Iraq used the Arab League summit to highlight regional investment in Iraq. A senior official called it a key opportunity. The government focused on building economic ties and attracting capital from neighboring countries.
Mudhir Mohammed Salih, economic adviser to the Prime Minister, shared strong messages during the event. He described the summit as a turning point for Iraq’s economic diplomacy. In his view, Iraq moved from managing crises to focusing on development goals.
Salih named the $17 billion Development Road project as a top priority. This 1,200-kilometer trade route links the Grand Faw Port to the Turkish border. They described it as a central pillar for regional investment in Iraq.
He also mentioned economic talks with Iran, Egypt, and Jordan. He called the summit a launchpad for deeper regional investment in Iraq. However, despite these efforts, challenges still block serious progress.
The World Bank reported a major concern. Iraq recorded a $5.27 billion outflow in foreign direct investment last year. Many investors blamed legal risks and poor security conditions. These factors continue to scare away long-term investment.
Ranj Alaaldin, a Middle East expert, explained the issue further. He said good speeches are not enough to attract funds. Investors demand clear laws, firm enforcement, and reliable protection systems.
Another major problem comes from the energy sector. More than half of Iraq’s electricity disappears due to poor infrastructure. The country also relies heavily on imported energy from Iran. When U.S. sanctions ended in early 2025, Iraq faced new energy risks.
The International Monetary Fund warned about the impact. It said poor power supplies hurt productivity and weaken Iraq’s industries. This energy gap stops progress and limits the country’s global competitiveness.
While the summit improved Iraq’s image, experts stayed cautious. They want proof of real action. Leaders must now back public plans with strong reforms and new laws.
In short, Iraq’s push for regional investment in Iraq gained attention. Yet much work remains before real capital begins to flow.