🇮🇶💵 Iraq’s Economic Shift & Long-Term Outlook 🚀
From my perspective, these reforms are not happening by chance or “in vain.”
A government does not push this level of transformation—budget discipline, financial reform, private sector growth, and a long-term “post-oil” vision—without a clear intention to stabilize and strengthen the foundation of the country’s economy.
In my view, all of these changes are building the structural base that any currency needs to gain strength over time. As Iraq continues moving toward a more diversified and stable economic model, confidence in the Iraqi dinar naturally grows along with it.
👉 At the end of the day, transformation takes time, but strong foundations are always the first step toward long-term value.
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Iraq is moving towards a post-oil economy as part of its "2035 Plan"
The directives issued by the Prime Minister, Ali Faleh Al-Zaidi, during his recent visit to the Ministry of Finance, have garnered widespread attention in economic and specialized circles, after they included clear indications of the need to reformulate Iraq’s financial policy, reduce dependence on oil, and expand the role of the private sector, in conjunction with the preparation of “Iraq Plan 2035,” which aims to establish a new economic contract that does not patch up the old one but builds a completely different model.
Experts believe that the Prime Minister’s speech revealed a new governmental direction based on moving from the traditional management of the economy to a model that relies on development, production and investment, with a focus on reforming the financial and customs system and stimulating non-oil sectors as a fundamental pillar of economic stability in the next stage .
New economy
Financial expert Dr. Nabil Al-Abadi said: The proposal presented by the Prime Minister reflects a fundamental shift in the state’s financial philosophy from a rentier, distributive mentality to a productive and sustainable economic mentality, explaining that the talk about Iraq’s 2035 plan confirms that we are facing an attempt to establish a new economic contract that does not patch up the old one but builds a completely different model.
economic model
Al-Abadi added to Al-Sabah: “The diagnosis of the budget’s 90 percent dependence on oil is not merely a description of an economic reality, but a clear declaration of the fragility of the existing economic model. The danger lies in the governing and operational expenses that consume the budget without producing a high GDP. The paradox pointed out by the Prime Minister is that the state has a huge budget but does not create a robust economy. The shift towards making the economy manage the state instead of the state managing the economy represents a redefinition of the government’s role to be an organizer and stimulator of the business and investment environment .”
Energies towards production
He pointed out that relying on the private sector is no longer an intellectual option but an economic necessity to stop the inflation of government employment and to redirect energies towards production, noting that the move towards automation and reforming the customs system reflects a deep understanding of the importance of closing the loopholes of financial waste and maximizing non-oil revenues, while he described linking the dues of farmers and contractors to the continuation of the economic cycle as an “advanced awareness” of the importance of liquidity in stimulating the productive sectors .
Formulating fiscal policy
For his part, Jassim Al-Aradi, a member of the Baghdad Economic Forum, believes that the contents of the Prime Minister’s speech reflect a serious governmental direction to reformulate fiscal policy in line with current economic challenges and the requirements of sustainable development in Iraq .
Al-Aradi said that the diagnosis of the budget’s almost total dependence on oil revenues represents a realistic reading of the nature of the Iraqi economy, noting that the next stage requires accelerating the procedures for diversifying national income sources by revitalizing the industrial, agricultural, commercial and service sectors and not being satisfied with traditional solutions related to oil prices .
Modern economies
The spokesperson added that transforming the role of the state from manager of the economy to regulator and supporter of economic activity is one of the most prominent positive indicators, because it gives the private sector a greater opportunity to participate in creating job opportunities and driving investment, stressing that modern economies are based on partnership between the state and the private sector to achieve growth and stability .
Al-Aradi explained that the Prime Minister’s directives regarding automation and control of customs ports represent an important step to address financial waste and reduce cases of revenue manipulation, as well as enhance financial transparency and raise the efficiency of government collection .
Financial challenges
For his part, economist Dr. Murtadha Al-Khafaji described the Prime Minister’s speech as representing an economic roadmap that reflects a clear understanding of the magnitude of the financial challenges facing Iraq in light of regional and international changes and their direct impact on oil prices and public revenues .
Al-Khafaji explained that the Prime Minister’s emphasis on diversifying the economy and reducing dependence on oil represents an important strategic direction, especially since the Iraqi economy still depends heavily on oil revenues, which makes public finances vulnerable to global fluctuations .
Stimulating the productive sectors
He added that the call to make the budget a roadmap for the future reflects a new understanding of the role of fiscal policy in stimulating development and driving productive sectors, noting that supporting the private sector and changing traditional economic concepts are a necessary step to build a more resilient and sustainable economy .
Al-Khafaji stated that investing in Iraq’s geographical location and developing the transport and trade sectors could provide important financial resources outside the oil framework, stressing the importance of automation in customs ports to eliminate manipulation and increase non-oil revenues link
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