The World Bank confirmed on Thursday that Iraq is undergoing a significant transformation in improving its business environment and public services, making the country more competitive on a global scale.
The Ministry of Finance released a statement following the World Bank’s Business Ready 2024 (B-READY) report, which highlighted Iraq’s progress in key areas like regulatory frameworks, public services, and operational efficiency. According to the report, Iraq has made major strides in creating a more attractive and efficient environment for both local and international businesses.
Key improvements highlighted in the report include:
- Stable Regulatory Framework
Iraq has made substantial progress in creating a more stable and business-friendly regulatory environment. Reforms include simplifying company registration processes and removing minimum capital requirements. These changes are particularly beneficial for small and medium enterprises (SMEs), which are crucial for job creation and economic diversification. The alignment of Iraq’s commercial regulations with international standards has also made cross-border transactions smoother and more predictable, increasing the country’s appeal to investors. - Improved Access to Public Services and Infrastructure
Iraq has made notable advancements in the public utilities sector, improving access to essential services like electricity and water. The government has reduced the time needed to access these services, and ongoing infrastructure investments aim to improve service reliability in the future. These reforms have already contributed to fewer operational disruptions and a rise in investor confidence. - Stronger Labor Market Regulations
New labor market regulations have been introduced to protect workers and promote inclusivity. Key achievements include equal pay policies, anti-discrimination measures, and support for collective bargaining. The government has also expanded public employment services and training programs to better align with the needs of the private sector, making Iraq’s labor market more flexible and globally competitive.
However, the Ministry of Finance noted that the World Bank’s report used outdated data from 2023, which was collected before the current government’s full reform initiatives and the stimulus general budget were implemented. The Ministry emphasized that, while the report highlighted positive developments, it did not fully reflect the government’s recent efforts, such as significant reforms in tax, customs, electronic payments, e-commerce, and state-owned companies.
The Ministry further stated that the private sector has received considerable attention from the government, and the business environment has improved significantly over the past two years. This progress will continue to accelerate in the coming months as the benefits of ongoing reforms become more visible. The Ministry also stressed that future reports, based on updated data, will more accurately reflect Iraq’s progress toward a stable and competitive business environment.
