The relationship between Turkey and Iraq is in need of a major reset. A recent arbitral award relating to the use of a pipeline that runs from Iraq to Turkey illustrates how relations between both countries have been beset by what appear to be uncoordinated policies and a failure to capitalise on mutual interests. Conversely, recent developments also demonstrate how much work would be required to achieve a reset, which is why it is so important for both sides to reflect internally on how to engage with each other.
Commentators have long argued that there are obvious synergies between Turkey and Iraq that should be capitalised upon. Turkey is a major importer of oil and gas, both of which are plentiful in Iraq. Conversely, Iraq is famously vulnerable to climate change. Its main sources of water originate in Turkey, which has constructed a large number of upstream dams. Much of its farmland is being damaged and abandoned as a result. In addition, much of Iraq’s water infrastructure is antiquated, while Turkey has significant expertise that it can share.
Instead of capitalising on these synergies, Iraq has been unable to build its own joint strategy towards Turkey, while Turkey has sought to benefit from Iraq’s weakness since 1991. As a result of these dynamics, in 2013, Turkey negotiated an agreement with the Kurdistan Regional Government (KRG), which controls the autonomous Kurdistan region of Iraq, to allow the KRG to pump oil into the (pre-existing) Iraq-Turkey Pipeline and then load it onto vessels in the Turkish port of Ceyhan for export without involving the Ministry of Oil in Baghdad.
Baghdad protested that use of the pipeline was governed by an agreement between Iraq and Turkey which stipulated that the export of all oil that flowed through the pipeline should be controlled by the Ministry. It brought two separate claims before the International Chamber of Commerce. The first related to oil that was exported through the pipeline in 2014-2018 and the second relating to 2018-2022.
There are obvious synergies between Turkey and Iraq that should be capitalised upon
In March 2023, an arbitral tribunal finally issued an award in the first dispute in Iraq’s favour. The tribunal also ordered Turkey to pay Iraq approximately $2 billion in damages, and also ordered Iraq to pay around $500 million in damages to Turkey for a variety of costs and expenses. The second dispute for the period 2018-2022 is expected to lead to a similar financial award in Iraq’s favour, without any corresponding amount in Turkey’s favour.
The arbitral award was an opportunity for both parties to re-engage with each other constructively. The award should have encouraged both parties to turn the page, to re-evaluate what they had achieved through their respective strategies and build on the synergies set out above.
However, instead of reengaging with each other positively, both parties adopted unconstructive positions that complicated matters further. Surprisingly, the parties’ actions were also incoherent, which suggests internal incoherence in both Turkey and Iraq. Elements in both countries have also taken actions that undermine their own respective positions.
As soon as the award was issued, Turkey immediately moved to close the pipeline, something that was not required by the tribunal. When Iraq asked for Turkey to allow for the flow of exports to resume, Turkey responded that the closure was to ensure the pipeline’s structural integrity following the February 2023 earthquake, a concern that it had not raised before.
As if that wasn’t peculiar enough, Turkey also stated behind the scenes that it would not reopen the pipeline until a number of conditions were met, including that Iraq abandon its second claim for 2018-2022. The closure means that Iraq has lost approximately $6bn in lost profit, an amount that it is probably entitled to recover from Turkey under the ITP Agreement. At the time of writing, the pipeline remains closed.
More recently, Turkey has argued that due to interest calculations, on balance Iraq owed it a payment of $950m and not the other way around. However, Turkey has also argued in the French courts that the award should be set aside, which strongly suggests that Turkey may not be so convinced by its interest calculations after all.
For its part, Iraq publicly stated that it was keen to reach an agreement with Turkey on this matter. At the same time, however, immediately after the award was issued, in a needlessly aggressive move that was possibly motivated by overeager legal counsel, Iraq moved with lightning speed to have it enforced in the US courts without reaching out to Turkey first. Turkish officials have since stated that they felt slighted by Baghdad’s action.
This history of counterproductive actions and never-ending escalations should give officials in both countries pause. Both countries should engage in some serious introspection on how they have managed their bilateral ties and how to do better in the future. For states such as Turkey and Iraq to resolve their differences through the courts and threats of further action is a travesty – particularly given the synergies mentioned above.
In addition, both sides should examine the means through which they have been communicating with each other on these issues: currently, communication is often through ad hoc meetings, as well as uncoordinated statements and legal actions by a variety of different government departments. Instead, both countries should explore ways to centralise strategy and decision making, and to create a permanent forum of exchange and negotiation (for example, through the formation of a permanent strategic committee).
Turkey and Iraq are natural allies that have much to offer each other. But to improve their own positions, both sides will have to engage in significant introspection and offer concessions. Were they to do so, it is hard to overstate how much could be achieved.
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ACL Elite (West) - fixtures
Monday, Sept 30
Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)
Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)
Company profile
Company: Eighty6
Date started: October 2021
Founders: Abdul Kader Saadi and Anwar Nusseibeh
Based: Dubai, UAE
Sector: Hospitality
Size: 25 employees
Funding stage: Pre-series A
Investment: $1 million
Investors: Seed funding, angel investors
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
UAE currency: the story behind the money in your pockets
Brief scoreline:
Toss: South Africa, elected to bowl first
England (311-8): Stokes 89, Morgan 57, Roy 54, Root 51; Ngidi 3-66
South Africa (207): De Kock 68, Van der Dussen 50; Archer 3-27, Stokes 2-12
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More from Neighbourhood Watch:
UAE currency: the story behind the money in your pockets
Mica
Director: Ismael Ferroukhi
Stars: Zakaria Inan, Sabrina Ouazani
3 stars
CRICKET%20WORLD%20CUP%20QUALIFIER%2C%20ZIMBABWE%20
%3Cp%3E%3Cstrong%3EUAE%20fixtures%20%20%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMonday%2C%20June%2019%20%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3ESri%20Lanka%20v%20UAE%2C%20Queen%E2%80%99s%20Sports%20Club%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EWednesday%2C%20June%2021%20%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EOman%20v%20UAE%2C%20Bulawayo%20Athletic%20Club%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFriday%2C%20June%2023%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EScotland%20v%20UAE%2C%20Bulawayo%20Athletic%20Club%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ETuesday%2C%20June%2027%20%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EIreland%20v%20UAE%2C%20Bulawayo%20Athletic%20Club%3C%2Fp%3E%0A
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
'Tell the Machine Goodnight' by Katie Williams
Penguin Randomhouse
Killing of Qassem Suleimani
MATCH INFO
Jersey 147 (20 overs)
UAE 112 (19.2 overs)
Jersey win by 35 runs
RESULTS
5pm Maiden (PA) Dh80,000 (Turf) 1,600m
Winner Thabet Al Reef, Bernardo Pinheiro (jockey), Abdallah Al Hammadi (trainer)
5.30pm Handicap (PA) Dh80,000 (T) 1,600m
Winner Blue Diamond, Pat Cosgrave, Abdallah Al Hammadi
6pm Arabian Triple Crown Round-1 Listed (PA) Dh230,000 (T) 1,600m
Winner Hameem, Adrie de Vries, Abdallah Al Hammadi
6.30pm Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 1,400m
Winner Shoja’A Muscat, Szczepan Mazur, Ibrahim Al Hadhrami
7pm Maiden (PA) Dh80,000 (T) 1,200m
Winner Heros De Lagarde, Szczepan Mazur, Ibrahim Al Hadhrami
7.30pm Handicap (TB) Dh100,000 (T) 2,400m
Winner Good Tidings, Antonio Fresu, Musabah Al Muhairi
Profile of Foodics
Founders: Ahmad AlZaini and Mosab AlOthmani
Based: Riyadh
Sector: Software
Employees: 150
Amount raised: $8m through seed and Series A - Series B raise ongoing
Funders: Raed Advanced Investment Co, Al-Riyadh Al Walid Investment Co, 500 Falcons, SWM Investment, AlShoaibah SPV, Faith Capital, Technology Investments Co, Savour Holding, Future Resources, Derayah Custody Co.
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
MATCH INFO
Manchester City 3
Danilo (16'), Bernardo Silva (34'), Fernandinho (72')
Brighton & Hove Albion 1
Ulloa (20')
Roll of honour 2019-2020
Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain
West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership
UAE Premiership
Winners: Dubai Exiles
Runners up: Dubai Hurricanes
UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II
UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
8 traditional Jamaican dishes to try at Kingston 21
- Trench Town Rock: Jamaican-style curry goat served in a pastry basket with a carrot and potato garnish
- Rock Steady Jerk Chicken: chicken marinated for 24 hours and slow-cooked on the grill
- Mento Oxtail: flavoured oxtail stewed for five hours with herbs
- Ackee and salt fish: the national dish of Jamaica makes for a hearty breakfast
- Jamaican porridge: another breakfast favourite, can be made with peanut, cornmeal, banana and plantain
- Jamaican beef patty: a pastry with ground beef filling
- Hellshire Pon di Beach: Fresh fish with pickles
- Out of Many: traditional sweet potato pudding
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
How to play the stock market recovery in 2021?
If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.
Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.
Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.
Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).
Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.
Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.
By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.
As demand for energy fell, the oil and gas industry had a tough year, too.
Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.
He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”
This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”
Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.
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Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
