Economy

Agriculture

Iraq’s agricultural industry has grown to account for approximately 10% of the country’s GDP. While only about one-eighth of Iraq’s land is arable, agricultural products such as barley, wheat, rice, vegetables, corn, millet, sugarcane, sugar beets, oil seeds, fruit, fodder, tobacco and cotton are key exporting crops for the country.

Natural Resources

Oil was discovered in Iraq in 1927. Iraq has the world’s fifth largest petroleum reserves and it is also its most valuable mineral. Oil contributes the largest portion of GDP and constitutes most of Iraq’s foreign exchange. It has traditionally provided about 95% of foreign exchange earnings. Moreover, Iraq is thought to have untapped resources and minerals, such as salt, gypsum, and stone, in addition to large sulfur reserves. Iraq has multiple other industries such as chemicals, textiles, leather and metal processing.

Finance

All banks and insurance companies were nationalized in 1964. The Central Bank of Iraq (founded in 1947 and one of the first central banks in the Arab world) has the sole right to issue the Dinar, the national currency. The Rafidain Bank (1941) is the oldest commercial bank. In 1988, the state founded a second commercial bank, the Rasheed Bank. There are also three state-owned specialized banks: the Agricultural Co-operative Bank (1936), the Industrial Bank (1940), and the Real Estate Bank (1949). Beginning in 1991 the government authorized private banks to operate, albeit under the strict supervision of the Central Bank. The Baghdad Stock Exchange opened in 1992. In 2003, the Iraqi government removed restrictions on international bank transactions.