Oil & Gas

Oil and gas dominate Iraq’s economy and government revenues. Iraq holds some of the largest proven oil reserves globally, with major producing regions in the south, north, and central areas. Crude oil exports are the backbone of public finance and foreign exchange earnings.

Production is supported by large onshore fields, export terminals, pipelines, storage facilities, and upstream service operations. Associated natural gas, historically flared, is increasingly being captured for domestic power generation and industrial use.

The oil and gas sector drives demand for drilling services, processing equipment, pipelines, valves, pumps, compressors, storage systems, and industrial maintenance, making it the most influential sector across the Iraqi industrial landscape.

Petrochemical & Chemical

Iraq’s petrochemical and chemical sector remains underdeveloped relative to its hydrocarbon resources, but it represents a key area for future growth. Existing facilities focus on basic chemicals, fertilizers, and refining by-products, with strong demand from agriculture, construction, and infrastructure projects.

Fertilizer production, particularly nitrogen-based products, is strategically important due to Iraq’s agricultural needs. Expansion of petrochemical capacity is a national priority aimed at reducing imports, adding value to oil and gas outputs, and supporting downstream industries such as plastics, packaging, and construction materials.

As industrial recovery progresses, the chemical sector is expected to play a larger role in economic diversification.

Power & Energy

Power and energy infrastructure is one of Iraq’s most critical development needs. Electricity demand consistently exceeds supply, driven by population growth, urbanization, and industrial activity. Power generation relies primarily on oil and natural gas, supplemented by imports and limited renewable capacity.

Large investments are underway to rehabilitate existing power plants, expand generation capacity, improve transmission networks, and reduce technical losses. Gas-to-power projects are particularly important, enabling better use of domestic gas resources while reducing fuel imports.

Reliable electricity is essential for industrial growth, water systems, healthcare, and public services, making power and energy a cornerstone sector for Iraq’s economic recovery.

Water & Wastewater

Water infrastructure is a national priority due to aging systems, climate pressures, and rising consumption. Iraq depends heavily on the Tigris and Euphrates rivers, while facing challenges related to water quality, treatment capacity, and distribution efficiency.

Investments in water treatment plants, pumping stations, pipelines, desalination (in limited coastal areas), and wastewater treatment facilities are critical for urban centers, agriculture, and industry. Wastewater treatment and reuse are gaining importance to support irrigation and reduce environmental impact.

The water sector directly affects public health, food security, and industrial productivity across the country.

Manufacturing & Fabrication

Infrastructure and construction are among the most active non-oil sectors in Iraq, driven by reconstruction needs and population growth. Key areas include roads, bridges, housing, public buildings, hospitals, schools, airports, and utilities.

Large-scale construction activity supports demand for cement, steel, aggregates, equipment, and engineering services. Facilities management, operations, and maintenance are increasingly important as new assets are built and older ones are rehabilitated.

Infrastructure development is essential for economic stability, job creation, and regional connectivity.

Metals & Mining

Manufacturing in Iraq is largely focused on construction materials, food processing, basic consumer goods, and light industrial products. Domestic manufacturing capacity is gradually expanding to reduce reliance on imports and support local employment.

Fabrication activities include steel structures, tanks, piping, and basic industrial components used in oil and gas, power, water, and construction projects. Industrial zones and state-owned enterprises play a role, alongside private sector manufacturers.

Manufacturing remains constrained by energy reliability, logistics, and capital access, but it represents a critical pillar for long-term diversification.

Infrastructure, Construction & Facilities

Iraq’s marine and logistics sector centers on its access to the Persian Gulf, supported by ports handling crude oil, refined products, bulk cargo, and industrial materials. Ports are critical for exports, imports, and supply chains serving oil and gas, construction, and manufacturing sectors.

Logistics infrastructure, including roads, storage facilities, and border crossings, is being upgraded to improve efficiency and reliability. Improved logistics are essential for reducing costs, enabling industrial growth, and supporting regional trade integration.

Marine and logistics capabilities are closely linked to energy exports and industrial development.

Marine & Offshore

Iraq’s marine and logistics sector centers on its access to the Persian Gulf, supported by ports handling crude oil, refined products, bulk cargo, and industrial materials. Ports are critical for exports, imports, and supply chains serving oil and gas, construction, and manufacturing sectors.

Logistics infrastructure, including roads, storage facilities, and border crossings, is being upgraded to improve efficiency and reliability. Improved logistics are essential for reducing costs, enabling industrial growth, and supporting regional trade integration.

Marine and logistics capabilities are closely linked to energy exports and industrial development.

Heavy Industry & Process Plants

Heavy industry in Iraq includes oil refineries, power stations, cement plants, fertilizer complexes, and large industrial facilities. These process-intensive assets are central to energy supply, construction, and agricultural productivity.

Many facilities require modernization, rehabilitation, and improved operational efficiency. Demand is strong for industrial equipment, automation, spare parts, maintenance services, and technical expertise.

Heavy industry provides essential inputs to the broader economy and anchors Iraq’s industrial ecosystem.

Iraq’s economy is defined by its vast energy resources, strategic location, and significant reconstruction needs. Oil and gas remain the dominant sector, but power generation, water infrastructure, construction, manufacturing, and heavy industry are equally critical to long-term stability and growth.

As infrastructure is rebuilt and industrial capacity expands, Iraq offers substantial opportunities across energy, utilities, construction, and industrial supply chains. With continued investment and development, the country is positioned to gradually diversify its economy while leveraging its natural resource strengths to support sustainable growth.