Iraq's construction industry is expected to grow by 4.8% in real terms in 2026, supported by public and private sector investments in infrastructure, oil, gas and renewable projects. To drive economic growth, Iraq launched a comprehensive, long-term development strategy in December 2025, which involves an investment of IQD239.2 billion ($184 million) in sectors such as infrastructure, energy, and manufacturing to diversify its economy away from oil dependency. Furthermore, to promote the trade integration in Iraq by boosting country’s import and export activities, the European Bank for Reconstruction and Development (EBRD) announced IQD130 billion ($100 million) trade finance facility to the National Bank of Iraq (NBI) in December 2025. This investment is also expected to improve access to finance for micro, small and medium-sized enterprises (MSMEs) and facilitate intra-regional trade. In early April 2026, the Iraqi government approved IQD100 billion ($76.9 million) for five provinces across the country under the Reconstruction Fund. The initiative will support the ongoing developmental projects in the most impoverished areas of Basra, Babil, Diwaniyah, Muthanna, and Najaf provinces.
Despite the challenges, over the remainder of the forecast period, the construction industry is expected to record an annual average growth of 4.8% between 2027 and 2030, supported by investments in oil, gas and transport infrastructure projects, coupled with a critical housing shortage and a strategic pivot toward economic diversification through mega-projects. Among the recent developments, in April 2026, Iraq allocated IQD1.9 trillion ($1.5 billion) financing under the Iraq-China Framework Agreement to the Basra-Haditha multi-directional oil pipeline project. Being developed by an Iraqi oil company, Basra Oil Company and a state-owned oil firm State Company for Oil Projects (SCOP), the project involves a total investment of IQD6.5 trillion ($5 billion) and includes the construction of a 685km long pipeline, transporting 2.25 million barrels per day (bpd) of crude oil from southern Iraq to northern regions.
Despite the challenges, over the remainder of the forecast period, the construction industry is expected to record an annual average growth of 4.8% between 2027 and 2030, supported by investments in oil, gas and transport infrastructure projects, coupled with a critical housing shortage and a strategic pivot toward economic diversification through mega-projects. Among the recent developments, in April 2026, Iraq allocated IQD1.9 trillion ($1.5 billion) financing under the Iraq-China Framework Agreement to the Basra-Haditha multi-directional oil pipeline project. Being developed by an Iraqi oil company, Basra Oil Company and a state-owned oil firm State Company for Oil Projects (SCOP), the project involves a total investment of IQD6.5 trillion ($5 billion) and includes the construction of a 685km long pipeline, transporting 2.25 million barrels per day (bpd) of crude oil from southern Iraq to northern regions.
The Construction in Iraq - Country Briefing (H1 2026) 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 (2021-2025) and forecast (2026-2030) 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
