Iraq is preparing to launch its first steel industrial zone in Basra this year, which will appeal to local and international markets. The 7,500 square meter zone will house steel, aluminum and other metal industries. It will also be the country's largest industrial zone for steel production. The project is part of Iraq's goal to strengthen its industrial infrastructure and encourage investment.
The Ministry of Industry announced in 2024 that it had awarded the project to the Chinese Tsingshan Holding Group. However, it is not yet clear whether the company will carry out the project as part of the oil-for-food project agreement signed between Iraq and China five years ago. This agreement envisages the supply of oil in exchange for Chinese firms undertaking infrastructure projects in Iraq.
In addition to the industrial zone in Basra, there are plans to open an industrial zone in Mosul in northern Iraq to support the light and medium petrochemical industry. In addition, two industrial zones in Nineveh and Waziristan provinces will start operating this year. With these projects, the government aims to provide attractive opportunities for both local and foreign investors.
Iraq, OPEC's second largest oil producer, is making great strides to transform its economy from being solely dependent on oil revenue. Industrial zones aim to boost economic diversification by attracting new investment while strengthening the country's infrastructure.
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