Iraq has announced a new initiative to support its growing class of young business owners. The Ministry of Labour and Social Affairs confirmed it will launch guarantor-free loans for young entrepreneurs, offering up to 350 million Iraqi dinars per applicant.
This bold move eliminates the traditional requirement of a guarantor, which has blocked many from accessing financial support. Instead, the new loan system uses the entrepreneur’s project as collateral. The initiative represents a major shift in how Iraq supports its small and medium-sized businesses.
The Ministry is working closely with the International Labour Organization (ILO), the German Development Bank (KfW), and the Iraqi Company for Guarantees. These partners bring global experience to ensure transparency, success, and long-term growth.
To qualify for this loan, candidates must first complete a specialized training course. The course lasts more than a month and prepares applicants in every part of business planning. Experts guide participants through technical details, customer service, and location planning.
The loan is granted only after participants complete the full training and present a solid business plan. This approach ensures loan recipients are ready to succeed and manage their businesses wisely.
According to Ministry spokesperson Hassan Khawam, this effort builds on earlier success. Iraq already offers smaller loans worth between 20 and 50 million IQD. In 2023, the Ministry also launched Mahan, a digital platform connecting job seekers with private employers.
However, this new program takes things further. It opens the door to larger funding and encourages self-employment. Iraq hopes this will help reduce unemployment and grow its private sector.
The Ministry believes guarantor-free loans for young entrepreneurs will boost the economy by making it easier to start businesses. It also hopes the model will encourage innovation and reduce dependency on public sector jobs.
With training, funding, and international support, Iraq is creating better conditions for its young people to succeed. This strategy will help young Iraqis build careers while contributing to the country’s economic development.
Guarantor-free loans for young entrepreneurs could become a turning point in Iraq’s long-term recovery and growth.