Development Fund (Iraq)
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Native name | صندوق العراق للتنمية |
|---|---|
| Industry | Development finance institution |
| Founded | 7 August 2023 |
| Headquarters | , Iraq |
Key people | Chairman: Prime Minister Mohammed Shia al-Sudani CEO: Mohammed Al-Najjar |
| Website | ifd |
The Iraq Development Fund[1] (Arabic: صندوق العراق للتنمية, lit. 'Iraq Fund for Development'), is a development finance institution established on 7 August 2023 by Prime Minister Mohammed Shia al-Sudani. The fund is chaired by the Prime Minister of Iraq, and its purpose is to create an optimal investment environment as well as develop and diversify the country's non-oil economic resources. With a heavy emphasis on strengthening the private sector, the fund finances projects of significant social and environmental value. As an institution associated with the Council of Ministers, it receives its funding from the annual central government budget.
Iraq's economy is dominated by the oil sector, constituting 85% of the annual budget. The economy's heavy reliance on oil production exposes the country to the volatility of the global oil market; namely macroeconomic shocks that cause the drop of oil prices.[2] In 2020, the global COVID-19 pandemic's effect on oil prices devastated the country's economy, causing a significant budget crisis.[3][4] In addition to Iraq's oil dependence, the country is one of the most vulnerable to the adverse effects of climate change. In December 2022, the World Bank published a report highlighting the dangerous repercussions if Iraq does not take swift action to mitigate effects of climate change, particularly in areas such as water scarcity. The report also emphasises the need for a transition away from oil dependence in energy production toward green energy.[5] In light of this, there had been calls to establish a fund for the purpose of increasing economic diversification, green-transition and private sector development at least since 2017. The Iraq Development Fund was established in August 2023, and as of February 2025, the fund has garnered more than $7bn in foreign direct investments and signed Memoranda of Understanding with companies and institutions of several countries, including Turkey, Saudi Arabia, United Kingdom and Japan.