Does Iraq Have a Digital Economy? A Sectoral Study on the Opportunities, Challenges, and Regulations

Executive Summary

This publication provides market research insights into the digital economy in Iraq, analyzing the progress of digital transformation across key sectors including e-commerce, fintech, telecommunications, ride-hailing, healthcare, education, tourism, and agriculture. The report is designed for companies, investors, policymakers, and organizations seeking data-driven insights on the Iraqi market, highlighting both growth opportunities and structural barriers affecting digital adoption.

Drawing on sector-level analysis and regional comparison, the study examines regulatory frameworks, infrastructure readiness, payment systems, and workforce capabilities shaping Iraq’s digital economy. It also assesses Iraq’s position relative to selected MENA markets to identify areas of competitive advantage and structural gaps. The findings aim to support market entry strategies, investment decisions, and policy planning within Iraq’s evolving digital landscape.

The digital economy in Iraq refers to economic activities enabled by digital technologies, including internet connectivity, mobile infrastructure, software platforms, and data-driven services. It encompasses the digital production, distribution, and consumption of goods and services, as well as the transformation of traditional industries and business processes through technology adoption. Within Iraq, the digital economy plays a growing role in improving market access, service delivery, and private-sector efficiency despite ongoing infrastructure and regulatory challenges.

The study focuses on eight sectors undergoing digital transformation, classifying them into two groups:

Several overarching challenges hinder Iraq's digital economy development:

Sector-Specific Insights:

 Iraqi youth show a strong interest (over 80%) in working within the digital economy, particularly in e-commerce and educational technology, and believe digital skills will positively impact their careers and salaries. There is widespread optimism (over 80%) regarding Iraq's digital transformation initiatives. However, there is a recognized need to align educational programs with in-demand skills, and informal training is perceived as more practical and up-to-date than traditional education. A self-assessment tool (DigCompSat) indicated that participants have strong proficiency in Information and Data Literacy and Problem Solving, moderate in Safety, but need more development in Digital Content Creation skills, especially programming.