Iraq’s corrupt healthcare system lies at the centre of the country’s failure to overcome conflict, an expert has said.
Citizens of the fifth oil-richest nation in the world struggle to access basic medicine and treatment for conditions and injuries under a network blighted by inadequacy and upheaval.
Medicine destined for public use too often ends up being sold for private profit in under-the-table deals in which the Iraqi upper-class benefits at the expense of the poor. What is left for the public health system is often unusable because it has expired or is not genuine.
War, UN sanctions, sectarian battles and the rise of ISIS have made for a lethal concoction of problems that have led to a years-long crisis in Iraq’s healthcare system.
Damage to infrastructure, a shortage of medicine, corruption in supply chains and doctors fleeing have piled immense pressure on the nationwide institution.
In a new report, Renad Mansour, Iraq researcher at Chatham House in London, said this type of privatisation had "led to the proliferation of fake and expired medicine, which offer greater profit margins for this elite”.
He cited examples of Iraqis searching to find the necessary health care for themselves and their loved ones, such as a mother unable to source treatment for her son’s haemophilia.
“In a country which has struggled to stabilise after decades of wars — the most recent being the capture of one third of Iraqi territory by Islamic State (ISIS) — it is understandable that medicines may not be seen as a priority issue,” he said in a report published on Chatham House’s website. “But these stories show medicine lies at the heart of Iraq’s failure to overcome conflict.”
Since the 1970s Iraq has been home to a free government-run public healthcare system, upon which the majority of citizens rely.
Fewer than 5 per cent of Iraqis have health insurance and hose who do have the means often choose to travel abroad for treatment.
There are about 230 hospitals to serve a population of 41 million, according to data from the World Health Organisation (WHO).
The US-led invasion of Iraq in 2003 and years of fighting thereafter led to more than one in 10 hospitals being destroyed.
Over the past decade, as Iraq has tried to rebuild, the government pumped more money into the healthcare system. Between 2003 and 2010 spending on health jumped from 2.7 per cent of GDP to 8.4 per cent, the World Bank said.
But the system is failing millions of Iraqis in dire need of medical care and the country spends far less on health than other Middle Eastern nations.
Mr Mansour said “even fake drugs are desirable to desperate Iraqi patients”, who lack the financial means to afford trustworthy alternatives.
The lack of equality, he said, means “poor Iraqis are forced to turn to the lowest-cost option for health care despite knowing it is poor quality”.
Foreign companies looking to ship medicine to Iraq face a long, drawn-out process. It entails gaining approval from local health representatives on Iraq’s border, which sometimes involves favouritism and political bias.
If the firm manages to gain approval, the process of getting the equipment into Iraq is not easy. Many end up paying bribes to border officials to have cargo pass through sea, land and air borders at a faster pace.
At checkpoints staffed by Iraqi officials, the medicine is divided into smaller batches for domestic transportation. This leg of the journey is not simple as the “formal” part of the trade is “largely controlled by those with links to ruling parties”.
Mr Mansour said the “informal” part of the deals can involve armed groups using their political and economic links in Baghdad and military weight to distribute medicine across networks of pharmacies.
“Those which refuse to pay fees or which take product from other wholesalers risk the threat of violent intimidation,” he said.
The reality is far from that experienced by Iraqis in the 1970s, when neighbouring nations looked upon the country as an example when it came to healthcare.
Iraq was the region’s second country, after Egypt, to enter the pharmaceutical industry. One of its state-owned medicine factories was destroyed after the rise of ISIS while the other continues to operate but with outdated equipment.
Two years after the 2003 invasion, a government probe found “bribery, nepotism and theft” were rife within the healthcare system.
Amir Batrus, who led the inquiry, said corruption in the system had been a problem under dictator Saddam Hussein, "but the deteriorating security situation and an absence of regulation has seen it increase".
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Gulf Under 19s final
Dubai College A 50-12 Dubai College B
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Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
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More on Quran memorisation:
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Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
Winners
Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)
Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)
Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)
Best Young Women’s Player
Vicky López (Barcelona / Spain)
Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)
Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)
Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)
Women’s Coach of the Year
Sarina Wiegman (England)
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Profile box
Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Juliot Vinolia’s checklist for adopting alternate-day fasting
- Don’t do it more than once in three days
- Don’t go under 700 calories on fasting days
- Ensure there is sufficient water intake, as the body can go in dehydration mode
- Ensure there is enough roughage (fibre) in the food on fasting days as well
- Do not binge on processed or fatty foods on non-fasting days
- Complement fasting with plant-based foods, fruits, vegetables, seafood. Cut out processed meats and processed carbohydrates
- Manage your sleep
- People with existing gastric or mental health issues should avoid fasting
- Do not fast for prolonged periods without supervision by a qualified expert
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
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Diriyah%20project%20at%20a%20glance
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The five pillars of Islam
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