Business in Iraq A Strategic Gateway for Global Companies

Growing Economic Momentum

• Robust Growth in Oil & Non-Oil Sectors
  Iraq’s economy rebounded strongly with a projected 4.1 % growth in 2025, following contraction in 2023–24. Thanks to surging oil output—now surpassing 4.6 million barrels per day—ongoing revenue growth is fueling new opportunities .

• Expanding Non-Oil Sectors
  Agriculture, manufacturing, construction, and services continue to build momentum. Non-oil GDP is projected to grow, supported by strong credit growth and public investment.Foreign Investment & Strategic Projects

• Record-breaking FDI Inflow
  The first nine months of 2024 saw nearly US $24 billion in foreign-directed investment—doubling past records.
  Additionally, the Iraq Development Fund, established in 2023, has attracted $7 billion for non‑oil initiatives.

• Flagship Energy & Infrastructure Deals
  • BP plans up to $25 billion for Kirkuk oil/gas field upgrades.
  • TotalEnergies is constructing a $250 million gas plant in Basra, with a major $27 billion energy portfolio.
  • Iraq is becoming a transit hub—joining the TIR system in April 2025, while advancing the Iraq Development Road and Grand Faw Port to boost regional connectivity.Reforms & Business Enablers

• Governance & Reform
  Ranked 172nd in the World Bank’s Doing Business index, Iraq is actively implementing reforms—streamlining procedures and enhancing transparency.

• Investment Framework & Support
  The Iraq Development Fund works to diversify the economy and finance high-impact private-sector projects.
  The Ministry of Planning reports a drop in unemployment—from 17 % to 13 % in recent years—linking economic improvements with increased business activity .Why Iraq? Key Advantages for Your Company

1. Strategic Access
   Iraq serves as a gateway to Gulf, Central Asia, and European markets through enhanced infrastructure and trade corridors.

2. Resource Wealth
   Beyond oil and gas, the government’s pivot to agriculture, clean energy, manufacturing, and logistics opens diverse investment channels.

3. Investment Opportunities
   Record FDI inflows and major Belt & Road-style projects signal readiness for partnerships in energy, transport, and green initiatives.

4. Supportive Reforms
   Government-led reforms on licensing, transparency, and business processes are making company setup increasingly efficient.

5. Public-Private Collaboration
   Ongoing cooperation via the Development Fund highlights the ease of partnering with government stakeholders.Conclusion

Iraq offers a compelling combination of natural resources, massive infrastructure investment, and reform momentum. While risks remain, notably in governance and peace-building, the upside for international companies—particularly in energy, logistics, agri-business, and renewables—offers a remarkable market entry opportunity.