Developing competitive local production where Iraq has market scale, resources or export potential.
Research version 1.1Updated: 30 September 2026
ABCI analytical perspective. Milestones and structural directions below are research propositions, not official forecasts or commitments.
Why It Matters
Local production creates lasting value when it is competitive, reliable and connected to demand. Industrial development should be assessed through productivity and viable supply chains rather than capacity announcements alone.
Where Iraq Stands
Manufacturing value added represented 2.8% of GDP in 2024. R&D expenditure of 0.04% of GDP refers to 2021 and is a historical baseline only. The figures should not be read as a current measure of innovation capacity.
The Structural Gap
Import substitution alone does not establish competitiveness. The research gap is understanding unit costs, reliability, standards, technology and customer demand, and separating viable domestic production from activity dependent on indefinite protection.
What Needs to Change
Assess energy reliability, logistics, quality certification, supplier development, technical skills and access to working capital. Prioritize production models with demonstrable market demand and realistic paths to improved productivity.
2030 Milestone
By 2030, look for operating production, improving productivity and credible domestic or export sales in selected value chains. Measure commissioning and utilization separately from planned capacity.
Proposed measurement protocol
Measure and definition
Manufacturing value added/GDP on a consistent accounting basis, plus utilization, value added per worker and delivered cost in a defined product chain.
Collection and comparison
Use official annual accounts for national shares. Before factory-level research, choose product chains using documented demand, inputs and access; collect repeat production and employment records.
Current limits
No product chains or representative factory sample are selected in this edition. R&D refers to 2021. A 2035 numerical manufacturing share requires a reproducible scenario.
2035 Direction
Competitive manufacturing and stronger local value chains supported by productivity, quality and dependable inputs. This qualitative direction does not set an unmodelled numerical manufacturing share for 2035.
Key Indicators
Institutional baseline
Manufacturing value added / GDP
2.8%
2024
Definition, dates & source context
Measurement period
2024
Publication date
Not identified in the linked source
Independent check
Not reverified in this revision
Source edition
Linked publication / page; edition number not stated
ABCI Research Direction — not an official government target.
Qualitative research proposition. No quantified 2035 scenario is published until a consistent baseline, assumptions and reproducible calculation have been reviewed. See the pillar measurement plan for definitions, collection needs and limitations.
Definition, dates & source context
Measurement period
Not identified in the linked source
Publication date
Not identified in the linked source
Independent check
Not reverified in this revision
Source edition
ABCI research framework 1.1
SOURCE REGISTER
Sources
The register identifies each linked publication or data series. Indicator cards retain measurement periods and definitions. An absent publication or check date is shown explicitly; the edition date is not a substitute.