Iraq’s Reforms Noted in World Bank Report

On Thursday, 3rd October, the World Bank released its “Business Ready 2024 (B-READY)” report, which spotlighted Iraq’s significant progress in enhancing its business environment. The report focused on key developments in regulatory reform, public services, and operational efficiency, indicating a major transformation as Iraq becomes a more appealing destination for both local and international investors.

Key achievements highlighted in the report include:

1. Stabilising the Regulatory Framework:
Iraq has made notable strides in creating a more stable and business-friendly regulatory environment. By simplifying the process for company registration and removing minimum capital requirements, Iraq has made it easier for entrepreneurs to establish businesses, especially small and medium-sized enterprises (SMEs). These enterprises play a pivotal role in job creation and economic diversification. Moreover, aligning trade regulations with international standards has facilitated smoother cross-border transactions, making the business landscape more predictable and secure for foreign investors.

2. Improved Access to Public Utilities and Infrastructure:
Significant improvements have been made in providing businesses with better access to essential public utilities such as electricity and water. The Iraqi government has managed to reduce the time required to connect businesses to these services and has embarked on infrastructure projects to ensure future reliability. These reforms have already led to fewer operational disruptions, enhancing investor confidence in Iraq’s market. However, further investments and improvements in infrastructure are still needed to maintain momentum.

3. Strengthening Labour Market Regulations:
Iraq has introduced a series of labour reforms aimed at protecting workers and promoting inclusivity in the workforce. These include equal pay policies, anti-discrimination laws, and the extension of collective bargaining rights. Additionally, public employment services and training programmes have been expanded to better meet the needs of the private sector. As a result, these reforms have fostered a more flexible and inclusive labour market, helping Iraq become more competitive on a global scale.

While the “B-READY” report captures Iraq’s positive developments, it is important to note that the data used were collected in 2023, before many of the government’s latest reform initiatives had fully taken effect. As such, the report may not entirely reflect the current pace of change. Over the past two years, Iraq has made considerable progress in areas such as tax and customs reforms, digital transformation, e-commerce, and the restructuring of state-owned enterprises.

The Iraqi government’s ongoing efforts are expected to accelerate these reforms, with a more profound impact anticipated in the coming months and years. The government’s focus on long-term sustainability and digital transformation is set to solidify Iraq’s position as a key player in the global economy.

Source: Ministry of Finance