IFC in Iraq announces $1bn in New Investments

IFC Marks 20 Years of Partnerships for Impact in Iraq, Announces $1bn in New Investments

The International Finance Corporation (IFC), a member of the World Bank Group, held an IFC Partnerships Day in Baghdad on Saturday, under the patronage of His Excellency Mr. Mohammed Shia’ al-Sudani, Prime Minister of Iraq, to mark two decades of impact in the country and announce $1 billion in new investments and engagements in energy, infrastructure, agribusiness, and finance, underscoring IFC’s long-term commitment to the country’s private sector.

“We congratulate Iraq and the Iraqis for signing these important agreements today with IFC, one of the most important and prestigious institutions in the financial advisory and investment space. Iraq is ready to embrace Arab and foreign partnerships like these ones,” said H.E. Mohammed Shia’ al-Sudani, Prime Minister of the Republic of Iraq.

Since 2005, IFC has invested and mobilized more than $2.5 billion for projects in Iraq. These investments have created over 28,000 jobs-including 5,000 for women-by strengthening infrastructure, expanding access to finance, supporting manufacturing, and enhancing food security.

During the same period, IFC has backed Iraq’s economic diversification through landmark transport and energy projects. IFC has also helped advance sustainable finance in partnership with the Central Bank of Iraq (CBI), the Iraq Stock Exchange, local banks, and finance institutions, supporting small and medium enterprises. In addition, IFC is currently serving as lead advisor on Iraq’s first airport PPP, paving the way to the modernization of the nation’s gateway.

The event, which was attended by H.E. Prime Minister Mohammed Shia’ al-Sudani alongside senior government officials, private sector leaders, and development partners, included the launch of several new partnerships which will tap into the resilience of Iraq’s private sector and foster sustainable growth.

“Iraq’s private sector is agile, resilient, and capable of driving sustainable growth,” said K. Aftab Ahmed, IFC Director for the Middie East, Pakistan and Afghanistan. “Over the past twenty years, IFC has stepped up to support the country, bringing not only its financing and global expertise but also mobilizing international capital to realize local priorities. Today, we mark a new chapter in our partnership, aiming to support strategic sectors that align with Iraq’s Vision 2030.“

IFC’s new partnerships will aim to:

Enhance energy access and reduce emissions: IFC has been mandated by Basrah Gas Company (BGC) to lead, arrange, and syndicate a second loan of up to $500 million. Building on the first financing package led by IFC in 2021, this new investment, once committed, is expected to further advance one of the world’s largest gas flaring reduction projects, capturing gas for energy use and significantly reducing emissions.
Strengthen infrastructure: IFC partnered with Aloreen Company for Investment with the aim to invest $120 million to support new equipment for container handling and expand yard capacity in Iraq’s Umm Qasr Port. The project is being developed in collaboration with Terminal Investment Limited Holding, a subsidiary of Mediterranean Shipping Company (MSC), bringing international expertise to strengthen Iraq’s trade gateway.
Promote manufacturing: IFC partnered with Nomu Holding, a subsidiary of Iraq’s Al-Maysarah Group and Saudi-based Al Muhaidib Group, with the aim to invest $200 million to strengthen Iraq’s construction materials industry. The project will help modernize industrial operations, promote decarbonization, and build local workforce skills.
Expand housing and retail: IFC partnered with Hiwa Rauf for Investment and Development with the aim to provide $65 million to support the establishment of Iraq’s first certified sustainable mixed-use real estate project in Sulaymaniyah in the Kurdistan Region of Iraq. The initiative will help promote sustainable urban infrastructure, address residential supply gaps, attract private investment, and generate jobs in construction and services.
Bolster food security: IFC partnered with Tiryaki Agro to jointly conduct a feasibility study which will aim to reduce reliance on grain imports by building the capacity of local farmers in sustainable modern farming practices. The study will assess the viability of sustainable agricultural infrastructure, modern storage, and renewable energy integration, with an initial focus on wheat.
Advance healthcare infrastructure: IFC partnered with Ruban [Raban] Al Safina to jointly develop a feasibility study for a 200+ bed teaching hospital within the American University of Iraq in Baghdad (AUIB) with the aim to strengthen the country’s healthcare system, develop human capital, and enhance access to high-quality clinical services.
Boost trade: IFC partnered with the Bank of Baghdad to extend a $10 million trade finance line through its Global Trade Finance Program (GTFP). This will allow the Bank of Baghdad to join a global network of banks to support cross-border trade and increase access to essential goods.
Increase access to finance for smaller businesses: IFC partnered with the First Finance Company (FFC) with the aim to unlock new opportunities for Iraq’s Micro, Small, and Medium Enterprises (MSMEs) by better understanding the market and identifying strategic areas of focus.