Iraqi Prime Minister Ali al-Zaydi is making his first foreign trip since taking office to Washington on Monday. The visit, made at the invitation of US President Donald Trump, focuses on energy and investment agreements.
Iraqi government spokesman Haydar al-Abudi said the visit will focus on improving economic relations and promoting investments, particularly in energy, trade, and technology.
The most notable step during the visit will be Iraq allocating revenue equivalent to 500,000 barrels of daily oil exports to an energy and development fund. The fund's resources will be used to finance strategic projects; in return, the US will increase electricity supply to Iraq and expand American companies' participation in infrastructure and energy projects.
Prime Minister al-Zaydi had previously stated that the fund could exceed $400 billion over the coming decades and that resources could be gradually increased depending on production growth.
The Baghdad administration also aims to attract new American investments to the energy sector. Spokesman al-Abudi noted that the government is preparing to bring in specialized US companies to increase Iraq's oil production capacity, and that agreements have been signed in recent months with major firms such as Chevron, Halliburton, and HKN.
In an article published in the Washington Post ahead of the visit, al-Zaydi wrote that they would present Trump with investment opportunities in infrastructure, energy, industry, technology, and the digital economy. The prime minister emphasized that they aim to shift bilateral relations from 'crisis management' to 'creating opportunities'.
The article also stated that the government is creating a more attractive investment environment by strengthening the rule of law, consolidating weapons under state control, and implementing economic reforms.
Iraq suffered major economic losses during the recent Middle East war due to disruptions in oil shipments through the Strait of Hormuz. The country, which relies on oil for more than 90% of its budget, says these losses negatively impacted public revenues.
Baghdad hopes the agreements to be signed will accelerate energy and electricity projects, diversify funding sources, and attract American capital to support infrastructure reconstruction and economic growth.
Observers, however, assess that the visit's success will depend on Iraq's capacity to turn political consensus into concrete investments, particularly in the energy sector, the backbone of the economy.
