Who Leads Iraq?

Leadership

Mohammed Shia al-Sudani

Prime Minister of Iraq

Political Party

State of Law Coalition

Inaugurated

Oct 27, 2022

Term Ends

2030

Next Election

2029

Born

1970 in Maysan, Iraq

Country Population

44M

Continent

Asia

Mohammed Shia al-Sudani became Prime Minister in October 2022 as a consensus candidate after a year-long political deadlock. He rose through provincial politics and previously served as human rights and labor minister. He has focused on combating corruption, improving public services, and attracting foreign investment to rebuild Iraq's infrastructure.

Government

Capital

Baghdad

Official Language(s)

Arabic, Kurdish

Currency

Iraqi Dinar (IQD)

Government Type

Federal Parliamentary Republic

Area

438,317 km²

Iraq is home to ancient Mesopotamia, the 'Cradle of Civilization,' where writing, agriculture, and cities first emerged. The country has the world's fifth-largest proven oil reserves. After decades of war, sanctions, and conflict including the 2003 US invasion and the fight against ISIS, Iraq is slowly rebuilding. Baghdad was once the cultural and intellectual capital of the Islamic Golden Age.

Iraq is a parliamentary federal republic. The President is head of state and the Prime Minister leads the government. Mohammed Shia al-Sudani of the State of Law Coalition became Prime Minister on October 27, 2022, after a prolonged political crisis following the 2021 parliamentary elections. Iraq's political system operates under a confessional quota system (muhasasa) in which the presidency is reserved for a Kurd, the Prime Ministership for a Shia Arab, and the Speaker of Parliament for a Sunni Arab. The Council of Representatives is the unicameral parliament. The Kurdistan Region operates as a largely autonomous entity with its own government in Erbil. Iran-backed militias (Popular Mobilization Forces/Hashd al-Sha'bi) remain a significant extra-governmental power center.

Economic Snapshot

GDP

$264.2B

GDP Per Capita

$5,900

Income Group

Upper-middle income

Trade Balance

Surplus (overwhelmingly oil-driven)

Inflation

4.8% (CSO, 2023)

Iraq's economic story is a 'resource curse' case study as acute as any in the world. Sitting atop the world's fifth-largest oil reserves, Iraq should be prosperous. Instead, it is a country where power outages of 12-16 hours per day are routine in the summer heat, where clean water access is unreliable, where youth unemployment is high, and where the provision of basic services has been subordinated to political patronage and corruption. The oil money flows, but flows through a political system in which each of Iraq's sectarian communities treats the state apparatus as a resource to be captured and distributed to loyalists. The legacy of wars compounds this institutional dysfunction. The 1980-1988 Iran-Iraq War destroyed the country's economic infrastructure. The 1991 Gulf War and subsequent UN sanctions devastated living standards. The 2003 U.S. invasion and subsequent insurgency killed hundreds of thousands, displaced millions, and destroyed additional infrastructure. The ISIS occupation of 2014-2017 added further destruction, particularly in Mosul, Tikrit, and the Euphrates Valley. Iraq's reconstruction needs are measured in hundreds of billions of dollars. Despite these challenges, Iraq's oil revenues have created pockets of development. Erbil, in the Kurdistan Region, has become a growing commercial city and tourism destination. Baghdad has undergone some reconstruction. The southern oil fields have attracted major international investment from BP, Shell, ExxonMobil, TotalEnergies, and Chinese national oil companies, all operating under technical service contracts that give Iraq control of the resource while accessing international expertise. Whether Iraq can use oil revenues to build a more diversified, institutionally sound economy before the energy transition reduces global oil demand is the defining challenge of the current generation of Iraqi leadership.

Major Industries

• Oil & Gas (Basra oil fields: 90%+ of government revenue)
• Construction & Infrastructure
• Agriculture (dates, wheat, barley)
• Manufacturing (limited)
• Trade & Retail

Iraq is known for: Iraq is OPEC's second-largest oil producer and holds the world's fifth-largest proven oil reserves, primarily in the Basra supergiant fields of southern Iraq (including Rumaila and Majnoon). Iraq is also the world's largest date exporter and historically was a significant agricultural producer before the wars damaged irrigation systems.

Trade Profile

Iraq runs a large oil-driven trade surplus. However, the quality of governance over these revenues has been poor: much oil wealth has been lost to corruption, spent on public sector wages rather than productive investment, or misallocated in patronage networks. Despite being an oil exporter, Iraq's fiscal position is vulnerable because government spending has grown faster than oil revenues and the economy has not diversified.

Top Exports

• Crude oil (~97% of export earnings)
• Dates
• Refined products (limited)

Top Imports

• Machinery & equipment
• Consumer goods
• Food
• Vehicles
• Chemicals
• Natural gas from Iran
• Manufactured goods

Export Destinations

• China
• India
• South Korea
• Greece
• United States

Import Partners

• China
• Turkey
• Iran
• United States
• Germany

The world depends on Iraq for: Crude oil (OPEC's second-largest producer; critical for Asian energy security) and dates

Iraq depends on the world for: Essentially all manufactured goods, food, machinery, vehicles, and natural gas from Iran for electricity

Global Role

Iraq's global significance is defined by its enormous oil reserves and its position at the intersection of U.S.-Iran competition in the Middle East. Its oil exports power Asian economies; its political system mediates between American and Iranian influence in complex ways.

• OPEC's second-largest oil producer at approximately 4-4.5 million bpd; world's fifth-largest proven oil reserves
• Iraq's Basra oil fields are among the world's most productive, including the giant Rumaila field
• World's largest date exporter; Basra dates are among the world's most prized variety
• U.S. forces invaded in 2003 based on incorrect intelligence about weapons of mass destruction; approximately 200,000 Iraqi civilians died in the subsequent conflict and insurgency
• The Islamic State (ISIS) controlled approximately 1/3 of Iraq from 2014-2017 before military defeat
• Iran-backed militias (Hashd al-Sha'bi) constitute a significant parallel military force within Iraq
• Iraq's reconstruction needs are estimated in the hundreds of billions of dollars

Frequently Asked Questions

Who is the current Prime Minister of Iraq?

Mohammed Shia al-Sudani is Iraq's Prime Minister. He took office on October 27, 2022, after a prolonged political crisis following the 2021 parliamentary elections. He rose through provincial and ministerial politics before emerging as a consensus candidate for PM. His government has focused on reconstruction, managing relations with both the U.S. and Iran, and negotiating with the Kurdistan Regional Government.

How much oil does Iraq produce?

Iraq produces approximately 4-4.5 million barrels of oil per day, making it OPEC's second-largest producer after Saudi Arabia. Iraq's proven oil reserves exceed 145 billion barrels, the fifth-largest in the world. The oil is concentrated in the supergiant Basra fields of southern Iraq, including Rumaila (operated by BP) and Majnoon (operated by Shell).

What is Iraq's relationship with Iran?

Iraq and Iran share a long border, a majority-Shia Muslim population, and deeply intertwined political and economic relationships. Iran-backed militias (Hashd al-Sha'bi/Popular Mobilization Forces) are a significant power within Iraq. Iran exports consumer goods and natural gas to Iraq. Many senior Iraqi politicians have close ties to Iran. At the same time, U.S. forces are stationed in Iraq and the U.S. provides significant military and economic support. Iraq navigates a delicate balancing act between its two most powerful neighbors.

Why does Iraq have electricity shortages despite massive oil wealth?

Iraq's electricity infrastructure was severely damaged by successive wars and has not been adequately rebuilt due to corruption, political dysfunction, and poor planning. Iraq also paradoxically imports natural gas from Iran for power generation because its own gas infrastructure is underdeveloped; much of the gas associated with oil production is simply flared. The government has spent oil revenues heavily on public sector wages and subsidies rather than infrastructure investment. Electricity shortages of 12-16 hours per day are common in summer when air conditioning demand peaks.

Related Countries

• Iran: Neighbor with dominant political and economic influence in Iraq
• Saudi Arabia: Regional rival; fellow OPEC member
• United States: U.S. invaded in 2003; forces remain; security relationship
• China: Largest oil customer; major investor
• Turkey: Major import source; controls Tigris River flows; Kurdistan oil transit
• Kuwait: Neighbor; Iraq invaded Kuwait in 1990 (First Gulf War)