Iraq Economic News and Points To Ponder Monday Morning 12-29-25
Beneath The Feet Of Iraqis: A Treasure Capable Of Transforming The Country's Economy... Job Opportunities And Huge Returns Await Activation
A disrupted strategic resource Baghdad Today – Baghdad With every attempt to predict the future of the Iraqi economy, silica emerges as a more postponed issue than a neglected one. This material, used in the manufacture of advanced glass, fibers, and solar cells, is now widely integrated into the global supply chain, yet in Iraq it remains in the stage of "geological existence" rather than "economic presence."
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Huge Reserves
Iraqi geological data indicates that the country possesses approximately 350 million tons of high-purity silica sand, distributed in the western desert and large areas of Anbar, with an average purity ranging between 95% and 99%, a percentage considered among the highest in the Middle East.
However, current extraction operations do not exceed 50,000-70,000 tons per year, while any sustainable processing industry needs a minimum of 500,000-1 million tons per year to enter commercial production, which effectively puts the sector outside the economic cycle.
A Different Governmental Vision
Mohammed Othman Al-Khalidi, a member of the Reconstruction and Development Alliance, confirmed to Baghdad Today that “the government has reinstated silica among the strategic priority files, with the intention of actually introducing it in 2026, as part of reactivating 16 important economic files.”
Al-Khalidi points out that the new investment map aims to shift the economy from dependence on oil — which currently accounts for more than 92% of revenues — to a broader model based on mineral resources and manufacturing industries.
Obstacles Hindering A Promising Sector
Analysis of the silica situation in Iraq reveals five key factors hindering investment:
Geographical distance: Most deposits are 250-350 km away from industrial centers.
Lack of specialized factories: There are no facilities for processing or manufacturing silica.
Unsupportive mining legislation.
Transportation costs range between $14 and $22 per ton.
A technological gap exists in the production of high-purity silica for the solar industries.
A Rapidly Growing Global Market, And Iraq Is Out Of The Picture.
The global silica market was valued at $22 billion in 2024, with projections indicating it will reach $32 billion by 2030, driven by the expansion of the glass and solar energy industries.
Although Iraq possesses larger reserves than some producing countries, its production remains at marginal levels.
Economic estimates indicate that silica could become a sustainable resource, significantly boosting the Iraqi budget, if incorporated into manufacturing industries. While selling the raw material yields limited returns, manufacturing completely alters the equation.
Manufacturing 1 million tons annually can generate revenues ranging from
$400 to $900 million per year, depending on the type of industry.If Iraq expands to produce 2-3 million tons, with most of it being processed, potential revenues will rise to between $1.5-2 billion annually within a decade.
If these figures are realized, silica could become one of the most important non-oil resources in Iraq in the coming years.
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2026: Will It Be A Pivotal Year?
The inclusion of silica as a government priority makes next year a test of the seriousness of the economic transformation. The transition from a geological resource to an advanced industry requires a suitable legal environment, new infrastructure, and international partnerships capable of introducing advanced technology.
If the state manages to provide these requirements, silica could become the first real success story in the path of diversifying the national economy, instead of remaining one of the resources that experts know about… but the market does not feel. https://baghdadtoday.news/288533-.html
The Most Important Resource In Iraq Is Oil, "Outside The Calculations"... When Will It Be Transformed Into A Real Lever For The Economy?
Economy 10-12-2025, | 727 A true force for growth Baghdad Today – Baghdad In his latest analysis of the World Bank's 2025 report, economist Ziad al-Hashemi presents a starkly different picture of Iraq's "wealth." According to the report, the most important resource is not oil or fleeting financial surpluses, but rather "its people and its young generation."
However, as al-Hashemi comments, this wealth is currently managed with minimal vision and maximum waste, to the point that Iraq has become one of the most fragile countries in terms of human capital development, despite its vast financial resources.
The World Bank report, as cited by Al-Hashemi, argues that decades of political conflict, instability, and government mismanagement have hampered human capital development, thereby diminishing opportunities for economic growth.
The report indicates that Iraq's youth have lost "tens of billions of dollars" in potential earnings over the past years—amounts that could have been realized had they benefited from a quality education system, an effective healthcare system, and a productive labor market. In other words, Iraq has not only lost potential revenue but also the opportunity to accumulate expertise and skills that could have transformed its economy.
Fragility, as described by Al-Hashemi based on the report, is not a detail confined to a single sector.
According to this analysis, Iraq is among the most fragile countries in terms of education, training, health, and food security, with wide gaps at every stage of life: from early childhood, through school and working years, to old age.
A child enters school without adequate nutrition or structured early education, then a student receives a deteriorating education in overcrowded schools and universities, then a young person faces high unemployment or low-productivity jobs, then a worker ages without a robust pension system and health protection… a whole series of successive gaps, culminating in a less productive, more fragile, and less resilient society.
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On paper, the picture is different. Al-Hashemi points to the existence of national plans such as the "National Development Plan 2023–2027," but notes that implementation is repeatedly hampered by "the lack of ongoing reforms, mismanagement, the absence of effective governance, and insufficient funding."
Plans are written, but the institutions meant to translate them into programs, policies, and tangible results remain trapped in bureaucracy, political infighting, and shifting priorities with each new government.
In this context, Al-Hashemi puts his finger on the heart of the problem: the weakness of government institutions and their inability to translate strategies into tangible results remains the greatest challenge facing any serious human capital investment project.
Institutions run on the basis of patronage and favoritism, rather than competence and accountability, tend to produce networks of rent-seeking jobs more than effective education, training, and healthcare programs.
The result is an economy increasingly reliant on government appointments and the absorption of young people into low-productivity jobs, instead of channeling them into a private sector capable of creating added value and sustainable employment opportunities.
However, Al-Hashemi does not view the issue as a hopeless case, but rather as an opportunity that still exists if it is treated as a national priority. He emphasizes that "Iraq has no option but to develop its human capital and invest in its youth," through a comprehensive approach that includes improving education, strengthening the healthcare system, expanding social protection, and opening the door for the private sector to create real job opportunities for young people, coupled with training and skills development.
Without this, new generations will remain trapped in the same cycle: studies that do not translate into skills, followed by a long search for a government job, or work in fields that do not match their qualifications.
Al-Hashemi also reminds us that "investing in people is the most important path towards sustainable economic growth and long-term prosperity," and that investing in human capital "is not a luxury, but rather a prerequisite for survival and advancement.
" Countries that have built a solid economic standing have not done so solely through natural resources, but also by cultivating a broad base of trained and capable individuals, able to innovate, adapt, and withstand shocks. "A country with trained and capable human capital," he says, "is often an economically resilient country, capable of withstanding crises and confidently progressing towards development and advancement."
In conclusion, Al-Hashemi links all these observations to a direct political question, albeit phrased in a calm economic manner: Will the next government take clear and tangible steps to invest in Iraqi human capital, or will the decline continue and it join its predecessors who neglected this issue and left young people stuck between waiting for government appointments or being drawn into unsuitable work?
Between an international report that raises its voice and warnings from local experts, Iraq's economic future seems to hinge on a practical answer to this question, not on more speeches and unimplemented programs. Source: Baghdad Today + X website https://baghdadtoday.news/288780-.html
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