Iraq is pushing forward with bold plans to become a major regional financial center. According to the Prime Minister’s financial advisor, Iraq holds all the tools needed for this transformation. The country’s foreign reserves now exceed $100 billion, giving it a strong starting point for long-term financial stability. The Iraq financial hub vision is gaining ground through several clear strategies.
First, Iraq’s oil power remains the core of its economic strength. As the Middle East’s second-largest oil producer, Iraq enjoys consistent revenues. It also holds the fourth-largest crude oil reserves in the world. This oil wealth not only brings steady income but also supports large investments in financial infrastructure. The energy-driven income helps stabilize the currency and increase investor confidence, making Iraq more attractive to foreign capital.
Second, Iraq benefits from a key geographic location. It links northern and southern trade routes and serves as a connection point for markets between Europe and the Gulf. so This strategic position supports large-scale trade and capital flows. One major initiative is the “Development Road” project, designed to connect Europe to the Gulf region by passing through Iraq. These factors all support the Iraq financial hub vision by boosting trade and financial activity.
Third, Iraq’s population is one of its greatest assets. Over 60% of Iraqis are under the age of 30. This young, energetic population can be trained for roles in fintech, artificial intelligence, and digital banking. A new college focused on artificial intelligence is in the works to support this goal. This workforce can help Iraq lead future financial innovation in the region.
Fourth, banking reform is central to the strategy. More than 80% of banking activity in Iraq is controlled by state-owned banks. The government is now working to modernize these institutions by cutting red tape, raising efficiency, and adopting technology. Digital payments are becoming more common, with growing use of bank cards, e-wallets, and online billing. as well as These upgrades improve financial access for all citizens and strengthen the banking system as part of the broader Iraq financial hub vision.
Efforts also include building strong legal and digital systems. Plans involve linking banks to secure platforms and expanding Iraq’s national data center. The goal is to support a safe, efficient financial environment. Other priorities include pushing for smart fiscal policies, supporting microfinance and insurance sectors, and encouraging fintech startups.
Finally, Iraq wants to build global partnerships. The government may seek connections with regional payment systems and groups like BRICS or G20. Learning from global financial hubs such as Singapore, Dubai, and Hong Kong will help Iraq grow in the right direction.