Iraq’s Economic Performance in the Last Decade: Key Insights
Manar Al-Ubaidi, the head of the Future Iraq Foundation, recently disclosed significant data regarding Iraq’s revenue and expenditure patterns over the past decade. He highlighted that the country has been allocating approximately $100 billion annually, an amount that surpasses the annual expenditures of several major economies. Al-Ubaidi emphasized that Iraq’s challenges stem not from a lack of resources, but rather from ineffective management of its economic assets.
In a detailed analysis, Al-Ubaidi reported that total revenue for Iraq between 2013 and 2023 reached 1,028 trillion Iraqi dinars, with a staggering 92% of this figure derived from oil revenue. In contrast, other contributions, including taxes and customs, accounted for a mere 8%.
| Period | Total Revenue (Trillion Iraqi Dinars) | Oil Revenue Contribution (%) | Other Revenue Contribution (%) |
|---|---|---|---|
| 2013 – 2023 | 1,028 | 92 | 8 |
On the expenditure side, Iraq spent a total of 1,007 trillion Iraqi dinars during the same period, with additional non-oil expenditures estimated between 100-150 trillion dinars. This results in total spending that exceeds 1,100 trillion Iraqi dinars, approximately equating to $1 trillion.
Al-Ubaidi indicated that the annual spending rate, based on these figures, stands at around $100 billion—higher than the spending levels of several developed countries. For comparison, he cited the annual expenditures of noted economies:
- United Arab Emirates: $65 billion
- Malaysia: $82 billion
- Singapore: $77 billion
Despite Iraq’s higher spending, domestic consumption remains heavily reliant on the oil sector, contrasting sharply with these aforementioned countries that have successfully diversified their economies to achieve a local product level of approximately $500 billion annually.
Al-Ubaidi pointed out a striking paradox: the three mentioned countries lack the vast natural resources that Iraq possesses and do not have Iraq’s population size, yet they have built robust and prosperous economies with significantly lower budgets than those deployed by Iraq. Meanwhile, Iraq continues to grapple with over-reliance on oil, high unemployment rates, and a slew of economic challenges that seem to escalate yearly.
He asserted, "The issue does not arise from a scarcity of resources, but rather from how these resources are managed and utilized to foster sustainable development." Al-Ubaidi advocates for profound economic reforms that prioritize economic diversification, enhance spending efficiency, and combat financial mismanagement to secure Iraq’s economic future.
In conclusion, he succinctly stated the essentials for Iraq’s progress: "A stable government to improve development administration." He underscored that omitting any word from this phrase would compromise its integrity, highlighting the critical intersection of governance and effective economic management.
