliament and enact reforms.

Before Sudani formed his government he struck a deal with the KDP, which dominates the administration in Erbil, capital of the semi-autonomous region in northern Iraq.

The agreement included ending a long-running dispute over budget transfers to Erbil and oil revenue sharing between the national government and Kurdistan, according to three Kurdish officials.

Under the Iraqi constitution, the Kurdish region is entitled to a portion of the national budget. But the arrangement collapsed in 2014 when the Kurds began selling crude independently from Kurdistan.

In 2017, Iraqi forces retook disputed territories including the oil city of Kirkuk. Baghdad resumed some budget payments, but they have been sporadic.

The KDP made it clear that they would stop supporting Sudani if he didn't keep his promises, according to one of the Kurdish officials.

Sudani came to power after more than a year of political deadlock as infighting among Shia and Kurdish groups prevented the formation of a government, hampering efforts to rebuild a country on its knees after decades of conflict.

The paralysis left Iraq without a budget for 2022 holding up spending on much-needed infrastructure projects and economic reform and depriving Kurdish authorities of revenues needed to pay international oil firms and the salaries of thousands of local workers.

A KDP official said after the government was formed last year that the Kurds wanted to end the deadlock, which was why they supported Sudani's government, but that if the other side failed to deliver they would withdraw that support.

“There are some political forces that are trying to break our will and we reject this and won't allow it,” said Shawan Taha, a KDP spokesman.

Carrot and stick approach

In January, the Iraqi Federal Supreme Court ruled that orders from the Baghdad government to transfer money to the Kurdistan Regional Government (KRG) to pay salaries in 2021 and 2022 were illegal because they broke Iraq's budget law.

Massoud Barzani, president of the ruling KDP, said the court has taken a “hostile position” against the region and “seems to have replaced the revolutionary court in the previous regime”, referring to an infamous court of the Baathist regime known for issuing death sentences against regime opponents.

A spokesman for the KRG, Jotiar Adil, said the “politically motivated” court was trying to spoil the deal between Erbil and Baghdad.

A KRG delegation was in Baghdad on Monday to discuss the budget as well as hydrocarbon laws. A source with knowledge of the meetings said Erbil and Baghdad remained far apart on the hydrocarbon law.

According to an adviser, who spoke on condition of anonymity, Sudani has tasked the cabinet's legal team with finding a solution to allow salary transfers without breaching the court verdict.

Other political actors in Sudani’s camp in Baghdad see escalation with the Kurds by using such court rulings as a necessary political tactic to put him in a stronger negotiating position, according to lawmakers.

But the KRG's Adil was still hopeful that a compromise could be agreed on. He said the KRG delegation would be in Baghdad again on Sunday, and he denied that the KDP was threatening to withdraw its support for the government in Baghdad.

“There are obstacles in reaching an agreement with Baghdad. But there is a serious and real intention to reach an agreement from the KRG, and we felt the seriousness as well from Sudani to solve those obstacles,” he said.

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Saudi Fund for Development Celebrates 50 Years of Global Impact with Over $20 Billion in Development Contributions

The Saudi Fund for Development (SFD) celebrated its 50th anniversary in Riyadh today, under
the theme “50 Years of Global Impact.”The event brought together key development partners to
reflect on the SFD’s significant contributions to sustainable development worldwide. Over the
past five decades, the SFD has allocated over $20 billion, financing more than 800 development
projects and programs in vital sectors, including social infrastructure (education, healthcare,
water and sewage, and housing and urban development), communication and transportation
(roads, railways, airports and seaports), energy, agriculture, mining and industry, and others.
Since its inception in 1974, the SFD has been the international development arm of the Kingdom
of Saudi Arabia and has provided critical support to over 100 developing nations around the
world. With a strong focus on supporting countries to achieve the Sustainable Development
Goals (SDGs), the SFD has played a pivotal role in driving sustainable development in Least
Developed Countries (LDCs) and Small Island Developing States (SIDS).
During the event, SFD Chairman H.E. Ahmed Al-Khateeb emphasized the importance of
collaboration in driving global development. He highlighted that SFD’s success is deeply rooted
in its partnerships, with 27 development projects and programs in 23 developing countries in
2023 co-financed with other funders. He also underscored the need to forge new partnerships and
strengthen existing ones to create a world where every individual has the opportunity to reach
their full potential.
Reflecting on this significant milestone, the SFD CEO , Mr. Sultan bin Abdulrahman Al-
Marshad, stated: “As we celebrate five decades of impactful work, we are committed, now more
than ever, to supporting developing countries on their journey to economic self-reliance and
resilience. Our goal is to ensure that all children can go to school, that education is not a
privilege but something every child should have access to, and that families have access to
healthcare and basic vital services. Equally, we focus on critical infrastructure development, like
building roads and enhancing airports and sea ports, so that countries can thrive and engage in
economic activities and trade. This work is not just about financing; it’s about tangibly
improving lives, creating opportunities, empowering communities, and building a more
prosperous future.”
On the sidelines of the 50 th Anniversary Gala, the SFD and the Asian Development Bank (ADB)
signed a new $25 million agreement to co-finance a renewable energy development project in the
Solomon Islands. This marks the first project for SFD in the Solomon Islands. The primary aim

of the project is to develop renewable energy infrastructure, reduce dependency on fossil fuels,
and promote sustainable development in the region.
This agreement builds on SFD’50 years of transformative impact through development projects
that have spanned Africa, Asia and the Pacific, Latin America and the Caribbean, and Eastern
Europe.
This includes key projects such as the Metolong Dam in Lesotho, which received $25 million in
funding and now provides potable water to 280,000 people, enhancing water security and public
hygiene and health in the region. This is just one of the 433 projects across Africa, with a total
funding of $11.5 billion, which focuses on critical areas such as infrastructure and water security.
In Asia, the SFD has funded 271 projects with a total funding of $7.8 billion. One notable
example is the SFD’s contribution to the Mohmand Dam Hydropower Project in Pakistan, which
has an overall project cost of $240 million. The projects contributes to the country’s energy
security and flood resilience by generating 800 megawatts of renewable energy and storing 1.6
million cubic meters of water.
In Latin America and the Caribbean, the SFD has financed 21 projects, totaling $951 million
USD. This includes rehabilitating the Water and Sewage System in Havana, Cuba, where the
SFD has allocated $35 million to enhance public infrastructure. Another significant initiative is
the rebuilding of St. Jude Hospital in Saint Lucia, supported by $75 million funding, which will
contribute to providing high-quality health services to citizens in a modern and sophisticated
facility and providing sufficient medical supplies and equipment to support the effective
operation of the hospital.
In Eastern Europe, the SFD has contributed to 14 projects with a total investment of $303
million. A key initiative is the construction of the Tirana-Elbasan-Chokos-Chalf-Ploce Road,
where the SFD provided $73.8 million to rebuild essential roads and bridges, thereby boosting
regional economic activities.
During the celebration, esteemed speakers shared insights on the SFD’s pivotal role in global
development, and in championing critical partnerships and collective action and response.
Keynote speakers included:

 HRH Prince Turki bin Faisal Al Saud, Founder and Trustee of the King Faisal
Foundation
 H.E. Ahmed bin Aqeel Al-Khateeb, Chairman of the Board of Directors of the SFD
 H.E. Akinwumi Adesina, President of the African Development Bank Group
 H.E. Muhammad Al Jasser, Chairman of the Islamic Development Bank

These global development leaders emphasized the SFD’s commitment to fostering sustainable
growth in countries and communities with the most pressing developmental needs. The gala was attended by more than 500 people, including ministers, heads of regional and international organizations, ambassadors, representatives of the United and other distinguished
guests. As the SFD looks to the future, it reaffirms its mission and pledge to drive international
development efforts, on behalf of the Kingdom of Saudi Arabia, and to contribute to global
stability, social progress, and economic prosperity for future generations.

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Jordan warns of escalation in southern Lebanon

Jordan warned on Sunday of the increasing escalation in southern Lebanon and a potential regional war in light of the ongoing Israeli aggression in Gaza, Jordan News Agency (Petra) reported.

Foreign Ministry spokesperson Sufian Qudah discussed supporting Lebanon, its security, stability and the safety of its people and institutions, noting the need to adhere to Security Council Resolution 1701 to reduce and prevent further escalation and protect the region from the risk of slipping into a regional war.

Qudah added that the Israeli war on Gaza and the failure to reach an exchange agreement that leads to an immediate and permanent ceasefire puts the entire region at risk of the conflict expanding.

He discussed launching an effective international movement that imposes an immediate cessation of the aggression on Gaza.

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China issues guidelines for coordinated digital, green transformation

China’s Office of the Central Cyberspace Affairs Commission and nine central departments have issued new guidelines for the coordinated transformation toward digital development and green growth, Xinhua News Agency reported.

Published on Saturday, the guidelines focus on two main areas: promoting the green, low-carbon development of digital industries and accelerating the green transformation of various sectors through digital technology.

They aim to accelerate the coordinated transformation toward digital development and green growth, promote the integration of emerging technologies with green, low-carbon industries, and enhance traditional industries using digital and green technologies.

Outlining fundamental principles, the guidelines specify the roles of authorities, industry associations, universities, research institutes and businesses in driving this transition.

They provide a three-part framework covering the basic capacity, technological systems and industrial systems for digital-green integration.

Regions are encouraged to focus on high-quality development, develop new quality productive forces, leverage local resources and create specialized industries and functional advantages to accelerate coordinated digital and green development.

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