A new report, Iraq Construction Market Size, Trends, and Forecasts by Sector – Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (H2 2024), has been added to ResearchAndMarkets.com’s offering.
Iraq’s construction industry is set to grow by 5% in real terms in 2024, fueled by public and private sector investments in transportation, renewable energy, and housing, alongside rising demand for oil and gas projects.
The 2024-25 fiscal budget allocates IQD211 trillion ($162 billion) to capital expenditure, marking a 6% increase from the previous year. This includes IQD40 trillion ($30.8 billion) for energy, IQD33.3 trillion ($25.6 billion) for security and defense, and IQD17.3 trillion ($13.3 billion) for education.
From 2025 to 2028, the industry is projected to expand at an annual average rate of 4.9%, driven by investments in energy, water infrastructure, and housing. The government aims to boost renewable energy production to 12GW by 2030. Additionally, the Export-Import Bank of the United States (EXIM) has approved a $297 million investment for an energy efficiency project in Iraq.
The oil and gas sector remains a key driver, with plans to increase production from 5 million barrels per day (bpd) in 2023 to 6 million bpd by 2030. In June 2024, Honeywell signed an MoU with Iraq’s Oil Ministry to expand crude oil refining capacity by 40%, constructing seven new refineries and upgrading existing ones in Doura, Haditha, and Qayyarah.
