Iraq Launches 'City of Gold' in Baghdad to Boost Non-Oil Economy and Jewelry Industry
In a move with significant economic and strategic implications, Iraq has officially launched the 'City of Gold' project in the capital, Baghdad — the country's first zone dedicated to the manufacturing and marketing of gold and jewelry. The initiative is part of a broader government plan to stimulate the non-oil industrial sector, create jobs, and elevate Iraq's regional standing in the gold jewelry market.
An Integrated Hub for Gold Manufacturing
According to Haider Makiya, Chairman of the National Investment Commission, the project falls under the state's economic diversification strategy, aiming to reduce reliance on oil revenues and stimulate national income. The city will be established on nearly 50,000 square meters in the Al-Nahda area of Baghdad and will feature workshops, factories, and refineries for gold processing, along with specialized training centers in jewelry design and craftsmanship, and commercial markets for both local and international gold products.
Makiya explained that the project will be carried out as an investment venture in cooperation with the Trade Bank of Iraq (TBI), which will fund and support its execution phases. This will enable the participation of both local and international private sectors and attract global luxury brands to the Iraqi market.
Reviving a Neglected Sector
Iraq's gold sector suffers from a lack of supporting infrastructure and limited domestic manufacturing, resulting in a heavy reliance on imported finished gold — particularly from Turkey and the UAE. Project leaders hope that the City of Gold will reverse this trend and transform Iraq from an importer into a regional hub for production and export.
Mohammed Naeem, Advisor to the Prime Minister on Investment Affairs, noted that the project goes beyond establishing a marketplace. It envisions a comprehensive ecosystem, including technical education and workforce development, by founding a vocational institute to train young people in gold craftsmanship, especially amid growing demand for skilled labor in the industry.
Positive Market Reactions
The project has been met with enthusiasm from economic circles, with experts saying it could represent a turning point if linked to broader reforms in the sector's legal and financial frameworks. Economist Nabil Al-Marsoumi commented that the City of Gold reflects "localization of a traditional industry with high added value" and could contribute to improving the balance of payments through future exports.
Meanwhile, the Iraqi Goldsmiths Association has called for the inclusion of local artisans and traditional workshops in the design and operational phases to ensure skill transfer to younger generations and avoid monopolization by large companies.
A Regional Outlook
Iraq's City of Gold emerges at a time when the region is seeing intense competition in the jewelry industry, with established centers like Dubai, Riyadh, and Cairo. However, Iraq is banking on its rich heritage in precious metal craftsmanship and a vibrant domestic market to reposition itself as a key player in the field.
Amid the many challenges facing Iraq's economy, the City of Gold presents a promising opportunity — not only to revive a long-neglected sector but also to reshape the country's image as a hub of innovation and manufacturing. If successful, the project could pave the way for a new 'Made in Iraq' label in the world of gold and jewelry in the coming years.
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