Iraq is embarking on an ambitious plan to boost its financial resources and diversify its economy by channeling 40 percent of its oil production into manufacturing industries by 2030. This move is part of the country’s broader strategy to add value to its primary revenue streams, particularly oil, and reduce its dependency on crude exports.
In a recent statement at the Iraq Energy Conference 2025, Prime Minister Mohammed Shia Al-Sudani highlighted significant strides made by Iraq in the energy sector over the past two years. These include a 70 percent reduction in gas flaring, increased investments in the gas sector, and a boost in the production of oil derivatives. Al-Sudani emphasized that these achievements are laying the groundwork for the country’s future energy independence.
The prime minister also outlined Iraq’s goal of becoming fully self-sufficient in fuel and moving toward the export of gas oil (red diesel), which is a critical part of the broader plan to turn a substantial portion of the country’s oil output into products that contribute to manufacturing industries. The 2030 target is viewed as a pivotal step toward economic diversification, positioning Iraq as a key player in both the energy and industrial sectors.
The Iraq Energy Conference 2025, themed “Together, for a Promising Energy Future,” provided a platform to discuss Iraq’s energy policies and programs, which Al-Sudani noted are integral to the country’s development plans. These efforts align with Iraq’s commitment to modernizing its energy infrastructure and creating a more sustainable, diverse economy that benefits industries beyond oil.By focusing on expanding its refining and petrochemical sectors, Iraq aims to maximize the returns from its oil wealth while fostering growth in non-oil industries. This strategy, according to the prime minister, is essential for securing Iraq’s long-term economic stability and fostering a more balanced, resilient economy.
