Sector Overview

• The construction industry is expected to register an annual average growth rate of more than 6% during 2022-2025, supported by investments in transport, oil, electricity, education, and housing infrastructure projects.
• The government plans to strengthen the foundation for growth in key service sectors, with a focus on electricity infrastructure, water and sanitation, oil, transportation, and health in the country.
•  The funds from World Bank(100 million USD), UKEF-British Export Finance Agency(30 million USD), Islamic Development Bank(28 million USD), JICA- Japanese Agency for International Cooperation(75 million USD), KFW-German Development Bank(20 million USD), French Government and French Development Agency(10 million USD) contribute the growth of Iraq construction market and expand the building industry.
• The projects are implemented by the Government of Iraq with loan assistance from JICA, with the aim of improving the economic and living conditions of Iraqi communities. Moreover, the government is also planning to include major infrastructure projects in the 2022 Budget, including combined cycle power plants, Baghdad Metro (expected to commence the construction work in Q2 2022), Nasiriyah and Mosul airports, and infrastructure in Basra Governorate.
• Ministry of Construction, Housing, Municipalities and Public works with the allocated funds for the Ministry of Construction, Housing,
• Municipalities, and Public Works on the Iraqi state budget of 2021 were as follows: 400 billion IQD in operational costs and capital of 1.3 trillion IQD. There is also an additional capital of 186 billion IQD divided among several projects such as 50 billion IQD for the Roads and Bridges Committee to rehabilitate the Baghdad-Kirkuk Road, 20 billion for the construction of Hamreen bridge, 40 billion IQD for the Western Diyala project (Al-Gatoon), and 90 billion IQD added to the allocated funds for the Samarra sewer project. All of which amounts to a total of 1.786 trillion IQD (Iraqi State Budget, 2021).
• The funds dedicated to the Ministry of Construction, Housing, Municipalities, and Public Works, which are needed due to the overwhelming 28.7 trillion IQD deficit in the Iraqi state budget.