Iraq to shut down over 100 factories: Official
ERBIL, Kurdistan Region - Iraq's industry ministry plans to shut down over 100 factories due to outdated machinery, the ministry’s spokesperson said on Saturday.
“Registered factories have reached 294 at our ministry, but 104 of them have been shut down,” Zuha al-Jabouri, the spokesperson for the ministry told Rudaw.
The spokesperson attributed the closures to a lack of compliance with adopting newer technologies and modern tools.
The economy of the Middle Eastern petrostate is highly reliant on its oil sector, which accounts for more than 90% of its foreign exchange.
Efforts have been underway to revive the local industries, especially in the minerals sector, including those involving Iron, cement, phosphate, petrochemicals, and sulfur, with “a special focus on agriculture and local productions,” according to Jabouri.
“Some of the [already closed] factories will not be allowed to reopen, but some are crucial to the country’s industry sector. The government will provide them with assistance to renew [their technologies],” she added.
Cement, minerals, chemicals, and agriculture are some of Iraq’s industrial products, but they are dwarfed by the oil sector, on which Iraq’s economy is dependent. Iraq has one of the world’s largest proven crude oil reserves. Experts warn that economic diversification is crucial to stabilizing Iraq’s economy.
In a previous interview with Rudaw, Iraqi Industry Minister Khaled Battal al-Najm stated that Iraq’s public sector manufacturing output reached an estimated one billion dollars in 2023 but added that the number should be tens of times higher.
Najm said the government is looking to reactivate its mining industry and confirm the quality and size of its reserves, but that it needs a new geological survey as the last one was conducted in 1980.
“Registered factories have reached 294 at our ministry, but 104 of them have been shut down,” Zuha al-Jabouri, the spokesperson for the ministry told Rudaw.
The spokesperson attributed the closures to a lack of compliance with adopting newer technologies and modern tools.
The economy of the Middle Eastern petrostate is highly reliant on its oil sector, which accounts for more than 90% of its foreign exchange.
Efforts have been underway to revive the local industries, especially in the minerals sector, including those involving Iron, cement, phosphate, petrochemicals, and sulfur, with “a special focus on agriculture and local productions,” according to Jabouri.
“Some of the [already closed] factories will not be allowed to reopen, but some are crucial to the country’s industry sector. The government will provide them with assistance to renew [their technologies],” she added.
Cement, minerals, chemicals, and agriculture are some of Iraq’s industrial products, but they are dwarfed by the oil sector, on which Iraq’s economy is dependent. Iraq has one of the world’s largest proven crude oil reserves. Experts warn that economic diversification is crucial to stabilizing Iraq’s economy.
In a previous interview with Rudaw, Iraqi Industry Minister Khaled Battal al-Najm stated that Iraq’s public sector manufacturing output reached an estimated one billion dollars in 2023 but added that the number should be tens of times higher.
Najm said the government is looking to reactivate its mining industry and confirm the quality and size of its reserves, but that it needs a new geological survey as the last one was conducted in 1980.