Baghdad – Iraq economic strategy took center stage on Saturday after Prime Minister Ali Al-Zaidi revealed an ambitious long-term plan aimed at transforming the country’s economy, energy sector, and international partnerships. The announcement came ahead of his planned visit to Washington, where he is expected to hold talks with U.S. President Donald Trump on investment, regional security, and economic cooperation.
Al-Zaidi described the upcoming visit as more than a diplomatic meeting. He said it represents the beginning of a stronger economic partnership between Iraq and the United States. According to the Prime Minister, the new approach focuses on investment, technology, infrastructure, and sustainable economic growth rather than military cooperation.
One of the proposal’s main pillars involves creating a long-term development and energy fund. Iraqi officials estimate the initiative could generate nearly $400 billion over the next 30 years. The government plans to place the fund in major U.S. financial institutions while directing its resources toward electricity projects and national infrastructure.
The proposal also includes a significant expansion of Iraq’s oil production. The government intends to begin with production of around 500,000 barrels per day under the new framework. Officials hope to increase that figure to two million barrels daily through the investment program. Al-Zaidi also expressed his goal of raising Iraq’s overall production capacity to seven million barrels per day within three years, while seeking a revised production baseline within OPEC.
In addition, the government plans to strengthen cooperation with leading American energy companies. Ministries responsible for oil, electricity, and telecommunications have received instructions to prioritize qualified U.S. firms for strategic projects. Several major energy agreements have already moved through Iraq’s Ministerial Council for the Economy, involving companies including Chevron, Halliburton, and HKN Energy.
The Prime Minister also highlighted Iraq’s growing focus on digital infrastructure. He said the government seeks to expand satellite internet services through cooperation with Starlink. Officials believe advanced communications technology will support economic modernization and improve digital services across the country.
Beyond economic reforms, Al-Zaidi addressed issues related to national sovereignty and security. He confirmed that the International Coalition’s combat mission against ISIS will conclude on September 30, 2026. Following that milestone, Iraq plans to host an international conference celebrating the country’s transition toward full sovereignty after the departure of foreign combat forces.
Al-Zaidi also discussed the government’s position on armed groups operating outside state institutions. He acknowledged their role in previous conflicts against ISIS but stressed that only official state institutions should control weapons. He said the government continues discussions with various factions while maintaining its commitment to strengthening state authority.
On foreign policy, the Prime Minister emphasized Iraq’s balanced diplomatic approach. He said Baghdad seeks positive relations with neighboring Iran while maintaining strong ties with Gulf Arab countries and international partners. Iraq also hopes to serve as a venue for dialogue aimed at reducing regional tensions, including possible future discussions between the United States and Iran.
Domestically, the government plans several reforms to improve transparency and public finances. Authorities have created a specialized committee to review major government contracts exceeding 25 billion Iraqi dinars. The committee will examine project costs before public funds receive final approval.
The Cabinet has also approved draft legislation establishing a permanent pre-audit and inspection commission across government ministries. Officials expect the new body to strengthen oversight, reduce waste, and improve financial accountability throughout the public sector.
Housing remains another priority under the government’s reform program. Al-Zaidi announced ongoing preparations to distribute one million fully serviced residential land plots to Iraqi citizens. The initiative aims to address growing housing demand while supporting urban development.
Concluding his remarks, the Prime Minister said he holds no intention of forming a political party or seeking future electoral gains. He argued that this independence allows him to pursue difficult reforms without political pressure. Al-Zaidi added that his administration remains committed to building stronger institutions and delivering lasting national development through its Iraq economic strategy.
As Iraq prepares for high-level talks in Washington, the government’s Iraq economic strategy is expected to shape discussions on investment, energy cooperation, digital transformation, and long-term economic growth.