'Iraq sees economic gains, investor confidence rises' : Iraqi envoy
The Iraqi economy has witnessed significant and remarkable improvements over the past few years. According to the latest international economic indicators, Iraq has entered a new phase of recovery and growth amid significant transformations that reflect a tangible improvement in economic performance and enhance confidence in the national economy among local and international investors. This improvement comes amid an economic policy characterized by openness and balanced planning to address challenges and stimulate sustainable development.
Iraqi Ambassador to Korea Mohammed Mustafa Juma Almuntafeky / Courtesy of the Embassy of the Republic of Iraq in Seoul
Increased Non-Oil Revenues and Improved Financial Performance
In a remarkable development, Iraq's nonoil sector recorded unprecedented growth during 2024. Nonoil revenues rose by 198 percent during the first nine months of the year — a jump from $3.5 billion in the same period in 2023 to $10 billion in 2024. These revenues now account for 12.1 percent of the state’s total revenues, clearly indicating a diversification of income sources and improvements in financial management efficiency.
Decline in Inflation Rates and Recovery of the Financial Market
The annual inflation rate fell to 2.8 percent in the fourth quarter of 2024, down from 4 percent in the same period in 2023 — a 30 percent decrease. This decline signifies greater price stability and improved purchasing power for citizens, enhancing overall economic confidence.
Meanwhile, the Iraqi financial market has shown strong recovery, with the ISX60 index increasing by 20.23 percent, reflecting growing investor trust and a widening base of market participants.
International Monetary Fund Confirms Improvement
According to recent reports from the International Monetary Fund, Iraq’s economic indicators have improved markedly. The IMF cites the stabilization of financial policies, rising growth rates and an uptick in foreign investment as positive signs. These developments come alongside efforts to reform Iraq’s banking system and improve the legal and regulatory framework for investment.
Growing Foreign Investment and Expanding Global Partnerships
Foreign investment in Iraq has reached $88 billion, highlighting increasing global investor confidence. Iraq is also actively engaging with international companies to implement strategic initiatives such as the $17 billion Development Road project, which aims to link Iraq to Europe through Turkey.
Furthermore, the government has committed $100 billion over three years for large-scale infrastructure projects. This allocation opens up extensive opportunities for international firms to participate in Iraq’s economic transformation and development.
Looking Ahead
All these figures paint a picture of a changing Iraqi economy — one that is increasingly stable, growing and attractive to global partners. With an expected GDP growth of 3.6 percent in 2025 projected by the IMF, Iraq is positioning itself as a key economic player and promising investment destination in the Middle East.
Mohammed Mustafa Juma Almuntafeky is the head of mission, Embassy of the Republic of Iraq in Seoul.