Business

07.10.2025

Iraq’s Economic Growth and Investment Boost

This high growth reflects a clear improvement compared to the forecasts of June 2025, supported by the recovery of the energy sector and the increase in oil exports, alongside government efforts to boost investment in infrastructure and diversify income sources, according to Iraqi media reports.

With an expected growth rate of 6.1%, followed by Qatar at 5.3%, and Palestine at 5.1%, the UAE recorded a growth of 5%. Algeria, Bahrain, and Kuwait saw moderate rates ranging between 2.5% and 3.1%, while Jordan and Tunisia recorded rates below 2.7%, with Yemen remaining unchanged at 2.5%.

Iraqi Prime Minister Mohammed Shia Al-Sudani announced last September the launch of projects worth 450 billion dollars across various sectors, during his sponsorship of the Iraq Investment Forum, which is held over two days in the capital, Baghdad, showcasing more than 160 promising investment opportunities.

He pointed out that the balanced government policies in foreign relations and its commitment to Iraq’s interests have contributed to creating an ideal environment for investment, with increased purchases and the banking system reformed to meet international standards, alongside the expansion of electronic payment systems and financial sector governance.

Al-Sudani added that there have been unprecedented successes in Iraq in the fields of fertilizers, phosphates, iron, construction, and food industries, along with the pharmaceutical industry, with products from 54 Iraqi factories being exported to regional and global markets.

The Iraqi Prime Minister, Mohammed Shia Al-Sudani, concluded his speech at the Iraq Investment Forum by referring to the government’s plans to establish a “center” under the supervision of the Prime Minister’s Office, aimed at providing consultations and information to support investment development in Iraq.