Iraq Economic News and Points To Ponder Tuesday Evening 11-18-25
Regulating The Informal Economy
Economic 11/18/2025 Abdul Zahra Muhammad Al-Hindawi The informal economy, or what some call the “shadow economy,” is of great importance, even if it is not readily apparent, because the picture of this economy is not accurately documented.
If we were to delve into the informal economy in Iraq,we would discover its profound influence on the national economy. Estimates suggest it accounts for nearly 60% of total economic activity, making it a significant driver of development.
Even minimal regulation of this sector would lead to a tangible transformation in the Iraqi economy, impacting employment, revenue, and social development.
Some might ask: What Will Change If This Economy Is Formalized?
Job opportunities will remain the same, and the sectors of activity won't differ much from the formal economy.
However, the truth is that formalization—if implemented correctly— will lead to a qualitative shift in the economic and social landscape.
Informal workers will feel more secure and stable because they will be under the state's care and legal protection.
The regulations will also allow for the integration of hundreds of small businesses, home-based activities, and unlicensed workshops into the formal sector, ensuring improved working conditions and reduced economic vulnerability.
The reality of Iraq's informal economy encompasses thousands of small businesses operating from homes or workshops hidden from public view, as well as seasonal workers, construction workers, and street vendors who face significant economic hardship.
Their unregulated presence sometimes leads to service and security problems, such as traffic congestion, difficulty accessing fire trucks, illegal connections to the electricity grid, and other daily issues.
From an economic perspective, the lack of regulation makes it difficult to accurately measure the volume of cash transactions or determine the number of workers, resulting in the state losing a significant portion of potential tax revenue and complicating economic planning.
Regulating the informal economy under the new laws will provide a genuine guarantee for millions of families living within its confines.
It will also contribute to building an accurate database to support government decisions in the areas of employment and social development.
We can learn valuable lessons from the experiences of many countries that have successfully transformed their shadow economies into organized and effective sectors by providing a safe and secure environment. For those working in it.
Hence, the first step towards the desired organization can be through managing and organizing the work of street vendors, as they are the most obvious manifestation of the informal economy, by establishing modern commercial complexes or allocating specific places for them to conduct their business, and providing facilities and small loans that help them develop their businesses.
It is also necessary to include seasonal workers and construction workers in the social security system and labor law, which promotes social justice and improves living conditions.
In return, those working in the informal economy should be reassured that the government’s goal in the organization process is not to impose taxes, but rather to achieve economic and social stability and ensure the sustainability of their activities within a formal, transparent and stable environment. https://alsabaah.iq/123703-.html
Economists: The "Fingerprint" Initiative Is Driving Small Business Development.
Economic 11/19/2025 Baghdad: Hussein Thaghab As part of a government policy aimed at broadening economic participation and boosting growth, Prime Minister Mohammed Shia'a al-Sudani launched the "Basma" initiative, a national program focused on empowering women and granting them greater access to the labor market.
This will be achieved by providing funding, training, and technical support to women-led small and medium-sized enterprises (SMEs).
This step is part of a package of economic initiatives the government has begun implementing to develop the private sector and improve the business environment.
Economic expert Asaad Al-Rubaie explained that the “Basma” initiative came as a complement to a series of previous government initiatives,including the National Fund for Supporting Small and Medium Enterprises, the lending program launched by the Central Bank of Iraq in cooperation with private banks, as well as reconstruction and development programs supported by the International Fund for Agricultural Development, and the programs of the Ministries of Youth and Labor.
Al-Rubaie pointed out that the initiative was distinguished by its exclusive focus on women, under the supervision of the Supreme Council for Women and with direct follow-up from the Prime Minister, in an attempt to address the weak participation of women in the private sector as a result of social customs and traditional environments that have limited their entry into fields of work dominated by men.
He added that “Basma” has given women opportunities to launch productive projects that are appropriate to the nature of their work and interests, including food industries, design, sewing, agriculture, and nursery management, which are sectors capable of creating new job opportunities and reducing unemployment rates.
Al-Rubaie pointed out that the initiative contributed to strengthening the free market economy and supporting women-led households by opening new income streams and achieving financial independence, which positively impacts family and social stability.
However, he explained that the initiative's success remained contingent on engaging private sector experts to provide technical and managerial expertise that ensured the sustainability of the projects.
He emphasized that the absence of such expertise was a major reason for the limited success of previous initiatives, despite ample government support.
The Sudanese Prime Minister emphasized that "Basma" was not conceived merely as a financing project, but as a comprehensive national program aimed at empowering women through extensive partnerships with national banks.
He explained that the program provided accessible loans, training platforms, consulting services, and technical support, thus creating a national incubator for women's businesses.
For his part, financial expert Dr. Nabil Rahim explained that “Basma” presented a different model by providing a comprehensive empowerment system that includes training, mentorship, planning, and follow-up, making it more than just a funding platform.
He described the initiative as having transformed “the tears of unemployed women into productive projects,” but stressed that its true success depended on the details of its implementation, particularly the loan terms and consideration for vulnerable groups such as widows and divorcees.
Rahim explained that the previous “Riyada” experience,in which women comprised only 27 percent of beneficiaries,revealed unforeseen obstacles, such as procedural complexities, the difficulty of securing suitable funding for women-led projects, and the influence of traditional social norms.
He argued that addressing these challenges was essential to ensuring the success of “Basma” and achieving tangible economic results.
Rahim concluded by saying that the path to women’s economic empowerment is still long, but “Basma” was the first step in a broader national strategy that invests in women as active partners in development, not as a category waiting for support. https://alsabaah.iq/123775-.html
The Center For Banking Studies Launches A Specialized Course On Financial And Administrative Corruption.
November 16, 2025 The Banking Studies Center announced the organization of a specialized training course entitled “Financial and Administrative Corruption: Basic Concepts”, during the period from November 16 to 19.
The course focuses on clarifying the comprehensive concept of financial and administrative corruption, reviewing the causes and factors leading to it, in addition to the negative effects of corruption on institutional performance and the national economy.
The course also covers the legal framework and national and international systems for combating corruption, and enables participants to distinguish between financial and administrative corruption, which enhances the ability to prevent and take appropriate action within institutions.
The course targets specialists in the financial and administrative fields, to provide them with the latest knowledge and practical practices in the field of combating corruption, which contributes to raising the efficiency of institutional performance and enhancing transparency and accountability. https://cbi.iq/news/view/3046
Apple Pay: A Step Towards Expanding The Umbrella Of Electronic Payments
Economic 16/11/2025 Baghdad: Hussein Thaghab The Cabinet recently approved recommendations to move forward withactivating Apple Pay services in Iraq,as part of the government's efforts to strengthen the digital infrastructure and expand the reach of electronic payments in the country.
Apple Pay allows for easy payments using Apple devices and enables secure, contactless purchases in stores, through apps, and online.
Experts believe it is a safer way to pay, as well as being very easy, and is an important step towards the future of contactless payments.
Historical turning point
The economist, Asaad Al-Rubaie, explained that the world is going through a historical turning point that is changing on several fronts. There are different conflicts: military, social, political, geographical, and economic.
He pointed out that the economic conflict now is between the American global payment system “SWIFT”, which is globally dominant, and the Russian SPFS financial transfer system, which has been joined by more than 177 institutions from 24 countries, as well as the Chinese WeChat system, which has reached the stage of cloud-based electronic money.
Al-Rubaie added, in an interview with Al-Sabah, that this conflict is more important than all the current conflicts between the United States and its allies and China and Russia and their allies, explaining that the world is divided in two while Iraq still stands in the middle between BRICS and the Western bloc with their financial tools such as SWIFT, Apple Pay, Google Pay, and PayPal... Shaping the economy
He pointed out that Iraq has been moving, for the past three years, towards what can be called the restructuring of the Iraqi economy, whether through linking Iraq to global financial institutions or creating a revolution in monetary policy and moving Iraq towards modernity and financial, monetary and economic development.
He explained that the use or activation of electronic payment tools adopted by the Iraqi government, which led to an increase in the use of electronic transactions in Iraq from 5% to 50%, will link Iraq to the global economy through its financial tools, which will enhance e-commerce, encourage cross-border business and trade, provide many job opportunities and facilitate the purchase process for the Iraqi citizen from any country in the world with the click of a button and without obstacles, which will stimulate commercial activity and strengthen the local economy.
Al-Rubaie called on the government to proceed along this path, noting the need to strike a balance with the BRICS organization andto hold the stick in the middle in the secret trade war between the United States and China.
Global revolution
In this context, financial and economic expert Dr. Nabil Rahim Al-Abadi considered Iraq’s joining Apple Pay as an announcement of the country joining the ranks of the global financial revolution, noting that the joining represents economic and digital dimensions.
Al-Abadi explained to Al-Sabah that joining will facilitate combating the informal economy, which is estimated to be more than 40% of the gross domestic product in Iraq, noting that the Central Bank’s estimates indicate that the volume of cash transactions outside the banking system exceeds 25 trillion Iraqi dinars annually.
He added that Apple Pay will contribute to converting a large part of these transactions into documented digital ones, as every digital transaction means a step towards financial transparency and combating corruption, indicating that the rate of financial inclusion in Iraq does not exceed 23% according to World Bank reports, and therefore the service will contribute to attracting more than 3 million young people to the banking sector during the first year.
Official channels
Al-Abadi added that the service will encourage citizens to link their savings to the official banking sector and direct funds towards official channels instead of illegal methods.
Although Al-Abadi acknowledged that the Iraqi e-commerce market is growing at a rate of 35% annually, he noted that it suffers from weak secure payment systems for e-commerce stores, which reduce operating costs by 15-20%, and also reduce the costs of dealing with cash (counting, transporting, storing), which cost the merchant 5-7% of his revenues.
Regarding the benefits that will accrue to the government, the financial and economic expert said that the government will benefit from an increase in tax revenues of 15-20% over 3 years through documenting transactions, and it will lead to a reduction in the costs of printing and circulating money, which amount to 500 billion dinars annually, in addition to helping in combating corruption by tracking the financial path of transactions.
Great benefits
Regarding the benefits that citizens will gain from the service, Al-Abadi explained that it will save 2-3 hours per week that were wasted waiting in bank queues, reduce the costs of financial transfers by 60% compared to traditional methods, and increase financial security by 80% through biometric authentication technologies.
As for investors, it creates a more attractive business environment with the provision of advanced digital infrastructure, and achieves expected growth in the volume of e-commerce from $1.2 billion to $3 billion within two years, which is a positive indicator of market trends and transparency.
Al-Abadi reviewed what the service has achieved in a number of countries, explaining that it contributed in the Kingdom of Saudi Arabia to raising the rate of financial inclusion from 62% to 82% in 3 years, and the entry of global payment systems in Egypt led to an increase in the volume of e-commerce by 400% during 4 years.
He stressed the need to develop the internet infrastructure (current internet speed 6.5 Mbps vs global average 25 Mbps), qualify the banking sector through training programs targeting 5,000 banking employees, and increase digital awareness through awareness campaigns reaching 10 million citizens.
Al-Abadi, who mentioned at the end of his speech that the decision to join is not the end of the road, but the beginning of the road, stressed the importance of preparing for a wave of digital transformation that will affect all aspects of our economic lives, asking whether we are ready to deal with the future? https://alsabaah.iq/123563-.html
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