Mounting Calls to Revive the Iraqi Industrial Sector and Overcome Stagnation

The industrial sector is a fundamental pillar for diversifying the Iraqi economy and reducing reliance on oil revenues. However, it has faced a severe decline over the past two decades following the closure of thousands of facilities. This downturn has negatively impacted local production rates and employment opportunities, leading to a significant increase in imports. Currently, there are growing demands to restart idle factories by adopting strict economic policies that protect national products and stimulate investment. In this context, MP Mukhtar Mahmoud explained that four main reasons led to the paralysis of the industrial sector after 2003, notably security challenges, the absence of strategic planning, the flooding of the market with imported goods, and the lack of effective governmental support. He emphasized the importance of launching a comprehensive national strategy to rehabilitate factories and modernize their production lines in partnership with the private sector. He pointed out that the industrial sector is capable of contributing approximately 20% to the state treasury revenues and creating thousands of job opportunities. On the other hand, former member of the Trade Unions Federation, Imran Al-Qaisi, confirmed that Diyala province, for example, has lost the vast majority of its factories, resulting in the layoff of thousands of workers. He called for the activation of laws protecting national products and combating the corruption that drives some institutions to prefer imports over local industry in pursuit of price differences. He stressed that industrial revival requires a systematic plan and an attractive investment environment.


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Editor at Dijlah Point News, writing about Eco.

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Mounting Calls to Revive the Iraqi Industrial Sector and Overcome Stagnation

admin
07 Jul 2026
2 min read