Iraq for Investment?

We have been vocal about opportunities and maintain a passion for Iraq and a genuine hope for its long-term stability and prosperity. The country’s energy resources, strategic location, and young population offer immense potential for growth and investment.

However, the current climate remains high risk. Investors must be prepared for uncertainty, particularly given the dependency on oil revenues, delayed fiscal planning, bureaucracy, corruption and vulnerability to market shifts.

You need a strong appetite for risk when considering entry! A few points to consider.

Iraq's budget is reliant on oil revenues, with over 90% of income derived from the oil and gas sector. The budget assumes an oil price of $70 per barrel however, declines in oil prices threaten this. Currently under $70 and with high likelihood that this will dip lower!

If oil prices fall below $60 per barrel, the country could face a financial crisis, where revenues may only suffice to cover employee salaries, leaving little for expenditures.

The 2025 budget finances have been delayed.

There are concerns that infrastructure projects may be halted if oil prices continue to decline.

Everything in Iraq requires a bribe, even the simplest task will see intervention from Police, Intelligence, officials, if you don’t comply, they will make your life hell.

Iraq's heavy dependence on oil revenues, coupled with almost zero diversification will exacerbate financial instability.

Bureaucracy, every and any processes takes 10 times longer then required. 

Iraq's domestic public debt increased by 17.7% in 2024, a trend that will continue as it borrows to finance infrastructure projects. 

⚠️ Iraq risks excessive borrowing and depletion of foreign reserves.

Now, this of course, all sounds quite negative, it is. But facts are facts and when considering an operation in Iraq you need to look at everything.

However, it would be unfair not to mention some of the positives that continue to give us hope.

The warmth of the Iraqi people is something that no report or risk matrix can ever fully capture. In spite of everything—conflict, corruption, hardship—there remains a remarkable generosity, resilience, and hospitality in Iraqi society. Relationships matter here. A handshake still means something. Once trust is built, partnerships can run deep.

And then there’s the youth. Iraq has one of the youngest populations in the region. This is a generation that’s better educated, more connected, and increasingly hungry for change. Many are pushing back against the status quo—tired of the old systems and quietly demanding something better. In their ambition lies Iraq’s best chance of transformation.

So yes, Iraq is high-risk. But it is also high-reward. If you're ready to engage with eyes wide open, invest in people, and navigate the terrain with patience and strategy—there are still real opportunities to be found.