Keynote Address

His Excellency Prime Minister Mohammed Shia’ Al-Sudani

In opening the Iraq Energy Conference 2026, His Excellency the Prime Minister presented a comprehensive vision for the future direction of Iraq’s energy sector, emphasising a strategic transition from a model centred on exporting raw resources toward an approach focused on maximising economic value, diversifying energy sources, and strengthening sustainability.

The address outlined the government’s priorities in developing the oil, gas, and electricity sectors, alongside expanding renewable energy projects, advancing digital transformation initiatives, and promoting regional integration. It also underscored Iraq’s strategic role within global energy markets and the importance of leveraging this position to enhance economic stability and deepen international partnerships.

Prime Minister’s Speech

In the name of God, the Most Gracious, the Most Merciful

Ladies and gentlemen, distinguished guests, peace be upon you,

I warmly welcome all guests and participants to this conference, and I highly commend the efforts of Mr Ashty Aladin for organising and preparing this conference for the second consecutive year in Baghdad.

I congratulate everyone on the convening of this conference, which is dedicated to a vital sector that represents the backbone and driving force of all other sectors.

The energy sector, for which Baghdad is hosting its dedicated event under the title Iraq Energy Conference 2026, with distinguished participation from leading international companies, undoubtedly provides an important opportunity for specialists to review the policies, opportunities, and programmes related to this sector.

What I would like to clarify first is that the energy sector, in all its branches, no longer represents merely a commercial or economic market. Today, it has become an important factor in building political, social, and developmental relations through the mutual benefits it provides and the integration it creates across global supply chains.

As Iraq is one of the leading countries in this sector, our philosophy in managing energy stems from this understanding, through which the concept of integration among nations can be realised in a way that contributes to strengthening security and stability in our vital region and across the wider world.

Since assuming our executive responsibilities, we have been committed to developing Iraq’s energy sector and transforming it from its previous single-resource model into a new approach that invests in all the industrial, investment, and developmental opportunities provided by the sector.

From the outset of our government’s development programme, we recognised that advancing and modernising the energy sector would constitute the strong foundation upon which all other development objectives depend. Accordingly, we launched an ambitious plan to maximise returns from Iraq’s oil wealth, with the objective that by 2030, 40% of Iraq’s oil exports will consist of high-value refined products rather than crude exports alone.

In line with this ambition, we have launched a broad programme to expand Iraq’s refining capacity and add new processing units, in partnership with the private sector in these field and other related sectors. This is aimed at significantly reducing fuel imports and building a more integrated and promising economic future for Iraq, one that diversifies revenues and accelerates development.

For many years, our gas resources were subject to systematic wastage. By the grace of God, we have succeeded in achieving a 74% utilisation rate of our total gas resources through expanding investment opportunities. As a result of successive exploration activities, Iraq’s confirmed reserves of free natural gas have increased to approximately 132 million standard cubic feet. This wealth is being complemented by ongoing efforts to invest associated gas, with the objective of completely ending gas flaring by 2028, which is harmful to the environment, through the dedicated efforts of our colleagues in the oil sector.

In the field of electricity, we have achieved unprecedented levels of generation, reaching nearly 29,000 megawatts, alongside the development of a highly efficient national grid. This has included upgrading transmission and distribution networks and reducing losses through hundreds of secondary substations and power stations. This qualitative leap in generation, transmission, and distribution has enhanced the flexibility of the national grid, reduced pressure, and eased bottlenecks during periods of extreme heat, when temperatures reach their highest levels, while also supporting ongoing efforts toward regional electricity integration.

Within this forward-looking plan, the government has also completed procedures for establishing new power plants with a total capacity of 57,500 megawatts, including 34 stations in partnership with GE and Siemens. Through these agreements with leading international companies, we aspire to move Iraq beyond the chronic electricity challenges that have persisted for more than three decades.

In parallel with the global transition towards environmentally friendly energy sources, Iraq has made significant progress in the field of clean and renewable energy. We have launched projects with a combined target capacity of 7,500 megawatts of solar power through 15 projects across several governorates, some of which have already been connected to the national grid for the first time in Iraq’s history.

As part of our efforts to strengthen energy and water security in light of the climate challenges facing Iraq, the country has also moved forward with strategic projects that respond to current pressures and lay the foundations for an integrated approach to water resource governance. This reflects a balanced trajectory between the carbon economy and the green economy. This ambitious vision represents a key pillar in supporting the national economy and enhancing Iraq’s position by diversifying energy pathways in production and export, thereby opening broader horizons for a more prosperous future.

Our government has also actively worked to strengthen regional cooperation in the energy sector, affirming Iraq’s strategic role in this vital field. It has further developed ambitious plans to support digital transformation in energy-related sectors, contributing to policy reform and development, and ultimately building a promising and sustainable future for Iraq’s energy sector.

Ladies and gentlemen, our region, which represents one of the world’s most important energy supply hubs, is currently witnessing tensions and difficult moments that require all states, institutions, organisations, and major international companies to contribute to easing these pressures and preventing further escalation. No one stands to benefit from the disruption of energy supplies; rather, we would all be losers and adversely affected.

We once again welcome the convening of this conference and highly appreciate the efforts of its organisers. We hope that it will produce outcomes that serve the common good for all of us. Thank you, and peace be upon you all.

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Speech of the UN Resident Coordinator in Iraq, Mr. Ghulam Isaczai

The United Nations Resident Coordinator in Iraq, Mr. Ghulam Isaczai, expressed his appreciation to the organisers of the Iraq Energy Conference, noting that the conference represents an important platform that brings together the Government, the private sector, development partners, and experts to contribute to shaping the future of Iraq’s energy sector, particularly considering the rapid transformations taking place at both regional and global levels.

He highlighted that the international community views the energy sector as a key driver of sustainable development in Iraq, emphasising the importance of integrating energy security, economic diversification, and climate action. He also underscored a new phase of partnership between Iraq and the United Nations, based on supporting national priorities through sustainable financing, enhanced institutional coordination, and the development of legal and regulatory frameworks.

He reaffirmed the United Nations’ commitment to supporting Iraq’s efforts to build a more diversified, efficient, and sustainable energy system, in line with the Sustainable Development Goals and Iraq’s Vision 2030.

Mr. Ghulam Isaczai’s Speech

Your Excellency Prime Minister Mohammed Shia’ Al-Sudani,

Excellencies, Distinguished Guests,

Ladies and Gentlemen,

It is a pleasure to join you today at the Iraq Energy Conference and I would like to thank Dr. Ashty Aladin for establishing this annual event bringing together the government, the private sector, development partners, and experts to shape Iraq’s energy future.

This conference comes at a pivotal moment. Energy security, economic diversification, and climate resilience are no longer separate agendas; they are central, interconnected pillars of Iraq’s long-term stability and development. Allow me to begin with a brief word on the role of the United Nations in Iraq.

Following the conclusion of the mandate of the United Nations Assistance Mission for Iraq on 31 December 2025, the United Nations continues its engagement in the country under the

leadership of the UN Resident Coordinator. This marks a new phase in UN - Iraq cooperation - one that reflects Iraq’s transition toward long-term, sustainable development.

Our engagement is guided by the United Nations Sustainable Development Cooperation Framework for 2025 - 2029, signed with the Government of Iraq on 25 December 2025.

This Framework serves as the UN’s strategic roadmap for supporting national priorities and advancing the Sustainable Development Goals, aligned with Iraq Vision 2030, through policy advice, institutional strengthening, and technical assistance.

Today’s focus on energy goes to the heart of Iraq’s development agenda. Reliable, affordable, and sustainable energy underpins economic growth, fiscal stability, service delivery, and the well-being of all Iraqis.

The Government of Iraq has articulated a clear strategic direction through national frameworks, including Iraq Vision 2030 and the National Development Plan 2024–2028, the Integrated National Energy Strategy, and Iraq’s updated Nationally Determined Contribution. However, these strategies call for a clear implementation plan that can meet the ambition of the Paris Climate Agreement, that is to limit the global temperature rise to 1.5C.

Implementation must be backed by:

First, financing. Advancing Iraq’s energy transition requires predictable, blended financing that brings together public resources, donor support, and private investment. Targeted investments, such as solar energy for public buildings or gas capture to reduce flaring, can lower costs, strengthen energy security, create jobs, and deliver tangible progress toward the Sustainable Development Goals.

Second, implementation would require strong coordination across ministries, donors, international financial institutions, and the UN system to avoid fragmentation and deliver results at scale.

Third, implementation can only be effective within a predictable and enforceable legal and regulatory framework which are essential to build investor confidence and ensure transparency.

The United Nations recognises the leadership of the Government of Iraq, under Prime Minister Mohammed Shia’ Al-Sudani, in advancing energy transition and climate action.

This includes ambitious plans to scale up renewable energy by 2030, continued efforts to reduce gas flaring and methane emissions, and the launch of Iraq’s first Climate Investment Plan for 2025 - 2030. Together, these initiatives signal a strong commitment to a more diversified, resilient, and forward-looking energy system.

The United Nations in Iraq is fully committed to supporting Iraq through this critical transition by providing high quality advisory services and technical assistance in advancing policy and regulatory reforms that prioritise sustainability, efficiency, and equity.

These priorities are firmly anchored in both Iraq’s national plans and the Cooperation Framework.

Our shared vision is clear: an Iraq that is energy-secure, economically diversified, environmentally responsible, and fully equipped to realise its development ambitions.

Achieving this vision will depend on strong partnerships, between the Government of Iraq, the private sector, international partners, and the United Nations.

In closing, let me reaffirm that the United Nations stands alongside the Government and people of Iraq as a committed partner in advancing a secure, sustainable, and climate-resilient energy future.

I wish you productive discussions and successful outcomes.

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Speech of the Deputy Minister for Gas Affairs, Ministry of Oil, Mr. Ezat Esmail, on behalf of the Minister of Oil

The Deputy Minister of Oil for Gas Affairs, speaking on behalf of the Minister of Oil, presented a comprehensive overview of the Ministry’s strategic direction and key achievements across the various segments of the energy sector, including upstream operations, refining, gas development, and distribution, despite ongoing operational and structural challenges.

The address highlighted the ongoing transition towards a more diversified and efficient energy sector, focused on maximising economic value, reducing waste, and strengthening integration across oil, gas, and electricity systems. It further underscored the priorities for the next phase, particularly improving the investment environment, expanding partnerships with international companies, and supporting value-added projects, with the objective of enhancing sustainability and reducing reliance on imports.

Ministry of Oil’s Speech - Mr. Ezat Esmaeel

In the name of God, the Most Gracious, the Most Merciful

His Excellency the Prime Minister, Mr. Mohammed Shia’ Al-Sudani
Honourable Ministers, Excellencies and distinguished guests
Ladies and gentlemen, Peace be upon you all,

We meet today at a specialised conference taking place at a critical juncture, as Iraq moves steadily towards a diversified and sustainable economy, while reasserting its role on the regional and international energy map, in line with the Government’s vision and the Prime Minister’s close follow-up of the energy portfolio in all its components.

The world is increasingly in need of flexible policies, advanced infrastructure, and clean energy options. Iraq possesses the necessary potential to position itself as a vital and central hub for regional energy cooperation.

Ladies and gentlemen, over recent years, the Ministry of Oil has achieved substantial progress across the upstream, refining, distribution, and gas sectors, despite significant challenges.

In the upstream sector, the Ministry has advanced the development of producing fields, border fields, and exploration blocks under the fifth and sixth licensing rounds, thereby strengthening production capacity, and expanding Iraq’s oil reserve base.

In the refining sector, the Karbala Refinery has become a cornerstone and model of the national refining system, having entered full operation capacity. This is alongside the expansion and upgrading of the Basra, Al-Shuaiba, Salah Al-Din, and Najaf refineries, which has contributed to reducing imports of petroleum products and achieving near self-sufficiency at present.

In the gas sector, gas today represents a cornerstone of Iraq’s future energy strategy. The Ministry has initiated a series of major projects extending from the north to the centre and south of the country, including the development of the Artawi, Al-Faihaa, Akkas, Mansuriya, and Halfaya gas complexes. These projects are expected to significantly increase national production, reduce flaring rates, and supply power plants with domestically produced gas, with the objective of achieving zero gas flaring by the end of 2028.

In the distribution sector, the distribution system has undergone substantial development, including the upgrading of networks, the enhancement of distribution services, and the gradual transition towards automation and digitalisation.

Ladies and gentlemen,

The message of the Ministry of Oil today is clear: we are working towards building an integrated national energy sector that is more flexible, more diversified, and more capable of attracting investment.

To achieve this objective, we emphasise the importance of strengthening the investment environment in coordination with the Government and the legislative authorities, through the development of regulatory frameworks, the simplification of procedures, the reduction of investment risks, and the expansion of partnerships with international companies, service companies, and the local private sector, with a view to transferring technology and developing industrial capacity.

We also support value-added projects in downstream industries and petrochemicals, as well as the integration of gas into the electricity system, in order to meet domestic demand and reduce reliance on imports.

Distinguished guests,

The conference slogan, Towards Energy Diversification and Sustainability in Iraq, is not a symbolic statement, but a vision, an action framework, and a roadmap that the Government is committed to, and that the Ministry is implementing through clear and practical steps.

We also state to our partners and investors with full clarity that Iraq today is more open, more prepared for engagement, and more committed to building sustainable partnerships.

Finally, we extend our appreciation and gratitude to the conference organisers, its management, all participants, as well as to you all for your attendance, and to the media and press for their coverage.

Peace be upon you all.

Day One - Energy Transition and Visions

Session Two

From Emissions to Opportunities:

Carbon Policy, Clean Air, and the Green Economy in Iraq

• Ali Al-Lami, Advisor to the Prime Minister for
• Ammar Al-Atta, Advisor, Ministry of Environment
• Mustaf Mustafa, Deputy DG, General Company for Carbon Economics
• Falah Alamri, Advisor to the PM for Energy Affairs, Session Moderator

 Discussion Framework

The session addressed the challenge of balancing Iraq’s carbon-intensive economic structure with the transition towards a greener economy, within the broader context of sustaining economic growth while simultaneously strengthening environmental sustainability.

Discussions focused on the policies, investments, and technologies capable of reducing emissions, improving air quality, and expanding reliance on clean energy sources, thereby supporting a gradual and economically responsible transition towards a more sustainable development model.

The session also examined the emerging opportunities associated with the carbon economy, not only as a mechanism for environmental compliance, but as a potential investment and development pathway capable of supporting economic diversification, generating new markets, and creating employment opportunities in Iraq.

From Emissions Management to Building a Green Economy

The session was opened by the moderator, Adviser to the Prime Minister for Energy, Falah Alamri, who argued that carbon emissions and clean air issues can no longer be treated as isolated environmental concerns. Rather, they have increasingly become direct determinants of Iraq’s economic trajectory, investment environment, and long-term development prospects.

Alamri stressed that addressing these challenges requires moving beyond a purely regulatory approach towards a broader economic and strategic framework that redefines the foundations of growth and integrates environmental considerations into the core of national economic planning.

Ali Al-Lami - Adviser to the Prime Minister for Climate Affairs
Climate and Energy: From Crisis Management to Structural Transition

Al-Lami stated that the climate portfolio was placed among the Government’s early strategic priorities, reflected in the convening of a national conference in Basra within the first months of its formation. This initiative, he explained, was intended to shift the national agenda from problem diagnosis towards implementation-oriented climate action.

He noted that Iraq is facing mounting climate pressures, including rising temperatures, intensified dust storms, advancing desertification, and associated public health and environmental impacts. In

this context, he stressed that Iraq is among the most vulnerable countries to climate change, particularly in relation to food and water security.

Within the energy sector, Al-Lami highlighted a significant shift in associated gas management. He explained that the Government has succeeded in reducing gas flaring by nearly 70%, with a strategic objective of achieving zero flaring by 2028. This transition, he argued, reflects a broader shift from resource wastage towards economic and environmental value creation.

He further noted the introduction of stricter environmental standards across oil and gas projects, including mandatory environmental impact assessments and the adoption of lower-emission production technologies. In this regard, he stated that “investment in oil and gas must be conducted within frameworks that protect the environment and reduce the impacts of climate change .”

Al-Lami also reviewed key reforms in the electricity sector, including the expansion of combined-cycle power plants, a gradual transition away from heavy fuel oil towards gas and LPG, and the strengthening of methane monitoring and leakage control systems. These measures, he explained, form part of a broader effort to reduce the carbon intensity of energy production.

Renewable Energy and the Green Economy

Al-Lami confirmed that the Government has taken concrete steps to support renewable energy development through the licensing of solar power projects and the launch of subsidised financing programmes supported by the Central Bank of Iraq, amounting to approximately USD 600 million. These initiatives are designed to encourage households and the private sector to adopt clean energy solutions.

He also noted the exemption of electric and hybrid vehicles from customs duties as part of efforts to accelerate the transition towards lower-emission transport systems.

Within the green economy framework, he highlighted waste-to-energy initiatives involving the processing of approximately 4,000 tonnes of waste per day for recycling and electricity generation. He further pointed to carbon footprint reduction programmes, including the training of around 7,000 government employees in emissions measurement and reduction methodologies, reflecting the institutionalisation of sustainability practices within the public sector.

Carbon Economy and International Engagement

Al-Lami noted that the green transition is already generating tangible economic effects through the development of carbon markets, the emergence of specialised carbon credit trading companies, and the expansion of the green buildings sector. These developments are also contributing to new employment opportunities in renewable energy, afforestation, and sustainable agriculture.

He further highlighted the expansion of national tree-planting initiatives from 5 million to 10 million seedlings, with active participation from the private sector.

At the international level, Al-Lami called for the establishment of a permanent climate negotiation team composed of young and specialised professionals to ensure continuity and institutional memory in Iraq’s engagement in global climate forums. He concluded by emphasising that Iraq is pursuing a balanced approach between environmental commitments and economic priorities, noting that the country’s contribution to global emissions remains limited at approximately 0.1%.

Amar Al-Atta - Technical Adviser, Ministry of Environment
 

Air Pollution between Public Health and Resource Management Efficiency

Al-Atta framed air pollution as a structural challenge spanning health, economic, and governance dimensions, extending beyond traditional environmental policy considerations. He emphasised that “air quality and air pollution are the major global issue facing most countries worldwide”, noting that more than 98% of the global population is exposed to air that does not meet World Health Organisation standards. Particular concern was placed on fine particulate matter (PM2.5) and its direct link to chronic disease and premature mortality.

He further highlighted that Iraq falls within the “red zone” of global air quality indicators, with approximately 6,000 deaths attributed to air pollution in 2023. This, he stressed, underscores the extent to which air pollution constitutes not only a public health challenge, but also a significant economic and development burden. Pollution sources were identified as diverse, including power generation, industrial emissions, transport, private generators, and recurring dust storms.

Environmental data and monitoring as a foundation for policy

Al-Atta stressed that the effectiveness of environmental policy is fundamentally dependent on data accuracy and reliability. He noted that some internationally circulated classifications of Baghdad’s air quality are “inaccurate”, due to reliance on non-standard monitoring stations and measurement devices. He added that “air quality is highly dynamic”, subject to continuous fluctuation and influenced by multiple climatic and environmental factors, thereby requiring an integrated national monitoring system.

In this regard, he referred to Ministry of Environment efforts to strengthen monitoring capacity through the establishment of standardised air quality stations across urban, industrial, and rural areas. This initiative aims to build a reliable national database to support long-term environmental planning and evidence-based policymaking.

Waste management and air quality: from burning to processing

Al-Atta confirmed that waste management represents one of the key contributors to air pollution in Iraq, noting that the country generates approximately 50,000 tonnes of waste per day, of which around 20% is openly burned, significantly increasing harmful emissions.

He highlighted the Nahrawan waste-to-energy project, designed to process approximately 3,000 tonnes per day, alongside sanitary landfill initiatives implemented in cooperation with the United Nations and the Clean Air and Climate Coalition. These measures are intended to reduce uncontrolled burning and improve overall waste management systems.

Emission reduction and investment in air quality

Al-Atta underlined that the cost of preventive environmental action is significantly lower than the long-term health and economic losses caused by pollution. He outlined a set of policy measures including the replacement of heavy fuel oil with cleaner alternatives such as LPG, reduction of methane leakage, improvement in energy efficiency, and deployment of modern emission-control technologies.

He concluded that improving air quality represents a long-term strategic investment in both public health and economic stability, stressing that human losses cannot be fully quantified in monetary terms, which elevates air quality as a strategic national priority.

Mustafa Mahmoud Mustafa - Deputy DG, General Co. for Carbon Economics

Carbon economy: from environmental commitments to investment opportunities

Mustafa Mustafa framed climate change as both an environmental and economic issue, noting that the establishment of the General Company for Carbon Economics reflects Iraq’s international commitments under the United Nations Framework Convention on Climate Change, the Paris Agreement, and Law No. (21) of 2020, particularly provisions related to carbon markets.

He explained that these frameworks enable the transformation of emissions reductions into tradable economic assets, within a strategic approach aimed at establishing a national carbon market and strengthening Iraq’s emerging green economy.

Building a Carbon Market and Linking Environment to Investment

Mustafa outlined three core pillars of Iraq’s emerging carbon economy: the emissions base (and associated reduction potential), the legal and regulatory framework led by the Ministry of Environment, and the societal dimension reflected in health and economic co-benefits.

He explained that the General Company for Carbon Economics functions as a regulatory and coordination platform designed to convert emissions reduction initiatives into measurable economic value. This is achieved through the registration of projects within a unified national framework, coordination between government institutions and the private sector, and the development of mechanisms for issuing and managing carbon credits.

He further noted that the carbon market is evolving towards a fully integrated financial system, with international carbon prices projected to reach approximately EUR 200 per tonne by 2030. This trajectory, he emphasised, requires robust monitoring, reporting and verification (MRV) systems, as well as specialised technical and institutional capacity to ensure credibility and market integrity.

From emissions reduction to economic returns

Mustafa highlighted significant progress in the associated gas sector, noting that Iraq has succeeded in utilising approximately 70% of previously flared gas. This development has contributed both to emissions reduction and to the generation of additional economic value.

He added that 95% of the company’s revenues are transferred to the Ministry of Finance for reinvestment in environmental and development-related projects, reflecting the growing integration of carbon-related revenues into the public financial system.

He further stated that Iraq is gradually transitioning from a fossil fuel-dependent model towards a lower-carbon development pathway, based on income diversification and improved utilisation of environmental resources. This transition is being implemented in coordination with the Central Bank of Iraq, the Ministry of Oil, and national investment institutions.

Practical applications and institutional capacity building

Mustafa reviewed several practical emissions reduction initiatives, including waste-to-energy projects, the use of gas in the cement industry, and the deployment of refuse-derived fuel (RDF) in industrial processes.

He also noted that Midstream Oil Company has achieved annual emissions reductions of approximately 200,000 tonnes through methane leakage mitigation and operational efficiency improvements, alongside renewable energy and energy efficiency programmes supported by the Central Bank of Iraq and the Ministry of Environment.

He concluded that the development of an effective national carbon market requires the completion of the legal and regulatory framework, the strengthening of MRV systems, and the development of national technical capacities capable of ensuring market transparency, credibility, and long-term investor confidence.

Q&A Session: Funding Gaps, Governance and Implementation Challenges

Gap Between Environmental Priorities and the Public Budget

Discussions highlighted a persistent gap between declared environmental commitments and their effective integration into the public budget, particularly in relation to financing pollution reduction and climate-related projects.

In this context, Ali Al-Lami explained that the three-year budget framework does include allocations for environmental protection and pollution mitigation. However, he noted that the principal challenge lies not only in the level of funding, but in the distribution of institutional responsibilities across the system.

He clarified that the Ministry of Environment operates primarily as a regulatory and oversight body, while implementation responsibilities are assigned to sectoral institutions, including the Baghdad Municipality and the Ministry of Municipalities, particularly in areas such as water pollution management. This division, while consistent with governance principles, has created coordination gaps between decision-making and execution. He further added that although this institutional separation is structurally necessary, it has a direct impact on the speed and effectiveness of environmental project delivery.

Absence of a dedicated environmental budget line

Al-Lami noted that a proposal had been submitted to establish a dedicated environmental and climate budget line within the federal budget, with an estimated allocation of approximately USD 7 billion for environmental projects.

However, the proposal was not incorporated into the final budget structure, reflecting a continued disconnect between strategic environmental priorities and actual fiscal allocations. As a result, environmental spending remains fragmented across sectoral allocations rather than being integrated within a unified investment framework.

International financing and the limits of external dependence

Mustafa Mahmoud Mustafa highlighted that international financing, through United Nations mechanisms and multilateral institutions, plays an important supporting role, particularly in the water, agriculture, and pilot environmental project sectors.

However, he stressed that such financing cannot replace domestic responsibility, emphasising that planning, implementation, and monitoring must remain primarily state-led functions.

Implementation challenge: from financing to results

The discussion underscored a broader structural challenge that extends beyond financing constraints. The key issue is not only the availability of financial resources, but also the capacity of domestic institutions to translate both national and international funding into measurable outcomes.

This highlights that progress in Iraq’s environmental and climate agenda depends on three interlinked pillars: restructuring budgetary priorities, strengthening institutional coordination, and enhancing implementation and monitoring capacity across government institutions.

Session Two Recommendations

First: Strengthening Environmental Governance and the Institutional Framework

• Enhance coordination between the Ministry of Environment and sectoral ministries to ensure effective implementation of emission reduction policies and air quality improvement measures.
• Introduce a dedicated environmental and climate change line within the general budget, with sustainable financial allocations for environmental projects.
• Update environmental legislative and regulatory frameworks in line with climate challenges and international commitments.

Second: Improving Air Quality and Reducing Emissions

• Accelerate the implementation of the national air quality monitoring strategy and expand the network of reference monitoring stations.
• Strengthen pollution reduction policies across the energy, transport, and industrial sectors through the adoption of clean technologies.
• Accelerate associated gas utilisation programmes and work towards achieving zero flaring within the announced timelines.

Third: Green Economy and Waste Management

• Develop an integrated solid waste management system covering collection, sorting, recycling, and treatment.
• Expand waste-to-energy projects as part of the circular economy approach.
• Support the transition to cleaner fuels in high-emission industries.
• Enhance the role of the private sector in the green economy through financial incentives and exemptions, and support for renewable energy and clean technology projects.

Fourth: Financing, Innovation, and International Cooperation

• Develop a national carbon market and strengthen green financing tools and carbon credit mechanisms.
• Build national capacities in emissions measurement, reporting, and verification (MRV).
• Enhance the utilisation of international financing and climate funds in line with national priorities.
• Support innovation and technology in water, clean energy, and integrated environmental solutions.

Day One - Energy Transition and Visions

Session Three

Electricity for All: Reform, Financing and Regional Integration

• Muhammed Al-Tufaily, Acting Minister of Electricity and Deputy Minister of Electricity
• Adel Ahmed, Advisor to the Prime Minister for Electricity Affairs
• Ali Shamara, Chief Executive Officer, Shamara Holding Group
• Ali Al-Samawi, International Energy Forum, Session Moderator

Electricity sector: a structural crisis with direct economic implications

This session brought together government officials and private sector representatives to assess the condition of Iraq’s electricity sector, in the context of growing consensus that the challenge extends beyond service delivery to constitute a structural constraint on economic stability and investment attractiveness.

Discussions underscored that persistent structural imbalances in the sector impose significant fiscal pressures on the state and constrain broader economic growth. As such, the electricity sector was identified as one of the principal bottlenecks affecting Iraq’s development trajectory.

Interventions focused on reform priorities, financing mechanisms, and the role of regional integration, while emphasising the need to move beyond short-term remedial measures towards addressing the underlying structural causes of inefficiency, particularly in governance, planning, and resource management.

From crisis management to sector reconstruction

In his opening remarks, moderator Ali Al-Samawi, representative of the International Energy Forum, emphasised that the electricity sector can no longer be treated solely as a public service issue, but must be understood as “a fundamental pillar of daily life and the national economy”.

He further noted that the sector serves as a key indicator for investors, as it is “one of the first areas investors assess when evaluating market stability and growth potential”.

He argued for a shift in focus from managing recurring crises to rebuilding the sector on a sustainable institutional and financial basis, stating that “the real challenge lies in moving from crisis management to building an electricity sector with clear rules and the capacity to attract long-term investment”.

On governance, he highlighted the importance of clearly defining the roles of the state and the private sector, arguing that “the state must remain the regulator and guarantor of the service, while the private sector can serve as a key partner in financing, implementation, and operation”. This reflects a broader need for clearly structured partnership frameworks and institutional accountability.

He further emphasised the importance of strengthening Iraqi companies and expanding partnerships with international firms based on technology transfer and capacity building, as a pathway towards developing sustainable domestic capabilities rather than reliance on external support. Al-Samawi concluded by posing a central question framing the discussion: “Is Iraq’s electricity problem primarily a financing issue, a management issue, or a combination of both, and where should genuine reform begin?”.

Mohammed Niama Al-Tufaily, Deputy Minister of Electricity

Government Perspective: Expanding Generation Amid Persistent Structural Constraints

Mohammed Al-Tufaily, Deputy Minister of Electricity and Acting Minister of Electricity, presented the Government’s assessment of the electricity sector, noting that the issue has increasingly become central to public and political debate. He also highlighted efforts to enhance transparency through the involvement of both executive and legislative institutions in discussions on sectoral challenges.

He explained that the Government has recorded progress across generation, transmission, and distribution, with Iraq reaching peak production levels of approximately 28,500 MW during the previous summer, reflecting a relative improvement in operational performance.

However, he stressed that these gains have not altered the structural nature of the crisis, which remains driven by a combination of technical, financial, and administrative constraints, in addition to external limitations linked to international contractors and global supply chains.

Fuel as a bottleneck: the critical link with the oil sector

Al-Tufaily identified fuel availability as the principal constraint on generation capacity, noting that “approximately 8,000 MW of generation capacity is currently offline due to fuel shortages”. 

This, he explained, highlights a structural disconnect between the electricity and oil sectors. In this regard, he referred to ongoing coordination with the Ministry of Oil aimed at increasing gas supply through the utilisation of associated gas and the development of gas fields, within a five- to six-year plan beginning in 2025. This underscores the extent to which resolving Iraq’s electricity challenges is closely linked to progress in the gas sector.

Expansion plans: ambitious targets amid implementation constraints

Al-Tufaily outlined the Government’s expansion plans, combining public and investment-led projects, including:

• The development of approximately 230,000 MW of new generation capacity
• The integration of around 32,000 MW of renewable energy
• An increase in total generation capacity from approximately 28,000 MW to between 58,000 and 60,000 MW in the next phase

He further indicated that around 9,000 MW are expected to be secured in the medium term through projects implemented by the Ministry of Oil, while the remainder is expected to be delivered through electricity sector investments.

In the longer term, the national strategy aims to reach 104,000 MW by 2040, with annual production projected at approximately 71,000 MW. However, these targets also highlight a potential gap between strategic planning ambitions and implementation capacity, particularly in light of financial and administrative constraints.

Grid efficiency: losses and illegal connections as a parallel crisis

Al-Tufaily emphasised that the challenge extends beyond generation capacity to include the efficiency of the electricity network itself, noting that both transmission and distribution systems continue to suffer from high technical and commercial losses.

He indicated that specialised committees have been established under the direct supervision of the Prime Minister to oversee efforts aimed at reducing these losses and improving operational efficiency.

The Deputy Minister also highlighted the persistent issue of illegal grid connections, stressing that addressing this challenge requires both regulatory enforcement and changes in consumption behaviour. This reflects the extent to which demand-side management is as critical as supply expansion in addressing the electricity crisis.

Financing gap: the central challenge to sector sustainability

On financing, Al-Tufaily pointed to a structural imbalance between production costs and sector revenues, noting that electricity tariffs in Iraq remain among the lowest globally.

He explained that addressing this imbalance is essential for the long-term sustainability of the sector, as continued expansion of generation capacity cannot be maintained without a financially viable pricing and revenue model.

He added that the Ministry is working on developing new financing mechanisms to support project implementation. However, the success of these initiatives remains dependent on broader reforms to tariff structures and revenue collection systems, in order to achieve a sustainable balance between financial viability and social protection considerations.

Adel Karim Ahmed, Advisor to the Prime Minister for Electricity Affairs

Partnership with the Private Sector: A Strategic Option for Sector Restructuring

Adel Ahmed, Advisor to the Prime Minister for Electricity Affairs, presented the role of the private sector as a central pathway for restructuring the electricity sector, rather than a temporary or supplementary measure, stressing that engagement with the private sector represents “a strategic and urgent option”.

He noted that the Iraqi private sector currently manages more than 40% of electricity generation, achieving relatively higher levels of efficiency, supported by its operational flexibility and its capacity to engage rapidly with international companies in areas such as maintenance, procurement, and project implementation.

He further implied that this operational experience demonstrates the potential for expanding private sector participation as part of a broader restructuring of the electricity system, particularly in enhancing efficiency and improving service delivery outcomes.

In this context, Adel Ahmed pointed to a government direction towards transferring part of the operation of generation plants to private management, alongside the expansion of combined-cycle projects, which enable the utilisation of waste heat to generate additional electricity without additional fuel consumption.

He noted that these projects could provide up to approximately 5,000 MW in the first phase, reflecting an approach focused on improving system efficiency rather than relying solely on increasing resource input.

Grid modernisation: reducing losses and recalibrating the pricing model

Ahmed explained that sector reform extends beyond generation capacity to include the modernisation of electricity infrastructure, particularly through the gradual introduction of a smart grid system in cooperation with the private sector.

He noted that the objective is to improve distribution efficiency and reduce losses, which currently exceed 50% of generated electricity, reflecting structural inefficiencies in network management. He further stated that this transformation could pave the way for a future revision of electricity tariffs within a more balanced framework that considers both production costs and social protection requirements, particularly for low-income groups. This places tariff reform at the centre of the broader electricity sector reform agenda.

Energy mix: domestic gas and renewables as drivers of expansion

Regarding future expansion prospects, Ahmed stated that the main constraints remain financing, fuel availability, and rapidly increasing demand, while indicating expectations that total generation capacity could reach approximately 70,000 MW by 2030.

He highlighted the significant untapped potential of Iraq’s gas sector, noting that investment in domestic gas could contribute an additional 22,000 to 25,000 MW of generation capacity, making gas development a decisive factor in achieving long-term energy stability.

At the same time, he referred to plans to expand renewable energy capacity to up to 14,000 MW in the medium term, as part of a broader strategy aimed at diversifying the energy mix and reducing dependence on conventional fuels.

Ali Shamara, Chairman of Shamara Holding Group

The Roots of the Crisis and Reforming the Operating and Pricing Model

Ali Shamara presented the electricity crisis as the result of cumulative structural distortions extending over several decades, beginning with periods of conflict and sanctions and continuing into the post-2003 era, which witnessed a rapid increase in electricity demand without

corresponding expansion in infrastructure planning or fuel supply capacity.

He noted that, although generation capacity has increased from approximately 3,500 MW in 2003 to several times that level today, this expansion has remained largely disconnected from an integrated national planning framework, particularly in relation to fuel availability and transmission and distribution network development.

In this context, he indicated that current estimates point to a structural deficit of approximately 15,000 MW, while projected gas production is not expected to fully meet the requirements of a power system targeting around 50,000 MW.

On the financial dimension, Shamara identified electricity pricing as a central driver of the crisis, explaining that the current tariff structure results in annual system losses exceeding USD 10 billion, rendering the existing operating model financially unsustainable.

He argued that any meaningful reform process must be implemented gradually, balancing the protection of vulnerable groups with the need to reduce waste and improve consumption efficiency.

Despite structural imbalances, he noted that the domestic private sector has demonstrated significant operational capacity, currently managing approximately 3,000 MW with relatively higher efficiency and lower operating costs compared to traditional operating models.

Shamara concluded by stressing that addressing the crisis requires a shift from fragmented management approaches towards comprehensive structural reform, based on what he described as “shared responsibility between the state, consumers, and the private sector”, alongside the adoption of gradual but decisive reform measures to ensure the long-term sustainability of Iraq’s electricity sector.

Questions and Answers: LNG Imports, Renewable Energy, and System Reform

Mohammed Al-Tufaily - LNG Imports

Regarding liquefied natural gas (LNG), Al-Tufaily explained that this pathway is directly linked to market mechanisms and international standards. He stated that “the Iraqi Government, through the Ministries of Oil and Electricity, has this year succeeded in opening a new channel for LNG imports”, noting that a contract had been signed with a specialised international company to secure supplies of up to “500 million standard cubic feet per day”.

Adel Ahmed - floating and fixed gas infrastructure

Adel Ahmed explained that Iraq is pursuing two parallel tracks to strengthen gas import capacity. He noted that there are “two projects: the first involving a temporary floating platform under a five-year contract, and the second a permanent fixed platform currently in the final stages of negotiation”.

He added that the first phase of the permanent platform is expected to have a capacity of approximately “1,000 million standard cubic feet per day”. He further noted that these measures are expected to reduce dependence on unstable supply sources and improve the reliability of electricity generation operations.

Mohammed Al-Tufaily - waste-to-energy projects

On waste management and energy generation, Al-Tufaily stated that “a contract has been signed with Shanghai Company to process approximately 3,000 tonnes of waste per day for electricity generation”.

He explained that the National Investment Commission is responsible for managing these projects, while the Ministry of Electricity provides technical support and purchases the generated power, within a partnership model aimed at introducing alternative pathways to strengthen the generation system and diversify energy sources.

Ali Shamara - Solar energy and public awareness

Regarding solar energy, Ali Shamara explained that the Government has supported this direction through “the concessional loans provided by the Central Bank to citizens”, alongside measures facilitating the import of the necessary equipment.

However, he noted that the principal challenge remains linked to consumption behaviour, stressing that “the most important element lies in raising public awareness and encouraging citizens to adopt and use these systems”.

He further emphasised that solar energy does not represent a complete solution to Iraq’s electricity crisis, but rather one component within a broader package of solutions, stating that “solar energy is not the complete answer to the electricity crisis, but it is an important part of the solution”.

Shamara also highlighted the importance of implementing a smart grid system as a tool to improve revenue collection and regulate transmission and distribution operations, noting that despite the level of investment required, such systems could be developed through partnerships between the public and private sectors.

Mohammed Al-Tufaily - Service contracts rather than full privatisation

Clarifying the nature of current contractual arrangements, Mohammed Al-Tufaily stressed that “what is currently taking place is not full privatisation, but rather service and collection contracts with the private sector”. He noted that the application of this model in certain areas had contributed to “reduced consumption and improved continuity of electricity supply”.

In the context of growing pressure on the system, he also pointed to rapid population growth, explaining that “Iraq’s population has increased from approximately 25 million in 2003 to nearly 46 million today”, which has had a direct impact on electricity demand and further complicated system management.

Adel Ahmed - Financing solar energy and expanding generation

Adel Ahmed stated that “the Central Bank has allocated approximately IQD 1 trillion to support solar energy loans for citizens”, alongside the expansion of solar installations across government institutions and investment projects extending from Basra to Mosul.

He explained that “the first phase targets the production of 7,500 MW, with plans for further expansion thereafter”, while also noting the continuation of service contracts with the private sector as part of the current operational model.

He concluded by emphasising that addressing the electricity crisis requires a simultaneous package of measures involving financing, accelerated executive decision-making, and stable fuel supply, describing these elements as interdependent conditions that cannot be separated.

Recommendations of the Third Session

First: Strengthening Partnership with the Private Sector

• Consolidate partnership with the private sector as a long-term strategic option encompassing financing, implementation, and operation.
• Expand the role of Iraqi companies alongside international firms in energy and infrastructure projects.
• Develop flexible contractual models that enhance the sector’s attractiveness for long-term investment.

Second: Reforming the Electricity Sector and Managing Demand

• Gradually and carefully revise electricity tariffs in a manner that supports financial sustainability while protecting low-income groups.
• Accelerate the implementation of the smart grid system and reduce technical and administrative losses.
• Improve collection efficiency and strengthen the stability of electricity supply.

Third: Developing Fuel Supplies and Diversifying the Energy Mix

• Align electricity sector plans with those of the Ministry of Oil and accelerate gas investment projects.
• Support LNG projects as an interim solution to strengthen supply security.
• Expand renewable energy projects, particularly solar energy, and decentralised systems.

Fourth: Governance, Infrastructure, and Sustainability

• Reduce administrative complexities, enhance transparency, and accelerate decision-making processes.
• Invest in modernising transmission and distribution networks and reducing technical bottlenecks.
• Support waste-to-energy projects within a structured investment framework.
• Adopt a phased reform plan covering the short, medium, and long term to address structural imbalances in the sector.

Day One - Energy Transition and Visions

Session Four

Regional Energy Cooperation and Iraq’s Strategic Role

• Abdulbaqi Ali, Advisor to the Ministry of Oil
• Ali Al-Shatri, Director General of SOMO
• Adnan Al-Jabri, Former Deputy Chairman of the Parliamentary Oil and Gas Committee
• Wasim Azem, Managing Director of SLB Iraq
• Ghasan Hanoon, Journalist and Session Moderator

Framework of the Discussion

The session examined ongoing transformations in regional and global energy markets and the role Iraq could play as a strategic hub for energy production, transit, and regional integration.

Discussions focused on how Iraq’s geographical position and natural resource endowment could be leveraged to strengthen electricity interconnection, expand cross-border energy cooperation, and increase opportunities for trade and joint investment in the energy sector.

The session also addressed challenges associated with the evolving global energy mix and the transition towards more sustainable energy sources, alongside the policies and reforms required to strengthen the resilience of Iraq’s energy sector and ensure the sustainability of its role as a reliable supplier at both regional and international levels. More broadly, the session provided a platform for dialogue between policymakers and investors on the future relationship between energy security and economic development in Iraq and the wider region.

Sustainability of investment and strengthening Iraq’s regional role

Opening the session, the moderator noted that Iraq has achieved significant developments in the energy sector over the past three years, stressing that the principal challenge now lies in ensuring the sustainable and efficient utilisation of these achievements.

He emphasised that the objective is to translate recent progress into a long-term foundation capable of supporting economic stability and strengthening Iraq’s position as a central hub within the regional energy system.

Abdulbaqi Khalaf Ali, Advisor to the Ministry of Oil

At the outset of the session, Abdulbaqi Ali presented a comprehensive assessment of the future of investment in Iraq’s energy sector, stressing that understanding the sector requires an integrated reading of global, regional, and domestic dynamics.

He explained that the global energy landscape is shaped by two principal approaches: the first, led primarily by producing countries, prioritises energy security; while the second, promoted by international institutions, places sustainability and the energy transition at the centre of policy priorities. In this context, he noted that “there are two schools of thought that view energy from different perspectives”.

He stated that this divergence is reflected in long-term projections, with some estimates indicating that global oil demand could increase by around 20% by mid-century, driven by demographic and economic factors, including population growth, urban expansion, rising income levels, and sustained demand for conventional fuels.

At the same time, energy transition policies are pushing towards reduced dependence on fossil fuels, creating what he described as a “continuous tension between energy security and

sustainability” in global energy policy formulation.

At the regional level, Ali explained that the energy transition has moved beyond the conceptual stage and become a tangible reality. Renewable energy capacity across the Arab region has already exceeded 43,000 MW, with projections indicating an increase to more than 235 GW, significantly surpassing Iraq’s current total electricity generation capacity.

He also highlighted the rapid development of energy storage technologies, referring to approximately 25 GW of solar energy storage projects across the region, which contribute to improving the stability and reliability of renewable energy systems.

Energy mix and economic transition

Regarding the energy mix, Ali noted that perceptions of renewable energy have undergone a fundamental shift over the past decade, as it is no longer confined to its environmental dimension but has become a competitive economic option.

He explained that the cost of solar energy in Iraq stands at approximately USD 40 per MWh, compared to more than USD 100 for fossil fuels when fuel and gas inputs are included, stressing that “renewable energies today have become clearly competitive economically”.

He also pointed to rapid structural changes in the transport sector, noting that around 25% of vehicles globally are now electric or hybrid, while this share has reached approximately 50% of new vehicles entering the Iraqi market. According to Ali, this reflects the accelerating electrification of transport, which accounts for nearly 55% of global oil demand.

At the national level, he reviewed Iraq’s efforts to develop renewable energy, referring to plans targeting approximately 12,000 MW of installed capacity, with the first major projects expected to enter operation soon.

At the same time, he acknowledged challenges related to land allocation, financing, and contractual procedures, stating that “we are behind schedule and will not achieve the planned targets within the specified timeframe”, while emphasising ongoing efforts to accelerate implementation and achieve gradual progress.

Ali Nazar Al-Shatri,  Director General of SOMO

Reading the Challenges of the Global Oil Market and Iraq’s Marketing Strategy

In his assessment of developments in the global oil market, Ali Al-Shatri stated that the current phase is characterised by a high degree of uncertainty, noting that “the gap between the highest and lowest demand forecasts is roughly equivalent to global consumption”. He explained that this reflects unprecedented volatility, which is directly affecting decision-making among both producers and consumers and making market planning increasingly complex and less predictable than in previous cycles.

He further explained that this volatility makes it difficult to construct reliable economic models, adding that “the market no longer responds only to fundamentals, but is increasingly influenced by statements and expectations”, resulting in heightened fluctuations in supply and demand.

In this context, Al-Shatri stressed the importance of returning to market fundamentals based on supply and demand dynamics, while cautioning against excessive theoretical interpretations of energy transition scenarios. He noted that “the displacement of one energy source entirely in favour of another has not proven successful in practice”, referring to global disruptions such as the COVID-19 pandemic and the Russia-Ukraine war, during which some countries reverted to high-emission sources such as coal despite environmental commitments.

He emphasised that a more realistic pathway lies in improving the sustainability of oil and gas through technological advancement, highlighting the role of carbon capture technologies in reducing environmental impact rather than excluding fossil fuels from the energy mix. He added that “technology can work in two directions: developing clean energy and improving the efficiency and sustainability of fossil fuels”.

At the market level, he stated that the challenge is not a lack of demand but rather distortions on the supply side, where “supply does not always reflect true economics”, leading to imbalances in market power and competitiveness.

He stressed the importance of positioning Iraq within the group of producers capable of capturing growth opportunities and strengthening their competitive standing in global markets.

Iraq’s marketing strategy and market resilience

Regarding Iraq’s strategy, Al-Shatri noted that the marketing policy is based on a proactive approach, stating: “We do not operate on a reactive basis, but according to a clear strategy for marketing oil and petroleum products across different markets.”

He explained that this approach aims to reduce the impact of market volatility through forward planning and risk diversification.

He also noted that this strategy has proven effective during periods of crisis, as Iraq managed to maintain uninterrupted export flows even at the height of the COVID-19 pandemic, reflecting the resilience and adaptability of its marketing system.

Finally, he emphasised that building long-term partnerships with international companies remains a core pillar of this strategy, alongside the use of flexible marketing tools such as spot contracts, enabling Iraq to “capture market opportunities and adapt to fluctuations in global demand”.

Adnan Al-Jabri, Form. Deputy Head of Energy Committee, Iraqi Parliament

Developing the Electricity Sector and Enhancing the Investment Environment

Legislative Framework and Investment Financing

In response to the session moderator’s question on the development of the electricity sector, Adnan Al-Jabri stressed that the success of any plans related to gas, renewable energy, or the maximisation of value-added from oil is directly linked to the existence of a comprehensive legislative and regulatory framework.

He explained that “the executive side cannot function effectively without a legal and regulatory framework”, noting that the development of the sector requires the adoption of new legislation, including a renewable energy law, as well as amendments to the refinery investment law in line with global transformations and to enhance investment attractiveness, particularly in the gas and electricity generation sectors.

He stated that the issue is not limited to the absence of legislation, but also extends to the weak enforcement of existing laws, pointing out that “we have enacted laws, but they have remained ink on paper”, which limits investors’ ability to enter the market and affects the implementation of government plans.

He called for the development of a renewed economic legislative framework alongside the activation of existing but unimplemented laws, stressing that the lack of effective enforcement constitutes a major barrier to investment.

With regard to financing and infrastructure, he highlighted a direct link between legislation and

project financing, explaining that “investment in the oil, gas, and electricity sectors is primarily dependent on financing linked to laws”, noting that project funding in Iraq is often channelled through the federal budget law, making legislation the starting point for any investment activity, whether domestic or foreign.

He also pointed out that recent years have witnessed progress in the government’s vision and a clearer political direction towards reforming the energy sector, which has contributed to a gradual path of change.

He concluded by emphasising that Iraq faces a critical strategic choice, stating that “reliance on

crude oil alone is no longer sufficient”, in light of population growth, economic expansion, and increasing financial obligations. This necessitates expanding Iraq’s role in energy markets through the development of gas, petroleum derivatives, and electricity generation, and maximising the economic value of available resources.

Wasim Azem, Managing Director SLB Iraq

The Role of Technology in Developing the Energy Mix and Digital Transformation

At the outset of his intervention, Wasim Azem stressed that Iraq represents a strategic long-term investment market in the energy sector, noting that SLB has operated in the country for approximately 87 years, with expectations for continued engagement and investment over the coming decades.

He explained that the role of technology companies lies in “unlocking the latent potential of

energy,” particularly through supporting the development of a more diversified and balanced energy mix, with natural gas currently viewed as a key transitional component.

Gas projects, including the Akkaz field, were presented as requiring advanced technological solutions due to the greater technical complexity of gas extraction compared with oil production. In this context, Azem observed that “gas well drilling is more complex,” reinforcing the importance of international technology providers in supporting sector development.

At the same time, oil was described as likely to remain a central component of the global energy system in the long term, although future production will increasingly depend on higher operational efficiency and lower carbon intensity.

Within this framework, digital transformation was identified as a fundamental pillar for sector development, particularly as “digital solutions contribute to reducing costs, improving efficiency, and measuring emissions,” amid rising international environmental and regulatory requirements. Achieving such standards, however, requires advanced monitoring systems and stronger integration between technology, operational processes, and investment frameworks.

The intervention also highlighted the importance of human capital development as a prerequisite for long-term sustainability. International companies were described as contributing to the training and qualification of Iraqi graduates according to international standards, thereby strengthening workforce readiness and improving sectoral efficiency over time.

Regarding the investment environment, Azem argued that challenges are not always linked to domestic conditions within Iraq itself, but often to external perceptions of the country, stating that “the challenge is often more psychological than real”.

Direct engagement and field visits by executive leadership were presented as important tools for reshaping such perceptions, particularly in light of the improvements witnessed in Iraq’s security environment in recent years.

The discussion further stressed that successful investment depends on integrated partnerships between government institutions, international companies, and the domestic private sector. Combining global technological expertise with local investment capacity was described as an important factor in reducing risks and increasing the likelihood of project success.

Azem concluded by emphasising that “being physically present inside Iraq is a decisive factor, because investment cannot be managed remotely; it requires direct understanding and the building of trust”.

Abdulbaqi Ali & Ali Al-Shatri - Sustainability, energy mix, and national policy framework

In a related intervention, Abdulbaqi Ali stated that Iraq possesses significant competitive advantages in the energy sector, particularly its relatively low production costs and substantial hydrocarbon reserves. However, he argued that the principal challenge lies in managing the sector’s carbon footprint within the context of global energy transition policies.

He emphasised that “sustainability does not mean the displacement of fossil fuels, but rather achieving a just energy transition,” highlighting the role of carbon capture technologies and international environmental standards in facilitating this process.

Ali further noted that Iraq has achieved an associated gas utilisation rate of approximately 75%, with expectations of reaching near-complete utilisation between 2028 and 2030. Fossil fuels, in his view, are expected to remain a central component of the national energy mix during the transition period, alongside the gradual expansion of renewable energy sources.

The intervention also stressed the importance of formulating high-level energy policy strategically prior to the legislative stage, through the involvement of research institutions and specialised governmental committees.

In this context, reference was made to a joint committee comprising the Ministries of Planning, Oil, Electricity, Water Resources, and Industry, which is currently preparing an integrated national energy strategy.

In response to the session moderator’s question regarding the extent to which ongoing reforms align with development requirements, Ali Al-Shatri affirmed that current measures represent a necessary step in the modernisation of the energy sector, stressing that transparency has become a fundamental pillar of sector governance.

He explained that “all data is now presented within high-transparency frameworks”, noting that decision-making is increasingly based on risk and opportunity analysis aimed at maximising economic value not only at the production stage, but across the entire oil and industrial value chain.

Al-Shatri also pointed to a structural challenge whereby production levels may at times exceed export capacity and available infrastructure, thereby necessitating more efficient resource management policies and the expansion of export outlets.

Within this framework, he called for accelerating economic diversification through directing part of oil revenues towards productive non-oil sectors capable of reducing dependence on hydrocarbons.

He further highlighted improvements in public finance performance, noting that non-oil revenues had increased from around 7% to between 13% and 15%, describing this as a positive indicator that should be consolidated in order to strengthen fiscal sustainability and broaden the national economic base.

Regarding the energy transition, Al-Shatri explained that movement towards cleaner energy systems may pass through natural gas, including potential hydrogen development pathways. He stressed the importance of aligning with global developments through a balanced and pragmatic vision for Iraq’s long-term energy future.

Adnan Al-Jabri - Structural challenges and energy sector reform

In response to the session moderator’s question on the key shortcomings in the current energy sector and the requirements for reform, Adnan Al-Jabri explained that today’s challenges stem from historical accumulations, primarily reflected in long-standing reliance on crude oil exports alongside the flaring of associated gas without full utilisation of available resources.

He noted that this trajectory was not a deliberate policy choice, but rather the result of cumulative political and economic constraints, stressing that Iraq has already begun correcting this direction through new legislation and government reform plans.

He added that the success of this reform path requires “financing, political stability, and societal support”, emphasising the importance of engaging citizens in understanding ongoing economic and environmental transformations.

He concluded by stressing that the next phase requires clear implementation programmes that support economic transformation, enhance sustainability, and create employment opportunities, alongside closer coordination between the legislative and executive branches to ensure tangible results.

Wasim Azem - Strategic Dimension, Project Integration, and Digital Transformation

In his intervention, Wasim Azem emphasised the importance of adopting a forward-looking vision that prepares Iraq for global market requirements, particularly in relation to emissions standards, including methane, alongside the development of existing fields and the investment of undeveloped acreage.

He noted that Iraq holds significant opportunities in untapped fields, requiring accelerated integration into the investment cycle. In this context, he stressed the importance of an integrated project execution approach, explaining that “integrating production stages from upstream to downstream helps accelerate execution, reduce costs, and minimise risks”, noting that this model is already expanding in Iraq.

Azem also affirmed that international companies have become part of the local business environment as a result of long-term engagement, strengthening integration with the Iraqi market. He stressed that partnerships between the government, international companies, and the local private sector form the foundation for expanding investment and reducing risk.

Regarding digital transformation, he explained that the digitisation of geological data and subsurface studies is a critical factor in accelerating investment decisions, stating that “data digitisation reduces decision-making time and lowers entry costs”, describing this shift as requiring relatively limited investment while delivering significant gains in reducing risk and improving market efficiency.

Azem concluded by emphasising the importance of investing in human capital, particularly youth, as a key pillar for unlocking Iraq’s future potential in innovation and advanced technologies.

Questions and answers

The session contributions converged on the view that the Development Road Project represents a strategic transformation that goes beyond a transport corridor, positioning it as a platform for restructuring the Iraqi economy and strengthening its role as a hub for regional integration. This vision is based on leveraging Iraq’s geographical location to connect East and West, with a focus on building an integrated economic system that supports production and service sectors along the project corridor.

Balance between exports and domestic consumption

A participant, Mr Abd Hamza, Adviser at the Ministry of Electricity, highlighted that achieving a balance between oil exports and meeting domestic demand remains a structural challenge, given the continued reliance of public finances on oil revenues. He explained that “fuel subsidies used in electricity generation make the current tariff structure unsustainable”, noting expectations that the cost of this support will increase further in the future.

He also questioned the rationale of using crude oil for power generation instead of directing it towards higher value-added industries, particularly in light of the continued burning of crude oil in some power stations.

Ali Al-Shatri - The Shift Toward Gas as a More Efficient Option

In his response, Ali Al-Shatri emphasised that the trade-off between exports and domestic consumption must be based on cost and return considerations, noting that “current subsidies make the use of oil in power generation less efficient compared to exporting it”.

He stated that the most sustainable solution lies in shifting toward gas and renewable energy, explaining that “the use of gas and modern technologies delivers higher energy output at lower cost”. He further stressed that reducing gas flaring and expanding its utilisation would contribute to increasing oil exports and improving the efficiency of national resource management.

Transparency of exports and denial of sanctions on SOMO

Regarding claims raised about the State Oil Marketing Organisation (SOMO), Al-Shatri denied the existence of any official indications of sanctions being imposed on the company, stressing that “what is being circulated originates from media reports rather than official sources”.

He explained that the company operates under high transparency standards, publishing detailed periodic reports on exports and revenues, and that all operations are subject to oversight and audit mechanisms.

He also noted that allegations regarding suspicious shipments are linked to attempts at obfuscation within global markets, rather than Iraq’s actual exports.

Regulation of Oil Exports via the Kurdistan Region

Ali Al-Shatri explained that oil exports are managed within a regulated framework based on a tripartite agreement, stressing that “all exports pass through SOMO”, while the Kurdistan Region covers its domestic needs from its allocated share.

Al-Shatri added that this arrangement has contributed to strengthening oil revenues and improving Iraq’s negotiating position in global markets, with exports reaching approximately 200,000 barrels per day and with potential for further increases depending on the development of infrastructure and operational agreements.

Unifying visions and strengthening investment confidence

Abdulbaqi Ali stressed that specialised conferences serve as an important platform for aligning perspectives among key energy stakeholders, noting that they “bring together decision-makers and companies in one place”, thereby enabling broader coordination in policies and strategic directions.

He emphasised the importance of translating discussions into tangible implementation steps, considering that “sending clear reassurance signals to investors” is essential for strengthening confidence. He also noted that adopting an integrated energy strategy is a key entry point to ensuring sector stability and guiding it toward a clearer and more sustainable trajectory.

Messages to investors and government: stability and future opportunities

Ali Al-Shatri concluded by stressing that clarity in the investment environment is a fundamental

requirement for attracting capital, stating that “an investor needs a clearly defined ownership structure and a stable contractual framework”.

He called for expanding infrastructure projects such as pipelines, storage facilities, and export systems, describing them as promising investment opportunities that can contribute to sector development.

At the policy level, he highlighted the importance of reducing reliance on federal budget financing, noting that “granting ownership and operation of certain infrastructure projects to the private sector reduces the fiscal burden and increases efficiency”.

Al-Shatri concluded by pointing to the geopolitical dimension of the project, emphasising that this approach strengthens Iraq’s position as a strategic energy corridor linking the Gulf with Europe and Asia.

Session Four Recommendations

1. National Energy Policies and Strategies

• Adopt an integrated national energy strategy that balances energy security, sustainability, and the energy transition.
• Align legislation and executive policies with the national strategy to ensure effective implementation.
• Strengthen the role of research centres and experts in energy policy formulation.

2. Resource Utilisation and Economic Value Maximisation

• Accelerate the utilisation of associated and free gas to reach zero flaring targets.
• Gradually shift from oil-based power generation to gas and renewable energy sources.
• Develop integrated projects to improve efficiency and reduce investment risks.
• Diversify oil marketing tools and strengthen long-term partnerships with global markets.

3. Energy Transition and Environmental Sustainability

• Expand renewable energy projects within a balanced energy mix.
• Adopt emissions reduction and carbon capture technologies.
• Prepare for international environmental requirements related to emissions and methane.
• Adopt a realistic energy transition approach based on technology and sustainability.

4. Investment Environment and Governance

• Strengthen transparency and ensure a stable investment environment in the energy sector.
• Accelerate administrative procedures and reduce bureaucratic barriers.
• Develop direct communication channels with international investors.

5. Infrastructure and Economic Diversification

• Invest in energy infrastructure to enhance export capacity.
• Allocate part of oil revenues to support non-oil sectors.
• Promote digital transformation and digitisation of geological and oil data.

6. Human Capital and Technology

• Invest in training and upskilling Iraqi professionals in line with international standards.
• Support innovation, digital technologies, and artificial intelligence in the energy sector.
• Bridge the gap between education and vocational training to accelerate workforce integration.

7. Iraq’s Regional Role

• Strengthen Iraq’s position as a regional energy hub and strategic export corridor.
• Expand regional cooperation in energy, electricity interconnection, and gas infrastructure.

Day Two - Energy Transition and Perspectives

Session Five

Financing the Future of Energy in Iraq: The Role of Banks and Capital Markets

• Hussein Flamers, Adviser to the PM and DG, Leadership & Excellence Departm.
• Bilal Al-Hamadani, Chairman of the Board, Trade Bank of Iraq (TBI)
• Rafal Azeez, Central Bank of Iraq Initiatives Officer
• Bilal Sughayer, Resident Representative, International Finance Corporation (IFC)
• Ahmed Tabaqchali, Chief Strategist, Iraq Fund (AFC) – Session Moderator

Financing Challenges and Banking Sector Reform

At the opening of the session, Ahmed Tabaqchali, Chief Strategist of the Iraq Fund (AFC), emphasised that financing represents a fundamental pillar for the development of the Iraqi economy, while arguing that the challenge is not rooted in the banking sector itself, but rather in the broader structure of the economic environment.

He pointed to the dominance of the informal economy and the widespread reliance on cash transactions as key constraints limiting the ability of banks to perform their lending function, stating that “the informal economy and heavy reliance on cash restrict banks’ capacity to extend credit”. He further explained that the effectiveness of the banking sector depends primarily on the volume of deposits, which constitute the principal source for financing loans.

In this context, he stressed that “loans are a core component of any modern economy”, arguing that sustainable economic growth cannot be achieved without a banking system capable of financing investment activity.

Tabaqchali also noted that the banking sector has undergone significant changes since November 2022, particularly following the introduction of the modern transfer system, alongside initiatives launched by the Central Bank of Iraq in the areas of reform and financial inclusion. He added that “the environment has begun to improve gradually in a way that supports the role of banks in financing the economy”.

His intervention reflected a broader institutional perspective that reforming the banking sector cannot be confined to financial institutions alone but must also address deeper structural imbalances within the economy, most notably reducing reliance on cash transactions and strengthening financial inclusion. According to this approach, enabling banks to play a more effective role in financing investment and supporting growth requires parallel reforms across the wider economic system.

Rafal Gameel Azeez, Director of Financing Initiatives, CBI

Central Bank Initiatives and Financing Green Projects

In response to the session moderator’s question, Rafal Azeez reviewed the principal initiatives launched by the Central Bank of Iraq to support economic sectors, noting that since 2015 it has introduced financing programmes with a total expenditure of approximately IQD 18 trillion.

She explained that these initiatives have encouraged banks to expand lending from their own resources and gradually reduce direct reliance on Central Bank financing programmes, thereby contributing to the strengthening of the domestic banking sector’s lending capacity.

Within the framework of supporting the transition towards a green economy, Azeez noted that the Central Bank launched a renewable energy initiative in 2020 worth approximately IQD 1 trillion, targeting projects such as residential solar energy systems in line with broader government policy directions.

Her intervention reflected a wider policy shift towards linking financial sector reform with sustainability objectives, particularly through the use of targeted financing mechanisms designed to stimulate investment in clean energy and support the gradual expansion of environmentally sustainable economic activity.

Despite simplified procedures and reduced interest rates, down to 2.5% for beneficiaries and 0.5% at the Central Bank level, Azeez noted that uptake remains limited, stating that “the biggest challenge lies in weak participation, particularly from state-owned banks, in addition to the accumulation of applications on the digital platform”.

She added that the Central Bank does not impose participation on banks, but instead encourages financing for green projects through incentive-based mechanisms rather than mandatory measures.

Azeez further noted that the initiative has been expanded to include waste recycling projects with financing of up to IQD 1 billion, alongside support for rehabilitating environmentally friendly brick factories, reflecting a gradual approach to strengthening sustainable development through targeted financing and environmentally focused investment activities.

Bilal Sughayer, Resident Representative, Int Finance Corporation (IFC)

Financing Energy Projects

In his remarks on the role of the banking sector in financing energy projects, Bilal Sughayer, Resident Representative of the International Finance Corporation (IFC), stressed that the nature of such projects exceeds the financing capacity of any single bank, given their long-term structure and substantial capital requirements.

He explained that energy projects often require financing periods extending beyond 10 years, noting that “financing tenors may extend to 10 or 15 years, which is incompatible with the maturity structure of banking liabilities”.

Sughayer further noted that Iraqi banks face additional regulatory constraints linked to concentration limits, which restrict their ability to finance large-scale projects independently, particularly within the energy sector where repayment periods are extended, and financing requirements are substantial.

According to his assessment, these challenges do not necessarily reflect a lack of banking capacity, but rather underline the need for financing mechanisms better suited to the characteristics of strategic infrastructure projects. His intervention pointed towards the importance of developing alternative financing structures and strengthening cooperation between domestic banks, international financial institutions, and capital markets in order to support long-term investment in Iraq’s energy sector.

Sughayer called for the development of more flexible and sustainable financing instruments, including the establishment of a loan syndication market that would enable Iraqi banks to pool resources and channel them into large-scale, capital-intensive, long-term projects.

He also stressed the importance of activating capital markets as a mechanism for redirecting liquidity towards productive investment, particularly through the expansion of green and blue bonds and sukuk. According to his assessment, such instruments could improve the efficiency of financial resource allocation while opening new financing channels for energy and infrastructure projects.

Within the same context, he highlighted the importance of strengthening partnerships with international financial institutions, which possess greater expertise and capacity in financing large-scale projects and managing risk. He noted that these institutions are capable of providing financing at the required scale and standards, without facing many of the structural limitations affecting local banks.

Sughayer further pointed out that Iraq requires approximately USD 233 billion over the coming years to implement development plans in the energy, water, and environmental sectors, alongside addressing wider environmental challenges. This, he argued, makes cooperation between domestic and international financial institutions “a strategic necessity” for closing the financing gap and accelerating project implementation.

Hussein Flamers, Adviser to the Prime Minister

Financial Awareness and the Credit System

Hussein Flamers, Adviser to the Prime Minister and Director General of the Leadership and Excellence Department, argued that the success of economic and financial reform is not determined solely by the availability of liquidity, but also by the level of public awareness and economic culture within society.

He noted that a significant proportion of cash liquidity remains outside the banking system, limiting the effectiveness of lending instruments and weakening the financial sector’s ability to direct financing towards productive investment.

Flamers added that international economic experiences demonstrate that financing alone is insufficient to achieve stability or growth unless accompanied by the development of an economic and financial culture capable of guiding consumption and investment behaviour in a more sustainable direction. In this regard, he described public awareness as “a decisive factor” in the success of financial policies and economic transitions, particularly in sectors linked to energy and consumption.

He further explained that Iraq is undergoing a broad financial and digital transformation; however, this transition requires a societal environment capable of engaging with modern credit instruments and banking services. According to his assessment, the continued circulation of large volumes of cash outside the banking sector constrains banks’ ability to establish an effective financing system.

Flamers also stressed that developing the energy market and financing strategic projects requires the creation of a credit ecosystem that provides citizens with confidence and access to borrowing within a stable and transparent environment.

In this context, he called for redefining the role of banks so that they move beyond direct profitability and evolve into investment and development institutions capable of contributing to human capital development and stimulating wider economic activity.

He concluded by emphasising that the success of digital transformation and financial reform in Iraq remains closely linked to the ability of the state and banking institutions to improve services, strengthen financial inclusion, and enhance trust between citizens and the banking system.

Bilal Al-Hamadani, Chairman of Trade Bank of Iraq ( TBI )

Challenges Facing State-Owned Banks and Financing the Energy Sector

Bilal Al-Hamadani, Chairman of the Trade Bank of Iraq (TBI), argued that the role of state-owned banks in Iraq is undergoing a gradual transformation from traditional administrative functions towards a broader developmental role linked to entrepreneurship, investment support, and employment generation. In this context, he stressed that “financing is available, but its quality and mechanisms determine the success of projects”, highlighting that the challenge facing the banking sector is not primarily liquidity constraints, but rather the effectiveness of allocation frameworks and the efficiency of financing governance.

Al-Hamadani linked the electricity crisis directly to questions of financial sustainability and consumption behaviour, arguing that extensive subsidisation within the electricity sector has contributed to structurally inefficient consumption patterns. He noted that government subsidies continue to cover more than 80% of electricity bills, creating limited incentives for rationalisation or efficiency improvements. Referring to experiences in parts of Baghdad where collection systems were strengthened, he stated that improved billing and collection mechanisms had reduced electricity demand by up to 60%, despite consumers paying only around 20% of the actual bill value. This, he argued, demonstrates the extent to which pricing distortions and weak collection frameworks contribute to excessive demand pressures on the electricity system.

Within this framework, Al-Hamadani emphasised the need for gradual reform of tariff and pricing systems, combined with policies aimed at strengthening public awareness regarding energy efficiency and rational consumption. He also stressed the importance of expanding investment in solar energy and renewable energy systems as part of a broader strategy to reduce pressure on the conventional electricity network and improve long-term sustainability.

On financing mechanisms, he noted that participation in initiatives launched by the Central Bank of Iraq has remained relatively limited due to what he described as complex and overlapping decision-making structures. He explained that these administrative layers have reduced operational flexibility for banks and slowed financing processes, leading some institutions to rely increasingly on their own resources rather than centralised financing programmes. In this regard, he stated that “banks have decided not to enter into confrontation with customers and instead finance them from their own resources”, reflecting a preference for more flexible lending approaches outside heavily bureaucratic frameworks.

At the structural level, Al-Hamadani presented a broader critique of Iraq’s financial governance environment, arguing that the banking sector continues to operate without a clearly defined economic model. He pointed to the coexistence of multiple and overlapping regulatory authorities, referring to more than nine separate supervisory entities, which in his view contributes to institutional fragmentation, delays in decision-making, and reduced operational efficiency within state-owned banks. These conditions, he argued, weaken the pace of reform despite the availability of financial resources, indicating that the principal challenge lies not in resource scarcity but in governance and institutional management.

Within this context, Al-Hamadani stressed that improving the effectiveness of the banking sector requires clearer governance structures, streamlined regulatory frameworks, and a reduction in administrative complexity. He further argued that financing should be directed towards sectors in which Iraq possesses comparative advantages and strong domestic resource bases, rather than attempting to compete in advanced industries that may exceed current institutional and economic capacities.

He also noted that, despite operating under significant regulatory constraints, state-owned banks continue to play a central role in supporting productive and industrial activities, as well as financing projects that contribute directly to economic growth. In his assessment, the transition towards a more efficient economy requires redefining banks from primarily operational institutions into development-oriented entities capable of mobilising investment and supporting priority sectors.

Al-Hamadani concluded that the development of an effective banking system ultimately depends on the existence of a coherent national economic vision capable of guiding both public and private financial institutions. He argued that recent progress in localisation initiatives and digital payment systems demonstrates the sector’s capacity to adapt rapidly when government priorities are clearly defined and consistently implemented. This, he suggested, underscores the importance of strategic clarity, institutional coordination, and balanced regulation in accelerating banking reform and strengthening the sector’s contribution to long-term economic development.

Rafal Azeez - Strengthening the role of banks in financing projects under CB oversight

The session moderator argued that financing challenges should also be viewed as an opportunity to reorganise Iraq’s investment instruments and financial structures. He explained that financing in Iraq depends primarily on bank deposits rather than direct state budget allocations, making efficient liquidity management essential for sustaining long-term investment projects, particularly in sectors such as energy where investment cycles may extend beyond 20 years.

Within this framework, he stressed that “each bank must determine how to allocate its available liquidity” according to clear investment policies capable of balancing profitability, sustainability, and long-term developmental priorities.

For her part, Rafal Azeez of the Central Bank of Iraq clarified that the role of the Central Bank is not to function as a direct financing partner, but rather to provide low-cost liquidity support mechanisms to banks, which themselves remain fully responsible for credit decisions and project implementation.

She added that “banks today are fully responsible for credit decisions”, noting that the institutional capabilities of Iraqi banks have improved significantly since 2015. Her intervention reflected a broader policy direction aimed at strengthening the autonomy and professional capacity of financial institutions while maintaining regulatory oversight through the Central Bank’s supervisory framework.

Bilal Sughayer - Developing the Investment Environment and Financial Instruments

Bilal Sughayer highlighted that the limited uptake of government bonds compared with the continued preference for current accounts reflects weak long-term investment culture within the Iraqi financial system. He argued that this underscores the need to diversify financial instruments and deepen domestic capital markets.

He also noted that the role of the Central Bank has gradually evolved, with banks increasingly engaging directly with clients following an earlier phase characterised by intensive oversight and supervision.

According to Al-Rabah, mobilising liquidity outside the banking sector, estimated at approximately USD 50 - 60 billion, requires the expansion of diversified financing instruments such as bonds, sukuk, and specialised green and blue financial instruments capable of supporting infrastructure and energy investment.

Hussein Flamers - Human Capital Development & Banking Governance in the Digital Era

Hussein Flamers stressed that financial sector reform must proceed alongside institutional and human capital development. He warned that “abundance of money combined with weak awareness may increase mistakes rather than solve them”, arguing that institutional readiness and governance standards are as important as liquidity availability.

He called for continuous training programmes, stronger governance systems, and greater reliance on specialised expertise, emphasising that investment in human capital is indispensable for adapting to rapid technological and economic transformation.

Bilal Sughayer - Syndicated Loans as a Tool to Expand Project Financing

Bilal Sughayer returned to the issue of syndicated lending, describing it as a practical mechanism for expanding the financing base available for strategic projects. He explained that such arrangements allow a lead bank to structure financing while enabling other banks to participate within a unified framework, thereby distributing risks and increasing financing capacity.

However, he stressed that very large projects, particularly those requiring financing between USD 300 million and USD 500 million, still necessitate partnerships with international financial institutions. He highlighted the structural challenge posed by the predominance of short-term deposits in Iraq’s banking system, noting that most deposits mature within less than one year, limiting the capacity of banks to independently finance long-term investments.

Sughayer concluded by emphasising the responsibility of major Iraqi banks, particularly TBI, to lead banking innovation and mobilise liquidity outside the formal banking sector, stating that “there is a responsibility on major banks to lead the sector and provide innovative solutions”.

Q&A: Bank Leadership and the “Riyada” Initiative

Discussion during the Q&A session focused on the role of major state-owned banks in leading syndicated lending initiatives, alongside the impact of outdated administrative procedures and overlapping regulatory authorities on banking efficiency.

Bilal Al-Hamadani noted that the regulatory environment continues to suffer from limited flexibility, with even minor institutional adjustments requiring lengthy approval procedures that slow operational decision-making.

Regarding the “Riyada” initiative, Rafal Azeez clarified that funding is provided by the Central Bank of Iraq, while commercial banks are responsible for implementing lending operations. She reiterated that the Central Bank’s role is limited to liquidity support and financial facilitation rather than direct lending.

Hussein Flamers highlighted the broader strategic dimension of the initiative, explaining that it draws on international experiences aimed at embedding a culture of entrepreneurship within Iraq’s economy. He stated that by 2027 the initiative is expected to evolve into “an integrated institutional ecosystem for supporting innovation and entrepreneurial projects”, thereby strengthening its contribution to employment generation and economic diversification.

Recommendations of Session Five

First: Developing financing mechanisms for energy projects

• Developing innovative financial instruments to support conventional and renewable energy projects.
• Encouraging local banks to finance small and medium-sized energy projects.
• Activating syndicated loans to finance large-scale projects.
• Strengthening partnerships with international financial institutions to meet long-term financing needs.

Second: Strengthening the role of capital markets

• Utilising the stock exchange to issue energy bonds and finance national projects.
• Developing advanced financial instruments such as sukuk, green bonds, and blue bonds.
• Mobilising liquidity outside the banking sector through structured investment instruments.

Third: Improving the investment environment and financial governance

• Establishing legal and financial incentives to attract international investors.
• Strengthening public–private partnerships in energy projects.
• Developing regulatory, compliance, and transparency mechanisms within financial institutions.

Fourth: Developing the banking and institutional environment

• Enhancing the capacity of banks and capital markets in risk management.
• Aligning financing maturities with the long-term needs of projects.
• Simplifying the regulatory environment and reducing the multiplicity of regulatory bodies.
• Empowering banks to make more flexible and independent credit decisions.

Fifth: Enhancing financial inclusion and banking culture

• Reducing reliance on the cash-based economy and expanding financial inclusion.
• Integrating informal liquidity into the banking system.
• Raising financial and banking awareness among citizens and companies.
• Linking digital transformation to financial education to ensure sustainability.

Sixth: Human capital and technology

• Investing in training banking staff and keeping pace with digital transformation.
• Supporting innovation and modern financial technologies.
• Strengthening specialised expertise in finance and risk management.

Seventh: Integration of financing with the national energy strategy

• Linking financing to long-term national energy security plans.
• Directing financing toward value-added projects that support economic diversification.
• Supporting entrepreneurship initiatives and integrating them into the financing system.

Day Two - Energy Transition and Perspectives

Session Six

Strengthening the Iraqi Economy: Development Road & Investm. Pathways

• Nasser Al-Asadi, Advisor to the Prime Minister for Transport Affairs
• Abdulbari Al-Mudaris, Former Member of Parliament, Legal Committee
• Ahmed Tabaqchali, Chief Strategist at the Iraq AFC Fund, Session Moderator
• Bilal Wahab, President of the American University of Sulaimaniya, Session Moderator

Discussion Framework

The session examined the strategic role of the Development Road Project and modern energy export routes in supporting Iraq’s economic growth, strengthening infrastructure and logistics services, and deepening Iraq’s integration with regional and global markets. Discussions focused on how Iraq’s geographic position and energy resources could be leveraged to transform the country into a regional hub for trade, investment, and energy transit.

The interventions also highlighted the growing interconnection between the energy, transport, and investment sectors, alongside the need to strengthen the regulatory and institutional frameworks governing strategic infrastructure and export projects. Participants stressed that achieving sustainable economic diversification requires greater coordination between public institutions, private investors, and international financial partners.

Development Road as a Strategic Project Linking the Iraqi Economy

Opening the session, Bilal Wahab presented the Development Road Project as a strategic economic initiative that extends beyond its transport dimension to encompass trade, energy, and regional integration. He stressed that the project should be viewed not merely as infrastructure development, but as “a platform for restructuring Iraq’s economic role within the region”.