- Iraq launches major economic reforms to reduce oil dependence and boost PPPs.
- New initiatives focus on renewable energy, gas, transport, and green hydrogen.
- Reforms aim to support SMEs, digital governance, and private-sector growth.
Iraq has initiated a dynamic stage of economic reform through its development initiative started in October 2022, aimed at decreasing reliance on oil income and enhancing collaboration with the private sector, stated the government's financial advisor, Mudher Mohammed Saleh, to Zawya Projects.
Saleh stated that the development roadmap embodies a “social market economy” framework in line with Iraq Vision 2050 and the Five-Year Development Plan.
“The Iraqi government has embarked on a coordinated path to attract private investments and promote public–private partnership (PPP) projects in key economic sectors,” he said.
Saleh highlighted the key initiatives as follows:
Renewable energy: Solar initiatives in Karbala, Babil, and Basra focus on enhancing local manufacturing and industrial capabilities via integrated power and energy systems.
Gas infrastructure: Recent global collaborations aim to capture and utilize associated gas to eradicate flaring within two years and enhance domestic energy consumption.
Transport: Railway initiatives are being launched to link ports with industrial and manufacturing areas as part of the Development Road project, connecting Iraq to the Gulf and Europe.
Iraq is entering advanced, sustainable industrial energy technologies through initiatives such as green hydrogen production. Saleh mentioned that the government is increasing the availability of soft loans and credit guarantees for small and medium-sized enterprises (SMEs) to enhance production, create jobs, and improve private-sector competitiveness.
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He pointed out that a major emphasis of the economic program is enhancing the business climate through tax and customs reforms, anti-corruption initiatives, and digital governance to boost transparency; reforms in the banking sector seek to broaden access to finance, along with investment incentives for agriculture, manufacturing, renewable energy, and digital sectors.
Saleh also mentioned that the government is investing in advanced irrigation systems, food processing initiatives, and technology-focused farming projects to link Iraqi producers with regional and international markets.
The Key Performance Indicators (KPIs) that the government utilizes to monitor advancement consist of non-oil GDP growth, non-oil export levels, private-sector jobs, access to credit for SMEs, and industrial energy production capacity, the financial advisor mentioned.