meed-logo

line1 line2 line3
SIGN IN / REGISTER

What foreign companies still get wrong about Iraq

5 August 2026

 

Improved security, political stability and stronger oil revenues have brought Iraq back into investor conversations in recent years. Higher oil prices restored state finances, revived public spending and reinforced the narrative that Iraq was once again open for business. Relative calm strengthened that sentiment among regional and international firms.

Yet Iraq’s investment narrative has improved faster than its operating reality. A common mistake among foreign investors has been to view operations in Iraq primarily through the lens of security. While physical security remains important – particularly in the current regional climate – some of the most persistent risks are structural. These include opaque counterparties with hidden political backing, fragmented authority and overlapping power centres, exposure to sanctions-linked networks, and weak and often corrupt law enforcement and judicial institutions.

For most firms, the real test begins after market entry: when choosing a partner, bidding for contracts, moving funds, securing government approvals or attempting to enforce a contract or court judgment.

The current conflict has not changed these risks; rather, it has made them harder to ignore.

Basic due diligence and document checks are often insufficient to mitigate risks in a market as complex as Iraq

Counterparty risks and how to mitigate them

For many foreign investors operating in Iraq, one of the most significant risks lies in dealing with local counterparties – business partners, contractors, suppliers, clients and customers. Companies may appear conventional on paper, but ownership and control are often obscured through proxies.

One challenge is identifying who ultimately controls or benefits from a business and whether it has links to politically exposed persons, armed groups or sanctioned networks. Another is examining its business practices for signs of corruption or other illicit activity.

Every so often, we encounter seemingly well-established and reputable Iraqi business groups with extensive foreign partnerships that, following in-depth investigation, appear to be ultimately controlled by or linked to politicians, militia leaders, sanctioned individuals or Iran-aligned armed groups. Such connections often indicate a history of corrupt practices, ranging from bribery and the use of high-placed connections to secure government contracts to involvement in sophisticated money-laundering schemes or smuggling and diversion operations benefiting the Iranian state.

Foreign firms engaging with local counterparties may enter what appears to be a routine commercial arrangement, only to discover later that they are doing business with a highly sensitive or controversial political actor. The consequences extend beyond commercial risk. Regulatory, legal and reputational repercussions can follow, particularly where sanctions or criminal exposure exists.

Basic due diligence and document checks are often insufficient to mitigate risks in a market as complex as Iraq. Obtaining a deeper understanding of a potential counterparty’s ownership, control and track record is often constrained by the limited availability of credible information.

One of Iraq’s paradoxes is that it is not a data-poor jurisdiction. It generates abundant media reporting, leaks and social-media narratives. The challenge lies in judging what information matters, who is driving it, and what is missing.

The government also maintains a publicly accessible corporate register – Tasjeel – which contains basic information on the ownership of Iraq-registered private companies. The details, however, can be incomplete or out of date, and names on official filings often do not reflect actual control. There is also a notable lack of transparency when it comes to legal searches in Iraq: neither criminal nor civil litigation records are publicly available.

The availability of information also varies across the country. Iraq is not a single commercial jurisdiction. In practice, overlapping and sometimes competing systems of authority exist, particularly between federal Iraq and the Kurdistan Region. Licensing, customs procedures, taxation, political sponsorship and legal recourse can differ significantly, as can the accessibility of official records, with the Kurdistan Region generally offering less transparency.

For all these reasons, source-based enquiries remain central to any serious risk assessment in Iraq. Human intelligence gathered on the ground through a network of knowledgeable sources often fills critical information gaps, providing context and insights that cannot be obtained from public records alone.

The impact of regional war and political changes on structural weaknesses

The recent deterioration in the regional security environment has renewed attention on Iraq. Investors are once again weighing insurance costs, movement restrictions, supply-chain exposure and the risk of disruption from armed escalation.

The implications, however, extend well beyond immediate security concerns. Regional conflict often strengthens informal power structures, elevates the influence of armed factions, increases exposure to pro-Iran networks and complicates sanctions assessments. Institutions may slow decision‑making, while border friction, diversion risk and financial scrutiny intensify.

As a result, the risk categories familiar to foreign investors – political, compliance, legal and operational – often become intertwined in Iraq. A politically exposed counterparty can become a sanctions issue; a regulatory delay can turn political; and a commercial dispute may prove unenforceable where the other party operates within a stronger network of influence.

There is also a new variable in play. Iraq’s new prime minister, Ali Al-Zaidi, is a seasoned businessman with significant interests in banking, the food industry and other sectors. For foreign investors, this background may be viewed as a positive signal, suggesting a greater emphasis on deal-making, investor outreach and easing market entry. However, a businessman at the top can help only up to a point. Iraq’s core business risks are rooted in institutions, networks and entrenched political structures that even a pro‑business leader must navigate.

Counterparty risk assessment should sit at the centre of any market-entry strategy

What serious investors should do differently

None of this means Iraq should be written off. It remains a market with scale, unmet demand and clear areas of opportunity. But it does mean foreign companies need a more disciplined approach.

Counterparty risk assessment should sit at the centre of any market-entry strategy. That means identifying beneficial ownership, mapping political exposure, screening for sanctions links and understanding the broader network surrounding a local counterparty rather than relying solely on a basic corporate registry check.

Iraq should also be treated as a market that requires continuous monitoring, not one-off screening. Ownership, influence and compliance exposure can change quickly. A clean partner at onboarding is not guaranteed to remain a low risk a year later.

About the authors

Dr Anastasia Nosova is associate managing director at K2 Integrity, a prominent global risk advisory, compliance and corporate investigations firm. Renwar Ahmed is an associate at the company’s Investigations & Disputes practice. 

MEED’s June 2026 report on Iraq includes:

> COMMENT: Iraq’s reform window narrows
> GOVERNMENT: Al-Zaidi takes Iraq’s premiership under US shadow
> BANKING: Financial challenge tests Iraq’s resolve
> ECONOMY: Iraq enters era of resilience, reform and rising risks 
> OIL & GAS: Iraqi oil and gas sector in crisis
> POWER & WATER: Focus shifts to delivery of Iraq utilities expansion
> CONSTRUCTION: Momentum builds in Iraq’s post-war construction sector

To see previous issues of MEED Business Review, please click here
https://image.digitalinsightresearch.in/uploads/NewsArticle/18093093/main.gif

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Mace confirms Muscat cultural complex appointment

    3 September 2026

    UK-headquartered engineering firm Mace Consult has confirmed its appointment to manage the construction of the Sayyid Tarik Bin Taimur Cultural Complex in the Al-Seeb area of Muscat.

    The firm will provide project leadership, programme management, commercial oversight and delivery assurance services.

    The complex will be developed on a 400,000-square-metre (sq m) site. Centred on an urban plaza, it will bring together a range of cultural and institutional facilities.

    These include a 23,000 sq m national library, a 15,500 sq m national archives, four facilities buildings with a combined area of 14,000 sq m, and a 5,000 sq m energy and data centre.

    At the heart of the development is the national theatre, which will include a 1,000-seat auditorium and a 250-seat auditorium. The facilities will sit within landscaped gardens and water features, alongside a signature canopy structure.

    In October 2023, the Ministry of Culture, Sports & Youth awarded a design-and-build contract for the complex to a joint venture of local firm Saif Salim Issa Al-Harrasi and Turkiye’s Sembol Construction, MEED reported.

    In January 2026, UAE-based steel structure manufacturer Emirates Building Systems, a wholly owned subsidiary of Dubai Investments, won a contract to deliver the project’s structural steel package.

    Last month, Kuwait-based engineering and architecture consultancy SSH was appointed as the project’s construction supervision consultant.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19314737/main.jpg
    Yasir Iqbal
  • Read the September 2026 MEED Business Review

    3 September 2026

    Download / Subscribe / 14-day trial access

    Nuclear energy is becoming an increasingly important part of the GCC’s long-term power strategy, as governments seek to strengthen energy security, diversify generation and meet decarbonisation goals.

    Saudi Arabia’s civil nuclear cooperation deal with the US marks a major step forward for its plans to develop its first commercial nuclear power plant, while rising electricity demand across the region is creating further momentum.

    With the UAE already operating the Middle East’s first commercial nuclear power station, Saudi Arabia targeting up to 17GW by 2040 and Bahrain exploring small modular reactor technologies, our latest Agenda feature examines the growing role of nuclear energy in the GCC’s future power projects pipeline.

    September’s Market Focus turns to Kuwait, where the country’s oil-dependent economy has weathered unprecedented disruption, yet major investment and infrastructure deals point to resilience.

    This edition also includes a downstream industry report, exploring the accelerating investment in gas processing and associated infrastructure across Mena, the major projects driving spending, and the growing focus on NGL recovery, efficiency and higher-value gas products.

    In the latest issue, we speak to Emsteel chief commercial officer Michael Rion about the Abu Dhabi steelmaker’s plans to strengthen its position in domestic and international markets, including the launch of its ES600 steel rebar and the expansion of its long-standing partnership with Adnoc Group.

    We also examine the GCC’s accelerating tunnelling boom, as major metro, sewerage and road projects increasingly move underground. The feature explores the scale of investment, the contractors and technology driving the market, and the challenges facing the region as demand for tunnelling expertise and equipment grows.

    We hope our valued subscribers enjoy the September 2026 issue of MEED Business Review. 

     

    Must-read sections in the September 2026 issue of MEED Business Review include:

    > AGENDA: Gulf nuclear revival takes shape

    INDUSTRY REPORT:
    Downstream
    > Gas processing takes centre stage in Mena region

    > INTERVIEW: Emsteel persists with business productivity and efficiency

    > TUNNELS: The Gulf’s next construction boom is happening underground

    > KUWAIT MARKET FOCUS: 
    > COMMENT: Kuwait keeps dealmaking alive under fire
    > GOVERNMENT: Kuwait shows tentative signs of economic development
    > BANKING: Necessity is the mother of invention for Kuwaiti lenders
    > OIL & GAS: Regional war to have lasting impact on Kuwaiti oil sector
    > POWER & WATER: Kuwait utilities investment shifts towards water
    > CONSTRUCTION: Kuwait construction holds up despite regional strife
    > MARKET TALK: Kuwait stands resilient amid regional tensions
    > DATABANK: Kuwait’s economic gains are dented by conflict in 2026

    > MEED COMMENTS: 
    >     Cash is king for Dubai construction
    > Aramco moves apace with Jafurah unconventional gas campaign
    > Neom’s next phase is crucial to green hydrogen pipeline
    > Oman opens door to direct power sales

    > GULF PROJECTS INDEX: Qatar leads gains as Gulf total holds

    > JUNE 2026 CONTRACTS: Middle East contract awards

    > ECONOMIC DATA: Data drives regional projects

    > OPINION: The history of false dawns

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19308287/main.gif
    MEED Editorial
  • Contractors submit bids for Dukhan field facilities upgrade

    3 September 2026

     

    Contractors have submitted bids to QatarEnergy for a key tender to upgrade facilities at the Dukhan oil field in Qatar, about 80 kilometres west of Doha.

    Dukhan, Qatar’s first and only onshore oil field, was discovered in 1938, with oil production starting in 1939-40. The country currently produces about 1.8 million barrels a day (b/d) of crude, with the Dukhan field accounting for about 350,000 b/d of output.

    QatarEnergy issued the tender for the Dukhan production facilities upgrade (DPFU) Phase 1B (Part 2) project on 8 June, and initially set a bid submission deadline of 26 July for contractors, which it later extended to 9 August.

    The following local contractors, among others, are understood to have submitted bids for the DPFU Phase 1B (Part 2) tender, according to information obtained by MEED Projects:

    • Doha Petroleum Construction Company (Dopet)
    • Galfar Al-Misnad Engineering & Contracting
    • Qatar Engineering & Construction Company (Q-con)

    QatarEnergy originally stipulated a bond validity of 150 days (until 23 December) and a bid validity of 120 days (until 23 November) for the project.

    The engineering, procurement, installation and commissioning (EPIC) scope covers upgrades to 56 oil manifolds, 108 gas-lift manifold slots, chemical injection systems and key pumping facilities, along with associated piping, instrumentation, control, electrical and civil works.

    The scope includes demolition of obsolete equipment, degassing station enhancements, and full testing and handover. It also encompasses additional capacity enhancement works under Part 3, mainly the installation of new oil export and produced-water transfer pumps, along with supporting facility modifications.

    The project involves complex interfaces and shutdown-critical activities requiring expertise in live-plant integration.

    The Dukhan oil field extends over an area of about 80km by 8km and consists of four reservoirs: Khatiyah, Fahahil, Jaleha and Diyab. The first three are oil reservoirs. The more recently developed Diyab reservoir contains non-associated gas and is estimated to hold around 2 billion barrels of crude oil reserves. Diyab lies on the southern flank of Dukhan.

    ALSO READ: Frontrunners emerge for Qatar offshore oil field expansion
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19312615/main.jpeg
    Indrajit Sen
  • Oman tenders advisory for 3GW solar IPPs

    3 September 2026

    Nama Power & Water Procurement Company (Nama PWP) has invited bids for legal consultancy services for the development of three 1GW solar independent power projects (IPPs).

    The projects will connect to Oman’s main interconnected system (MIS) and are targeted to reach commercial operation by the second quarter of 2030.

    The bid submission deadline is 10 October.

    The state offtaker has now tendered three separate consultancy contracts for the solar IPPs, including two issued in July.

    The bid submission deadline for the financial and commercial consultancy services tender is 10 September.

    Earlier, on 15 July, a technical advisory tender was issued for the three projects as part of a 4GW programme.

    As MEED reported, the financial advisory tender covers four 1GW solar projects connected to the MIS, also targeting commercial operation by the second quarter of 2030.

    It is understood that bids were submitted for this contract on 26 August.

    Oman Electricity Transmission Company (OETC) had earlier outlined the planned grid connection for four 1GW solar IPPs as part of the sultanate’s renewable energy expansion through 2030.

    The projects are included in OETC’s Five-Year Annual Transmission Capability Statement for 2026-30.

    The first, the 1GW Adam solar IPP, is scheduled for grid integration in 2028 and is further ahead in the procurement process, with Nama PWP issuing a request for qualification for the project in June.

    OETC said it expects the 1GW Al-Kamil 2 solar project to be integrated in 2030 through the planned Sadaf 400kV grid station. The 1GW Dhofar solar IPP and 1GW Mahadha solar IPP are also scheduled for integration in 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19311796/main.jpg
    Mark Dowdall
  • US firm wins work on QatarEnergy NGL train project

    3 September 2026

    Register for MEED’s 14-day trial access 

    US-based Nessco has  that it has won a subcontract to provide telecommunications, radio and security systems for QatarEnergy’s project to add a fifth natural gas liquids (NGL) train at its fractionation complex in Qatar’s Mesaieed Industrial City.

    The subcontract was awarded to Houston-headquartered Nessco by India’s Larsen & Toubro Energy Hydrocarbon (LTEH), in its capacity as the main contractor performing engineering, procurement and construction (EPC) works on the NGL-5 project.

    MEED reported last September that QatarEnergy had selected a consortium of LTEH and Greece-headquartered Consolidated Contractors Group (CCC) to execute EPC works on the NGL-5 project.

    The aim of the project, estimated to be worth $2.5bn, is to build a fifth NGL train with the capacity to process up to 350 million cubic feet a day of rich associated gas from QatarEnergy’s offshore and onshore oil fields.

    In a statement confirming its contract award in October last year, LTEH said the scope of work on its contract “encompasses engineering, procurement, construction, installation and commissioning of a natural gas liquids plant and allied facilities for processing rich associated gas (RAG). This also involves all associated utilities and offsites and integration with existing facilities.

    “The RAG sourced from offshore and onshore oil fields will be treated at the plant to remove impurities like H2S, CO2 and H2O, producing value-added products such as lean sales gas, ethane, propane, butane and hydrocarbon condensate,” Bombay Stock Exchange-listed L&T said. 

    Under the consortium arrangement, LTEH, as the lead partner, will be responsible for engineering and procurement, while CCC will handle construction activities.

    Project scope of work

    Associated gas from the PS1, PS2 and PS3 offshore fields, as well as the Dukhan onshore field, is processed at existing facilities at the NGL complex in Mesaieed – specifically, the Fahahil stripping plant, NGL-1 and Qapco ethane recovery units.

    The planned NGL-5 facility will replace these three units at the Mesaieed complex and process gas from the PS1, PS2 and Dukhan fields.

    The scope of work on the project involves EPC of units for the following functions:

    • Feed gas compression
    • Slug handling
    • Gas sweetening
    • Dehydration
    • Mercury removal
    • NGL fractionation
    • NGL recovery
    • Product treatment
    • Propane refrigeration
    • Acid gas enrichment
    • Sulphur recovery
    • Anti-flaring
    • Utilities
    • Boil-off gas recovery
    • Drains and collection networks
    • Effluent water treatment plant
    • Carbon dioxide treatment and sequestration/export
    • Brownfield modifications
    • Product rundown pipelines

    QatarEnergy intends to start operations at the NGL-5 facility by the second quarter of 2028.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19310738/main5414.jpeg
    Indrajit Sen