Iraq Economic News And Points To Ponder Late Friday Evening 5-16-25
Within Five Years, Iraq Will Achieve Self-Sufficiency In 20 Agricultural Crops.
May 15, 18:11 Information/Baghdad.. The Parliamentary Agriculture and Water Committee confirmed on Thursday that Iraq has achieved self-sufficiency in 18 to 20 agricultural crops over the past five years, despite environmental and climatic challenges.
Committee member MP Thaer al-Jubouri told Al-Maalouma, "The agricultural sector, despite the difficulties of drought, climate change, and setbacks it has experienced over the past years, has witnessed remarkable activity, represented by reaching the stage of self-sufficiency in approximately 18 to 20 crops, including vegetables and fruits."
He emphasized that "the agricultural sector has succeeded in securing the needs of the Iraqi markets at very reasonable prices." Al-Jubouri added,
"One of the important positives in the agricultural sector is the transition to modern irrigation technologies and changing farming patterns, while striving to cultivate new crops with the aim of achieving diversity and increasing revenues."
He pointed out that "there are serious efforts to open up export opportunities for crops,
especially during peak production, to achieve higher revenue rates, given the growing demand for Iraqi fruits and vegetables in neighboring and other markets."
Al-Jubouri pointed out that "the emergence of modern farms and their use of advanced technologies will enhance economic viability and ensure higher production levels to directly cover markets."
It's worth noting that Iraq possesses millions of acres of fertile land that produces a variety of vegetables and fruits, enhancing its ability to directly establish the concept of food security. End 25F.
https://almaalomah.me/news/98817/economy/خلال-5-سنوات-العراق-يحقق-الاكتفاء-الذاتي-من-20-محصولا-زراعيا
Expert: Central Bank Reserves Declined By More Than 12% In Three Years
economy | 11:23 - 05/16/2025 Mawazine News - Baghdad - Economic affairs expert, Manar Al-Obaidi, confirmed today, Friday, that the Central Bank of Iraq's reserves witnessed a significant decline of more than 12% from the end of 2022 until March 2025.
Al-Obaidi said, in a statement received by Mawazine News, that "reserves declined by more than 20 trillion Iraqi dinars in a period of only 15 months, at a rate of 1.3 trillion dinars per month, equivalent to one billion dollars."
He added, "This decline cannot be read in isolation from the continuous rise in the import bill, which has begun to drain the state's hard currency resources on a daily basis."
Al-Obaidi pointed out that "this decline is due to Iraq's almost total dependence on foreign exchange to meet its consumer and production needs, in light of the absence of efficient local alternatives, the weakness of the industrial and agricultural sectors, and the continued operation of the currency window mechanism in its current form." https://www.mawazin.net/Details.aspx?jimare=261491
The Baghdad Summit And Support For Transportation And Logistics Projects Are A Strategic Pillar For Diversifying The National Economy
Dr. Haitham Hamid Mutlaq Al-Mansour Economy News – Baghdad The Baghdad Summit, which began on Tuesday, May 13, has been hosting a ministerial-level meeting of the Economic and Social Council, which included important meetings on enhancing regional cooperation on transportation and logistics projects between the region's countries.
These topics played a significant role in these meetings, given their importance in stimulating economic growth and connecting regional markets. How can the summit support these projects? What are the expected prospects for this sector?
The government's interest in transportation and logistics projects was a national and regional economic priority at the Baghdad 2025 Summit, through planning major strategic projects aimed at transforming Iraq into a regional transportation and trade hub, by linking southern Iraq to the Turkish border in the north, and Jordan and the Mediterranean Sea in the west, thus enhancing Iraq's role as a major economic hub in the region.
Therefore, we find that the government is working to strengthen Iraq's economic position by developing trade relations with Arab countries, re-evaluating previous agreements, and implementing strategic projects aimed at diversifying the economy and reducing dependence on oil. This is due to the advantages and gains it offers in the following areas:
Iraq's strategic location: Iraq serves as a land bridge connecting the Arabian Gulf to Turkey and Europe, and Asia to the Arab world, making it a key logistics hub.
The goal is to promote intra-regional trade and facilitate the movement of goods between participating countries (Jordan, Saudi Arabia, Iran, Turkey, and others), reducing costs and increasing the speed and volume of trade.
Diversifying the Iraqi economy: As an alternative to its total dependence on oil, Iraq could become a regional logistics hub, providing job opportunities and supporting other sectors such as industry and warehousing.
The most prominent proposed transport and logistics projects:
A. Land and railway connectivity projects
- The Iraqi Development Corridor: Linking the Grand Faw Port in southern Iraq to Turkey via a railway and highway network, facilitating the transport of goods between the Gulf and Europe.
- The Iraqi-Jordanian railway line: to enhance trade exchange with Jordan and its outlet to the Mediterranean.
- A project to link Gulf ports to Turkey via Iraq: In cooperation with countries such as Kuwait and Saudi Arabia, this project aims to create an alternative trade route to congested sea lanes.
b. Development of ports and airports
- Al Faw Grand Port: One of the largest logistics projects in the region, it could become a competitor to Dubai Ports and Jebel Ali Ports if completed.
- Modernizing Baghdad, Najaf, and Basra airports to increase their capacity to handle air cargo and enhance transit, as well as establishing new airports.
C. Free logistics zones
Establishing warehousing and logistics distribution areas in cities such as Basra and Najaf to facilitate re-exports and reduce shipping costs.
But the important question remains: How can the summit support these projects? Support is provided through:
Concluding land and air transport agreements between Iraq and neighboring countries to facilitate the movement of goods and trucks.
Attracting investments from the Gulf states, Turkey, and China to finance infrastructure.
Establish a regional logistics authority to coordinate transport policies and unify customs standards.
Involving the private sector in the management and operation of logistics projects to ensure efficiency.
Among the most important challenges and obstacles that may face the process of supporting these projects, which are expected to reveal Iraq’s capabilities in developing this category of strategic projects, are:
The weakness of Iraq's current road and railway infrastructure.
Bureaucracy and corruption hinder the implementation of major projects.
Therefore, the multiplicity of economic impact expected from these investments is of great importance on the level of the Iraqi and regional economy, which appears to us as follows:
A. At the level of the Iraqi economy:
Boosting GDP: The International Monetary Fund estimates that investing $10 billion in infrastructure could boost Iraq's economic growth by 2.5% annually.
Job Creation: Transport and logistics projects could create 500,000 direct and indirect job opportunities by 2030.
Diversifying revenues: Currently, 90% of Iraq's revenues come from oil, but the transportation sector could add $5-7 billion annually by 2030.
Reducing the trade deficit: Transportation costs for the trade sector are expected to decline with improved infrastructure, which will provide an incentive to develop export industries that will reduce the $30 billion annual trade deficit between Iraq and its neighbors (Turkey, Iran, and Jordan).
B. At the level of regional trade and international investment:
Reducing shipping costs: The Gulf-Türkiye route via Iraq may reduce shipping time from 20 days (by sea around the Arabs) to 48 hours (by land).
Positive impact on foreign investment flows. With improved infrastructure, the region could attract investments from Turkey, other Arab countries, China (under the Belt and Road Initiative), the Gulf (particularly in energy and logistics), and European companies seeking new markets.
Therefore, the Baghdad Development Summit represents a very opportune opportunity to stimulate the growth and diversification of the national economy, as well as to revitalize Iraq's strategic role in regional cooperation in the field of transportation and logistics.
Iraq is on the cusp of a major economic transformation, transforming it into a trade hub between Asia and Europe and supporting its economy with non-oil revenues.
This requires effective policies to prepare and rehabilitate relevant sectors and establish strategic partnerships with neighboring countries and international investors. https://economy-news.net/content.php?id=55515
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