Prime Ministers Keir Starmer of the United Kingdom and Mohammed S. Al-Sudani of Iraq have unveiled an ambitious £12.3 billion ($15 billion) trade and investment package, aimed at strengthening economic ties and driving prosperity between the two nations. This historic agreement is a testament to the growing collaboration between the UK and Iraq, marking a tenfold increase in trade compared to the previous year.
The comprehensive package focuses on several strategic sectors, including infrastructure, water, energy, and telecommunications, with key projects designed to support Iraq’s long-term development and industrial growth.
Key Projects Announced:
- De-mining Operations: A £330 million project, led by the UK, to remove legacy mines across Iraq.
- Al-Qayyarah Airbase Rehabilitation: £500 million allocated to enhance Iraq’s air defence capabilities by upgrading the Al-Qayyarah airbase.
- Water Infrastructure:
- Comprehensive Water Project: £5.3 billion to improve water access and irrigation in Southern and Western Iraq.
- Basra Desalination Project: £3.3 billion for clean water infrastructure that will benefit 3 million residents in Basra.
- Power Grid Enhancements:
- Iraq-Saudi Grid Interconnection: £1.2 billion to connect Iraq’s power grid with Saudi Arabia.
- National Grid Upgrades: £82 million to improve Iraq’s electricity grid, with GE Vernova leading the project.
- Telecommunications:
- 5G Rollout: Vodafone will oversee the development of Iraq’s 5G network in a project worth £410 million over 20 years.
- Railway and Sanitation:
- Railway Construction: £82 million allocated for the construction of a new railway in Iraq.
- Sewage and Water Processing: £260 million for sewage and water processing in Hilla, and £655 million for similar projects in Baghdad.
- Emergency Services and Border Security:
- Firefighting Vehicles: £27.5 million for 62 UK-made firefighting vehicles.
- Radio Communications: £98 million to enhance radio communication systems for Iraqi emergency services.
- Border Security: £66.5 million for advanced border security technology.
In addition to these projects, the UK will support the establishment of Iraq’s Iraq Fund for Development (IFD), a strategic investment fund designed to attract private capital to fund vital socio-economic infrastructure projects across the country.
Defence and Security Cooperation
The UK and Iraq reaffirmed their strong defence and security ties, marking over a decade of collaboration within the Global Coalition to defeat ISIS. Both Prime Ministers signed a Joint Statement on their Strategic Bilateral Defence Relationship, which outlines new opportunities for military education exchange, advisory support, and enhanced security cooperation.
Migration and Border Security
In an effort to combat irregular migration and organized crime, the two leaders committed to improving border security and enhancing law enforcement cooperation. The UK will provide Iraq with advanced technologies and training programs to strengthen border security, aiming to disrupt people-smuggling operations and safeguard both nations’ borders.
Cultural and Educational Ties
The importance of educational and cultural exchange was emphasized during the meeting. Iraq announced a significant scholarship program that will enable over 2,000 Iraqi students to study in the UK. Both nations are also working on increasing collaborations between universities, promoting high-quality research, and enhancing the teaching of English.
Women, Peace, and Security
The two Prime Ministers committed to furthering Iraq’s efforts to support women’s empowerment and ensure justice for survivors of conflict-related sexual violence. They discussed Iraq’s upcoming third National Action Plan on Women, Peace and Security, and reaffirmed their commitment to strengthening women-led organizations and enhancing girls’ access to education.
Climate and Environmental Cooperation
Both leaders discussed the critical issue of climate change and environmental sustainability. Iraq’s commitment to end gas flaring by 2028 and the UK’s goal to achieve clean power by 2030 were highlighted as key points of cooperation. A Memorandum of Cooperation was signed to deepen collaboration on climate change, energy transition, and environmental issues.
Sports Cooperation
The two leaders also highlighted the potential for strengthening sports exchanges between the UK and Iraq. They encouraged the development of cooperation in sports science, sports medicine, and youth sports, as well as fostering mutual visits by sport teams from both countries.
