Iraq in 2025 continues to recover steadily. It benefits from increased stability, strong oil revenues, non-involvement in regional conflicts, and an accelerated reconstruction process. I recently returned to Baghdad in early January, marking my first visit since serving as British Ambassador to Iraq from 2017-2019. During my trip, I observed significant improvements in security and visible reconstruction efforts. These underscore Iraq’s determination to rebuild after years of conflict and dictatorship. Though challenges remain, Iraq is on a sustainable path to recovery.
Iraqi Prime Minister Mohammed Shia’ Al-Sudani’s visit to London from January 14 to 16 was a pivotal moment. It signaled a new chapter in UK-Iraq relations and offered UK businesses a closer look at opportunities in Iraq. The visit highlighted Al-Sudani’s commitment to driving a major economic development program. He emphasized the role of international partners, particularly the UK, in Iraq’s progress.
As a result of Al-Sudani’s visit, agreements worth £12.3 billion were signed between UK businesses and Iraq. These covered a wide range of sectors including water, energy, power, sewage, telecommunications, railways, defense infrastructure, de-mining, civil defense, and border technologies. In addition, an exciting new scholarship initiative was launched. As part of it, 2,000 Iraqi students are set to study in the UK through official sponsorship.
UK Export Finance also remains highly supportive of UK exporters seeking to expand into Iraq. This reflects growing confidence in the market. To further capitalize on this interest, the Iraq Britain Business Council (IBBC), where I now serve as a senior advisor, hosted a well-attended reception to celebrate the Prime Minister’s visit. This event brought together long-established UK companies in Iraq as well as those who are eager to explore new business opportunities there.
We are building on this momentum by organizing a major conference in Baghdad on February 17. This will be under the patronage of Prime Minister Al-Sudani. The strong participation in this event is a testament to the positive impact of the visit and the ongoing improvements in Iraq. Additionally, the recent relaxation of UK travel advice for Iraq serves as a boost. It encourages UK businesses considering opportunities in the country.
At the IBBC, we are committed to facilitating stronger economic ties and supporting the growth of Iraq’s private sector. We believe Iraq has great potential to emerge as a modern, thriving economy offering abundant opportunities for its people. With UK exports to Iraq growing by over 20%, reaching around £1 billion annually, the success of the recent agreements signals that this positive trend will continue.
With both the Iraqi and UK governments backing these developments, the mood is optimistic. We are excited for the future and remain dedicated to fostering stronger business and educational partnerships between the UK and Iraq. We look forward to seeing even greater progress in the months ahead and to continued collaboration in building a prosperous Iraq.
