Iraq Industry Sectors

Since the lifting of UN sanctions in 2003, Iraq has been going through major reconstruction, with infrastructure, agriculture and oil sectors attracting the maximum investment. They have also emerged as the foundation for Iraq’s trade. The country’s industrial sectors also leverage on the diverse natural resources and well-educated and trained population of Iraq. Other major Iraq industry sectors include food processing, metal fabrication/processing, chemicals, textiles, leather and fertilizers. The total workforce of Iraq as of 2008 was 8.175 million.[br] 

Since the lifting of UN sanctions in 2003, Iraq has been going through major reconstruction, with infrastructure, agriculture and oil sectors attracting the maximum investment. They have also emerged as the foundation for Iraq’s trade. The country’s industrial sectors also leverage on the diverse natural resources and well-educated and trained population of Iraq. Other major Iraq industry sectors include food processing, metal fabrication/processing, chemicals, textiles, leather and fertilizers. The total workforce of Iraq as of 2008 was 8.175 million.[br] 

Iraq Industry Sectors: Major Sectors

The following are the major industrial sectors in Iraq:

 

Agriculture: Historically, Iraq had been blessed with abundant land and water resources leading to sumptuous agricultural production. However, the long-ranging war in the country resulted in severe consequences in terms of low agricultural production. The situation was worsened by the implementation of Oil-For-Food Program. A large portion of the population came to be dependent on imported food products government-financed food rations. The situation has somewhat improved during the reconstruction phase. As of 2009, 9.6% of the country’s total GDP came from agriculture with 21.6% of the workforce engaged in it. Major crops include wheat, barley, rice, vegetables, dates and cotton.

 

Oil: Iraq’s economy flourished on the oil industry until much of its oil reserves and pipelines were sabotaged during its war with Iran. It had eight oil refineries till 2004; as of 2009, oil industry stood at the following:

 

• Oil – production: 2.42 million bbl/day

• Oil – consumption: 500,000 bbl/day

• Oil – exports: 1.91 million bbl/day

• Oil – imports: 116,900 bbl/day

• Oil – proved reserves: 115 billion bbl (January 01, 2009 est.)

 

Between June 2009 and February 2010, the Iraqi Oil Ministry tendered for the award of Service Contracts to develop Iraq’s existing oil fields.[br]

 

Energy: Iraq’s abundant oil resources were the backbone of its energy sector. Energy production costs were lower than many other countries. However, the war period from 1991 to 2003 severely impacted Iraq’s energy production. The Persian Gulf War 1991 also destroyed almost 90% of the country’s power generating and distribution systems. As of 2004, the demand for electricity (at 7,500 megawatts) exceeded the country’s power generating capacity (at 5,000 megawatts). Production gradually increased with the installation of new pipelines during the reconstruction period. In 2007, hydrocarbon industries contributed 70% to the economy of Iraq and 95% of the government revenue. The status of the energy industry as of 2009 reads:

 

• Electricity – production: 46.39 billion kWh

• Electricity – consumption: 52 billion kWh

• Electricity – exports: 0 kWh

• Electricity – imports: 5.6 billion kWh