IFC Unveils $1 Billion in New Investments to Boost Iraq’s Private Sector

The International Finance Corporation (IFC), a member of the World Bank Group, has announced a bold new phase of engagement in Iraq with a commitment of $1 billion in investments and partnerships across key sectors, including energy, infrastructure, agribusiness, manufacturing, housing, healthcare, and finance. The announcement was made during IFC Partnerships Day in Baghdad, held under the patronage of Prime Minister Mohammed Shia’ al-Sudani, to mark two decades of IFC’s work in Iraq.

Two Decades of Impact

Since 2005, IFC has invested and mobilized over $2.5 billion in Iraq, financing projects that have strengthened infrastructure, expanded access to finance, modernized industries, and enhanced food security. These investments have directly contributed to the creation of more than 28,000 jobs—including 5,000 for women—while also supporting Iraq’s long-term development goals.

The organization has also played a pivotal role in advancing economic diversification, including landmark transport and energy projects, as well as promoting sustainable finance initiatives in collaboration with the Central Bank of Iraq, the Iraq Stock Exchange, and local financial institutions. Notably, IFC is currently serving as lead advisor on Iraq’s first airport public-private partnership (PPP), a project set to modernize the nation’s primary aviation gateway.

Prime Minister Mohammed Shia’ al-Sudani lauded the milestone, stating: “We congratulate Iraq and the Iraqis for signing these important agreements with IFC, one of the most prestigious institutions in the financial advisory and investment space. Iraq is ready to embrace Arab and foreign partnerships such as these.”

New Strategic Partnerships

During the Baghdad event, attended by senior officials, private sector leaders, and development partners, IFC unveiled several new partnerships that will tap into the resilience of Iraq’s private sector while aligning with the country’s Vision 2030 development agenda.

• Energy Transition and Emissions Reduction: IFC will arrange a $500 million loan for Basrah Gas Company, advancing one of the world’s largest gas flaring reduction projects. This builds on a similar financing package from 2021 and will significantly cut emissions while capturing gas for domestic energy use.

• Infrastructure and Trade: In partnership with Aloreen Company for Investment, IFC will mobilize $120 million to modernize container handling and expand yard capacity at Umm Qasr Port, Iraq’s main maritime trade hub. The project is being developed in collaboration with Terminal Investment Limited Holding, a subsidiary of Mediterranean Shipping Company, bringing international expertise to Iraq’s logistics sector.

• Manufacturing and Industrial Modernization: IFC will invest $200 million with Nomu Holding, part of Iraq’s Al-Maysarah Group and Saudi-based Al Muhaidib Group, to modernize Iraq’s construction materials industry. The initiative will support decarbonization, industrial upgrades, and workforce training.

• Housing and Sustainable Urban Development: A $65 million investment with Hiwa Rauf for Investment and Development will support Iraq’s first certified sustainable mixed-use real estate project in Sulaymaniyah, addressing housing shortages, attracting private capital, and creating jobs.

• Food Security and Agriculture: In partnership with Tiryaki Agro, IFC will conduct a feasibility study to boost domestic grain production and reduce reliance on imports. The study will focus on sustainable farming practices, modern storage facilities, and renewable energy integration, initially targeting wheat production.

• Healthcare System Strengthening: IFC will partner with Ruban Al Safina to develop a feasibility study for a 200+ bed teaching hospital at the American University of Iraq in Baghdad, aimed at improving clinical services, expanding healthcare access, and training the next generation of medical professionals.

• Trade Finance Expansion: Through its Global Trade Finance Program (GTFP), IFC will provide the Bank of Baghdad with a $10 million trade finance line, helping local businesses connect with a global network of banks and easing access to essential goods.

• SME Growth and Financial Access: IFC will work with the First Finance Company (FFC) to improve financial services for Micro, Small, and Medium Enterprises (MSMEs), conducting a market study to identify strategic growth areas and strengthen SME financing.

Long-Term Commitment to Iraq’s Development

K. Aftab Ahmed, IFC Director for the Middle East, Pakistan, and Afghanistan, highlighted the importance of Iraq’s private sector in driving recovery and resilience: “Iraq’s private sector is agile, resilient, and capable of driving sustainable growth. Over the past 20 years, IFC has brought financing, global expertise, and mobilized international capital to support local priorities. Today, we begin a new chapter by targeting strategic sectors aligned with Iraq’s Vision 2030.”

The IFC’s fresh wave of investments comes at a critical moment for Iraq, as the country seeks to diversify its economy beyond oil, modernize its infrastructure, and strengthen resilience to environmental and social challenges. By fostering private sector growth, promoting sustainability, and mobilizing international capital, IFC’s new commitments aim to help Iraq unlock its full economic potential.