“Iraq’s Path to Economic Resilience: Supporting Industry, Agriculture and Youth in 2025”
“Iraq’s Path to Economic Resilience: Supporting Industry, Agriculture and Youth in 2025”
1-3-2025
Researcher Shaza Khalil*
The Iraqi economy has long faced many challenges, including political instability, the effects of conflict, and a heavy reliance on oil exports. Despite these difficulties, Iraq has begun to explore opportunities to diversify its economy, with a particular focus on revitalizing the industrial and agricultural sectors. Statements by Iraqi Prime Minister Mohammed Shia al-Sudani highlighted the government’s commitment to supporting industries in both the public and private sectors, while emphasizing the encouragement of youth to participate in these sectors. The first day of the new year has been designated as a significant turning point in Iraq’s economic roadmap, reflecting a shift towards developing the industrial and agricultural sectors.
The Iraqi economy remains heavily dependent on oil, which accounts for around 90% of government revenues. This dependence has created economic vulnerability, especially in the face of fluctuating oil prices or economic sanctions. However, the Iraqi government has recognized the need to diversify its economy to ensure sustainable growth and provide job opportunities beyond the oil sector.
In recent years, the government has made efforts to rebuild a new industrial base and reinvest in the agricultural sector, which has historically been a major part of the Iraqi economy. Although progress has been slow, focusing on developing these sectors is essential to long-term economic stability and job creation.
The role of industry in the Iraqi economy
Iraq’s industrial sector encompasses a wide range of activities, including manufacturing, construction, and energy production. Iraq once had a strong industrial base, considered one of the strongest in the region, but it has been severely damaged by decades of conflict, sanctions, and underinvestment. Many factories are in a state of decay, and Iraq’s capacity for industrial production has been significantly reduced.
However, the industrial sector has great potential to be the cornerstone of diversifying the Iraqi economy. The Sudanese Prime Minister’s statements reflect the government’s determination to restore and enhance Iraq’s industrial capabilities. The focus will be on encouraging public and private investment in industries such as construction, cement, chemicals, and textiles. With a large youth population in Iraq, there is a great opportunity to harness their energy and talent to revive industries and create jobs.
The Agricultural Sector: A Key Pillar of Sustainability
The agricultural sector has long been an important part of the Iraqi economy. Iraq’s fertile soil, especially in the Tigris and Euphrates river valleys, makes it a fertile ground for agricultural production. However, the sector has been neglected for many years due to political unrest, water shortages, and lack of investment in modern agricultural technologies.
Iraq was once known as the “breadbasket” of the Middle East, producing a wide range of grains, fruits and vegetables. However, after years of conflict, drought and the displacement of people from rural areas to cities, Iraq is facing challenges in achieving food security and self-sufficiency. The Sudanese Prime Minister has acknowledged these challenges and stressed the importance of reviving the agricultural sector.
In his recent remarks, the Prime Minister outlined a vision for developing the agricultural sector, including using modern irrigation techniques to improve yields and encouraging young people to enter agriculture and agribusiness. The agricultural sector is central to reducing Iraq’s dependence on oil, providing jobs, and ensuring food security.
New Year’s Day Announcement: A Roadmap for the Future
The Sudanese Prime Minister’s announcement that the first day of the new year will be dedicated to supporting industries in Iraq reflects a strategic turning point in the country’s economic policies. According to the Prime Minister, this day marks the beginning of a long-term roadmap for developing the Iraqi economy. The Prime Minister directed all ministries to align their strategies with this vision, to ensure coordination of efforts across the government to promote industrial growth and create job opportunities.
The New Year’s Day is symbolic, as it reflects a new beginning for rebuilding and developing the Iraqi economy. Al-Sudani stressed that this day should not be a mere celebratory occasion, but rather a day to take concrete steps towards supporting industries, especially in the public and private sectors. The government plans to invest in infrastructure projects, provide financial support to small and medium enterprises, and create incentives for private companies to invest in industrial activities.
The Prime Minister also stressed the importance of encouraging young people to engage in the industrial and agricultural sectors, which are essential to the country’s long-term prosperity. These efforts to attract young people to these sectors are vital, as youth unemployment has always been a challenge in Iraq. By creating new opportunities in non-oil sectors, the government hopes to enhance economic resilience and reduce dependence on the oil industry.
The Road Ahead: Challenges and Opportunities
The road to reviving Iraq’s industry and agriculture is fraught with challenges. Iraq faces issues such as inadequate infrastructure, limited access to finance, political corruption, and the impact of climate change on agricultural production. However, there are significant opportunities for growth, especially with the right mix of public policy, private investment, and the engagement of Iraq’s youth.
The government’s vision for the future is to diversify the economy, so that non-oil industries provide sustainable growth and job opportunities. The Prime Minister’s call for an integrated, coordinated approach across ministries is a step in the right direction, highlighting the need for the government to take a unified stance to develop the economy.
In conclusion,
the Iraqi economy stands at a crossroads. While oil has provided the country with great wealth, it also poses challenges in terms of sustainability and economic resilience. Focusing on the industrial and agricultural sectors, as the Sudanese Prime Minister has noted, offers hope for a more diversified and stable future for the Iraqi economy.
The announcement that the first day of the new year will be dedicated to supporting industries and encouraging young people to enter the workforce signals a new beginning for Iraq. By focusing on these two crucial sectors, the government hopes to build a more self-sufficient economy, reduce unemployment, and ensure sustainable growth for future generations.
In the coming years, Iraq’s success will depend on its ability to implement these ambitious plans, address current challenges, and harness the potential of its industrial and agricultural sectors and young population. If successful, Iraq could emerge as a more diversified economy, less dependent on oil, and better able to provide economic opportunities for all its citizens.
Jeddah Economic Studies / North America Bureau
Links Center for Research and Strategic Studies
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