🇮🇶 IRAQ TODAY

Economic Outlook, Trade Developments & Business Opportunities

5G+ Business Decision Guide | Updated: 28 August 2026

Country Today is not a country introduction. It is a business decision guide.

Prepared by GSR ANALYTIX

Iraq is one of the Middle East's most strategically important resource, infrastructure and reconstruction markets.

Its commercial significance is built around much more than oil.

The country combines:

• One of the world's largest hydrocarbon resource bases

• A population approaching 47 million

• A large and young consumer market

• Major electricity and water infrastructure requirements

• Extensive housing and urban-development demand

• Strategic geography between the Gulf, Türkiye, Iran, Syria and Jordan

• Major transport-corridor ambitions

• Large-scale oil, gas and petrochemical investment

• Agricultural and food-security requirements

• Rapid growth in telecommunications and digital services

• Significant demand for imported machinery, equipment and industrial products

• Large public infrastructure programmes

• An expanding private investment pipeline

• Significant opportunities for Turkish, Gulf, Chinese, European and Asian suppliers

Iraq's commercial environment is nevertheless highly complex.

Economic activity remains strongly dependent on hydrocarbons and government expenditure. Infrastructure quality varies considerably between regions. Electricity supply, water scarcity, financial-sector constraints, regulatory implementation, public procurement, security conditions and institutional fragmentation can all influence business execution.

The regional conflict that intensified during 2026 has added another major variable: export-route security.

Disruption around the Strait of Hormuz has demonstrated Iraq's vulnerability to reliance on southern Gulf oil-export infrastructure and accelerated the strategic importance of alternative routes through Türkiye, Syria and Jordan.

For international businesses, the practical opportunity is therefore not simply:

"Sell to Iraq."

It is:

Identify the right sector → select the right commercial region → understand the buyer → secure the correct partner → control payment risk → build local service → scale from a reference project.

Executive Snapshot

Indicator Current Position
Official Name Republic of Iraq
Capital Baghdad
2026 Population Estimate Approximately 46.64 million
2025 World Bank Population Approximately 47.02 million
Currency Iraqi Dinar — IQD
Political System Federal parliamentary republic
President Nizar Mohammed Saeed Amidi
Prime Minister Ali Falih al-Zaidi
2025 GDP — World Bank Approximately US$254.4 billion
2025 GDP Per Capita Approximately US$5,410
2025 Real GDP Growth — World Bank -2.2%
IMF 2026 Real GDP Projection -6.8%
IMF 2027 Real GDP Projection +11.3%
IMF 2026 Average Inflation Projection 3.0%
2025 Unemployment — World Bank / ILO model Approximately 15.5%
Principal Economic Centres Baghdad, Basra, Erbil, Sulaymaniyah, Mosul, Najaf, Karbala
Primary Export Crude oil
Major Trade Relationships China, India, Türkiye, South Korea, United States, EU, UAE, Iran
Strategic Sectors Oil & gas, power, construction, transport, logistics, petrochemicals, agriculture, food, telecom, digital infrastructure, healthcare, tourism
Commercial Profile Large import-dependent, project-oriented, oil-financed emerging market

Iraq's official statistical agency projects a population of approximately 46.64 million in 2026, while the World Bank places the 2025 population at roughly 47.02 million. The World Bank estimates 2025 GDP at about US$254.37 billion.

The IMF's April 2026 outlook projects a sharp 6.8% real GDP contraction in 2026, followed by an unusually strong 11.3% rebound in 2027. The scale of this movement reflects Iraq's very high sensitivity to oil production, exports and regional disruption rather than a normal domestic business cycle.

Principal Business Advantages

Iraq offers international companies several important structural advantages:

• Large domestic population

• Young demographic profile

• Significant unmet infrastructure demand

• Major hydrocarbon reserves

• Large government-funded project pipeline

• Extensive need for imported industrial technology

• Strategic location between the Gulf and Türkiye

• Access to Gulf shipping routes

• Potential north–south and east–west transport corridors

• Strong demand for power-generation equipment

• Growing natural-gas development

• Major housing shortage

• Expansion of urban areas

• Large construction-material market

• Significant food imports

• Large healthcare requirements

• Rapid smartphone and digital adoption

• Emerging 5G investment cycle

• Strong need for water and wastewater technology

• Reconstruction and modernisation demand

• Growing private-sector participation

• Significant opportunities for public-private partnerships

• Increasing Gulf and Asian investor interest

In February 2026, Iraq's National Investment Commission said the value of investment had reached approximately US$104 billion and announced 65 investment opportunities at an international investment forum in Baghdad.

Principal Commercial Challenges

The principal risks include:

• Heavy dependence on oil revenue

• Exposure to global oil prices

• Export-route vulnerability

• Regional geopolitical risk

• Electricity shortages

• Water scarcity

• Public-sector bureaucracy

• Payment delays

• Complex public procurement

• State-owned enterprise influence

• Banking-sector restrictions

• Dollar-transfer compliance

• Sanctions exposure

• Informal business practices

• Corruption risk

• Contract-enforcement challenges

• Provincial and federal administrative overlap

• Security differences by geography

• Limited local industrial supply chains in some sectors

• Technical skills gaps

• Infrastructure bottlenecks

• High dependence on imported equipment

• Large public-sector wage and expenditure burden

The correct commercial interpretation is therefore:

Iraq is a high-opportunity market, but execution quality matters more than headline market size.

✈️ Geographical Location

Iraq sits at the intersection of the Gulf, Levant, Türkiye and Iran.

It borders:

• Türkiye

• Iran

• Kuwait

• Saudi Arabia

• Jordan

• Syria

It has a relatively short coastline on the Gulf centred on Basra and the Umm Qasr / Al-Faw maritime area.

This geography gives Iraq several potential commercial identities simultaneously:

• Gulf energy exporter

• Türkiye–Gulf transit market

• Iran–Arab trade interface

• Levant–Gulf logistics corridor

• Large domestic consumer market

• Regional construction market

• Agricultural market

• Oilfield-services market

• Future multimodal transport hub

Historically, Iraq's geography has been commercially constrained by infrastructure and instability.

The strategic objective now is to convert location into logistics value.

Baghdad

Baghdad is the country's principal:

• Government centre

• Corporate headquarters market

• Banking centre

• Public procurement centre

• Telecommunications market

• Healthcare market

• Consumer market

• Construction market

• Professional-services centre

• Technology market

International suppliers targeting national government contracts, large Iraqi companies, telecom operators, financial institutions or major distributors will usually require a Baghdad commercial presence or strong local partner.

Priority Sectors

• Government procurement

• Construction

• Housing

• Telecom

• ICT

• Banking

• Fintech

• Healthcare

• Education

• Food

• Consumer goods

• Automotive

• Professional services

• Security technology

• Water

• Electricity

Entry logic: national distributor + government/corporate key-account sales.

Basra

Basra is Iraq's principal energy and maritime commercial region.

Its strategic importance comes from:

• Southern oil fields

• Crude export terminals

• Umm Qasr

• Khor Al-Zubair

• Al-Faw

• Petrochemicals

• Fertiliser

• Oilfield services

• Industrial construction

• Heavy logistics

• Marine services

For industrial suppliers, Basra can be more commercially important than Baghdad.

Priority Sectors

• Oil and gas

• Petrochemicals

• EPC

• Pumps

• Valves

• Compressors

• Pipes

• Process equipment

• Water treatment

• Power

• Industrial automation

• Safety

• Environmental technology

• Marine logistics

• Heavy machinery

• Ports

• Warehousing

Iraq's National Investment Commission identifies major Basra opportunities including petrochemical, fertiliser, steel, pipe and industrial projects, while port opportunities include additional multipurpose berths and development connected with Al-Faw.

Entry logic: oil-company / EPC / industrial distributor + Basra technical service.

Erbil

Erbil is the principal commercial centre of the Kurdistan Region.

It has developed a strong private-sector business environment in:

• Construction

• Real estate

• Hospitality

• Retail

• Food

• Healthcare

• Oil and gas services

• Logistics

• Technology

• Professional services

The operating environment differs in several respects from federal Iraq.

Companies should treat the Kurdistan Region as a distinct commercial ecosystem rather than merely another Iraqi province.

Erbil also continues to invest in urban infrastructure; in August 2026 the KRG announced a new major road phase designed to improve traffic connectivity inside the city.

Entry logic: dedicated Kurdistan partner or direct regional operation.

Sulaymaniyah

Sulaymaniyah is an important regional centre for:

• Commerce

• Education

• Healthcare

• Food

• Construction

• Services

• Light industry

• Tourism

• Technology

• Cross-border trade

It can provide a separate market from Erbil and should not automatically be assumed to be covered effectively by one distributor.

Mosul & Nineveh

Mosul is a large northern population centre with long-term potential linked to:

• Reconstruction

• Housing

• Roads

• Agriculture

• Food processing

• Construction materials

• Healthcare

• Education

• Retail

• Utilities

• Industrial rehabilitation

The Nineveh region also has agricultural significance.

Entry logic: reconstruction + agriculture + regional distribution.

Najaf & Karbala

Najaf and Karbala are major religious-tourism markets.

Demand is driven by:

• Hotels

• Restaurants

• Transportation

• Commercial kitchens

• Food distribution

• Healthcare

• Retail

• Construction

• Water

• Waste management

• Urban infrastructure

Large visitor flows create opportunities that are not visible from national GDP statistics alone.

Commercial Opportunity

• Hotel equipment

• HVAC

• elevators

• commercial kitchens

• laundry systems

• furniture

• sanitary ware

• lighting

• food-service equipment

• buses

• digital booking

• security

• waste systems

• healthcare

Southern Oil Corridor

Basra, Maysan and Dhi Qar form an important energy and industrial corridor.

Commercial demand centres on:

• Oil production

• Gas capture

• Water injection

• Pipeline systems

• Power generation

• petrochemicals

• industrial utilities

• environmental services

This is a highly technical project market.

Foreign suppliers should generally work through:

Operator → EPC → approved vendor → local service

rather than broad national distribution.

Iraq Commercial Geography Rule

Do not ask:

"Where should we sell in Iraq?"

Ask:

"Which buyer ecosystem controls the sector?"

Preferred sequence:

Sector → Region → Project / Buyer → Partner → Compliance → Payment Security → Service

Examples:

Oil & Gas → Basra → Operator/EPC → Technical Agent

Government IT → Baghdad → Ministry / SOE → System Integrator

Hospitality → Najaf/Karbala/Erbil → Hotel Developer → Hospitality Distributor

Agriculture → Nineveh / Central & Southern Provinces → Processor / Farm Group → Equipment Dealer

📰 NEWS — 28 August 2026

1. Iraq Targets Oil Production of 8–10 Million Barrels Per Day

Prime Minister Ali al-Zaidi said Iraq aims to increase oil-production capacity to 8–10 million barrels per day within approximately six years, compared with roughly 4 million barrels per day before the latest regional conflict.

Baghdad is also seeking negotiations concerning its future OPEC production quota.

Commercial Reading

If even part of the expansion programme is implemented, demand can increase substantially for:

• Drilling

• EPC

• compressors

• pumps

• valves

• pipelines

• instrumentation

• automation

• power systems

• water treatment

• oilfield chemicals

• maintenance

• safety

• environmental technology

• logistics

This is potentially a multi-year industrial procurement cycle, not simply an oil-production story.

2. Iraq Accelerates Alternative Oil Export Routes

The 2026 disruption around the Strait of Hormuz has highlighted Iraq's dependence on its southern export system.

Baghdad is considering and developing alternatives including:

• Türkiye / Ceyhan

• Syria / Baniyas

• Jordan / Aqaba

The proposed connection toward Syria has been discussed at a cost of roughly US$15 billion, while Iraq is also examining other ways to reduce dependence on a single maritime chokepoint.

Commercial Reading

This creates opportunities beyond crude oil itself:

• Pipelines

• pumping stations

• storage

• terminals

• metering

• SCADA

• valves

• security systems

• corrosion protection

• engineering

• rail

• roads

• marine infrastructure

• financing

• project management

Energy-route diversification may become one of Iraq's largest strategic infrastructure themes.

3. IMF Projects a Sharp 2026 Contraction — Followed by Strong 2027 Recovery

The IMF projects:

2026 real GDP: -6.8%
2027 real GDP: +11.3%

The figures underline Iraq's exceptional exposure to oil production and regional disruption.

Commercial Reading

International suppliers should not interpret the -6.8% figure as a uniform collapse in Iraqi demand.

Project markets can behave very differently from headline GDP.

Companies should distinguish between:

• Oil-financed infrastructure

• Essential public investment

• reconstruction

• consumer spending

• imported capital equipment

• discretionary private investment

A weak headline GDP number can coexist with very large individual project opportunities.

4. Iraq Targets Major 5G Availability by the End of 2027

The Communications and Media Commission stated in July 2026 that one of its strategic objectives is to launch fifth-generation mobile services and achieve significant 5G availability before the end of 2027.

Vodafone has also been involved in preparations surrounding Iraq's planned national mobile licence and has discussed introducing advanced technologies and artificial intelligence into the Iraqi market.

Commercial Reading

The opportunity is significantly wider than radio equipment.

Potential investment categories include:

• Fiber

• towers

• antennas

• power systems

• batteries

• cooling

• data centres

• cloud

• cybersecurity

• edge computing

• enterprise networks

• AI

• OSS/BSS

• network optimisation

• smart-city infrastructure

5. Iraq's Telecom Market Is Being Restructured

In August 2026, Iraq's telecom regulator continued regulatory action to stop Korek Telecom's operations following the expiry of its contract and cancellation of a settlement agreement.

The regulator subsequently closed Korek's principal Baghdad site and several sales centres.

Commercial Reading

This is commercially important because Iraq's mobile market should no longer be analysed using an old, static three-operator model.

The combination of:

• Korek restructuring

• Zain Iraq

• Asiacell

• a planned national licence

• Vodafone involvement

• 5G preparation

could materially reshape telecom procurement and competition.

6. Investment Pipeline Reaches US$104 Billion

Iraq's National Investment Commission announced in February 2026 that the country's investment volume had risen to approximately US$104 billion, while 65 new investment opportunities were being presented to investors.

Commercial Reading

For foreign companies, the practical opportunity is often not to become the principal investor.

Larger addressable categories include:

• EPC supply

• machinery

• building systems

• HVAC

• electrical equipment

• water

• automation

• elevators

• furniture

• medical systems

• ICT

• security

• project consulting

• engineering

• maintenance

Every large investment project generates a second layer of supplier demand.

7. Financial Links with Iran Become a Major External Risk

Iraq's banking and trade system is facing greater scrutiny because of U.S. efforts to limit Iranian access to dollar finance.

Reuters reported that Iraq–Iran trade exceeded US$10 billion in 2025, while several Iraqi banks have faced U.S. sanctions or restrictions linked to concerns about Iranian financial activity.

Commercial Reading

Foreign companies should strengthen:

• Bank due diligence

• sanctions screening

• beneficial-owner checks

• payment-route verification

• customer KYC

• currency controls

• trade documentation

In Iraq, payment structure is part of market-entry strategy.

🏛️ Political & Administrative Structure

Iraq is a federal parliamentary republic.

The political system distributes power among:

• President of the Republic

• Prime Minister and Council of Ministers

• Council of Representatives

• Federal judiciary

• Kurdistan Regional Government

• Provincial administrations

• Independent commissions

• sector regulators

Nizar Mohammed Saeed Amidi was elected President by parliament on 11 April 2026 with 227 votes.

Ali Falih al-Zaidi formally assumed office as prime minister and commander-in-chief on 16 May 2026 after parliamentary approval of his government.

President

The presidency is primarily a constitutional and state-representation institution.

The president:

• Ratifies legislation

• performs constitutional functions

• represents state continuity

• plays a role in government formation

• engages in international diplomacy

Prime Minister & Council of Ministers

The prime minister leads the executive government and is the central authority for:

• Economic policy

• infrastructure

• energy

• public administration

• national security

• government procurement

• investment implementation

• ministries

• public-sector reform

For large foreign investors, policy decisions frequently require coordination across multiple ministries rather than one central authority.

Parliament

The Council of Representatives has 329 seats.

It plays a central role in:

• Legislation

• government approval

• budget

• oversight

• taxation

• investment law

• oil and gas policy

• major economic legislation

Political negotiation can influence the timing of reforms and public projects.

Kurdistan Regional Government

The Kurdistan Region maintains substantial autonomous institutions.

Commercially relevant areas may include:

• Investment

• local taxation

• licensing

• land

• energy

• construction

• labour

• company procedures

Companies working in both federal Iraq and the Kurdistan Region should not assume identical regulatory processes.

Separate legal, tax and commercial advice can be necessary.

Provincial Authorities

Provincial administrations influence:

• Land

• local investment

• municipal services

• construction

• transport

• local infrastructure

• environmental approvals

• project implementation

For large physical projects, national approval alone may not resolve all local execution requirements.

Key Institutions for Foreign Business

National Investment Commission — NIC

Relevant for:

• Strategic investment

• investment licences

• major projects

• investment land

• investor facilitation

Central Bank of Iraq — CBI

Relevant for:

• Banking

• payments

• foreign exchange

• fintech

• AML

• financial-sector regulation

Ministry of Oil

Relevant for:

• Upstream

• downstream

• gas

• refining

• pipelines

• oilfield services

Ministry of Electricity

Relevant for:

• Generation

• transmission

• distribution

• grid

• imports

• renewable energy

Ministry of Transport

Relevant for:

• Ports

• rail

• airports

• road logistics

• Development Road

Communications and Media Commission

Relevant for:

• Telecom

• spectrum

• operators

• 5G

• communications regulation

General Commission for Customs

Relevant for:

• Import clearance

• duties

• documentation

• customs valuation

📊 Economic Structure

Iraq remains a resource-dominated economy.

Oil provides the overwhelming majority of merchandise exports and a large share of government revenue.

This creates a distinctive economic chain:

Oil production → export revenue → government budget → salaries & public investment → domestic demand

When oil revenue weakens, the effect can spread through:

• Government projects

• contractor payments

• consumer demand

• imports

• banking liquidity

• public employment

Conversely, stronger oil revenues can rapidly improve fiscal capacity.

Hydrocarbon Economy

Oil remains the foundation of the Iraqi economy.

Iraq is one of the world's leading oil producers and exporters.

The principal production base is concentrated in southern Iraq, although major fields also exist elsewhere.

Commercial opportunities extend across the petroleum value chain:

• Exploration

• drilling

• production

• field development

• pumps

• compressors

• valves

• instrumentation

• water injection

• pipelines

• storage

• export terminals

• refining

• petrochemicals

• gas processing

• flare reduction

• industrial power

• environmental monitoring

• maintenance

• digital oilfield technology

The long-term government ambition to increase capacity toward 8–10 million barrels per day would significantly increase procurement requirements if implemented.

Natural Gas

Natural gas is strategically important for Iraq because the country simultaneously:

• Produces large associated-gas volumes

• Requires gas for electricity

• Has historically flared significant gas

• Has depended on imported energy

• Needs greater energy independence

This creates opportunities in:

• Gas capture

• processing

• compressors

• pipelines

• LNG/LPG systems

• gas turbines

• power generation

• flare reduction

• instrumentation

• storage

• industrial gas

Reducing gas flaring can generate both economic and environmental value.

Electricity

Electricity remains one of Iraq's largest structural infrastructure challenges.

Commercial demand includes:

• Generation

• gas-fired power

• solar

• transformers

• substations

• switchgear

• transmission lines

• distribution

• smart meters

• grid automation

• energy storage

• industrial backup

• cooling

• power quality

Iraq has been developing electricity interconnections with Türkiye, Jordan, the GCC and Saudi Arabia to diversify supply. Existing and planned projects represent several gigawatts of potential cross-border capacity.

Commercial Rule

In Iraq, selling energy equipment is often not simply about supplying megawatts.

The stronger value propositions are:

• Reliability

• lower fuel consumption

• reduced outages

• remote monitoring

• efficient maintenance

• grid stabilisation

• local service

• spare parts

Construction & Urban Development

Iraq has major structural demand for:

• Housing

• roads

• bridges

• hospitals

• schools

• commercial buildings

• hotels

• government facilities

• water systems

• sewage

• electricity

• logistics

• industrial facilities

High population growth reinforces long-term demand.

The official population estimate rises from approximately 46.64 million in 2026 to more than 51 million by 2030.

This creates sustained requirements for:

• Cement

• steel

• glass

• ceramics

• sanitary ware

• natural stone

• HVAC

• electrical products

• elevators

• pumps

• insulation

• fire systems

• smart buildings

• construction machinery

Consumer Market

Iraq's population scale creates a sizeable consumer economy.

Major categories include:

• Food

• beverages

• household products

• electronics

• smartphones

• appliances

• furniture

• clothing

• healthcare

• beauty

• automotive

• building products

• restaurants

• hospitality

However, the market is highly segmented.

Purchasing power differs significantly between:

• Baghdad

• Basra

• Kurdistan

• secondary cities

• rural areas

Foreign brands must balance:

Price + availability + trust + distributor strength + after-sales support

Labour Market

Iraq has a young and growing workforce but faces structural labour-market challenges.

World Bank data place modeled unemployment at approximately 15.5% in 2025.

At the same time, companies can still face shortages in:

• Specialist engineering

• project management

• automation

• instrumentation

• cybersecurity

• advanced healthcare

• quality systems

• international procurement

• industrial maintenance

This produces a paradox:

Large labour supply does not automatically mean abundant specialised technical talent.

Economic Outlook

The 2026 macroeconomic picture is unusually volatile.

IMF projections point to:

• 2026: -6.8%

• 2027: +11.3%

• 2030: approximately +3.4%

The strongest structural commercial themes remain:

• Oil investment

• gas utilisation

• electricity

• infrastructure

• housing

• transport corridors

• ports

• water

• food security

• telecom

• digitalisation

• healthcare

• private investment

The principal downside risks are:

• Regional conflict

• prolonged export disruption

• lower oil prices

• fiscal pressure

• project-payment delays

• sanctions

• banking restrictions

• political fragmentation

🌍 International Trade

Iraq is fundamentally an oil-exporting and import-dependent trading economy.

Crude oil dominates exports.

Imports supply much of the country's requirements for:

• Machinery

• vehicles

• electrical equipment

• electronics

• food

• pharmaceuticals

• construction materials

• industrial inputs

• chemicals

• consumer goods

Türkiye's Ministry of Foreign Affairs estimates Iraq's 2025 merchandise exports at approximately US$89.5 billion and imports at approximately US$74.5 billion.

This import dependence creates a large addressable market for international suppliers.

Principal Trading Relationships

China

China is one of Iraq's largest commercial partners and a major buyer of Iraqi oil.

Iraq's Foreign Ministry stated in December 2025 that bilateral trade had reached approximately US$54 billion.

China's Iraqi commercial presence includes:

• Oil

• construction

• machinery

• electronics

• power

• infrastructure

• telecommunications

• industrial equipment

• consumer goods

India

India is one of the largest buyers of Iraqi crude.

World Bank WITS / UN Comtrade data show India imported more than US$25 billion of Iraqi crude oil in 2025.

The relationship creates opportunities beyond oil in:

• Pharmaceuticals

• food

• engineering

• IT

• industrial goods

• healthcare

Türkiye

Türkiye is one of Iraq's most important non-oil commercial partners.

Bilateral trade reached approximately US$16.8 billion in 2025, including about US$12.4 billion of Turkish exports to Iraq.

Major Turkish exports include:

• Machinery

• food

• furniture

• textiles

• plastics

• jewellery

• construction materials

• iron and steel

• garments

• industrial products

Türkiye has several structural advantages in Iraq:

• Geographic proximity

• Road transport

• Competitive delivery time

• Strong construction reputation

• Large supplier base

• Ability to serve small and medium orders

• Product positioning between low-cost Asian and premium European suppliers

For many Turkish manufacturers, Iraq is therefore a natural export-extension market.

Iran

Iran is a major supplier of:

• Food

• electricity and energy-related products

• building materials

• industrial products

• consumer goods

Trade exceeded US$10 billion in 2025 according to Reuters.

However, increasing U.S. sanctions pressure makes this relationship a significant financial-system risk for companies using Iraqi banks or counterparties exposed to Iran.

South Korea

South Korea is an important buyer of Iraqi crude and also has commercial capabilities relevant to:

• Construction

• engineering

• automotive

• electronics

• power

• industrial technology

United States

The United States remains relevant through:

• Energy

• finance

• technology

• security

• aviation

• industrial equipment

U.S. goods trade with Iraq in 2025 included approximately US$1.65 billion of U.S. exports and US$6.27 billion of imports from Iraq.

European Union

Europe is an important destination for Iraqi crude and a supplier of:

• Machinery

• industrial equipment

• pharmaceuticals

• electrical systems

• automotive products

• engineering

• specialised technology

EU countries collectively imported approximately US$12.5 billion of Iraqi crude in 2025 according to WITS / Comtrade data.

📦 Major Exports and Imports

Principal Exports

Iraq's exports are overwhelmingly dominated by:

Crude Oil

Oil accounts for the vast majority of export revenue.

Other export categories remain comparatively limited.

This extreme concentration creates:

Strong foreign-exchange generation + high macroeconomic vulnerability

Iraq exported more than 3 million barrels per day by sea in recent years, with Asian markets taking the majority of shipments.

Long-Term Export Diversification Potential

Potential non-oil areas include:

• Petrochemicals

• fertiliser

• natural gas products

• sulphur

• dates

• agricultural products

• processed food

• cement

• industrial minerals

• services

But diversification remains a long-term structural challenge.

Principal Imports

Major import families include:

• Machinery

• electrical equipment

• vehicles

• automotive parts

• electronics

• telecom equipment

• food

• cereals

• pharmaceuticals

• chemicals

• steel

• construction materials

• household products

• furniture

• industrial components

The most attractive foreign-supplier opportunities are often products that solve one of Iraq's structural shortages:

Power

Water

Housing

Food

Healthcare

Industrial productivity

Transport

Digital infrastructure

💷 Foreign Direct Investment

Iraq's investment proposition is changing.

Historically, foreign investment was heavily concentrated in oil and major government-linked projects.

The emerging opportunity set is broader:

• Housing

• cities

• power

• gas

• logistics

• ports

• petrochemicals

• transport

• tourism

• healthcare

• telecom

• digital infrastructure

• agriculture

• manufacturing

The National Investment Commission reported approximately US$104 billion in investment volume in February 2026.

Why International Investors Consider Iraq

Market Scale

Nearly 47 million consumers.

Infrastructure Gap

Demand exists across almost every major infrastructure category.

Energy Resources

Oil and gas provide a large industrial and fiscal base.

Location

Iraq can potentially connect Gulf trade with Türkiye and Europe.

Housing

Population growth and urbanisation create persistent demand.

Import Dependence

Local manufacturing remains insufficient in many categories.

Government Projects

Public investment generates large downstream supply opportunities.

Gulf Investment

Growing Gulf commercial engagement can improve access to capital and expertise.

Reconstruction

Several regions still require substantial redevelopment and modernisation.

Principal Investment Risks

Foreign investors must evaluate:

• Political risk

• security

• regional geopolitics

• legal enforceability

• land

• payment

• public procurement

• bureaucracy

• taxation

• customs

• banking

• sanctions

• partner selection

• infrastructure

• power

• water

• FX transfer

• local-content expectations

5G+ Investment Rule

Do not make the investment decision from the national GDP number.

First determine:

Who owns the project?

Who pays?

Where is the project?

Which authority regulates it?

Which bank processes payment?

Who provides local service?

How is the exit protected?

Only then evaluate the headline market opportunity.