Invest in Iraq
Iraq stands as an attractive frontier for global investors
Rich in natural resources and ripe with opportunity
With one of the world’s most resource-endowed landscapes, Iraq ranks among the top ten nations in natural wealth, offering unmatched prospects for growth in both traditional energy sectors and the emerging fields of renewable energy and cleantech. Beneath its terrain lie abundant reserves of petroleum, natural gas, phosphates, and sulfur—positioning Iraq as a strategic hub for long-term investment, sustainable energy development, and technological innovation.
Iraq is a dominant force in the global energy landscape—ranked as the second-largest crude oil producer within OPEC and holding the world’s fifth-largest proven crude oil reserves. Crude oil exports generate approximately 95% of the nation’s revenue, emphasizing the central role of this sector in Iraq’s economy. With an average output of 4.2 million barrels per day over the past year, Iraq is the world’s sixth-largest oil producer and OPEC’s second-largest, following only Saudi Arabia.
Despite this impressive output, Iraq has only begun to tap into its full potential. A significant portion of Iraq’s oil fields remain undeveloped, positioning the country as one of the last remaining frontiers with vast, underexplored reserves. Petroleum currently supplies around 94% of Iraq’s energy needs, and the nation’s most productive oil and gas assets are concentrated in a rich belt along its eastern border. This region includes nine “super-giant” fields—each holding more than 5 billion barrels—and 22 “giant” fields with reserves exceeding 1 billion barrels. According to independent analysts, southeastern Iraq hosts the world’s highest concentration of super-giant fields, which account for 70–80% of Iraq’s proven reserves. Additionally, approximately 20% of the country’s oil resources lie in the north, around key areas such as Kirkuk, Mosul, and Khanaqin.
However, as global energy markets continue to evolve, Iraq is increasingly turning its focus to renewable energy. With its solar and wind resources and a government target to generate 12 GW of renewable energy by 2030, Iraq is well on its way to becoming a leader in sustainable energy production. These initiatives are part of a broader strategy to diversify Iraq’s energy portfolio, reduce environmental impact, and contribute to global efforts to address climate change.
By combining its vast conventional energy resources with a bold push into the renewable energy sector, Iraq stands at the intersection of traditional power and the future of clean energy. This makes the country not only a key player in the fossil fuel industry but also a rising.
Iraq: A Nation of Youth and Energy Potential
With over 60% of its population under the age of 22, Iraq is one of the youngest countries in the region.
Home to more than 42 million people, Iraq is undergoing rapid development—and with it, a surge in energy demand. As the country continues to grow, it faces a number of critical energy challenges:
- Insufficient electricity generation and transmission capacity to meet rising demand
- High technical and commercial losses across its distribution networks
- Dependence on imported fossil fuels, particularly natural gas from neighboring countries
Despite these challenges, Iraq represents a market of significant potential. With a GDP exceeding $264 billion and a fast-growing domestic energy appetite, the country faces a persistent electricity shortfall of at least 11–13 GW. This gap, combined with government-led modernization efforts, presents a fertile ground for foreign investment across a range of energy segments.
A Transition Toward Sustainability
This transition is being supported by several global financial institutions—including the World Bank, IMF, and UNDP—which are funding critical projects in solar power, water and wastewater treatment, and transmission infrastructure upgrades across the country.
The Development Road:
Iraq’s Visionary Trade Corridor
In May 2023, the Iraqi Prime Minister officially launched the “Development Road” project—also known as the Dry Canal—a landmark infrastructure initiative poised to transform Iraq into a pivotal logistics hub for the region.
This ambitious project aims to connect Türkiye in the north with the Arabian Gulf in the south through a modern, high-capacity network of railways and highways, establishing a fast and efficient trade route between Europe and the Gulf region.
The Development Road will facilitate the movement of goods from Europe to the Gulf and vice versa, significantly reducing transit time and shipping costs. The corridor will span over 1,200 kilometers, traversing Iraq from the southern port city of Basra to the Turkish border, linking with broader European transport networks.
Valued at approximately $17 billion, the project is expected to be implemented in phases, with construction beginning in 2024 and completion targeted by 2028—a notably fast timeline for a project of this scale. Once operational, the Development Road will not only enhance Iraq’s economic diversification efforts but also strengthen regional integration, generate thousands of jobs, and unlock new investment opportunities in logistics, infrastructure, and industrial zones along the route.
This visionary initiative signals Iraq’s renewed commitment to modernization and its emergence as a strategic bridge between East and West.
Iraq’s Oil Ambitions:
Boosting Output While Advancing Gas Capture Efforts
The Iraqi Ministry of Oil has reaffirmed its strategic vision to expand the country’s oil production capacity, setting an ambitious target of reaching 6 million barrels per day (bpd) within the next five years.
This goal reflects Iraq’s long-term plan to strengthen its role in global energy markets while optimizing the value of its vast hydrocarbon resources.
The announcement came following a high-level meeting attended by the Ministry’s Undersecretaries and senior representatives from leading national oil companies and technical departments. The discussions centered not only on increasing crude output but also on the Ministry’s commitment to advancing associated gas capture and utilization—a critical step toward reducing flaring and improving environmental sustainability across Iraq’s oil fields.
As Iraq works toward these production goals, parallel investments in infrastructure upgrades, gas recovery projects, and international partnerships will be key to unlocking the next phase of growth in the country’s energy sector.
Iraq Expands Renewable Energy Projects Through Global Partnerships
The Iraqi Ministry of Electricity has taken significant steps toward boosting the country’s clean energy capacity through a series of international agreements. According to ministry spokesperson Ahmed Mousa Al-Abadi, these efforts are part of a broader government strategy to modernize the national grid and diversify Iraq’s energy mix.
Among the key agreements, the Ministry has signed contracts with PowerChina and TotalEnergies to supply the national grid with 1,000 megawatts of electricity.
In parallel, a major partnership with Masdar, the UAE-based renewable energy leader, will deliver 1,000 megawatts of solar power to four Iraqi governorates in the initial phase—before expanding to additional regions.
Additionally, a recent agreement with Norwegian firm Scatec (referred to as Ascot in some sources) will see the development of solar power stations with a combined capacity of 525 megawatts. Al-Abadi emphasized that these projects mark the beginning of Iraq’s long-term clean energy agenda.
Work on these investments will commence once administrative and legal processes are finalized. The Ministry has set a target of reaching 7,500 megawatts in renewable energy capacity during the first phase of its national clean energy program.
Industry highlights
- 99% of Export Revenue from Oil, oil accounts for over 99% of Iraq’s total exports, underscoring the nation's heavy reliance on the petroleum sector.
- 85% of Government Budget from Oil & Gas approximately 85% of Iraq's government budget is funded by oil and gas revenues.
- 42% GDP Contribution from Oil & Gas, the oil and gas sector contributes about 42% to Iraq's Gross Domestic Product (GDP).
- $115.7 Billion in Oil Exports (2022), in 2022, Iraq's oil exports generated approximately $115 billion in revenue.
- 4.6 million Barrels per Day Production, Iraq's oil production has reached over 4.6 million barrels per day.
- 1,255 kWh Electricity Consumption per Capita, as of 2022, Iraq's per capita electricity consumption was 1,255 kilowatt-hours, indicating room for growth compared to regional neighbors.
- $1.7 Billion CAPEX for Energy Projects (2024), Iraq has allocated approximately $1.7 billion in capital expenditures for advanced energy projects in 2024.
- 23 International Energy Companies Operating, major international oil and energy companies, including BP, Shell, ExxonMobil, TotalEnergies, and Eni, are actively operating in Iraq.
- 125,000+ Employees in Ministry of Oil, the Iraqi Ministry of Oil employs over 125,000 individuals, highlighting the sector's significance in national employment.
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