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Iraq Public Construction Spending Tops $18 Billion in 2025 as Baghdad Leads New Projects

Iraq public construction spending reached a major milestone in 2025, reflecting the government’s continued focus on infrastructure and development across the country. Fresh figures released by Iraq’s Commission of Statistics and GIS show that public agencies awarded thousands of construction contracts during the year. Baghdad secured the largest share of those projects, reinforcing its central role in national investment plans.

The latest report shows that authorities awarded 2,279 public building and construction contracts during 2025. Together, these agreements carried a total value of 24.163 trillion Iraqi dinars, or more than $18.45 billion. The figures highlight the scale of government investment in public infrastructure despite broader economic challenges.

Baghdad ranked first among all Iraqi provinces for both the number and value of contracts. Officials recorded 416 agreements in the capital with a combined value of 4.753 trillion dinars, equal to about $3.63 billion. Those projects represented roughly 18.2 percent of all public construction contracts awarded during the year.

Other provinces also recorded significant activity. Diyala placed second with 248 contracts worth approximately 557 billion dinars, or about $425 million. Nineveh followed closely after securing 231 contracts with a total value of 1.203 trillion dinars, equivalent to nearly $918 million. These figures suggest that development efforts extended beyond the capital into several important regions.

The report also identified which government bodies managed the largest number of projects. Provincial administrations supervised 1,406 construction projects, making them the leading public institutions in this area. Meanwhile, the Ministry of Construction, Housing and Public Municipalities oversaw 216 projects, placing it second among government agencies. This distribution shows how local administrations played a leading role in delivering infrastructure programs.

Iraq public construction spending continues to attract attention because it reflects the government’s priorities for rebuilding and expanding public services. Roads, public buildings, and municipal facilities often depend on these investments. Strong construction activity can also support employment and stimulate demand across several industries connected to infrastructure development.

However, the latest construction data also points to a different trend in the private sector. Earlier this month, the Commission of Statistics and GIS reported a decline in private building and renovation permits. Authorities issued 25,934 permits during 2025, compared with 29,729 permits in the previous year. That represented a drop of 11.4 percent.

The contrast between public investment and private construction suggests that government-funded projects remained the primary driver of building activity throughout the year. Public authorities continued to move forward with large infrastructure programs even as private construction slowed. Analysts will likely monitor future reports to determine whether private investment recovers alongside ongoing public development.

As Iraq public construction spending remains at historically high levels, the latest figures underline the government’s commitment to expanding infrastructure across multiple provinces. Future investment patterns will reveal whether this momentum continues into the coming years and how it shapes economic growth nationwide.