The Iraqi oil trap and its paradox: A rentier economy amidst geopolitical shocks

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In an economy dependent on oil exports, and with the disruption of crude oil tanker traffic through the Strait of Hormuz due to the US-Iranian war, the core of the problem lies not only in the volume of exports and the revenues generated from them, but also in how these revenues are managed, and in the amount of spending that depletes them. On September 22, 2026, Iraqi Prime Minister Ali Zaidi told The New York Times that Iraq had lost nearly $60 billion in oil revenue due to the war with Iran. For approximately two months, Iraq was unable to export 90% of its oil, while 90% of its economy depended on crude oil exports. Before June 2025, when the first round of the US-Israeli conflict with Iran erupted, the Central Bank of Iraq’s reserves had exceeded $110 billion, but by October 2026 they had fallen to less than $60 billion. Although Zaidi’s government managed to balance global polarization and geopolitical tensions during its first five months in office, the biggest problem was the i...
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Kurdistan's Duhok Exports 128,000 tonnes of produce across Iraq


   

By Dr. Pshtiwan Faraj | Kurdish Policy Analysis

ERBIL — More than 128,800 tonnes of agricultural produce from Duhok province have been shipped to central and southern Iraq this year, local officials said, underscoring the growing role of agriculture in the Kurdistan Region’s efforts to diversify its economy and expand markets beyond its borders.

Ahmed Jamil, Director General of Agriculture in Duhok says that 128,805 tonnes of locally produced crops have been transported to markets across Iraq as part of ongoing efforts to support farmers and strengthen the marketing of domestic agricultural products.

The shipments include potatoes, cucumbers, Armenian cucumbers, onions, eggplants, okra, and corn, reflecting Duhok’s position as one of the Region’s leading agricultural producers.

Jamil said the figure covers exports to central and southern Iraqi provinces so far this year, adding that with the summer season only halfway through, agricultural output is expected to increase further during the remainder of the summer and into autumn, allowing even greater volumes of produce to be marketed outside the Kurdistan Region.

The expanding flow of agricultural goods comes amid broader efforts by the Kurdistan Regional Government’s (KRG) ninth cabinet to reduce the Region’s dependence on public-sector revenues and strengthen non-oil sectors, particularly agriculture, industry, and tourism.

As part of those reforms, the government has increasingly focused on opening new markets for locally produced goods, encouraging exports to other parts of Iraq while also promoting agricultural and industrial products in Gulf countries and several European markets. The strategy aims to boost private-sector growth, increase farmers’ incomes, and create sustainable sources of revenue for the Region’s economy.

In recent years, the KRG has introduced a series of measures to support agricultural production, including expanding irrigation projects, improving access to modern farming techniques, constructing cold-storage facilities, and facilitating the transportation and marketing of local produce. Authorities have also sought to protect domestic farmers by regulating imports of competing agricultural products during peak harvest seasons.

Agriculture has become an increasingly important pillar of the Region’s economic diversification agenda, particularly after repeated disruptions to oil revenues and ongoing budget disputes with Baghdad highlighted the need to develop alternative sources of economic growth. Officials have repeatedly said increasing exports of locally produced goods to Iraqi, Gulf, and European markets remains a central objective of the ninth cabinet’s reform program.

The latest export figures from Duhok suggest that local agricultural production continues to expand, with officials expecting stronger harvests in the coming months to further increase supplies to markets across Iraq and potentially abroad.

#Kurdistan #Duhok #Agriculture #Iraq #Trade #Economy #FoodSecurity #Exports #EconomicDevelopment #Farming #MiddleEast #Agribusiness #KRG #Sustainability #BreakingNews

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