A government advisor reveals the roadmap for transitioning from a rentier economy.

The Prime Minister’s financial advisor, Mazhar Muhammad Saleh, affirmed that the shift away from oil is not merely an option, but an existential and strategic necessity to ensure financial and social stability, especially in light of global energy price fluctuations. He explained that relying on a single resource makes the economy vulnerable to external shocks, which requires genuine diversification, not just a passing reformist approach.
Saleh told Al-Furat News Agency that “the success of this transformation requires deep structural reforms, high investments in infrastructure, and real empowerment of youth through education and technology, so that Iraq can be a diversified and sustainable economic player,” noting that the first pillars of diversification begin with reviving the agricultural sector through efficient management of the Tigris and Euphrates river resources, modernizing digital irrigation systems, and supporting food industries in a way that enhances food security and reduces imports.

He added that the manufacturing industry represents the most important entry point for adding local value to raw materials, through the development of small and medium industries in the fields of pharmaceuticals, textiles and building materials, noting that the digital economy stands out as a qualitative opportunity for Iraqi youth through supporting startups and linking education to the needs of the digital labor market to create a high-value and low-cost sector.

He added that Iraq possesses great tourism assets, religious and archaeological, which can be transformed into an important source of foreign currency, in addition to developing the transport and logistics sector through strategic projects such as the “Development Road,” which will reposition Iraq as a trade corridor linking the Gulf with Turkey and Europe. He explained that the current challenges are represented by the excessive dependence on oil, which accounts for more than 90% of revenues, weak infrastructure, and a skills gap.

Saleh stressed that success requires gradual financial and institutional reforms, similar to the banking reform currently being led by the government and the central bank, while encouraging the building of a diversified productive base over a decade that represents the “foundation decade for accelerated diversification” in accordance with the paths of Iraq’s 2050 vision, stressing that the transition to a sustainable economy is the only way to ensure true economic sovereignty and fair opportunities for future generations.

Alforatnews.iq