Shafaq News- Washington

Iraq offers significant opportunities for foreign investment in energy, infrastructure, agriculture, and other sectors, but bureaucratic hurdles, corruption, regulatory uncertainty, and security concerns continue to weigh on the country's business environment, according to the US Department of State's 2026 investment climate statements.

The report, issued Friday by the department's Bureau of Economic, Energy, and Business Affairs, highlights Iraq's efforts to attract international companies as the government seeks to diversify the economy, modernize infrastructure, and reduce dependence on oil revenues. Opportunities include capturing gas currently burned off during oil production, expanding electricity generation, developing renewable energy projects, and improving transport infrastructure.

However, foreign investors continue to face difficulties navigating administrative procedures, resolving contractual disputes, securing timely payments, and operating under inconsistent regulations. Corruption in public procurement and licensing, alongside weaknesses in the financial sector, also remains a significant obstacle to attracting and retaining international capital.

Despite these challenges, Iraq's large domestic market and substantial energy resources offer potential for international businesses. Progress in regulatory reform, transparency, and contract enforcement will be important to strengthening investor confidence and translating investment opportunities into sustainable economic growth.

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