Foreign investment deficit persists in Iraq despite multibillion-dollar deals
Iraq recorded a net foreign investment loss of $8B in 2024, reflecting continued capital flight and underperformance in attracting financial inflows, according to the Iraq Future Foundation.
Foundation director Manar al-Obaidi, citing Central Bank figures, reported that $7.6B in foreign holdings exited Iraq last year. Additionally, Iraqi entities placed $400M in overseas ventures.
Data for the first quarter of 2025 showed the trend persisted, with $1B in external withdrawals and $133M in outbound Iraqi investments—a 21% rise from the previous quarter.
Despite a year-on-year decrease in net outflows, al-Obaidi cautioned that the overall balance remains negative, underscoring persistent obstacles to retaining and attracting international capital.
The Foundation highlighted that foreign direct investment plays a critical role in stabilizing the country's external accounts by bolstering hard currency reserves alongside oil revenues. Ongoing deficits, it warned, could intensify pressure on the financial system.
While authorities claimed to have secured $63B in investment commitments over the past two years, the Foundation found no traceable impact in monetary statistics, and concluded that many projects remain pending or inactive, with no actual funds entering the domestic economy.
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