Iraq Diversifying its Economy with New Chemical Plant in Southern Iraq

Iraq has taken a significant step toward diversifying its economy by launching its largest chemical production plant in Basra. Spearheaded by the Minister of Industry and Minerals, Prof. Eng. Khaled Battal Al-Najm, this new facility marks a turning point in Iraq’s efforts to boost industrial output and reduce its overwhelming dependence on oil revenues. Located at the State Company for Petrochemical Industries, the plant is being developed in collaboration with the private sector and is designed to use modern, eco-friendly membrane cell technology.

Once operational, the plant will significantly increase Iraq’s chemical production capacity, generating 120 tons of caustic soda, 106 tons of liquid chlorine, 185 tons of hydrochloric acid, and 150 tons of sodium hypochlorite every day. These chemicals are essential for key sectors such as oil extraction, manufacturing, and water treatment. By producing these materials domestically, Iraq will reduce its reliance on costly imports while supplying critical resources to other industries.

The economic implications are substantial. This project is expected to create hundreds of job opportunities, particularly in the Basra region, while stimulating growth in related industries. Just as importantly, it aligns with recommendations from the International Monetary Fund (IMF), which has consistently urged Iraq to expand its sources of income beyond oil. Investing in chemical production not only supports the local economy but also lays the groundwork for sustainable industrial growth and export potential in the future.

During the groundbreaking ceremony, Minister Al-Najm highlighted the strategic role of this project in enhancing Iraq’s industrial resilience and protecting public health through improved water disinfection capabilities. He reaffirmed the government’s support for private sector partnerships and its long-term vision of transforming Basra into a sustainable, high-value industrial activity hub.

In short, this new chemical plant isn’t just a factory—it’s a signal that Iraq is serious about modernizing its economy, empowering its workforce, and answering global calls for economic reform.