Government of Iraq is undertaking a number of reforms including extending sovereign guarantees to boost foreign investment and trade to re-build its economy badly affected from the Gulf War, sectarian strife, terrorism and COVID-19, a top official told delegates at a conference in Dubai.
“We have unified the tax system in Iraq and are currently in the process of empowering the private sector to play a greater role in our economy,” Mohammed Darraji, Senior Advisor to the Iraqi Prime Minister, said. “We have recently initiated extending sovereign government guarantees to the private sectors for key industries and infrastructure projects. One of the most important changes that we have initiated is the integration or realignment of the Iraqi financial system with the global financial system to ensure greater transparency to help boost foreign investment.”
He said, Iraq is developing mega projects and his country needs foreign investment to modernise and expand ports, airports, highways, large petrochemical projects and new urban developments and cities.
“We have managed to stay away from the situation in the region and we are now focussing on increased flow of investment and foreign trade. Iraq is expanding its physical infrastructure that needs massive investment. We are looking at larger foreign investment to build the infrastructure that will help greater economic mobility,” he added.
Meanwhile, UAE-Iraq foreign trade has reached US$27 billion in 2024, said a top UAE government official.
Abdullah Al Saleh, Undersecretary at the UAE Ministry of Economy, said, “Iraq is a key ally of the UAE and we are keen to strengthen our ties. The potential for two-way trade between Iraq and the UAE is very high and we want to grow trade to a higher level.
“The 10th session of the Iraq-UAE joint committee held last year explored prospects of cooperation in various areas of mutual interests including economic investment, educational, cultural, agricultural, food, technological, and energy sectors among others. The UAE is keen to build further on these outcomes through continued dialogue and collective actions and contribute to Iraq’s sustainable economic prosperity. The strengthening of ties with our global and regional partners remains a key focus area. The widening network of our massive economic partnerships is providing our partners for all enablers to access international market.”
They were speaking at the Iraq Britain Business Council (IBBC) Autumn Conference ‘Growing Opportunities’, organised by IBBC and Gulftek.
Vikas Handa, Managing Director of GulfTek and Chairman of the IBBC Conference highlighting Iraq’s significant growth opportunities, said: “Iraq is undergoing the most substantial expansion in three decades, driven by improvements in stability, security and a wealth of investment opportunities worth approximately $400 billion. The positivity reflects from IMF prediction that Iraq’s GDP is set to rise 5.3 percent in 2025, and, also, the fact that the stock exchange funds have increased by 17 percent this year. The ground reality is visible in various infrastructure and housing projects being implemented providing potent business confidence in the economy.”
Dr Mohammed Al Shukri, Chairman of the Kurdistan Investment Board, told the Arabian Post, that his government had registered 155 new project that are being implemented at a cost of US$5 billion in 2023. “In 2024, we have registered 156 new projects with investment outlay of US$3 billion. We are aggressively looking at more investment from all our partners, especially from the UAE as we open up our economy further for foreign investment,” he said.
“Kurdistan is a very safe region and has been attracting foreign investment for some time. We are free from insurgencies.”
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