Iraq on the Rise
Iraq is undergoing a remarkable transformation across key sectors—from real estate and hospitality to energy and education. With global hotel chains establishing a presence, international firms like Chestertons expanding into Baghdad, and strategic partnerships such as Siemens Energy’s engagement in the power sector, the momentum is undeniable. Meanwhile, solid non-oil GDP growth and forward-looking education initiatives signal a country steadily building a diversified and resilient economy. Iraq is also positioning itself as an emerging global tourism destination, with growing interest from international travel companies such as Wild Frontiers, which recently launched a cultural adventure tour across the country.
Quick look
Baghdad Unveils $1B Grand Museum of Iraq
Iraq has announced a landmark $1 billion plan to build the Grand Museum of Iraq on the historic site of Baghdad’s former Al-Muthanna Airport. Inspired by consultations with the late architect Zaha Hadid, the project will include hotels, retail outlets, and a library—positioning Baghdad as a future hub for heritage and cultural tourism in the Middle East.
Saudi Café Chain Half Million to Open First Iraq Location in Late 2025
Riyadh-based coffee chain Half Million will launch its first Iraqi branch at Baghdad’s Iraq Mall in Q4 2025, marking a strategic expansion into the region’s third-largest branded café market. Founded in 2018, Half Million operates 65 outlets across Saudi Arabia and one in London. The move follows the entry of fellow Saudi brand Kyan Café earlier this year and reflects growing investor confidence in Iraq’s tourism and retail sectors as the country diversifies its economy beyond oil.
Iraq’s Hotel Boom Attracts Global Chains
France’s Louvre Hotels Group is expanding into the Kurdistan Region of Iraq (KRG) with a new four-star Golden Tulip set to open in Duhok by early 2026, while Baghdad sees the debut of the five-star V Hotel in Al-Jadriya, slated for full opening in May 2025.
These developments reflect a growing wave of private investment in Iraq’s hospitality sector, following recent openings by Mövenpick and anticipated launches by Rixos and Rotana.
With improved infrastructure and rising domestic demand, Iraq is emerging as a strategic growth market for regional and international hotel chains.
Chestertons Enters Iraq’s Booming Property Market
UK-based property firm Chestertons Global has established a new branch in Baghdad, marking its entry into Iraq’s booming real estate market, now valued at $1.12 billion.
The office will offer full-spectrum services including advisory, sales, rentals, and valuations as Iraq’s property sector grows at 6% annually.
This expansion strengthens Chestertons’ regional footprint, positioning it to serve rising investor interest in one of the Arab world’s fastest-growing markets.
Siemens Energy Partners with Iraq to Boost Power Infrastructure
Siemens Energy has signed a Memorandum of Understanding with Iraq’s Ministry of Electricity to potentially add up to 14 GW in generation capacity.
CEO Christian Bruch’s visit to Baghdad emphasized the partnership’s aim to modernize Iraq’s power sector through advanced technologies and local resource integration.
While the MoU is non-binding, it signals serious commitment from both parties toward addressing chronic energy challenges and advancing sustainability goals.
Iraq’s Economy Expands Beyond Oil
Finance Minister Taif Sami announced that Iraq’s non-oil GDP rose by 5% in 2024, fueled by strong agricultural output and increased government expenditure.
In talks with the IMF, officials noted continued resilience in economic indicators despite a modest $3.82 billion budget deficit, just 1.5% of GDP.
Further 4% growth is forecast for 2025, though oil prices and OPEC policies will remain key variables in Iraq’s broader fiscal outlook.
Iraq Paves the Way for AI in Schools
In a milestone for Iraq’s education reform, the government has inaugurated its first artificial intelligence classroom at Al-Farah Model School for Orphans in Baghdad.
The initiative is part of a broader effort to integrate technology in schools and promote inclusive education for disadvantaged communities.
Officials described the move as a step toward modernizing learning systems and compensating vulnerable students with future-oriented opportunities.
Iraq Repositions Itself as a Rising Tourism Destination
British adventure travel firm Wild Frontiers has launched a 15-day cultural tour across Iraq, spotlighting ancient Mesopotamian heritage and the landscapes of Kurdistan. The itinerary includes Baghdad, Basra, Babylon, Uruk, and the Marshlands, offering immersive experiences with local communities and archaeological landmarks.
