Investing in Iraq in 2026
Middle East & North Africa
25
Score
Caution Investment Destination
Significant risks present - experienced investors with hedging strategies
Iraq earns an investment score of 25/100, placing it in the caution category for global investors. Significant risks present - experienced investors with hedging strategies. The country's standout dimensions are growth potential (35/100) and economic health (28/100), with overall GDP of $264.2B and per-capita output of $6,180. Growth is running at 2.5% with 1.8% of GDP arriving as foreign direct investment. Inflation is contained at 5.2%. The sovereign holds a NR credit rating, generally considered speculative-grade with elevated default risk. Investment opportunities cluster around Oil & Gas (sector score 32/100, currently stable), which represents 42% of GDP. Trade openness sits at 69% of GDP, a useful proxy for how integrated Iraq is with the global economy.
How Iraq's investment score has evolved over time
Oil & Gas
42% of GDP, stable
Telecoms
3% of GDP, growing
Construction
5% of GDP, growing
Agriculture
5% of GDP, declining
World Bank Governance Indicators (-2.5 to +2.5, higher is better)
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Is Iraq a safe country to invest in?
Iraq carries a caution risk rating with an overall investment score of 25/100. Significant risks present - experienced investors with hedging strategies. Sub-scores: economic health 28/100, political stability 12/100, business climate 22/100, financial strength 28/100, growth potential 35/100.
What is Iraq's sovereign credit rating?
Iraq holds a credit rating of NR, reflecting its ability to meet sovereign debt obligations. Credit ratings are a key signal of macro-financial health and a prerequisite many institutional investors require before allocating capital.
What are the strongest sectors for investment in Iraq?
The top investment sectors in Iraq are Oil & Gas, Telecoms, Construction. Oil & Gas leads with a sector score of 32/100 and represents 42% of GDP. Its current trend is stable.
What is Iraq's GDP growth rate?
Iraq's most recent GDP growth was 2.5%, with total GDP of $264.2B and GDP per capita of $6,180. Inflation is running at 5.2% and the current account balance is -2.5% of GDP.
How does Iraq score on governance and rule of law?
On the World Bank Governance Indicators (scale -2.5 to +2.5, higher is better), Iraq scores: political stability -1.8, rule of law -1.4, corruption control -1.4, and regulatory quality -1.1.
Can foreigners invest in Iraq?
Most industries in Iraq are open to foreign direct investment, though specific sectors may require a local partner, government approval, or special licensing. Consult a qualified local advisor for restrictions that apply to your sector.
What is foreign direct investment (FDI) like in Iraq?
Foreign Direct Investment in Iraq runs at 1.8% of GDP, while the trade openness ratio (exports + imports as a share of GDP) stands at 69%. These figures show how integrated Iraq is with the global economy and how welcoming it has been to international capital.
What is the public debt level in Iraq?
Iraq's government debt stands at 46% of GDP. This is a relatively conservative debt load, supporting fiscal flexibility.