Iraq Attracting $250 Billion in Investments In the Next Two Years
Iraq is launching an ambitious plan to attract up to $250 billion in investments over the next two years, according to the National Investment Commission (NIC) and its spokesperson, Hanan Jasim (Jordan News). This target builds on recent successes, as supportive government policies and new legislative and regulatory reforms have already attracted over $100 billion in Arab and foreign capital across diverse sectors over the past two years (Jordan News).
Those investments have flowed into vital areas, including industry, infrastructure, housing, energy, education, and healthcare. The resulting impact has been tangible, creating jobs and boosting GDP while helping Iraq move away from its heavy dependence on oil revenues.
To reach its new target of $250 billion, the NIC is implementing a comprehensive strategy. This includes simplifying administrative procedures, reducing bureaucracy, expanding public–private partnerships, offering flexible incentives, and providing stronger legal guarantees to investors (Iraqi News). As part of this push, one-stop‑shop services for investors and adherence to international agreements are being emphasized to improve confidence and attract more capital.
Several major infrastructure projects are already underway. The Grand Faw Port in southern Iraq is a flagship initiative, complemented by a grand transport corridor (road and rail) linking southern Iraq to Turkey and on to Europe, facilitating trade and regional integration (Jordan News). Additionally, educational, housing, hospital, and critical infrastructure projects are in development to support broader economic growth (Jordan News, Iraqi News, Wikipedia).
Beyond these domestic efforts, Iraq is also enhancing connectivity through the Development Road project—a multibillion-dollar endeavor to establish rail and highway links from the Grand Faw Port to Turkey and across Europe. With backing from regional and international partners, this project could transform Iraq into a major transit hub, generate billions in annual revenue, and create hundreds of thousands of jobs.. The project includes upgrades like joining the TIR (Transports Internationaux Routiers) system and modernizing railways and logistics under World Bank support.
Another institutional development supporting Iraq’s economic diversification is the Iraq Development Fund, established in August 2023. This finance institution, chaired by Prime Minister Mohammed Shia al‑Sudani, aims to bolster private sector development and diversify the economy. By early 2025, it had already attracted more than $7 billion in foreign direct investment. It signed multiple memoranda with countries such as Turkey, Saudi Arabia, the UK, and Japan for initiatives spanning energy, infrastructure, logistics, agriculture, and fintech.
Furthermore, in the energy sector, foreign investors are responding to Iraq’s improving investment environment. For example, TotalEnergies has begun constructing the ArtawiGas25 gas processing facility, investing $250 million (in addition to a prior $10 billion), which will process and utilize flared gas, supply power to tens of thousands of homes, and create new jobs (Reuters). Meanwhile, independent Chinese oil companies are increasingly active in Iraq, taking advantage of profit-sharing contracts, fast project delivery, and lower costs to invest in oilfield development—even as some Western majors scale back (Reuters).
In summary, Iraq is setting an ambitious goal of attracting $250 billion in new investments by 2027, building on recent successes of over $100 billion in inflows. The government is catalyzing growth through regulatory reforms, mega infrastructure projects such as Grand Faw Port and the Development Road, and the establishment of the Iraq Development Fund. International energy firms are responding positively, while regional partners and financial institutions are contributing to a diversifying, post-oil economy.
