U.S. and Iraq finalize new economic development deals

In mid-July 2026, Iraq and the United States marked a historic turning point in their bilateral relations.

During Prime Minister Ali al-Zaidi’s visit to Washington, D.C., the two nations signed over 48 economic agreements valued at more than $60 billion.

This transition signals a major pivot from a two-decade focus on military security to a future centered on long-term commercial partnership and economic modernization.

With the scheduled withdrawal of U.S. forces by September 30, 2026, both countries are embracing what Prime Minister al-Zaidi describes as the new 'era of construction.'

While the scope of these deals is ambitious, experts note that success hinges on Iraq’s ability to foster a stable business environment.

Ultimately, these agreements aim to transform Iraq into a self-reliant regional hub, moving past its history of conflict toward a future defined by industrial growth and economic stability.