Factories at risk: Water scarcity hurting strategic industries

Shafaq News/ Worsening water shortages in Iraq are disrupting key manufacturing sectors, Industry Minister Khaled Battal al-Najm warned, urging reforms to protect domestic production.

Speaking at a National Industry Day event on Wednesday in Baghdad, al-Najm called for stronger protections at border crossings to ensure fair competition, citing lax enforcement by customs and trade authorities.

He reaffirmed the government’s focus on strategic industries including steel, sulfur, phosphate, pharmaceuticals, and electrical manufacturing. However, “the private sector must lead this transformation” given limited public funding.

Energy shortages remain the sector’s biggest hurdle, according to al-Najm. “No factory can operate profitably without reliable electricity and gas,” he stated, pointing to the lack of industrial financing from Iraqi banks.

Iraq’s deepening water crisis has further strained supply chains. Reduced river flows, worsened by upstream dams in Turkiye and Iran, along with poor domestic management have limited access to essential raw materials, including sugar, oils, and textiles.

Looking ahead, al-Najm said fair market conditions could unlock private sector potential. “With the right environment, this sector can play a pivotal role in national growth.”