The continuing fiscal expansion and boost in government spending will lead to economic growth in Iraq this year but the country continues to face several challenges including the worsening of domestic imbalances, the International Monetary Fund said on Thursday.
Iraq's fiscal and external accounts (such as trade balances) are expected to worsen and its economy will remain sensitive to fluctuations in oil prices, the fund said in a statement issued after a consultation with Iraq.
The country, Opec’s second-largest oil producer, could also be impacted by the spread of the conflict in Gaza and Israel. The Washington-based fund in January cut its growth forecast for the Mena region as Israel's war in Gaza compounded challenges for exposed economies.
These factors could pose risks to the country's financial stability and long-term economic health, the IMF said.
Without policy adjustment, the risk of medium-term sovereign debt stress is “high and external stability risks could emerge”.
Iraq's vulnerability to declining oil prices has increased as risks from larger declines or extended Opec+ cuts could affect its fiscal and external accounts.
In March, several members of the Opec+ group, including Saudi Arabia, the UAE and Kuwait, announced extensions to oil production cuts as part of efforts to support market balance and stability.
In total, Opec+ members are extending additional voluntary cuts of 2.2 million barrels a day to the end of the second quarter, the Opec secretariat said.
The move is in addition to the cuts announced in April last year, which have been extended until the end of December.
Iraq's economy remains heavily reliant on oil. The country's oil ministry also plans to increase production to 6 million barrels per day in the next five years, from about 4 million bpd currently. It exports around 3.3 million bpd.
The IMF noted that Iraq’s domestic stability has improved since the new government took office in October 2022 as it facilitated the country’s first three-year budget.
It was supported by the recovery in Iraq’s non-oil economy after a tightening in 2022, while the country was “largely unaffected” by the continuing conflict in the region, the IMF said in a statement.
Domestic inflation dropped to 4 per cent by end the end of last year, indicating lower global food prices, the currency revaluation as of February 2023, and the normalisation in trade finance, it added.
The IMF emphasised the importance of implementing effective macroeconomic strategies and structural changes to ensure fiscal and debt stability, promote economic diversification and bolster sustainable, inclusive growth driven by the private sector.
It urged Iraq to implement structural changes to stimulate private sector growth, offering equal opportunities to public and private sectors, increasing female workforce engagement, and revising education and labour legislation.
To ensure equitable financial growth, the IMF urged authorities to prioritise measures aimed at managing the public wage bill, gradually discontinuing mandatory hiring practices, and increasing non-oil revenue streams.
It also called for enhancing governance and combating corruption, recommending strong anti-money laundering and countering the financing of terrorism framework, and improving public procurement and business regulations.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
The specs: 2018 Jeep Compass
Price, base: Dh100,000 (estimate)
Engine: 2.4L four-cylinder
Transmission: Nine-speed automatic
Power: 184bhp at 6,400rpm
Torque: 237Nm at 3,900rpm
Fuel economy, combined: 9.4L / 100km
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
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Hurricanes 31-31 Lions
Wellington Hurricanes:
Tries: Gibbins, Laumape, Goosen, Fifita tries, Barrett
Conversions: Barrett (4)
Penalties: Barrett
British & Irish Lions:
Tries: Seymour (2), North
Conversions: Biggar (2)
Penalties: Biggar (4)
The years Ramadan fell in May
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
UAE currency: the story behind the money in your pockets
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Other must-tries
Tomato and walnut salad
A lesson in simple, seasonal eating. Wedges of tomato, chunks of cucumber, thinly sliced red onion, coriander or parsley leaves, and perhaps some fresh dill are drizzled with a crushed walnut and garlic dressing. Do consider yourself warned: if you eat this salad in Georgia during the summer months, the tomatoes will be so ripe and flavourful that every tomato you eat from that day forth will taste lacklustre in comparison.
Badrijani nigvzit
A delicious vegetarian snack or starter. It consists of thinly sliced, fried then cooled aubergine smothered with a thick and creamy walnut sauce and folded or rolled. Take note, even though it seems like you should be able to pick these morsels up with your hands, they’re not as durable as they look. A knife and fork is the way to go.
Pkhali
This healthy little dish (a nice antidote to the khachapuri) is usually made with steamed then chopped cabbage, spinach, beetroot or green beans, combined with walnuts, garlic and herbs to make a vegetable pâté or paste. The mix is then often formed into rounds, chilled in the fridge and topped with pomegranate seeds before being served.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
