A visit by a US delegation to Iraq next week is a chance to deepen ties with Baghdad, 6 APRIL

 A visit by a US delegation to Iraq next week is a chance to deepen ties with Baghdad

April 04, 2025

During a recent visit to Washington, a senior US official explained to me that the current administration’s foreign policy is focused on making the US safer, stronger and more prosperous. In my view, this approach aligns perfectly with Iraq’s aspirations and foreign policy – particularly with the vision of Prime Minister Mohammed Shia Al Sudani, who has adopted the principles of “Iraq First” and “mutual interest.” This alignment has the potential to make Iraq safer, stronger and more prosperous as well.

The ongoing transformations in the country are helping to build solid and evolving partnerships between Baghdad and Washington. Over the past years, Iraq-US relations have seen continuous growth in the areas of security, energy, and the economy, based on the principle of mutual interests.

Today, with the accelerating pace of Iraq’s economic revival and comprehensive development – especially in the energy sector – the opportunities for major American companies to play a significant role in shaping this transformation are greater than ever. These companies are well-positioned to leave a clear and impactful mark, while also contributing to the deepening and strengthening of bilateral relations between the two countries.

Next week, a large delegation of US companies will arrive in the Iraqi capital to explore new opportunities in the rapidly growing Iraqi market. This effort is being led by the US-Iraq Chamber of Commerce as part of a broader initiative to strengthen trade relations between the two countries. Several memoranda of understanding and agreements are expected to be signed between the visiting companies and their Iraqi counterparts.

US firms such as General Electric, KBR, Baker Hughes, Halliburton, Honeywell and others are already playing a significant role in Iraq’s energy development. The Iraqi government has signed multi-billion-dollar contracts to upgrade the country’s power sector. A significant opportunity expected to materialise during the upcoming visit is the signing of a landmark agreement between General Electric and the Ministry of Electricity to develop 24,000 megawatts of high-efficiency power generation. The Minister of Electricity confirmed this in a televised interview on March 28.

The signing of this agreement aims to help bridge the significant electricity demand gap in Iraq, which currently stands at approximately 48,000 MW. Additional efforts to address this challenge include cross-border energy partnerships.

A 500 MW connection to the GCC power grid through Kuwait is scheduled for completion in 2025, while agreements with Turkey, Jordan and Saudi Arabia are expected to contribute an additional 2,500 MW by 2027. As Iraq advances toward greater energy self-sufficiency, collaboration with American companies – particularly in technology transfer and infrastructure development – will remain crucial.

Iraq’s natural gas sector highlights the opportunities and challenges inherent in the country’s energy reform efforts. A substantial volume of associated gas is still flared due to inadequate infrastructure – a critical issue that US companies are well-positioned to help resolve. Expanding gas capture projects will reduce waste and environmental harm and contribute significantly to Iraq’s goal of achieving energy self-sufficiency.

Similarly, US companies involved in natural gas exports may benefit from Iraq’s evolving needs. On March 4, the Minister of Oil announced that the Ministry is in the process of importing a floating storage and regasification unit (FSRU) to supply gas for power generation stations.

A formal bidding process is currently under way, with a decision expected soon. This initiative opens the door for US firms specialising in FSRU manufacturing and suppliers of liquefied natural gas to play a key role in Iraq’s energy future.

Over the past two and a half years, Iraq has awarded more contracts to US firms than at any other time in the bilateral relationship. Economic co-operation between the two countries has grown significantly from agricultural imports – such as wheat and rice – to large-scale infrastructure development.

The Iraqi government is now focused on accelerating major infrastructure projects in transportation, water management and telecommunications sectors, where US companies possess substantial competitive advantages.

It is evident in Baghdad and Washington that the path forward is defined by common interests and shared opportunities

Iraq’s economic trajectory presents a clear opportunity to deepen its partnership with the US. As Baghdad advances its ambitious energy and infrastructure agenda, American companies are well-positioned to assume a leading role in these transformative developments. US National Security Adviser Mike Waltz reinforced this message during a phone call on March 10, in which he thanked Mr Al Sudani for “his commitment to the bilateral US-Iraqi relationship” and highlighted “the Trump administration’s dedication to strengthening energy and economic ties between the two countries in a way that benefits both the American and Iraqi peoples”.

It is increasingly evident in Baghdad and Washington that the path forward is defined by common interests and shared opportunities for Iraq and the US. The trajectory of this relationship points toward deeper co-operation grounded in mutual respect and aligned strategic goals. The core principles of making the US safer, stronger and more prosperous align seamlessly with Iraq’s ambitions for stability, economic development and a more substantial regional role.

Looking ahead, Iraq and the US have a unique opportunity to deepen their partnership in ways that promote regional security, economic integration and long-term stability. This vision was a central theme in the phone call between Mr Al Sudani and then US president-elect Donald Trump on November 8. According to a statement issued by the Prime Minister’s Office: “The two sides expressed their commitment to advancing the strategic partnership between Iraq and the United States and strengthening bilateral relations beyond security concerns, with a focus on co-operation in the fields of economy, finance, energy, and technology.”

This new chapter of Iraq-US engagement promises a future rooted in mutual prosperity. Shared interests in economic development and regional stability lay the foundation for a lasting partnership that serves both nations and contributes meaningfully to global security.

Updated: April 04, 2025, 6:57 AM

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