Iraq Signs $1 Billion Investment Deals with World Bank’s IFC

AFP | Baghdad – Iraq signed investment agreements worth $1 billion yesterday with the World Bank’s private sector arm, the International Finance Corporation (IFC), targeting the country’s energy, agriculture, and finance sectors. The deals aim to bolster Iraq’s economic recovery after years of unrest.

The announcements were made during a ceremony marking 20 years of the IFC’s presence in Iraq. Prime Minister Mohammed Shia al-Sudani highlighted the new contracts with both private and public sector partners in the country.

In a statement, the IFC confirmed the investments, saying they involve “$1 billion in new projects and engagements across energy, infrastructure, agribusiness, and finance.”

“Attracting foreign capital has contributed significantly to supporting Iraq’s economic stability,” said Prime Minister Sudani.

According to his media office, the agreements include a $500 million contract to develop associated gas – the excess natural gas produced during oil drilling – and build new gas facilities in the southern province of Basra.

Iraq, an oil-rich nation, has long struggled to overcome decades of war and instability. It continues to face challenges such as poor infrastructure, underperforming public services, mismanagement, and widespread corruption. Authorities hope these deals will encourage investment across multiple sectors and support long-term economic growth.

The International Monetary Fund notes that Iraq’s non-oil economic growth has been slow, “constrained by low productivity, limited investment, and inefficient use of human capital.”