Iraq is outlining its post-oil economy.

[RJG]

Iraq is outlining its post-oil economy.

Economic  2026/07/07

   

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 Baghdad: Hussein Thaghab 

 

In Iraq, attention is turning to building a new economic model that reduces dependence on oil, in light of the challenges facing the general budget and the fluctuations of global markets. Experts, academics and officials warned during a conference entitled “Iraq After Oil” that the next stage requires moving from a rentier economy to a productive economy based on investment.

 Strengthening the role of the private sector, developing the agricultural, industrial and tourism sectors, along with reforming the financial system, to ensure sustainable development, job creation and economic stability.

 

Iraq Development Fund

The Prime Minister’s financial advisor, Dr. Mazhar Muhammad Saleh, said that Iraq needs a direction to achieve a real diversification of resources, pointing to the possibility of benefiting from the Iraq Development Fund, which represents an important platform for attracting investments and international partnerships. He stressed that Iraq needs a comprehensive agricultural renaissance in cooperation with specialized international companies, which would contribute to raising local production and increasing the contribution of non-oil revenues to the gross domestic product. 

He stressed the importance of cooperation with international institutions to build a more organized economic environment and establish a knowledge-based labor market that supports innovation and provides sustainable job opportunities, emphasizing that diversifying sources of income has become a strategic necessity to protect the national economy.

 

A clear economic model

For his part, Member of Parliament Youssef al-Kalabi stated that Iraq is currently discussing the post-oil era, at a time when the general budget relies on oil revenues for more than 90 percent of its funding. He pointed out that the country has yet to adopt a clear economic model following the socialist era.

He explained that the House of Representatives sought to support economic reforms, but that financial reform projects should originate from the government, and that the oil market is subject to supply and demand factors, which makes it necessary to adopt a national economic model capable of diversifying sources of income.

Addressing revenue challenges

For his part, Dr. Muhammad Abdul Sattar Al-Baghdadi, head of the Iraq branch of the Indian-Arab Trade, Industry and Agriculture Company, affirmed that the future of the Iraqi economy is linked to finding practical solutions to address the challenges of revenues and the budget deficit, noting that dialogue between the public and private sectors represents an important step towards formulating a shared economic vision. He explained that Iraq possesses great natural and human resources, but their good management is the basis for achieving development and reducing the impact of fluctuations in oil prices, calling for the provision of an attractive investment environment for capital and modern technology.

 

Large financial returns

Al-Baghdadi pointed out that the tourism sector represents one of the most important economic alternatives, given Iraq's wealth of archaeological sites and its potential for religious, medical, and recreational tourism, all of which can generate significant financial returns and create thousands of jobs. He also called for reforming the banking sector, facilitating access to finance, and supporting small and medium-sized enterprises (SMEs) to boost capital flow within the country. He emphasized that investing in tourism infrastructure, developing transportation and services, and expanding partnerships between the public and private sectors will provide Iraq with a sustainable economic resource. 

It enhances its financial stability.

 

Restructuring the oil industries

For her part, economist Dr. Ikram Abdel Aziz stressed that continuing to rely on crude oil exports to finance the budget is no longer a sustainable option, calling for the restructuring of the oil industries to achieve added value and establish new sources of revenue. 

Long-term revenue. 

She explained that oil revenues should be used to revitalize productive sectors, primarily industry, agriculture and services, in order to contribute to diversifying the economy. She pointed out that efficient management of the development road project could transform Iraq into a regional economic hub that connects markets and attracts investments. She stressed that the success of this vision requires comprehensive institutional reform and the development of the educational system to meet the needs of the labor market.

 

Stimulating national production

Economic expert Abbas Shamara believes that building a strong private sector requires a long-term economic vision based on strategic planning and a genuine partnership between the state and businessmen, indicating that Iraq possesses capital and resources capable of contributing to the reconstruction of the economy if they are properly invested. 

He pointed out that developing the oil industries and related manufacturing industries could make Iraq an important industrial center, providing ample job opportunities and enhancing economic diversification, stressing the need to unify efforts to attract investments and stimulate national production.

 

Partnership Law Enactment

Academic Dr. Abdul Rahman Al-Mashhadani affirms that economic reform begins with the availability of a genuine political will that adopts reform and provides the appropriate environment for its implementation, noting that the current stage requires expediting the legislation of the Public-Private Partnership Law, due to the legal framework it provides that enhances investment and raises the efficiency of project implementation. 

He pointed to the importance of giving the private sector a pivotal role in leading economic activity by removing restrictions and providing supportive legislation, which contributes to diversifying the economy and raising growth rates. 

And achieving sustainable development.

Ahmed Al-Hamdani, Chairman of the Board of Directors of Al-Amq Company, the organizer of the conference, said: “The success of economic reform requires building an effective and high-quality private sector that has the ability to lead development, in parallel with expanding the horizons of economic cooperation between Iraq and the countries of the world.” 

He explained that the next phase requires transforming ideas and initiatives into productive and investment projects that contribute to revitalizing the national economy and supporting various sectors. He added that building a network of local and international partnerships, along with focusing on training, development, and enhancing the efficiency of human resources, represents a fundamental pillar for improving institutional performance, transferring expertise, and attracting investments, thereby strengthening the competitiveness of the Iraqi economy and supporting its growth. 

The path of sustainable development.

https://alsabaah.iq/134778-.html

[RJG]

Developing a strategy to maximize local revenues

The second and third  2026/07/07

   

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 Baghdad: Al-Sabah

 

Prime Minister Ali Faleh al-Zaidi emphasized the crucial role of local governments in service delivery and governance, highlighting their position, along with the governors, as the first point of contact with citizens. He noted that the federal government and local governments form a unified body within the state. A statement from the Prime Minister's Media Office, received by Al-Sabah newspaper, indicated that "al-Zaidi chaired the third session of the Higher Committee for Coordination between Governorates for the year 2026 on Monday. The session addressed the general conditions in the governorates, including service provision and living standards, as well as several other topics and issues presented. The meeting was attended by a number of ministers, the Director of the Prime Minister's Office, the General Coordinator for Governorate Affairs, governors, heads of provincial councils, and several advisors." At the outset of the session, the Prime Minister stressed the importance of local governments in service delivery and governance, emphasizing their role, along with the governors, as the first point of contact with citizens, who expect to receive appropriate services without being swayed by political differences in any way. Al-Zaydi also explained that the federal government and local governments constitute a single entity within the state, and that each governorate is responsible for establishing appropriate mechanisms to achieve local development by attracting investment. He emphasized the need to avoid bureaucratic obstacles that hinder progress. Al-Zaydi stressed the importance of supporting security forces in carrying out their duties to consolidate stability. He also noted tangible progress in the project to provide one million residential plots, the distribution of which among the governorates will be based on population size and poverty rates, ensuring fairness and benefiting the largest possible segment of the population. The session reviewed the files and resolutions presented to it, and the following decisions and recommendations were adopted: 

1 - In the area of addressing the housing crisis, the allocation of residential plots of land was approved for those covered by the Political Prisoners Foundation Law, in accordance with legal priorities and applicable instructions.

2 - In the area of maximizing local revenues for provincial governments, the session approved the formation of committees from the relevant authorities in the provinces, headed by the Assistant General Coordinator for Provincial Affairs, to prepare a strategy for maximizing local revenues, with the recommendations to be presented to the Higher Authority for Coordination between Provinces for approval.

3 - Regarding the provision of chlorine necessary for the operation of water projects, it was decided that the governorates and the Baghdad Municipality would provide it through importation to meet the actual need, until the expansion projects of the Euphrates plant are completed, and that the Ministry of Industry and Minerals would undertake to complete the increase in the production capacity of the ministry’s plants according to a specific timetable.

4 - On the same subject, the third quarterly report on drinking water in the governorates, and the recommendations attached to it, were approved. 

5 - In the field of developing the health sector, the proposals of the Ministry of Health were approved, which included forming a rapid intervention medical team of all specialties to work in the governorates during crises and millions of visits, and the commitment of neighboring governorates to provide support and logistical assistance and facilitate the operations department detachments in carrying out medical evacuation.

6 - It was also approved to train new graduates from the medical group of the medical colleges (Al-Mustansiriya, Al-Nahrain, Ibn Sina) in their respective governorates according to their place of residence without referring to the Baghdad Governorate.

7 - Granting governors the authority to request the lifting of agricultural reform in accordance with the approved contexts and controls.

8 - The recommendations of the committee formed regarding the percentage of the governorates from the revenues of the weighing stations were approved, and that the Ministry of Construction and Housing should amend the instructions for operating the axle weighing stations, by specifying the governorate’s share of the revenues of the amounts collected at a rate of 50 percent, in accordance with the amended Financial Management Law No. 6 of 2019.

9 - In order to improve the efficiency of the services provided by municipal institutions, it was decided that the Ministry of Construction and Housing should form teams with the participation of a representative of the Coordinating Body between the governorates, to review the services provided, the problems and obstacles facing municipal work, and to submit appropriate reports and recommendations.

10 - In the area of stalled investment licenses, the recommendations of the committee formed for the Karbala Gate commercial and entertainment projects and the Ewan Towers residential complex were approved.

11 - It was also decided to form a committee to undertake the task of investigating the reasons for not signing the contract and handing over the land for the projects (Riyadh Al-Furatain for Agricultural Investments, Strategic Seed Cultivation and Poultry Farms, Cattle Station, Calf Breeding and Strategic Crop Cultivation).

https://alsabaah.iq/134796-.html