Key Highlights
USD 63 billion in foreign investments, with a strong focus on renewable energy, oil, and gas.
Iraq is gradually reducing its reliance on oil, stabilizing its economy through diversification efforts and international partnerships.
Major initiatives underway include waste-to-energy, solar energy adoption, and industrial investments.
A Turning Point for Iraq’s Economy
Historically, Iraq has been one of the world’s most oil-dependent economies. According to the World Bank, oil has accounted for over 99% of exports, 85% of government revenue, and 42% of GDP in the last decade.
However, recent years have brought a new wave of economic stability and growth, driven not only by oil and gas but also by a significant rise in foreign investments and initiatives to diversify the energy sector.
Green Energy in Focus: Waste to Energy and Solar Expansion
In March 2025, Iraq broke ground on a landmark waste-to-energy project in Baghdad, led by China’s SUS Environment. Launched by Prime Minister Mohammed S. Al-Sudani, the project aims to process 3,000 tons of waste daily, generating up to 100 megawatts of energy and creating 500 local jobs. With a USD 500 million investment, it is a crucial step in Iraq’s green transformation.
The National Investment Commission’s chairman, Dr. Haider Mohammed Makiya, emphasized the project’s role in reducing fossil fuel dependency and addressing climate change challenges.
Meanwhile, Iraq is expanding into solar energy:
Solar for Homes: The Ministry of Electricity, in partnership with the Central Bank of Iraq, has approved 16 companies to install solar systems in homes. Citizens will be able to access these systems via government-backed loans.
Solar Manufacturing: The Ministry of Industry and Minerals announced plans to establish a solar panel manufacturing plant with a projected capacity of 750 megawatts per year, further supporting Iraq’s clean energy goals.
Foreign Investment: A Catalyst for Growth
Iraq has implemented a robust strategy to attract foreign direct investment (FDI)—and the results are showing. Over the past 18 months, the National Investment Commission has secured more than USD 63 billion in FDI across various sectors.
Notable investments include:
Elsewedy Electric (Egypt): A USD 5 billion investment to establish three industrial cities across Iraq.
Qatar: Committed USD 5 billion to multi-sector projects, including a strategic electrical grid integration linking Gulf countries to southern Iraq.
Saudi Arabia’s PIF: Established a USD 3 billion investment unit to support sectors such as infrastructure, agriculture, mining, real estate, and financial services through the Saudi-Iraqi Investment Company.
Looking Ahead: A Promising Economic Outlook
With diversified investments flowing in and a growing focus on sustainable development, Iraq is redefining its economic future. These initiatives signal a shift from oil dependence to a more balanced, resilient, and globally integrated economy. If this momentum continues, Iraq is poised to become a regional model for economic transformation and green energy innovation.
Source: Waya Media
