ERBIL, Kurdistan Region of Iraq – Iraq’s trade ministry on Wednesday said that the country needs to secure 16 million job opportunities for its large youth population over the next decade, labeling it a “major economic challenge” as Baghdad attempts to attract foreign investment. 

Omar Nadhir, head of the ministry’s trade and economic studies center, told the state al-Sabah newspaper that the country’s overcrowded public sector is “no longer able to absorb the continuous increases in the number of people entering the labor market.” 

According to Iraq’s latest census, conducted in November 2024, a staggering 36 percent of the population is under the age of 14, a reality Nadhir described as “a major economic challenge during the next decade to secure job opportunities and achieve living stability for this large segment.” 

The International Monetary Fund (IMF) reported earlier this year that Iraq's economy contracted by 2.2 percent in 2022. It predicted growth rates of 1.4 percent in 2024 and 5.3 percent in 2025.

“The trade ministry, in coordination with relevant authorities, is working on developing strategies aimed at promoting investment and revitalizing the private sector to be the main driver of economic growth and job creation,” stated Nadhir. 

He asserted that the ministry is preparing “long-term economic strategies to promote investment and revitalize the labor market.” 

Iraq’s economy is heavily reliant on the oil sector, but the government in recent years has worked to attract foreign investment, particularly in the agriculture, industry, and tourism sectors. 

An overwhelming dependence on oil has also sparked major concerns should prices tank. 

In September, Iraq collected nearly $7 billion in oil revenues, with its current production capacity standing at around four million barrels per day.