Iraq's PM declares industrial self-sufficiency
Shafaq News/ On Thursday, Iraq’s Prime Minister Mohammed Shia al-Sudani announced that domestic industries have reached a level of self-sufficiency, commending the government’s focus on boosting revenues through petrochemical exports.
Speaking at a National Industry Day event organized by the Iraqi Industries Union, al-Sudani outlined recent progress in industrial recovery, pointing to improved capacity across sectors ranging from food processing to pharmaceuticals.
The prime minister also recalled that Iraq’s industrial base had been severely weakened after 2003, when a wave of unregulated imports flooded local markets, forcing many industrial producers to abandon manufacturing in favor of trade and contracting. Despite this disruption, he noted, Iraqi manufacturers have since demonstrated ''resilience and innovation.''
To advance industrial growth, the government has moved to expand the private sector’s role in policymaking. For the first time, sovereign guarantees have been ‘’included in the federal budget to underwrite private investment,'' marking a structural change in support of production.
Al-Sudani reaffirmed the cabinet’s readiness to take further measures to protect domestic industries. These may include import restrictions on selected goods once reliable local alternatives are available. The measures, he explained, are part of a broader strategy aimed at ‘’fostering a competitive national economy.’’
About the Industrial Sector
Iraq’s economy remains heavily reliant on oil, with crude petroleum accounting for more than 90% of the country’s $107 billion in exports in 2024. Its top trading partners are China, India, and the United States. In the first half of 2025, exports reached $45 billion—an 11.6% year-on-year increase—driven largely by Asian demand.
Apart from oil, Iraq is steadily expanding industrial output in fuel oil, petrochemicals, fertilizers (notably urea and ammonia), cement, and construction materials. The country is also developing its pharmaceutical, food processing, textile, and plastics sectors as part of a wider strategy to diversify exports, reduce dependence on crude oil, and strengthen domestic production across high-value industries.
