The Republic of Iraq is the second biggest oil producer in OPEC. Iraq has a production capacity of 5 million barrel/day of crude oil, exporting capacity is around 3.5 M barrel/day and the remaining is for country consumption. Oil incomes represents 92% of Iraq annual budget. Meanwhile, Federal Government of Iraq is importing gasoline, gas oil and kerosene for internal consumption. Iraq has 14 oil refineries, with a total capacity of 922K barrel/day, distributed in different provinces in addition to four (4) refineries are under constructions. Some of those refineries will produce high octane benzene to reduce the need to import. 

Since 19 July 1999, according to national legislation order 66 of 1999 issued by the Committee on Economic Affairs, the fuel prices are managed by the Government of Iraq.

In KRI the fuel from internal national refineries provenience does not cover 100% of fuel consumption needs. Privately owned gas stations are authorized to import fuel and sell at a higher price compared to privet or owned gas stations under the responsibility of federal government.

The KRI has two main refineries, Bazian and Kalak, and Kurdistan now is self-reliant in petrol as the new benzene processing facilities at these plants has come online. KRI governmental petrol station can only be used by government vehicles, while private petrol stations are used by the rest of the population for private or business use. In the third quarter of 2021, KRI had an issue with securing vehicle fuel internally which led to increase the cost of fuel products.

For more information on government and fuel provider contact details, please see the following links: HQ staff will input links to sections 4.1 Government Contact List and 4.7 Fuel Providers Contact List here.

Information may also be found at: http://www.mytravelcost.com/petrol-prices/ which is updated monthly. 

Fuel Pricing

In Federal Government, Prices are fixed as per below table for civilians however, wholesales price for international entities in Iraq might cost more equals to the export price.

In KRI:

Seasonal Variations 

Fuel Transportation

Provinces under the Federal Government of Iraq (all Iraq except KRI) are provided with oil products and gas through Oil Products Distribution Company  (OPDC). The company is responsible for supply citizens, Power Plants, government and civil generators with oil gas, discharge of refineries production of liquid gas, benzene, Jet fuel, diesel, and gas oil. it supervises the distribution activities of 1352 fuel station and 2070 gas and oil yards in Iraq. Additionally, it has a fleet of 1287 distribution trucks.

Standards, Quality and Testing

For contact information, please see the following link: 4.7 Iraq Fuel Provider Contact List.

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

Transportation companies are largely available with a wide range of truck typology and loading capacity from 2 MT to 40 MT. Many are small companies with a limited fleet that can scale up their capacity when needed. Maximum limit capacity to be transported in truck is between 24 to 25 MT of cargo all over Iraq including KRI. The quality of the roads is predominantly good, and the price of fuel is generally stable and considerable cheap, but it is slightly more expensive in the governorates of KRI than the rest of the Iraqi governorates.

For more information on transport company contact details, please see the following link: 4.8 Transporter Contact List.

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

Manual labour is easily available throughout Iraq. The local market can provide skilled, semi-skilled and unskilled workers in all sectors of activity. Daily price for an unskilled worker is average 25,000 per day. The daily wages for a skilled worked is on average of 35,000 IQD per day. 

Regarding handling of cargo, common use in Iraq is to charge for:

1. Full offloading or loading of a defined truck size (for light items) or
2. Weight of cargo to be handled (for food and non-food) or,
3. daily labour / paid per day.

The loading and offloading for unskilled workers remain average 25,000 IQD per day.

For more information on telecoms contacts, please see the following link: 4.11 Additional Services Contact List.

Telecommunications Regulations

Existing Humanitarian Telecoms Systems

Internet Service Providers (ISPs)

Mobile Network Operators (MNOs)

For information on MNOs please visit the GSM Association website.

In 2020, exports represented 23.21% of GDP (39,344.6 M.$) while imports represented 25.55 % of GDP (43,297.0 M.$).

According to OEC, in 2019, the top exports of Iraq are Crude Petroleum, Refined Petroleum, Gold, Tropical Fruits, and Petroleum Coke, exported mostly to China, India, South Korea, United State), and Italy. The top imports of Iraq are Refined Petroleum, Broadcasting Equipment, Cars, Jewelry, and Rolled Tobacco, importing mostly from United Arab Emirates, Turkey, China, India, and South Korea. Additionally, Iraq was the world's biggest importer of Wheat Flours ($469M).

Iraq’s manufacturing activity has been closely connected to the oil industry. The major industries in that category have been petroleum refining and the manufacture of chemicals and fertilizers. 

Iraq has a highly competitive market in terms of goods however the level of competency in services varies depending on type of services, for example, high technology services and telecommunication services are not very competitive due to limited number of reliable service providers, though, it can still be considered competitive as at least three reliable service providers are available.

Imports allow high level of competency in the market due to wide range of brands and services offered with potential for scaling up. However, one of the main challenges in the Iraqi market are related to payment method, as bank transfer is not favoured due to lack of liquidity by some of the banks. Additionally, direct contracting and cash payment is the most used methods by the wholesalers rather than tendering and bank transfers.

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

Overview

The market is very rich in all kinds of services/commodities with a various standard, in general the basic services required to set up and run the operation are available in Iraq, and in case of unavailability of some basic services, there's always alternative service to replace them for example the generators replace the national electricity grid during the outages.

For more information on company contact details, please see the following link: 4.11 Additional Services Contact List.

Accommodation

Rental properties are plentiful throughout Iraqi cities but are less common in rural areas. Iraqi houses/apartments vary in size and quality. In general, the newer houses/apartments will be found toward the outer edges of cities and older ones toward the middle. Many of the houses/apartments in the new residential complexes are equipped with security gates, security guards, and 24-hour surveillance cameras.

In addition, all hotels, motels, hotel apartments, and other lodging options are available in Iraq, and they are a combination of (1 to 5 stars).

Electricity and Power

Iraq's power electricity has a total capacity of around 10,000 MW. As a consequence of the increasing economy and the boom in consumer purchases of electrical products and gadgets, the demand for electricity has skyrocketed. Furthermore, power in Iraq is subsidized, resulting in increasing consumption.

Iraq's daily power requirement is 6,400 MW, while daily production averages 4.470 MW. And there's the summer peak demand: 6.800-7,500 MW, or 35%-40% of the peak summer demand that hasn't been reached yet.

In Iraq, electricity is generated by:

1. Thermal power stations: the nominal rating (5,415) MW the actual rating (1,600) MW.
2. Gas turbine stations: the nominal rating (2,181) MW the actual rating (650) MW.
3. Hydroelectric stations: the nominal rating (2,518) MW the actual rating (650) MW.
4. Diesel stations: nominal rating (87) MW actual rating (87) MW.
5. Imports:
   1. Jordan 1 cent per kilo/per hour.
   2. Turkey 5.58 cents per kilo/per hour.
   3. Iran 650 MW of electricity from Iran.
   4. Kuwait.

Financial Services

There are plenty of reliable financial services companies in the country, the most well-known ones, can be found in the contact list.

Clearing and Forwarding Agents

There are plenty of reliable clearing and forwarding agents in the country, as well as a number of transporters who working as clearing and forwarding agents, the most well-known ones, can be found in the contact list.

Handling Equipment

There are plenty of reliable handling equipment companies in the country, the most well-known ones, can be found in the contact list.

Postal and Courier Services

There are plenty of reliable postal and courier services companies in the country, the most well-known ones, can be found in the contact list.

Printing and Publishing

There are plenty of reliable printing and publishing companies in the country, the most well-known ones, can be found in the contact list.

Taxi Companies

There are plenty of reliable taxi companies in the country, the most known ones are Taxi Careem and Ober.

Vehicle Rental

There are plenty of reliable vehicle rental companies in the country, and they also have a representative office at the airport arrival terminal, the most well-known ones, can be found in the contact list.

Waste Management and Disposal Services

Municipalities are responsible for management of waste and disposals. There are sub-contractors who oversee collecting waste and disposals. These contractors have factories/facilities for recycling plastics and papers.

In Federal Iraq: The disposal of food and non-food items are through the Ministry of Science and Technology. While for medical items, the disposal should be done through cooperation with MoH and hospitals that have a special waste and disposal facilities.

In KRI: Below are the steps for disposing items:

1. The organization/stakeholder directs a letter to JCC.
   1. The letter is entitled (Request to Dispose/Destroy Items).
   2. Attach a list of items (quantity and description).
   3. Attach photos of the items to be destroyed.
   4. Mention a focal point name of the organization.
2. Based on the letter received from the organization/stakeholder, JCC sends a letter to the Environmental Protection Agency.
3. The Environmental Protection Agency sets an inspection date for taking samples of items to be disposed.
4. The Environmental Protection Agency determines the method of disposing based on the type of items.
5. Following the disposing of the items in the presence of the organization/stakeholder focal point, the Environmental Protection Agency sends two letters, one to JCC and the other to the organization confirming the completion of disposal.

Waste Disposal: Non-hazardous

Municipalities serve as hubs for all forms of waste disposal around the country. Several hubs have been established to collect various forms of waste and handle its elimination or recycling.

There are lots of garbage bins surrounding streets and alleyways in every province's capital and key cities to collect disposals. The government has been attempting for some years to improve the culture of using garbage containers for various forms of disposals.

Waste Disposal: Hazardous

Most of the hazardous disposals are collected inside the plants or hospitals or other industrial places or related places under the control of (Ministry of Health and Ministry of Science and Technology in FI, and (Board of Environmental Protection and Improvement) in KRI. On the other hand, most cities in Iraq are connected to the wastewater network.

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.