WHERE DO IRAQ’S NON-OIL FUNDS GO? PORTS, TAXES, AND REAL ESTATE ARE EXAMPLES.
In a country known for its oil before any other resource, Iraq’s non-oil revenues stand on the margins, seemingly a mere figure that no one questions. However, they represent a significant portion of the public treasury, raising the question: Where does that money go?
With mounting warnings about the fragility of the oil-based economy, there is a need to examine the government’s seriousness in collecting and utilizing non-oil resources, amid indications of weak transparency and multiple beneficiaries.
91% Oil… and the rest has no clear impact.
Economic expert Haider Al-Sheikh confirmed to Baghdad Today that “total oil and non-oil revenues for 2024 amounted to 140 trillion and 774 billion dinars, of which 127 trillion and 536 billion dinars are from oil exports, representing 91% of the state’s general budget. “
Non-oil revenues, meanwhile, amounted to only 13 trillion and 237 billion dinars, representing 9% of the budget, reflecting the fragility of financial diversification and deepening the state’s dependence on crude oil revenues.
From the Federal Reserve to Iraq’s payments,
Sheikh points out that “oil export revenues are deposited into Iraq’s account at the US Federal Reserve and then transferred domestically in successive installments,” meaning that oil revenues pass through external channels subject to international oversight.
Non-oil revenues—such as port revenues and taxes—enter directly into the public treasury, giving local authorities greater discretion and raising questions about oversight and accountability mechanisms.
Taxes, levies, fees… and then what?
Non-oil revenues include taxes levied on companies, factories, merchants, and citizens, in addition to border crossing levies and fees imposed on services.
Despite this diversity, these funds remain without a real impact on the balance of services or development, raising serious doubts about their fate. These sums have not made a tangible difference in infrastructure or improved public services, reinforcing the hypothesis that they are being diverted into the political or administrative spending system without real transparency.
2025… The increase in revenues does not guarantee transparency
. According to Al-Sheikh, non-oil revenues for 2025 are expected to exceed 15 trillion dinars, as a result of:
Increasing taxes on goods and services.
Activating the electronic collection system for paying fees and fines.
Expanding the scope of collection from new sectors.
However, this expansion in collection is not matched by increased transparency, as the government has not yet announced precise mechanisms for tracking the amounts collected or the beneficiaries. This makes the potential increase a double-edged sword: an additional resource on the one hand, and an open door to corruption on the other.
A country without resources. Despite its resources,
the question remains open: If the Iraqi state imposes taxes, levies, and fees on virtually every sector, where do its non-oil funds go?
Do they end up in undisclosed spending items? Or are they used to plug chronic corruption loopholes?
If oil is subject to international oversight through the Federal Reserve, domestic funds seem more vulnerable to being lost within the state’s own mechanisms, especially given the multiplicity of actors and overlapping interests.