An improving security environment and foreign investment are helping to spur economic activity in Iraq, particularly in the energy, construction and retail sectors.
Iraq’s largely state-run economy is dominated by the oil sector, which provides more than 90% of government revenue and 80% of foreign exchange earnings.
Iraq’s contracts with major oil firms have the potential to further expand oil exports and revenues, but significant upgrades to oil processing, pipelines and export infrastructure are needed to reach their economic potential.
The Iraqi government is eager to attract additional foreign direct investment. Encouraging private enterprise through deregulation would make it easier for Iraqi citizens and foreign investors to start new businesses.
Composition of GDP (2013)