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The potential withdrawal of US forces from Iraq could leave Baghdad unequipped to deal with deep-rooted security problems, from powerful Iran-backed militias to lingering ISIS terror cells, analysts told The National.
Talks over the withdrawal of US forces are set to begin after both the US and Iraq issued statements on Thursday announcing that the US-Iraq Higher Military Commission would be meeting "in the coming days" to discuss the “transition to an enduring bilateral security partnership between Iraq and the United States.”
Iraqi Prime Minister Mohammed Shia Al Sudani has repeatedly called for a managed exit of US troops from Iraq, amid escalating violence between US forces and Iran-linked militias in the Popular Mobilisation Forces (PMF), which is funded by the Iraqi government.
Mr Al Sudani told the Davos forum this month that Iraq must “reach an understanding on a timeline for concluding the mission of the international advisers” now that ISIS was no longer a threat. He said US air strikes on PMF targets were destabilising Iraq.
Militia attacks on US forces have intensified to unprecedented levels this month, including a ballistic missile attack on Saturday that injured several US soldiers.
The US has retaliated with air strikes on militia targets in a spiralling cycle of violence since the Israel-Gaza war broke out on October 7.
“They're upset about our strikes, but they attacked coalition forces first,” said David Witty, a former US Special Forces officer who worked with Iraqi commandos, and is now an expert on security co-operation.
He said there have been about 150 attacks on US forces in Iraq and Syria since October and described the attacks as “daily”.
Rise of ISIS
This is not the first time the Iraqi government has asked US troops to depart. In 2009, Prime Minister Nouri Al Maliki asked US forces to leave within three years.
The US complied amid long negotiations on a possible training mission, but by 2011 their forces had been withdrawn. But they were invited back in 2014 in the form of the US-led international coalition against ISIS, which was complemented by a contingent from Nato.
ISIS had surged across the country in 2014, capturing the country's second-largest city of Mosul in June.
Western air support from the coalition, mostly co-ordinated with Iraq's Counter Terrorism Service, was vital in the campaign to recover territory from ISIS. During the fight, the CTS spearheaded most operations, having developed a close relationship with US Special Forces advisers.
Iran-backed militias also fought against ISIS outside of the framework of the coalition.
Since ISIS was largely defeated in 2017, American forces within the coalition have clashed with the Iran-backed militias under the PMF, which includes an array of groups.
Tensions escalated in January 2020 when the US killed the de facto leader of the PMF, Abu Mahdi Al Muhandis, and the architect of Iran's regional network, Islamic Revolutionary Guard Corps general Qassem Suleimani, in an air strike on Baghdad.
In the aftermath of the strike, then-prime minister Adil Abdul Mahdi sided with Iraqi MPs and voted to remove American forces.
But Mr Mahdi resigned amid a bloody crackdown on protests and was succeeded by prime minister Mustafa Al Kadhimi, who allowed the coalition mission to continue.
However, the balance of power has since shifted, with the current Prime Minister Mr Al Sudani seen as much closer to Tehran, strengthening calls by Iran-backed militias and parties for the US to leave.
Will ISIS re-emerge?
Analysts warn history could repeat itself if US troops withdraw again.
After the US withdrawal in 2011, Iraqi forces lost effectiveness due to an increase in corruption, with commanders selling fuel, ammunition and even food for personal gain, as well as falsifying payrolls to salaries.
Iraq struggled to co-ordinate its forces and resupply troops, leading to disaster against ISIS.
Recent coalition reports by a US inspector general warn many of these problems remain, especially with logistics, stoking fears that ISIS or similar groups could experience a resurgence if the US withdrew.
Mr Witty, who worked closely with the CTS that led the fight against ISIS, warned that the coalition's current training of Iraqi forces could be too limited for them to protect the state.
“There’s no contact with the Iraqi Security Forces other than through the MOD and that is pretty discouraging,” he says, describing what the coalition calls an “operational level” effort, focused on overseeing the planning of operations, rather than helping infantry at the sharp end of fighting.
Mr Witty advised that the US should continue training Iraqi forces based on the model of the CTS, which partnered small American and Iraqi units together.
“The lower level is better, you know, and a good example is the CTS, that we're down all the way to the company level. Generally, they did combined operations, there was a platoon size element of Iraqis and maybe a squad size element of Americans going out on missions. They learn by example.”
Mr Witty worries that without constant training, old problems could re-emerge, jeopardising Baghdad's ability to stand up to ISIS, or PMF groups such as Harakat Hezbollah Al Nujaba, who have warned they could overthrow the Iraqi government if requested by Iran.
There is a risk Iraq’s military culture “reverts back to its original self,” Mr Witty warned.
“We saw this happen after 2011. The standards go down, things deteriorate. And that's what I'm particularly worried about, with the CTS and probably what's happening right now with the regular army,” he said.
No end to conflict with Iran
Aside from the threat from ISIS, experts warn that the conflict between the US and Iran in Iraq is unlikely to fade away if US troops withdraw.
“In 2011, when the US last left, Daesh was getting much stronger in Syria and beginning to recover strength in Iraq. This is not the case now: Daesh is not the real threat now: the main risk to Iraqi security is state capture and asset-stripping by Iran-backed militias,” said Michael Knights, an Iraq expert at the Washington Institute for Near East Policy.
He warned that the capture of the Iraqi state by the PMF has not only led to a lack of funding for Iraq's CTS but also makes renewed conflict between the US and the PMF likely.
“Everything is happening at the ministerial level for your regular security forces and the Iraqi central government has been infiltrated by the PMF. They're embedded in all the ministries now. Not just actual ministers, but assistant ministers and deputy ministers, they're all guys from the various militias, chosen by the (political coalition) Coordination Framework. This doesn't look good to me, what the Iranians have been able to do,” he says.
In the current Iraqi government budget, funding for the CTS is down 14 per cent, while the PMF budget has doubled.
“We needed to be in federal Iraq to fight Daesh because we had an Iraqi partner, but now there is no partner inside Iraq to fight the main threat – because the militias have taken over the security sector,” Mr Knights says.
Mr Knights also says if Iraq becomes essentially an operating base for the PMF’s regional wars, then the conflict between the US and the militias may well continue, with US forces launching strikes from outside the country.
“The US may be better able to strike, sanction and otherwise damage those militias if it is outside Iraq,” said Mr Knights.
“Iraq may or may not experience fewer air strikes if the coalition is collapsed, because a US President may be less restrained if our forces, and perhaps our embassy, is forced to leave. And that president could be a Republican,” he said.
“Economic stability would definitely worsen in Iraq if the US has no incentive to show restraint regarding the sheltering of Iraqi monies from international lawsuits and if the US rations Iraq’s supply of dollars because terrorist actors are seen to have taken over the country and its finance ministry,” he said.
Mr Knights said bilateral security agreements, such as the one between France and the Iraqi government, might be a way ahead.
“This depends if the withdrawal is a fake withdrawal. Nowadays we have fake resistance (rocket attacks that constantly aim to miss or convoy attacks that hit trucks with no Americans on them). If the change in status is done in a minimal way, very little may change.”
“The same forces might remain but as American and Canadian and French forces, just with bilateral invitation letters to remain.”
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Tightening the screw on rogue recruiters
The UAE overhauled the procedure to recruit housemaids and domestic workers with a law in 2017 to protect low-income labour from being exploited.
Only recruitment companies authorised by the government are permitted as part of Tadbeer, a network of labour ministry-regulated centres.
A contract must be drawn up for domestic workers, the wages and job offer clearly stating the nature of work.
The contract stating the wages, work entailed and accommodation must be sent to the employee in their home country before they depart for the UAE.
The contract will be signed by the employer and employee when the domestic worker arrives in the UAE.
Only recruitment agencies registered with the ministry can undertake recruitment and employment applications for domestic workers.
Penalties for illegal recruitment in the UAE include fines of up to Dh100,000 and imprisonment
But agents not authorised by the government sidestep the law by illegally getting women into the country on visit visas.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
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War
Director: Siddharth Anand
Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor
Rating: Two out of five stars
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
UAE currency: the story behind the money in your pockets
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
The Birkin bag is made by Hermès.
It is named after actress and singer Jane Birkin
Noone from Hermès will go on record to say how much a new Birkin costs, how long one would have to wait to get one, and how many bags are actually made each year.
SPAIN SQUAD
Goalkeepers Simon (Athletic Bilbao), De Gea (Manchester United), Sanchez (Brighton)
Defenders Gaya (Valencia), Alba (Barcelona), P Torres (Villarreal), Laporte (Manchester City), Garcia (Manchester City), D Llorente (Leeds), Azpilicueta (Chelsea)
Midfielders Busquets (Barcelona), Rodri (Manchester City), Pedri (Barcelona), Thiago (Liverpool), Koke (Atletico Madrid), Ruiz (Napoli), M Llorente (Atletico Madrid)
Forwards: Olmo (RB Leipzig), Oyarzabal (Real Sociedad), Morata (Juventus), Moreno (Villarreal), F Torres (Manchester City), Traore (Wolves), Sarabia (PSG)
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Engine: 3.0-litre flat-six twin-turbocharged
Transmission: eight-speed PDK automatic
Power: 445bhp
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UAE currency: the story behind the money in your pockets
THE SPECS
Engine: 1.6-litre turbo
Transmission: six-speed automatic
Power: 165hp
Torque: 240Nm
Price: From Dh89,000 (Enjoy), Dh99,900 (Innovation)
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