IRAQ: Trump speaks out against Maliki’s bid to return as PM, while the fiscal crisis deepens

GULF COUNTRIES - Report 29 Jan 2026 by Justin Alexander

* Former prime minister Nuri al-Maliki is attempting a comeback, but government formation stalled this week with Kurds divided on the presidency, and Trump spoke out against Maliki.
* The parliament is highly fragmented, between and within sectarian groups. As a result, government formation can take many months.
* The US is seeking to reimpose its influence in Iraqi politics through economic levers, particularly through access to dollars and international finance, as a counterbalance to Iran.
* Sticky wage and subsidy expenditure and declining oil revenue are leading to a widening structural deficit.
* More positively, OPEC+ tapering has boosted production, and US companies are looking to reinvest in the oil sector to increase capacity.
* The central bank largely finances the deficit. Iraq’s last Eurobond was issued in 2017, and its only one outstanding matures in 2028.
* If it can form a stable government, it might return to the debt capital markets in the future.
* Gulf states are increasingly involved in Iraq, including through investments in the energy sector.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2026 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.