Iraq’s Local Industry Crumbles Under the Weight of Imports and Neglect
Iraqi industrialists argue that vested interests are actively obstructing the revival of national industry. They accuse powerful actors of deliberately favoring import-driven profits over economic sustainability.
By Ahora Qadi
ERBIL (Kurdistan24) – Iraq’s local industry is enduring a deepening decline, as the overwhelming majority of products sold in markets and commercial outlets originate from abroad. Estimates indicate that more than 90% of goods available in Iraqi stores are imported, including basic commodities such as frozen food products, leaving the national industrial footprint barely visible.
This bleak reality lays bare the depth of the crisis engulfing Iraq’s industrial sector, particularly amid an unrelenting influx of foreign goods—most notably from Turkey, which exported products worth over $12 billion to Iraq in 2024 alone, according to official statistics.
Consumer Confidence in Local Products Erodes
In interviews conducted by Kurdistan24, Iraqi citizens cited quality concerns as the main reason for favoring imported goods over domestic ones.
“Everything we buy is imported because the local product isn’t good and doesn’t last long,” one woman explained. “If we try something imported and like it, we always go back to buy it again.”
Another citizen echoed the sentiment, urging the government to revitalize domestic production.
“We want Iraqi products to match the quality of foreign goods. We hope to see greater government support for local industry and the reopening of factories to create job opportunities,” he said.
Industrialists Accuse Beneficiaries of Undermining Production
Iraqi industrialists argue that vested interests are actively obstructing the revival of national industry. They accuse powerful actors of deliberately favoring import-driven profits over economic sustainability.
“The open-border import policy serves the interests of specific individuals and entities who profit enormously at the expense of Iraq’s economy and industrial sector,” said Mohammed Abd Mohammed, Deputy Head of the Iraqi Industries Federation, in remarks to Kurdistan24.
Economic Experts Sound the Alarm
Experts warn that Iraq’s overwhelming dependence on imports, coupled with the looming risk of future oil price declines, could spell serious financial trouble for the country. In response, local producers are urgently calling on the government to intervene.
Industrial stakeholders have demanded immediate state action to halve the volume of imports or more, in an effort to retain billions of dollars currently hemorrhaging annually to foreign markets.
Decades of Damage with No Recovery Plan
Iraq’s industrial sector has grappled with devastating challenges for decades—ranging from wars and international sanctions to post-2003 mismanagement and the absence of strategic planning. As a result, the country has witnessed the shutdown of thousands of factories and the loss of hundreds of thousands of jobs.
Despite recurring calls to support national production, Iraq’s lack of effective policies and lax import regulation remain the most significant barriers to reviving its industrial backbone.
Without a drastic policy shift, observers fear Iraq’s domestic industry may vanish altogether—taking with it any hope for economic diversification or sustainable national development.
