Deloitte | A Middle East Point of View – Fall 2018

With an urgent need for housing and other infrastructure projects, we look at the various business models international companies are adopting to invest in Iraq.

As the largest country implementing the Extractive Industry Transparency Initiative (IETI) with proven reserves in the Rumaila and the West Qurna fields in excess of the entire proven reserves of the United States, and a projected US$5 trillion in Oil & Gas revenues between 2013 – 2035,1 Iraq is quickly becoming an increasingly attractive place for many international companies from various industry sectors.

Iraq’s GDP reached US$192.7 billion in 2017 with approximately 50 percent spent on household goods and 18.8 percent on government consumption, while the highly dilapidated infrastructure received only 23.5 percent in fixed capital investment. Iraq’s budget, on the other hand, is highly dependent on one source of revenue, 85 percent of which is derived from the oil sector.2 This brief expenditure/revenue picture depicts the consumption character of the Iraqi society, with a fiscal year 2017 GDP per capita (PPP) of US$17,000.

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