Iraq is on the threshold of a new economic phase.
Iraq is on the threshold of a new economic phase.
05/28/2025
The UK-based Global Development Studies Center confirmed that Iraq is on track to improve its credit rating, noting that the government succeeded in attracting foreign investment exceeding $87 billion in 2024.
Dr. Sadiq Al-Rikabi, head of the Global Center for Development Studies, told Al-Sabah: “A new report issued by the Global Center for Development Studies indicates that Iraq is on the cusp of a new economic phase aimed at improving its credit rating at the level of international institutions, through a series of financial and administrative reforms and a clear increase in the volume of foreign direct investment.”
Al-Rikabi pointed out that “the report confirmed that the government, led by Prime Minister Mohammed Shia al-Sudani, succeeded in attracting foreign investments exceeding $87 billion in 2024, with expectations of this amount rising to between $120 and $150 billion by 2029, in vital sectors including energy, petrochemicals, agriculture, and religious tourism. It also monitored reforms to enhance international confidence and observed clear trends in Iraqi economic policy aimed at diversifying sources of income away from oil, strengthening financial governance, and combating corruption. It also highlighted the increased independence of the Central Bank and improved monetary policy management, which was reflected in the decline in inflation rates and the stability of the dinar exchange rate.”
Al-Rikabi added that there has been “significant improvement in the level of financial transparency through the issuance of public annual reports on public revenues and expenditures, as documented in a report by the London-based Global Center for Development Studies. The report confirmed that more than 200 laws have been updated over the past two years, enhancing the business climate and limiting the penetration of corruption networks into various sectors.”
Al-Rikabi explained that “the report confirmed that Iraq’s agricultural sector recorded a 15 percent growth in wheat production over the past three years, while the petrochemical sector achieved a 10 percent increase in exports during 2023. Religious tourism, meanwhile, recorded a significant increase of more than 20 percent in the number of foreign visitors, making it a promising sector for diversifying sources of national income.”
Regarding cooperation with international institutions, the report by the World Center for Development Studies indicated that “Iraq is about to sign consulting agreements with two international companies, one of which will provide technical support to the Trade Bank of Iraq (TBI) in the field of compliance with international financial standards, while the other will manage a public relations campaign aimed at improving Iraq’s economic image and enhancing its chances of obtaining a better credit rating from international rating agencies such as Standard & Poor’s, Moody’s, and Fitch.”
Al-Rikabi noted that “the report also emphasized that research institutions such as the Global Center for Development Studies can play a pivotal role in supporting Iraq’s efforts by providing advice and expertise related to assessing sovereign risks, developing sustainable financing strategies, and improving foreign economic relations.”
Al-Rikabi explained that “the report believes that Iraq’s continued improvement in its credit rating depends on political stability, strengthening the rule of law, and accelerating the implementation of major development projects within a clearly defined five-year plan.” He continued, “In the report, the Global Center for Development Studies called on the government to deepen cooperation with international financial institutions and benefit from technical support and concessional financing programs,” stressing that “improving Iraq’s credit rating will enhance its ability to borrow on better terms, reduce project financing costs, and push toward more sustainable and inclusive economic growth.”
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