More than 18,000 industrial projects in Iraq have stopped operating for various reasons, while the industrial sector once represented 23% of the Gross Domestic Product (GDP) before 2003.
Baghdad – The total number of factories owned by public sector companies in Iraq is approximately 227, with only 140 of them still operational, according to data from the Ministry of Industry and Minerals.
According to these statistics, around 18,167 industrial projects are currently inactive for different reasons. The industrial sector once accounted for about 23% of Iraq’s GDP before 2003.
Government data suggests that the country was once an industrial hub during the 1950s, 1960s, and 1970s, and even in the 1940s. The industrial production at the time met local market demand and even exported abroad.
Investment Plans
The Ministry of Industry and Minerals has revealed its investment plan to rehabilitate the idle factories and plants across the country, as part of short, medium, and long-term plans, according to its Planning Affairs Deputy Minister, Yusuf Jassim Al-Janabi.
Al-Janabi explained in an interview with Al Jazeera that the plan – which has been allocated financial resources under the 2021 federal budget – aims to support the ministry’s companies in revitalizing the industrial sector and producing new goods.
He further revealed that the ministry supports the idea of privatizing the public sector, excluding strategic companies that do not require continuous government support. However, other companies that can attract private sector investments can be transferred to local or foreign investors, provided that employees’ rights are preserved.
Al-Janabi noted that the volume of industrial products in Iraq is diverse, with some achieving full local self-sufficiency, such as cement production, while others, like electrical industries, pharmaceuticals, and fertilizers, have partially achieved self-sufficiency.
Is Privatization the Solution?
On the other hand, Adil Akkab, head of the Federation of Iraqi Industries, downplayed the Ministry of Industry and Minerals’ plans to develop state-owned industrial companies.
Industrial Cities
Industrial development consultant Amer Al-Jawhari discussed the importance of industrial cities, considering them a vital role in boosting Iraq’s economy. He argued that industrial cities help create job opportunities for youth, provide domestic products in the market, activate the local capital cycle, and reduce random imports.
