Government advisor: The Iraqi economy urgently needs to diversify and move away from its oil dominance.
Government advisor: The Iraqi economy urgently needs to diversify and move away from its oil dominance.
2025/09/19
The Prime Minister’s economic advisor, Mazhar Mohammed Salih, confirmed that the Iraqi economy faces fundamental challenges due to its overreliance on crude oil exports.
Saleh told Al Furat News Agency, “The Iraqi economy is one of the most rentier economies in the world, with oil revenues accounting for more than 90% of public revenues and nearly 60% of the gross domestic product.”
He explained that “this fragile structure makes the economy highly vulnerable to fluctuations in global oil prices, which hinders the achievement of comprehensive and sustainable development.”
Saleh called for “the necessity of adopting serious and effective policies to diversify sources of revenue and reduce dependence on oil,” noting that “diversification opportunities require continuous, long-term planning.”
The economic advisor highlighted promising sectors as drivers of non-oil growth, foremost among them the agricultural sector, where Iraq boasts fertile lands and water resources. He noted that “this sector can play a pivotal role in achieving food security and reducing imports, particularly so-called virtual water, which is the import of food from countries that source our country’s water resources.”
Saleh emphasized the importance of manufacturing industries, particularly food, textiles, petrochemicals, and pharmaceuticals, which have the potential for rapid growth, in addition to infrastructure-related industries.
He pointed out that there are “significant opportunities to revive stalled industrial cities, and that effective implementation of the Development Road Project strategy will represent a strategic focus for comprehensive development, including the revival of major industrial cities.”
He pointed out that “Iraq’s geographical location gives it a pivotal regional role in global trade connectivity,” stressing that “the Grand Faw Port project represents the beginning of a major strategic opportunity to diversify the national economy.”
Saleh concluded his remarks by noting that Iraq is “an undisputed destination for religious and cultural tourism,” emphasizing the importance of the country entering the digital age and capitalizing on the tremendous opportunities available in digital technology, such as electronic payments and e-commerce.
alforatnews.iq
