The Agreements Al-Zaidi Signed with the United States Are a Successful Step... But!

The signing of 48 agreements and memoranda of understanding worth nearly -$-60 billion between Iraq and the United States represents one of the most significant developments in U.S.-Iraq economic relations in recent years. Concluded during Iraqi Prime Minister Ali Al-Zaidi s visit to Washington from July 14–18, 2026, the agreements involve leading American companies in the energy, electricity, technology, telecommunications, banking, and infrastructure sectors.

If implemented effectively, these agreements could mark the beginning of a new phase in bilateral relations—one based not only on security cooperation but also on long-term economic partnership and shared strategic interests.

According to Dr. Mazhar Mohammed Salih, the Prime Minister s Economic and Financial Adviser, the agreements reflect Iraq s determination to expand international economic cooperation and attract foreign investment. They also send an encouraging message to global markets that Iraq is committed to improving its investment climate.

The potential benefits are substantial. Greater participation by American companies could accelerate the transfer of technology, improve productivity across key industries, create employment opportunities, and support Iraq s long-standing objective of diversifying its economy beyond oil revenues.

Yet the real challenge begins after the signing ceremony.

The fundamental question is whether these agreements will be translated into concrete projects´-or-become another collection of ambitious documents that never move beyond paper.

History offers reasons for caution. Iraq has announced numerous investment initiatives over the past two decades that ultimately stalled because of bureaucratic obstacles, political interference, weak governance, and an inconsistent regulatory environment. Without addressing these structural problems, even the most ambitious agreements may fail to deliver their promised economic impact.

Economic reform cannot succeed without political independence. Sustainable investment requires a government capable of making and implementing decisions based on national priorities rather than partisan calculations´-or-pressure from competing political interests. If major economic decisions remain hostage to domestic political rivalries, implementation will inevitably slow, investor confidence will weaken, and valuable opportunities may be lost.

For that reason, the Iraqi government should make implementation—not announcement—its highest priority. Accelerating administrative reforms, strengthening transparency, protecting investors, ensuring legal certainty, and maintaining security are essential steps toward -convert-ing these agreements into measurable economic growth.

Beyond their bilateral significance, these agreements could also strengthen Iraq s broader regional role. Combined with expanding economic partnerships with Jordan, Syria, Türkiye, Egypt, and the Gulf states, deeper cooperation with the United States could help reintegrate Iraq into regional and global markets. Such a strategy would create new opportunities in trade, energy, infrastructure, and investment while positioning Iraq as an increasingly important economic bridge between the Middle East and the wider international economy.

Ultimately, the value of these agreements will not be measured by the number of documents signed´-or-the billions of dollars announced. Their success will be judged by whether they produce -function-ing power plants, modern infrastructure, new industries, sustainable jobs, and lasting improvements in the lives of ordinary Iraqis.

The agreements signed in Washington represent an important opportunity. Whether they become a turning point in Iraq s economic future—or simply another missed opportunity—will depend entirely on the government s ability to transform commitments into results.

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