Construction starts at $300m Electrical Factory in Babil
By John Lee.
Iraq's Prime Minister, Mohammed Shia Al-Sudani, officially launched the construction of the Diwan Factory Project in Babil Governorate on Wednesday. The strategic initiative by local company Etihad Group will produce electrical transformers, cables, and smart meters.
The project, with a total budget of $300 million [approx. 393 billion IQD], is being built to the latest technical standards and is part of the government's broader strategy to localise electrical industries and reduce dependence on imports.
Al-Sudani described the factory as a key step toward enhancing Iraq's energy security and supporting advanced smart technologies. He reaffirmed the government's commitment to supporting the industrial sector and enabling national manufacturing across all areas.
The Prime Minister praised the efforts of Iraqi professionals driving transformative progress and emphasised the role of this project in laying the foundation for renewable energy initiatives and strengthening the national electricity supply chain.
On his visit to the province, the Prime Minister also officially opened a major new flour factory, which is also being developed by Etihad Group.
(Source: Prime Minister's Office)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Shafaq News
2 hours ago
- Shafaq News
Aerial crisis: Iraq losing millions daily due to Iran-Israel conflict
Shafaq News/ Iraqi officials and aviation sources warned that the full closure of Iraqi airspace since June 13, amid the escalating conflict between Iran and Israel, is costing the country millions of dollars each day. The shutdown has halted overflight traffic and inflicted heavy losses on local airlines and airports. Previously, around 700 aircraft flights — including passenger and cargo — traversed Iraqi skies daily. Overflight fees averaged $450 per passenger flight and $700 for cargo planes, according to aviation data. In May, the General Company for Air Navigation Services recorded 19,841 transit flights, a record figure highlighting Iraq's growing role as a regional aviation hub, its general manager, Abbas Sabbar Al-Baydani, commented. 'Direct losses from halted overflights exceed $250,000 per day,' remarked Amer Abdul-Jabbar, a member of Iraq's parliamentary transport committee, cautioning that this did not account for indirect losses faced by airlines, airports, and ground services. In the south, Basra Airport has run only 13 flights since the crisis began. Baghdad, Najaf, and Erbil airports have seen partial or full suspensions. Self-funded local carriers such as Iraqi Airways and Fly Baghdad are also struggling financially. Parliamentary and governmental sources note that overflight and operational revenues fund staff salaries and allowances, which are at risk if the closure persists. Flight tracking analysis by FlightRadar24 showed that the closure of Iraqi and Iranian airspace has redirected flights over Saudi Arabia, doubling flight counts from 700 to 1,400 per day. Flights over Afghanistan surged by 500%, causing international carriers like Qatar Airways and FlyDubai to reroute via Pakistan and Afghanistan — adding approximately two hours to some journeys. Iraq's civil aviation network includes key airports in Baghdad, Erbil, Najaf, and Basra, which serve as vital sources of non-oil revenue from overflight fees, ground services, and cargo operations. Despite recent growth in air traffic, the sector faces challenges in modernization and route expansion amid security and political instability. Analysts warn that a prolonged airspace closure could deepen economic pressures, weaken Iraq's national aviation sector, and leave airlines ill-equipped to absorb the financial shock.
Shafaq News
4 hours ago
- Shafaq News
US Embassy warning sparks fears of major security shift in Iraq
Shafaq News/ A senior Iraqi lawmaker warned on Friday that a potential closure of the US Embassy in Baghdad could be a 'precursor to an unprecedented security event' in Iraq or the wider region. Mohammed al-Shammari, a member of the Iraqi Parliament's Security and Defense Committee, told Shafaq News that 'the possible shutdown of the American Embassy is a serious indicator that the United States and Israel may be preparing for a dangerous operation, warranting the evacuation of diplomatic personnel.' 'This is an early warning signal that demands urgent political and security preparedness inside Iraq,' al-Shammari added. He pointed to Iraq's limited sovereignty, particularly in defense and financial matters, blaming US control over Iraqi oil revenues for hampering military development. 'If Iraq held its financial sovereignty, weapons, salaries, and pensions would be fully national,' he said, noting that the US Federal Reserve can block arms deals that don't align with Washington's preferences. Al-Shammari stressed that sovereignty is not merely territorial, but also financial, warning that the Iraqi military's weaknesses are rooted in dependence on foreign-controlled funds. Regarding the future of US forces in Iraq, he confirmed there is a binding agreement for full withdrawal by 2026, with a mutually agreed timeline currently in place. Earlier on Friday, the US Embassy in Baghdad issued a statement denying any operational changes at its Baghdad embassy or the consulate in Erbil. 'The United States remains firmly committed to advancing its policy priorities in Iraq, supporting Iraqi sovereignty, and engaging with Iraqi leaders and citizens,' the statement said. However, the embassy had issued a security alert last week warning American citizens of increased risks of violence or attacks on US interests. It advised Americans in Iraq to avoid crowded areas and locations frequented by foreigners. The State Department continues to classify Iraq as a Level 4 'Do Not Travel' destination. Last Sunday, Iraq's Kataib Hezbollah threatened to strike US bases and interests in the region if Washington intervenes militarily in the ongoing war between Iran and Israel.
Iraq Business
a day ago
- Iraq Business
UK-Iraq Solar Energy Partnership Advances with 3,000MW Project
By John Lee. Iraq's Minister of Electricity, Ziyad Ali Fadhil, met with UK Ambassador Irfan Siddiq and a high-level delegation to discuss British companies' role in implementing solar energy projects and reaffirm Iraq's commitment to the Paris Climate Agreement. The delegation included Lara Hampshire, UK Director of Trade in Iraq, and Yasmin Khan, Director of Operations and Energy Trade Adviser. Talks focused on the memorandum of understanding signed last month with the UGT Renewables, a UK-US company, to develop an integrated 3,000MW solar energy project in Iraq. The project includes battery storage systems with a capacity of up to 500MW and the construction of 1,000km of high-voltage direct current (HVDC) transmission lines to enhance grid efficiency and stability. Minister Fadhil emphasised the importance of this initiative for Iraq's national power system and praised the strong collaboration with the UK and reputable international firms. The executing company will also implement a two-year training programme and provide maintenance services using advanced D-EPC methods. Fadhil reaffirmed the government's goal of reducing carbon emissions from the energy sector, targeting 12,000MW of solar capacity by 2030 as part of its broader renewable energy strategy. The British delegation expressed their commitment to deepening the energy partnership with Iraq and contributing technical expertise to support sustainable development in the electricity sector. (Source: Ministry of Electricity)
