Iraq sees surge in investment spending, eyes economic diversification
Baghdad (IraqiNews.com) – Iraq is witnessing a significant upswing in business activity, with current investment spending across various sectors reaching approximately 88 trillion Iraqi dinars, a key factor in a 35% boost to the nation's annual GDP. This was confirmed on Thursday (May 8, 2025) by Mazhar Mohammed Salih, the Prime Minister's Financial Advisor.
Salih highlighted that an impressive 40% of this total investment originates from the private sector, through independent projects or partnerships with the government. He emphasized Iraq's significant and tangible progress in reactivating investment in its world-class sulfur and phosphate reserves, with negotiations ongoing with major international companies for high value-added exports. This initiative aims to diversify Iraq's economy away from oil dependency.
Economic expert Akram Hantoush noted that investment volume has surged from approximately $45 billion before 2017 to around $88-$90 billion today. He projected private sector investments could exceed $500 billion with ongoing reforms in investment laws and policies aimed at developing crucial infrastructure. Iraq is also actively pursuing the recovery of smuggled funds through international cooperation, further strengthening its financial resources.
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