Iraq Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)

The analyst expects the construction industry in Iraq to grow by 5.2% in real terms in 2025, supported by public and private sector investments in transportation, renewable energy, and focusing on to boost tourism sector. The government’s aim to attract IQD9.1 trillion ($7 billion) to stimulate economic growth in 2025 which is expected to drive investments for the development of construction projects in the country. Earlier in August 2023, Iraq established the Iraq Development Fund to streamline investment processes for both local and foreign businesses, particularly in key sectors such as tourism, healthcare, the environment, public transportation, and smart farming. In February 2025, a delegation of 30 French companies visited Iraq to discuss opportunities for investing up to IQD5.2 trillion ($4 billion) in new projects across these priority areas. In the same month, the Iraq Development Fund has launched the Hadara (Civilization) project to collaborate with Iraqi and foreign investors in developing tourist resorts at prominent archaeological sites. The project is expected to attract up to IQD1.3 trillion ($1 billion) in tourism investments in 2025.
Over the remainder of the forecast period, the Iraqi construction industry is expected to register an annual average growth rate of 4.8% during 2026-29, supported by investments in energy, water infrastructure, and government’s aims to boost its oil production capacity to over 6 million barrels per day by 2029 compared to approximately 4.5 million barrels per day as of 2024. The Ministry of Oil is also working with the Ministry of Electricity to develop 12GW of renewable energy capacity by 2030 to meet rising electricity demand. In line with this objective, in February 2025, UK-based financial institution Standard Chartered has provided a IQD123.5 billion ($95 million) loan to help Iraq strengthen its power infrastructure.

The Construction in Iraq - Country Briefing (H1 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.

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