Iraq Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)

Iraq's construction industry is projected to grow by 5.5% in real terms in 2025 and by 4.8% in 2026, driven by government policies and initiatives aimed at enhancing the construction industry in the country, alongside investments in oil, gas, and transport infrastructure projects. The Ministry of Oil in October 2025, stated its goal to raise daily oil production from 4.4 million barrels per day (mbpd) as of early October 2025 to 5.5 mbpd by the end of that year. This increase will be achieved through the development of additional wells, drilling and rehabilitation efforts, the enhancement of facilities and pipelines, and boosting water injection to sustain reservoir pressure. Furthermore, during the Iraq Investment Forum (IIF) in September 2025, the government disclosed investment opportunities totaling IQD585 trillion ($450 billion) across over 160 projects in diverse sectors. This potential will be realized by aligning foreign policies with international standards, enhancing private sector service delivery, and establishing the Iraq Development Fund to draw in local, regional, and international investors.

Over the remainder of the forecast period, the Iraqi construction industry is expected to register an annual average growth rate of 4.8% during 2027 and 2029. This growth will be bolstered by investments in energy, water infrastructure, housing, coupled with the government's goal to increase the share of renewable sources to constitute 20% of the nation’s energy mix by 2030, a significant increase from 2% in 2022. To facilitate this, Iraq unveiled a 20-year strategy in November 2025 aimed at adding 57GW of new power capacity, which includes 1.4GW from thermal power plants. Additionally, in November 2025, the construction was commenced on the 1.4GW Yusifiya Thermal Power Plant located in Baghdad. To further enhance the energy sector, the National Investment Commission (NIC), in collaboration with the United Nations Development Programme (UNDP), announced in September 2025 the initial phase of the National Climate Investment Plan (CIP) for 2025-30.

The Construction in Iraq - Country Briefing (H2 2025) report provides detailed market analysis, information, and insights into Iraq's construction industry, including:

• Iraq’s construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Iraq’s construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Report Scope

This report provides a comprehensive analysis of the construction industry in Iraq. It provides:

• Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Iraq, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level with over 600 time-series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors