Iraq has secured two significant investment agreements with the Chinese company Shang Shin to develop strategic industries in the country, as confirmed by Minister of Industry Khaled Battal Al-Najm on Saturday. These agreements mark a substantial step in Iraq’s industrial development and economic diversification.
The first contract is focused on a sponge iron project with an annual capacity of one million tons, aimed at boosting Iraq’s steel production capabilities. The second contract involves the establishment of a multifunctional industrial city in Basra, valued at over $2 billion. This industrial city will be a major hub for heavy industries and is expected to play a pivotal role in Iraq’s economic growth.
During a press conference, Minister Al-Najm explained that negotiations for these projects took a considerable amount of time due to their scale and strategic importance. He added that legal complexities were also a challenge, but with direct support from Prime Minister Mohammed Shia Al-Sudani, they were successfully resolved.
The industrial city project will be managed by an investment company under the Industrial Cities Law, though ownership will remain with a state-owned company. This deal signals Iraq’s efforts to overcome previous doubts about its capacity to handle large-scale industrial projects and to expand its manufacturing and heavy industry sectors.
Earlier on Saturday, Minister Al-Najm visited Basra to oversee the progress of ongoing industrial initiatives. He laid the foundation stone for several new factories, initiated the pilot operation of the steel factory’s furnace, and visited the iron pipe factory in Umm Qasr to monitor the execution of the Basra-Haditha oil pipeline project.
This deal marks a key milestone in Iraq’s industrial development and its growing partnership with China.