Iraq’s economy is experiencing newfound stability, driven by $63 billion in foreign direct investment over the past 18 months, alongside efforts to reduce its heavy reliance on oil, which accounts for 99% of exports and 85% of the government’s budget. The National Investment Commission has attracted funds into diverse sectors, including renewable energy, oil, and gas, while initiatives like a waste-to-energy project in Baghdad, launched with a $500 million Chinese investment, aim to process 3,000 tons of waste and generate 100 megawatts. These projects signal Iraq’s commitment to environmental sustainability and economic diversification.
Renewable energy initiatives are gaining momentum, with the Central Bank of Iraq qualifying 16 companies to install solar panels in homes through loan programs, easing pressure on the national grid and promoting clean energy. Additionally, the Ministry of Industry and Minerals has announced plans for a solar panel manufacturing facility with a 750-megawatt annual capacity, supporting both residential and industrial transitions to renewables. These efforts align with Iraq’s broader goal of reducing fossil fuel dependence and addressing climate change challenges.
Foreign investments from countries like Egypt, Qatar, and Saudi Arabia are bolstering Iraq’s economic prospects. Egypt’s $5 billion investment includes three industrial cities, while Qatar’s $5 billion targets multiple sectors, including a Gulf-Iraq electrical grid project. Saudi Arabia’s $3 billion fund focuses on infrastructure, agriculture, and financial services. With these international partnerships and a focus on diversification, Iraq is positioning itself as an attractive investment destination, paving the way for sustainable growth and a more resilient economy.
