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Iraq Business
2 days ago
- Business
- Iraq Business
Risks of Transitioning to AI-Powered Digital Administration in Iraq
By Dr. Saad Mohsen Naji - Expert in Digital Economy | Vice President and Secretary General of Jordan's Iraqi Business Council . Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News . The Risks of Transitioning to AI-Powered Digital Administration: Iraq Between Aspiration and Reality In the midst of an intense global race toward digitization, AI-driven digital administration has become a defining feature of institutional transformation. While such technologies promise unprecedented levels of efficiency, accuracy, and speed, they also carry inherent risks and challenges. If not managed wisely, these risks can undermine the sustainability of economic organizations-particularly in developing economies such as Iraq and several Arab countries. A critical review of e-government initiatives across the region reveals that their shortcomings often stem not from financial constraints, but from the failure to establish well-structured teams proficient in the latest technologies and capable of managing them effectively. This underscores the centrality of human capital and the need for continuous education. Technology, no matter how advanced, remains ineffective without qualified human resources to harness its potential. Digital transformation, when pursued through abrupt leaps rather than gradual integration, tends to disrupt traditional organizational structures. Field studies show that downsizing skilled personnel without offering reskilling opportunities creates dangerous execution gaps. A striking example is the collapse of Borders Books, which failed to adapt to digital publishing and exited the market in 2011. More recently, the streaming platform Quibi invested nearly $1.8 billion into short-form video content without adequately addressing user behavior, leading to its shutdown just six months after launch in December 2020. These cases highlight the non-negotiable need to align digital solutions with market behavior and user expectations. The integration of artificial intelligence also reveals a significant digital skills gap among public sector employees. The World Bank recommends a phased approach to digital transformation that incorporates sustainable reskilling of staff to ensure long-term success. Moreover, the lack of interoperability between legacy systems and new digital platforms leads to disjointed user experiences and market losses-as seen in the case of Sears , the retail giant whose failure to integrate physical stores with its digital platform led to its closure in 2018. The company's downfall was rooted in a disconnect between corporate culture and the digital capabilities of its workforce. Economically, digital platforms exert downward pressure on prices due to their inherent transparency. Without delivering clear added value, institutions risk losing their competitive edge rapidly. Additionally, building secure and highly available digital infrastructure is a costly endeavor-especially in countries lacking robust technological ecosystems. Cybersecurity threats are becoming more acute in tandem with the expansion of digital operations. Security reports from 2024 highlight a sharp increase in cyberattacks targeting government systems in countries where digitization has outpaced cybersecurity investments. The primary vulnerability, according to these reports, lies in the imbalance between spending on user interfaces or cloud infrastructure and underinvestment in cybersecurity. Digital inclusion remains a fundamental challenge. Digital services often benefit urban populations and younger generations, while the elderly and rural communities are left behind-widening the digital and social divide. Harvard Business Review stresses that institutional resistance to change-whether from employees fearing job loss or from senior leaders who fail to genuinely embrace transformation-is a key driver behind the failure of digital initiatives. In conclusion, AI-powered digital administration offers a powerful lever for enhancing performance and transparency in Iraq and across developing economies. However, it is not a silver bullet. Success requires a balanced approach that harmonizes technology with human capability, and ambition with realism. This involves adopting an integrated strategy based on sustained investment in human capital, the endorsement of transformative leadership, the implementation of secure and equitable digital governance, and the pursuit of inclusive digitization that reaches all segments of society. Through this holistic framework, developing countries can reap the benefits of digital transformation while avoiding its pitfalls.
Iraq Business
6 days ago
- Politics
- Iraq Business
Iraqi Election: Second Shiite Bloc Withdraws
From Amwaj Media. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News. Iraqi electoral process in question as second Shiite bloc withdraws from polls Amid mounting fears over the future of democracy in Iraq, the Nasr (Victory) bloc led by former premier Haidar Al-Abadi (2014-18) (pictured) has announced its withdrawal from the upcoming parliamentary elections. Citing pervasive "political money" and alleged vote-buying, the bloc says electoral integrity is worsening. The full article can be viewed here.
Iraq Business
7 days ago
- Business
- Iraq Business
Trump & Crypto: Will Bitcoin's Success Translate to the Iraqi Dinar?
By Guest Blogger. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News. Trump's Policies and Cryptocurrency: Will Bitcoin's Success Translate to the Iraqi Dinar? The relationship between political leadership and financial markets has rarely been as pronounced as it is today with cryptocurrency. Since Donald Trump's return to the presidency in January 2025, Bitcoin has experienced remarkable gains, prompting investors to wonder whether this success might extend to other alternative investments like the Iraqi Dinar. However, the fundamental differences between these assets reveal why Bitcoin's trajectory under Trump's administration is unlikely to be replicated by the Iraqi Dinar. Bitcoin's Meteoric Rise Under Trump's Pro-Crypto Policies Bitcoin has demonstrated extraordinary performance since Trump's re-election, with the cryptocurrency surging approximately 60% since November 2024 and reaching heights of $111,000. This dramatic increase can be attributed to several specific policy initiatives and strategic decisions by the Trump administration. The foundation of Bitcoin's success lies in Trump's complete reversal from his previous skeptical stance toward cryptocurrency. During his campaign, Trump promised to make America "the crypto capital of the planet," and his administration has delivered on this promise through concrete legislative and regulatory actions. In March 2025, Trump signed an executive order establishing a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile, signaling the federal government's commitment to cryptocurrency adoption. The administration's approach has been systematically supportive of the cryptocurrency industry. Congress recently passed the first major crypto legislation in U.S. history, providing regulatory clarity that has been long sought by the industry. This regulatory framework has reduced uncertainty and encouraged institutional investment, contributing to Bitcoin's price appreciation. Trump's appointees reflect this pro-crypto stance, with one in five top administration picks holding cryptocurrency assets, some worth millions of dollars. This alignment between policy and personal investment demonstrates the administration's genuine commitment to cryptocurrency adoption rather than mere political rhetoric. The Iraqi Dinar: A Fundamentally Different Asset The Iraqi Dinar operates in an entirely different economic and political ecosystem from Bitcoin. While Bitcoin is a decentralized digital asset that responds to global market forces and regulatory changes, the Iraqi Dinar is a sovereign currency tied to Iraq's economic fundamentals and monetary policy decisions. Current exchange rate data shows the Iraqi Dinar trading at approximately 1,310 dinars per U.S. dollar as of July 2025, representing minimal fluctuation over the past year. The International Monetary Fund projects an average exchange rate of 1,300 dinars per dollar for both 2025 and 2026, indicating expectations of stability rather than dramatic appreciation. The Central Bank of Iraq has successfully transitioned to a new trade finance system managed by commercial banks, which has contributed to exchange rate stability. However, this stability is precisely what differentiates the Dinar from Bitcoin-the Iraqi currency is managed to maintain purchasing power rather than to serve as a speculative investment vehicle. Why Trump's Crypto Policies Won't Impact the Dinar Several fundamental factors explain why Trump's cryptocurrency-friendly policies cannot replicate Bitcoin's success with the Iraqi Dinar: Regulatory Jurisdiction : Trump's policies directly impact assets under U.S. regulatory authority. Bitcoin, as a global digital asset traded on U.S. exchanges and held by U.S. institutions, falls within this sphere of influence. The Iraqi Dinar, however, is governed by Iraq's Central Bank and monetary policy, which operates independently of U.S. cryptocurrency regulations. : Trump's policies directly impact assets under U.S. regulatory authority. Bitcoin, as a global digital asset traded on U.S. exchanges and held by U.S. institutions, falls within this sphere of influence. The Iraqi Dinar, however, is governed by Iraq's Central Bank and monetary policy, which operates independently of U.S. cryptocurrency regulations. Asset Classification : Bitcoin is treated as a digital commodity and investment vehicle, making it responsive to regulatory changes that affect investor sentiment and institutional adoption. The Iraqi Dinar functions as a national currency with exchange rates determined by economic fundamentals such as oil revenues, trade balances, and monetary policy decisions. : Bitcoin is treated as a digital commodity and investment vehicle, making it responsive to regulatory changes that affect investor sentiment and institutional adoption. The Iraqi Dinar functions as a national currency with exchange rates determined by economic fundamentals such as oil revenues, trade balances, and monetary policy decisions. Market Dynamics : Bitcoin's price appreciation stems from increased institutional adoption, regulatory clarity, and speculative investment driven by Trump's supportive policies. The Iraqi Dinar's value is tied to Iraq's economic performance, oil exports, and regional stability-factors largely unrelated to U.S. cryptocurrency policy. : Bitcoin's price appreciation stems from increased institutional adoption, regulatory clarity, and speculative investment driven by Trump's supportive policies. The Iraqi Dinar's value is tied to Iraq's economic performance, oil exports, and regional stability-factors largely unrelated to U.S. cryptocurrency policy. Investment Infrastructure: The cryptocurrency ecosystem has developed sophisticated trading platforms, custody solutions, and financial products that respond rapidly to policy changes. The Iraqi Dinar lacks this infrastructure for speculative investment, with most transactions occurring through traditional foreign exchange channels focused on trade and remittances rather than investment. Economic Realities and Market Projections Financial forecasts for the Iraqi Dinar suggest continued stability rather than dramatic appreciation. Market projections indicate potential slight depreciation, with the exchange rate possibly reaching around 1,318 IQD per USD by the end of 2025. These projections reflect expectations of gradual economic adjustments rather than the explosive growth seen in Bitcoin. Iraq's economy remains heavily dependent on oil revenues, which are calculated based on the exchange rate of 1,300 dinars to one dollar in the federal budget. This dependency on commodity prices and the government's fiscal management creates a fundamentally different value proposition from Bitcoin's technology-driven and adoption-based appreciation. The Broader Investment Landscape The contrast between Bitcoin and the Iraqi Dinar illustrates a broader principle about how different asset classes respond to political and regulatory changes. Bitcoin's success under Trump's administration demonstrates the power of regulatory clarity and institutional support for emerging asset classes. The cryptocurrency's decentralized nature and global trading infrastructure make it particularly responsive to positive policy developments. Traditional currencies, even those from developing economies, operate within established monetary systems designed for stability rather than speculation. The Iraqi Dinar's role as a medium of exchange and store of value for Iraq's economy necessitates careful management to prevent the volatility that investors seek in alternative assets. Conclusion While Trump's pro-cryptocurrency policies have created a favorable environment for Bitcoin's remarkable performance, these same policies cannot produce similar results for the Iraqi Dinar. The fundamental differences between a decentralized digital asset and a sovereign currency mean that each responds to entirely different sets of economic and political factors. Bitcoin's success under Trump's administration reflects the power of regulatory support and institutional adoption in driving speculative asset prices. The Iraqi Dinar's stability reflects the careful monetary management required to maintain a functioning national currency. Investors considering whether Trump's policies might benefit the Iraqi Dinar should recognize that the two assets exist in fundamentally different economic ecosystems, with success metrics that are not only different but often contradictory. The lesson for investors is clear: while political leadership can significantly impact certain asset classes, the specific characteristics of each investment determine how it responds to policy changes. Bitcoin's technological foundation and speculative nature make it responsive to regulatory developments, while the Iraqi Dinar's role as a national currency requires it to prioritize stability over explosive growth. For more information on the Iraqi dinar, check out IBN's Dinar Page here:
Iraq Business
12-07-2025
- Business
- Iraq Business
Trump's Looming Tariffs could Target 4 MENA Countries
By Adam Lucente for Al Monitor. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News. From Iraq to Algeria, Trump's looming tariffs could target 4 MENA countries The United States has a trade deficit with Iraq, Algeria, Libya and Tunisia, according to the US government, prompting the president to send them letters warning of new tariffs. Click here to read the full article (subscription required). Tags: Donald Trump, Tariffs, United States
Iraq Business
12-07-2025
- Business
- Iraq Business
Leveraging Iran's Defeat to Strengthen US-Iraq Security Relations
By Michael Knights, for the Washington Institute for Near East Policy. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News. Leveraging Iran's Defeat to Strengthen U.S.-Iraq Security Relations Tehran's Iraqi proxies mostly sat out the twelve-day war, but this pragmatic restraint will not forestall growing U.S.-Iran competition over Iraq's airspace, economic partnerships, and other sectors. Click here to read the full report. Tags: Dr Mike Knights, Harakat Hezbollah al Nujaba, Iran, Kata'ib Hezbollah, Kataib Hezbullah, militias, PMU, Popular Mobilization Forces, Popular Mobilization Units, United States, Washington Institute for Near East Policy
