A US delegation's visit to Baghdad shows Iraq is open for business

Iraqi Prime Minister Mohammed Shia Al Sudani, centre, applauds after the signing of an MoU between George A Pickart, director at GE Vernova, left, and Iraqi Electricity Minister Ziad Ali Fadel in Baghdad earlier this month. AFPShow less

Baghdad witnessed a remarkable economic event on April 7, as it hosted a high-level US trade delegation comprising representatives from more than 60 leading American companies operating in the fields of energy, technology, health and financial services.

The visit, led by the US Chamber of Commerce under the leadership of Steve Lutes, was described by the American embassy in the Iraqi capital as “the first trade mission to Iraq approved by the US Department of Commerce, and the largest US business delegation to Iraq in the Chamber’s history”. This reflects unprecedented interest from the American private sector in Iraq’s growing economic potential and investment opportunities.

The delegation, consisting of 101 representatives from major companies such as AstraZeneca, GE HealthCare, Google, Oracle and Space X, and dozens of mid-sized and emerging companies, held a series of meetings. These included discussions with Prime Minister Mohammed Shia Al Sudani, the ministers of oil and electricity, the governor of the Central Bank of Iraq, and senior advisers and officials in key economic and investment sectors.

During the meetings, the Iraqi side presented its comprehensive vision for stimulating economic development and enhancing the investment climate. Mr Al Sudani emphasised that Iraq is undergoing a genuine transformation after decades of wars, sanctions and the fight against terrorism. Today, the country enjoys significant political, security and societal stability, allowing the government to focus on reconstruction, development and diversifying sources of income. He highlighted the broad reforms initiated by his administration to improve the business environment, including updated investment laws, streamlined company registration processes, sovereign guarantees for strategic projects, and expanded support for national industries and private sector engagement.

The Prime Minister noted that Iraq is no longer isolated from the global economy but is instead at the heart of an ambitious project to reposition itself as a key link between East and West. He referred to the “Development Road” project, which will connect Iraqi ports in the Gulf to Turkey and onward to Europe, creating the shortest and most cost-effective land trade route in the region. Mr Al Sudani also highlighted Iraq’s vast and largely untapped natural resources – including natural gas, sulphur and phosphate – ranking among the top globally in reserves. While Iraq currently produces around 4 million barrels of oil a day, large quantities of associated gas are still flared. The government has launched major initiatives to address this, including projects already under way to end gas flaring by 2028.

The American delegation’s visit to Baghdad was not merely another economic activity on a crowded schedule – it marked a pivotal moment in the trajectory of Iraq-US relations

One of the most significant outcomes of the visit was the signing of a memorandum of understanding between the Iraqi government and GE Vernova to construct combined-cycle gas power plants with a capacity of 27,000 megawatts – the largest and most ambitious energy plan in Iraq’s history. Another agreement was signed with UGT Renewable to develop a solar power plant with a capacity of 3,000 megawatts, as well as new electricity transmission infrastructure and battery storage systems of up to 500 megawatts an hour. These projects will be financed by major institutions such as the US Export-Import Bank, the UK Export Finance agency and JPMorgan Chase.

The American delegation saw first-hand the transformation Iraq is undergoing and expressed a strong interest in pursuing strategic investments. Reinforcing this partnership at the institutional level, a memorandum of understanding was signed between the US Chamber of Commerce and the Federation of Iraqi Chambers of Commerce to expand co-operation in economic, technological and educational fields, with a special focus on supporting small and medium-sized enterprises in both countries.

The US charge d’affaires in Baghdad, who attended several of the meetings, expressed his optimism about the positive developments in Iraq. He noted that this mission is not only the largest of its kind, but also reflects a new vision in Washington – one that sees Iraq as a strategic economic partner in the region and recognises the serious commitment of the Iraqi government to support investment and eliminate barriers to foreign capital.

Mr Al Sudani pointed out that over the past two years, Iraq has succeeded in attracting global companies to implement vital projects worth more than $88 billion, covering sectors such as energy, housing, industry and agriculture. He reaffirmed the government’s determination to launch further industrial support packages, cut bureaucratic red tape, reform regulations, and create a more dynamic and investor-friendly legal environment.

Addressing those who continue to promote a negative image of Iraq, the Prime Minister stressed that such portrayals no longer reflect the country’s reality. Iraq today is a safe and attractive destination for investment, as evidenced by the scale of participation in this historic visit and the level of commitment shown by leading American companies, who came not just to explore – but to engage.

The American delegation’s visit to Baghdad was not merely another economic activity on a crowded schedule – it marked a pivotal moment in the trajectory of Iraq-US relations. It sent a dual message: from the American side, a reaffirmation of confidence in Iraq’s potential, and from the Iraqi side, a mature and confident presentation of its capabilities, opportunities, and readiness for genuine partnerships based on shared interests and mutual growth.

With this positive momentum and the continued progress of reforms and development programmes, Iraq is steadily positioning itself as a regional leader – not just as a source of raw materials, but as a hub for trade, investment and economic integration. It is a country on the rise, and one that future generations will remember as having seized a historic moment to rebuild, reconnect and thrive.

Hussein Shamara is an Iraqi businessman and the general manager of International Holdings for Investments