SDG 9 Industry, innovation and infrastructure<br />SDG 11 Sustainable cities and economies<br />SDG 9: Industry, Innovation and Infrastructure in Iraq<br />Dr. Malik Mustafa Mohammed<br />1. Introduction<br />Sustainable Development Goal (SDG) 9 aims to **build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation**. This report provides an in-depth analysis of the current status of **SDG 9 in Iraq**, highlighting progress made, challenges faced, and opportunities for future development.<br /><br />SDG 9 includes key targets related to:<br />- 9.1: Develop quality, reliable, sustainable, and resilient infrastructure.<br />- 9.2: Promote inclusive and sustainable industrialization.<br />- 9.3: Increase access of small-scale industries to financial services and markets.<br />- 9.4: Upgrade infrastructure and retrofit industries to make them sustainable.<br />- 9.5: Enhance scientific research and technological capacity.<br />- 9.A–9.C: Support economic development through infrastructure investments, access to ICT, etc.<br />2. Current Status of SDG 9 in Iraq<br />2.1 Infrastructure (Target 9.1)<br />Infrastructure remains one of the most pressing challenges in Iraq due to decades of conflict, underinvestment, and poor maintenance.<br />- Transportation: Major roads and highways are being rehabilitated with international support, but many rural areas remain poorly connected. Railways are largely non-operational.<br />- Energy: Electricity supply is erratic, with frequent blackouts. Only about **60–70% of households have regular access** to electricity, especially during peak summer months.<br />- ICT: Internet penetration has improved, particularly in urban centers, but overall connectivity remains low compared to regional peers.<br />- Water and Sanitation As outlined in SDG 6, water infrastructure is outdated and damaged, affecting both public health and industrial operations.<br />Despite efforts by the government and international donors, infrastructure development is hampered by corruption, weak governance, and limited funding.<br />2.2 Industrialization (Target 9.2)<br />Industrial activity in Iraq is heavily concentrated in the oil sector, which dominates GDP but does not contribute significantly to employment or diversified growth.<br />- The manufacturing sector is underdeveloped, accounting for only around 1% of GDP.<br />- Factories and industrial zones were severely damaged during conflicts, particularly after 2014 and 2017.<br />- There is a lack of competitiveness due to high energy costs, inadequate transport systems, and bureaucratic hurdles.<br />- Some industrial parks and special economic zones (e.g., Basra, Erbil, Baghdad) are being developed to attract foreign investment.<br />Iraq ranks low in the UNIDO’s Industrial Development Report, reflecting its limited industrial base and slow progress toward diversification.<br />2.3 Access to Finance and SMEs (Target 9.3)<br />Small and medium enterprises (SMEs), which are crucial drivers of job creation and innovation, face significant obstacles:<br />- Limited access to credit due to undeveloped banking systems and lack of collateral.<br />- Weak legal frameworks for business registration, taxation, and dispute resolution.<br />- High operational risks due to security concerns and political instability.<br />- Government initiatives such as the Microfinance Bank and private sector development programs aim to support SMEs, but impact remains limited.<br />2.4 Sustainable Infrastructure and Industrial Upgrades (Target 9.4<br /><br />There is growing recognition of the need to shift toward green and sustainable industrial practices, but implementation remains minimal.<br />- Renewable energy projects (mainly solar) are emerging, supported by the World Bank and other donors.<br />- Efforts to reduce flaring and improve oil extraction efficiency are underway.<br />- However, environmental regulations are weakly enforced, and industrial pollution remains a concern.<br />2.5 Innovation and Research (Target 9.5)<br />Innovation and scientific research capacity in Iraq are underdeveloped due to brain drain, underfunding, and outdated educational systems.<br />- Universities and research institutions struggle with limited resources and international isolation.<br />- Few technology startups exist, although some are emerging in Baghdad and Erbil.<br />- Government and donor-supported science and technology parks are being planned, but results are yet to materialize.<br />3. Key Challenges Facing Iraq in Achieving SDG 9<br />- Conflict and insecurity: Ongoing instability deters investment and disrupts development.<br />- Weak governance and corruption: Affects project planning, implementation, and transparency.<br />-Underinvestment: Public budgets are constrained, and private investment is limited.<br />- Lack of skilled labor: Due to years of war and poor education outcomes.<br />- Outdated infrastructure: Especially in energy, transportation, and communications.<br />- Over-reliance on oil: Hinders industrial diversification and economic resilience.<br />. Progress and Initiatives<br />Despite these challenges, several initiatives are contributing to progress on SDG 9:<br />4.1 Government Programs<br />- National Development Plan (2018–2022) prioritized infrastructure rehabilitation and industrial zone development.<br />- Ministry of Industry and Minerals leads efforts to revive state-owned factories.<br />- Investment Commission works to attract foreign direct investment (FDI) into infrastructure and industry.<br />4.2 International Support<br />- World Bank: Funds infrastructure projects including power generation and transport.<br />- UNDP: Supports private sector development and youth entrepreneurship.<br />- EU and USAID: Provide technical assistance and training for SMEs and industrial recovery.<br />- Kuwait Fund, Islamic Development Bank, and others Finance major infrastructure projects.<br />4.3 Private Sector and Local Initiatives<br />- Iraqi entrepreneurs are launching startups in IT, e-commerce, and fintech.<br />- NGOs and universities are promoting innovation labs and incubators.<br />- Digital platforms are improving access to finance and market information for SMEs.<br />4.4 Technology and Innovation<br />- Mobile money and digital payment systems are gaining traction.<br />- Solar energy pilot projects are expanding access to off-grid communities.<br />- Smart city concepts are being discussed for new urban developments.<br />5. Recommendations<br />To accelerate progress on SDG 9, Iraq should consider the following strategies:<br />1. Rehabilitate and Expand Infrastructure<br /> - Prioritize electricity, transport, and communication networks.<br /> - Use public-private partnerships (PPPs) to leverage private capital.<br />2.Diversify the Economy and Revive Industry<br /> - Invest in agro-industry, textiles, construction materials, and light manufacturing.<br /> - Establish special economic zones with tax incentives.<br />3. Support SMEs and Entrepreneurship<br /> - Improve access to microfinance and business development services.<br /> - Simplify regulatory processes and protect property rights.<br />4.Promote Green and Sustainable Industries<br /> - Encourage renewable energy adoption and waste recycling.<br /> - Enforce environmental standards for industrial operations.<br />5. Strengthen Education and Innovation Capacity<br /> - Reform higher education to align with market needs.<br /> - Fund research institutions and link them to industry.<br />6. Enhance Governance and Transparency<br /> - Fight corruption and improve accountability in public procurement.<br /> - Strengthen institutions responsible for infrastructure and industrial policy.<br />7. Encourage Regional Cooperation<br /> - Engage in regional trade agreements to expand markets for Iraqi goods.<br /> - Collaborate on cross-border infrastructure projects.<br />8. Foster Digital Transformation<br /> - Expand broadband internet access and digital literacy.<br /> - Support tech startups and digital entrepreneurship.<br />6. Conclusion<br />Achieving SDG 9 in Iraq requires rebuilding a foundation that was severely weakened by decades of conflict and underdevelopment. While the country faces significant structural and institutional challenges, there are clear pathways forward through strategic investments, reforms, and international collaboration.<br />By investing in resilient infrastructure, promoting industrial diversification, and fostering innovation, Iraq can unlock its potential for sustainable and inclusive economic growth, job creation, and long-term stability.<br />7. References<br />- United Nations (2024). Sustainable Development Goals Report.<br />- World Bank (2024). Iraq Country Economic Memorandum.<br />- UNDP Iraq (2023). Private Sector Recovery Assessment.<br />- UNIDO (2023). Industrial Development Report.<br />- Ministry of Planning, Iraq (2022). National Development Plan.<br />- World Bank (2023). Renewable Energy Roadmap for Iraq.<br />- FAO Iraq (2022). Agro-Industry Development Opportunities.<br />Al-Mustaqbal University The First University in Iraq<br /><br />