Iraq Construction Industry 2025: Projects, Companies, Market Trends & Business Guide
1. Top Ongoing and Upcoming Construction Projects in Iraq (2025 Update)
Iraq’s construction sector is on the rise in 2025, backed by government reforms, foreign investment, and public-private partnerships. Here are the top ongoing and upcoming projects shaping the future of Iraq:
- Baghdad Metro Project: A $17 billion urban transport plan aimed at reducing congestion and pollution.
- Basra Oil Infrastructure Development: A multi-billion-dollar upgrade to Iraq’s southern oil-export terminals and refineries.
- Al-Rasheed Residential City: A new residential complex in Baghdad offering over 40,000 housing units.
- Erbil Ring Road Expansion: A strategic infrastructure project funded through public-private partnerships.
- Najaf Airport Modernization: A major airport upgrade project to accommodate increasing religious tourism.
These projects signify Iraq's effort to rebuild and modernize its infrastructure while attracting regional and international players.
2. How to Start a Construction Business in Iraq: Legal, Financial & Licensing Guide
Thinking of tapping into Iraq’s construction boom? Here’s a step-by-step guide to setting up a construction company:
Step-by-Step Guide
- Business Registration: Register with Iraq’s Companies Registrar. Choose a structure: LLC, branch office, or joint venture.
- Obtain Construction License: Secure a contractor’s license from the Ministry of Construction and Housing.
- Tax Registration: Register for corporate taxes and VAT with the General Commission for Taxes (GCT).
- Open Bank Account: Set up a corporate account in a local bank to handle operations and payroll.
- Capital Requirements: Minimum capital for a local LLC is usually around IQD 50 million (~$34,000 USD).
- Get Municipality Approval: Required for physical office setup and zoning clearance.
- Compliance & Safety: Register with local labor department and adhere to building code and worker safety norms.
Note: Foreign investors can benefit from Iraq's National Investment Commission (NIC) incentives under Investment Law No. 13.
3. Top 10 Construction Companies in Iraq to Watch in 2025
- Haris Al-Aqeelah Group – Known for mega residential and commercial developments.
- Al-Burhan Group – Active in aviation infrastructure and logistics projects.
- JGC Corporation Iraq – Japanese firm leading oil and gas EPC contracts.
- Daewoo E&C Iraq – Korean giant executing major port and refinery upgrades.
- Makina Group – Turkish engineering powerhouse in roads and bridges.
- Al-Mansour Group – Dominant player in commercial property development.
- Mass Group Holding – Key player in energy and power plant construction.
- Shamara Holding – Diversified investments including real estate, waterworks, and logistics.
- Fujita Corporation Iraq – Japanese innovator in green building and smart cities.
- Sarooj Construction – Middle East regional player active in Iraq’s north.
These firms are known for their quality, safety, and execution speed, making them ideal partners or competitors.
4. Iraq Construction Market Forecast: Trends, Risks & Opportunities (2025–2030)
The Iraq construction market is expected to grow at a CAGR of 6.3% between 2025 and 2030, reaching $65 billion by 2030. Key trends include:
- Shift toward PPP models for large-scale infrastructure.
- Digital construction tools like BIM gaining traction.
- Rising demand for energy-efficient buildings and smart city solutions.
Risks
- Security threats and insurgency in certain provinces.
- Bureaucratic delays and inconsistent regulations.
- Currency fluctuations and import restrictions.
Opportunities
- Oil revenue-funded mega projects.
- Rebuilding post-conflict provinces like Mosul, Fallujah, and Tikrit.
- Surge in tourism-related infrastructure due to religious pilgrimages.
5. Best Building Materials Suppliers in Iraq for Quality & Cost
Choosing reliable and affordable suppliers can make or break your project. Here are top building material suppliers in Iraq:
- Southern Cement State Company – Leading cement producer with multiple plants.
- Basrah Steel Factory – Offers rebar and structural steel.
- Al-Rasheed Tiles – Trusted for ceramic and porcelain tiles.
- Techno Pipes Iraq – Reliable plumbing and drainage pipe supplier.
- Al-Nahrain Paints – Local brand known for weather-resistant coatings.
Tip: Contact us for supplier referrals and affiliate discounts!
6. Challenges in Rebuilding Iraq's Infrastructure Post-Conflict: A Contractor's View
Contractors in Iraq face unique on-ground challenges such as:
- Security: Armed escorts often needed in high-risk zones.
- Logistics: Poor road networks delay delivery of materials.
- Corruption: Bribes and bureaucracy slow project approvals.
- Skilled Labor Shortage: Brain drain and youth unemployment coexist paradoxically.
Despite these issues, many firms report success through local partnerships, community engagement, and phased execution.
7. Step-by-Step Guide to Importing Construction Equipment into Iraq
- Registration: Register with the Iraqi Ministry of Trade for import rights.
- Import License: Obtain a license specifying the equipment types.
- Customs Clearance: Submit invoices, certificates of origin, and inspection reports.
- Tax Duties: Pay customs duty (varies by equipment type) and VAT.
- Freight & Logistics: Use experienced local logistics partners familiar with regional constraints.
This guide is ideal for heavy equipment sellers and construction firms looking to import cranes, excavators, batching plants, etc.
8. Green Construction in Iraq: Is Sustainable Building the Future?
With rising temperatures and water scarcity, green building is not just a trend — it’s a necessity in Iraq. Popular initiatives include:
- Use of fly-ash and recycled concrete aggregates.
- Solar rooftop panels in residential buildings.
- Rainwater harvesting and greywater recycling systems.
New government policies are also encouraging eco-friendly designs through incentives. A green certification system is expected by 2026.
9. Top Cities in Iraq for Real Estate Investment & Construction Growth
- Baghdad: Infrastructure upgrades, housing demand, and commercial hubs booming.
- Erbil: Political stability, free-market policies, and tourism make it attractive.
- Basra: Oil wealth drives industrial and residential construction.
- Mosul: Rebuilding post-ISIS attracts donor-backed and private investments.
Each city offers unique advantages for investors and developers, from tax incentives to skilled labor availability.
10. Construction Job Market in Iraq: Top Skills in Demand (2025)
The demand for construction professionals is rapidly growing in Iraq. Top skills in 2025 include:
- Project Management (PMP, Primavera, MS Project)
- Structural & Civil Engineering
- HVAC and MEP Installation
- Equipment Operators and Safety Officers
- Green Building Specialists
Recruitment agencies, technical colleges, and international consultancies are expanding operations in Iraq to meet this demand.
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