Iraq is set to establish its first industrial zone dedicated to the steel industry, aiming to meet both domestic and international market demands. The project, expected to be located in Basra, is part of a broader initiative to boost industrial investment across key sectors, including petrochemicals and metals.
According to Iraq’s Al-Sabah newspaper, the steel city is one of four industrial zones scheduled to open in 2025. The Basra site will be the country’s largest industrial hub for steel production, reinforcing Iraq’s efforts to expand its manufacturing capabilities.
In 2024, Iraq’s Ministry of Industry awarded the Basra industrial zone project to China’s Tsingshan Holding Group, which was among several firms competing for the contract. However, it remains unclear whether the project will proceed under Iraq’s oil-for-projects agreement with China, a deal signed five years ago that allows Chinese firms to develop infrastructure in exchange for oil supplies.
“The industrial city in Basra will focus on steel, aluminum, and other metal industries, covering an area of 7,500 square meters,” said Riad Jazim, Deputy Director of Industrial Cities at the Ministry of Industry and Minerals.
Additionally, another industrial zone is planned for Mosul, specializing in light and medium petrochemical industries. Two other industrial areas have already been completed and are set to open in 2025—one in Northern Nineveh Governorate and another in Eastern Wasit Governorate.
Jazim emphasized that these projects are part of Iraq’s broader strategy to attract foreign investment and diversify its oil-dependent economy. “We are working on launching these industrial zones to provide various incentives and facilitate investment for both local and international companies,” he told Al-Sabah.
As OPEC’s second-largest oil producer, Iraq has been actively working to rebuild its infrastructure and encourage private sector involvement to strengthen its economy beyond oil revenues.