The Central Bank reveals the size of Iraq's internal and external debts... and sounds the alarm
Central Bank spokesman Alaa Al-Fahd said in a press statement that "all countries, including the United States of America, have internal and external debts, indicating that debts are not considered negative for the economy if they are directed towards investment spending, because they generate additional income."
Al-Fahd continued, “The debts in Iraq are to cover the deficit in the operational budget, meaning they are directed towards consumption, and therefore they are a future constraint for paying the debt, its installments and interest.”
Al-Fahd identified three ways to address the country’s debt, most notably diversifying non-oil revenues, increasing investments, and partnering with the private sector, which could reduce dependence on oil, while acknowledging the difficulty of achieving the latter option in a short period of time.
Al-Fahd explained that the external debt amounts to $13 billion, while the internal debt amounts to 91 trillion dinars, noting that a large part of it can be dealt with because the banks are government-owned and state-owned, ruling out that these debts pose any danger to the economic reality, but continuing to rely on debt constitutes a warning bell, according to his description.
Saleh: Electronic wallets and mobile banks are the path to financial inclusion for vulnerable groups
Saleh told Al-Furat News that “financial inclusion indicators in Iraq have recently risen to more than 40%, compared to previous low levels, after suffering greatly from the high percentage of the population not covered by banking, especially in remote areas that suffer from weak banking and communication infrastructure, in addition to weak financial awareness, widespread reliance on cash, and limited funding for small and micro enterprises.”
He explained that “financial literacy, human capacity building, national awareness campaigns on saving, banking services, and protection from financial fraud represent one of the pillars of financial inclusion, along with introducing financial literacy skills into school curricula and vocational education,” considering financial inclusion “one of the pillars of economic and social stability.”
Saleh pointed out that “weak access to organized financial services deepens the disparities between urban and rural groups,” stressing that “the policy required to promote financial inclusion will provide innovative options for remote areas and vulnerable and poor groups through mobile banking and the provision of direct services, in addition to developing strategic partnerships between banks and telecommunications companies to deploy mobile payment services and enhance digital transfer networks to facilitate access to financial transfers for all residents.”
According to the economic advisor, "The expected effects of these policies will contribute to integrating hundreds of thousands of citizens into the formal banking system, improving project financing opportunities, and creating new jobs by expanding affordable lending and microfinance initiatives and establishing digital platforms to connect entrepreneurs with banks and financing providers, while reducing the economy's reliance on cash and increasing transaction efficiency."
He stressed that “the Central Bank of Iraq is working on implementing a digital financial inclusion strategy in a coordinated and phased manner, focusing on digital financial transformation through electronic wallets, mobile payments, and the adoption of digital and biometric identity to open bank accounts remotely and reduce operational costs for citizens,” considering the bank account “a fundamental pillar in financial inclusion.”
Saleh concluded by saying that “enhancing financial inclusion requires an integrated vision that combines digitalization, financial regulation, capacity building and expanding financing for small projects,” noting that “implementing these policies will create a more inclusive and sustainable economy and enhance the resilience of families and projects in remote areas and their active participation in sustainable development, in line with the 2024-2028 development plan and Iraq’s 2050 vision.”
Financial inclusion and digitalization: Iraq's vision for boosting the economy and sustainability
Financial inclusion has become a key tool for improving financing opportunities and reducing reliance on cash in Iraq, according to statements by Mazhar Muhammad Saleh.
The Prime Minister’s economic advisor, Mazhar Muhammad Salih, revealed that electronic wallets and mobile banking represent a key mechanism to enhance financial inclusion for vulnerable groups in Iraq, enabling women, youth and rural residents to access banking services, reduce reliance on cash, and expand financing opportunities for small and medium enterprises.
Saleh said that “financial inclusion indicators in Iraq have recently risen to more than 40% compared to previous low levels, after suffering greatly from the high percentage of the population not covered by banking, especially in remote areas that suffer from weak banking and communication infrastructure, in addition to weak financial awareness, widespread reliance on cash, and limited financing for small and micro enterprises.”
He explained that “financial literacy, human capacity building, national awareness campaigns on saving, banking services, and protection from financial fraud represent one of the pillars of financial inclusion, in addition to introducing financial literacy skills into school curricula and vocational education.”
He considered financial inclusion to be “one of the pillars of economic and social stability.”
Regulated financial services
Saleh pointed out that “poor access to organized financial services deepens the disparities between urban and rural groups.”
He stressed that “the policy required to promote financial inclusion will provide innovative options for remote areas and vulnerable and poor groups through mobile banking and the provision of direct services, in addition to developing strategic partnerships between banks and telecommunications companies to spread mobile payment services and enhance digital transfer networks to facilitate access to financial transfers for all residents.”
According to the economic advisor, “The expected effects of these policies will contribute to integrating hundreds of thousands of citizens into the formal banking system, improving project financing opportunities, and creating new jobs by expanding affordable lending and microfinance initiatives and establishing digital platforms to connect entrepreneurs with banks and financing providers, while reducing the economy’s reliance on cash and increasing transaction efficiency.”
Coordinator and phase
He stressed that “the Central Bank of Iraq is working on implementing a digital financial inclusion strategy in a coordinated and phased manner, focusing on digital financial transformation through electronic wallets, mobile payments, and the adoption of digital and biometric identity to open bank accounts remotely and reduce operational costs for citizens.”
He considered the bank account to be “a fundamental pillar of financial inclusion.”
Saleh concluded by saying that “enhancing financial inclusion requires an integrated vision that combines digitalization, financial regulation, capacity building and expanding financing for small projects.”
He pointed out that “implementing these policies will create a more inclusive and sustainable economy and enhance the resilience of families and businesses in remote areas and their active participation in sustainable development, in line with the 2024-2028 development plan and Iraq’s 2050 vision.
Expert: The dollar exchange rate will not change; Iraq's crisis is financial, not monetary.
Economic expert Manar Al-Obaidi confirmed that Iraq’s crisis is purely financial, resulting from inflated public spending and a scarcity of non-oil revenues, and is not a monetary crisis. He explained that addressing the financial volatility through manipulating the exchange rate is merely a “patchwork solution” that provides temporary liquidity but does not address the root of the problem, noting the absence of an urgent need to adjust the exchange rate at present.
midst the growing speculation about the intention to change the exchange rate of the Iraqi dinar, which has led some to set hypothetical dates and figures, we must discuss this issue from a scientific economic perspective, far removed from populist proposals, by breaking down the situation into three essential axes:
1. No need for cash:
Based on monetary policy indicators (the size of foreign reserves, inflation rates, and monetary cover), there is no urgent need to adjust the exchange rate at present. The Central Bank, as the competent sectoral authority, sees no justification for such a move.
The crisis that Iraq is suffering from is a “financial” crisis par excellence, resulting from the inflation of public spending and the scarcity of non-oil revenues, and not a “monetary” crisis. Therefore, addressing the financial volatility through manipulating the exchange rate is nothing but a “patchwork solution” that provides temporary liquidity but does not address the root of the problem.
2. The cost and risks of the decision:
Theoretically, Iraq has the ability to change the price, but “ability” does not mean “right”.
Using the exchange rate as a tool to finance deficits undermines the credibility of monetary policy, creates a hostile environment for investment, and destabilizes the market. Investors and the private sector need stability, and the constant threat of exchange rate changes erodes this confidence.
3. Foresight:
The most likely scenario is that the exchange rate will remain unchanged, for one fundamental reason: the absence of any genuine fiscal reform plan to restructure government spending. Any change to the exchange rate must be part of a comprehensive reform package, not an isolated measure. And without a clear rescue plan aligned with fiscal and monetary policy, there is no justification for any adjustment now or in the near future.
The "Emami" currency surpasses 120 million tomans... Gold prices hit new record highs in Iran
With foreign currency prices continuing to rise and the economic situation in Iran deteriorating, the prices of various gold products have recorded new record highs in the latest transactions in the local markets; the price of the new gold coin known as “Emami” has exceeded 120 million Tomans.
According to reports from websites specializing in tracking gold and currency prices, each "Emami" coin was traded on Saturday, November 29, in the Tehran market at a price of 120,900 Tomans.
The price of half a gold coin also exceeded 62 million and 500 thousand tomans.
The price of the US dollar in the free market in Tehran reached 115,000 tomans.
The rise in currency and gold prices in Iran comes at a time when food prices have increased by more than 66 percent during the past year, with some categories recording even greater increases; bread and grain prices rose by 100 percent, fruits and nuts by 108 percent, vegetables by 69 percent, beverages by 68.3 percent, fish by 52.3 percent, and milk, cheese, and eggs by 48.6 percent.
In recent weeks, runaway inflation and rising foreign exchange rates have added new concerns about the deteriorating economic situation in Iran, a trend that has worsened following the activation of the "snapback mechanism" and the return of UN sanctions.
Farid Mousavi, a member of the Iranian parliament's economic committee, warned that with inflation rates continuing to rise, "it is not unlikely that the dollar will reach 130,000 tomans during the winter."
The latest report from the Iranian central bank indicated that capital outflows during the spring of this year reached a historic record high, reflecting the depth of the financial crisis in the country.
On October 8, Valiollah Bayati, the representative of the city of Tafresh in the Iranian parliament, warned in a parliamentary session of rising commodity prices after the activation of the "snapback mechanism," pointing to new record highs in the gold and currency markets. He told Iranian President Masoud Pezeshkian: "You say that the sanctions and the snapback mechanism have no effect, but in practice, the dollar and gold have reached record levels, and inflation is outrageous. It is better to be honest with the people. The people are worried."
This new surge in gold and currency prices in Iran comes at a time when gasoline prices have recently been raised, and some Iranian regime officials have warned of even higher commodity prices.
Mohsen Biglari, secretary of the Planning and Budget Committee in the Iranian parliament, told Rouydad 24 on Friday, November 28: “If people are forced to buy gasoline at a price of 5,000 tomans, this increase will certainly affect the prices of other goods and services.”
He added that "higher gasoline prices could provoke social discontent."
The Central Bank identifies 3 solutions to address the debt issue
The Central Bank of Iraq identified three solutions to address the country's debt problem. While noting that a large part of the internal debt could be addressed through joint understandings, it stressed the need to diversify non-oil revenues and increase investments, asserting that these approaches would transform the economy from a rentier economy to a diversified and productive one.
Earlier, a number of economic experts downplayed the risks of Iraq’s internal and external public debt, stressing that its ratio is still within the safe international standard range, indicating that the strength of the foreign currency reserves has contributed to the stability of Iraq’s financial situation.
Amid this, the Prime Minister’s financial advisor, Dr. Mazhar Muhammad Saleh, stated in a statement to Al-Sabah last week that “only $3 billion remains of the Paris Club debt, and it will be settled by 2028, and that 47% of the internal debt remains within the investment portfolio of the Central Bank of Iraq, and it is covered as cash liquidity or cash liabilities at a rate of more than 100% in foreign currency, thanks to the strength of Iraq’s foreign reserves.”
The official spokesperson for the Central Bank, Alaa Al-Fahd, explained to Al-Sabah newspaper that “all countries, including the United States of America, have internal and external debts,” indicating that debt is not considered negative for the economy if it is directed towards investment spending, because it generates
For additional entry.
Al-Fahd continued, "The debts in Iraq are to cover the operational budget deficit, meaning they are directed towards consumption, and therefore they are a future constraint on debt repayment."
And its installments and interest.”
Al-Fahd identified three ways to address the country’s debt, most notably diversifying non-oil revenues, increasing investments, and partnering with the private sector, which could reduce dependence on oil, while acknowledging the difficulty of achieving the latter option in a short period of time.
Al-Fahd explained that the external debt amounts to $13 billion, while the internal debt amounts to 91 trillion dinars, noting that a large part of it can be dealt with because the banks are government-owned and state-owned, ruling out that these debts pose any danger to the economic reality, but continuing to rely on debt constitutes a warning bell, according to his description.
For his part, Dr. Ahmed Al-Hathal, Professor of Economics at Al-Mustansiriya University, said that the problem does not lie in the size of the debt as much as it lies in the way it is financed.
Al-Hathal added to Al-Sabah that “financing the deficit through the monetary institution by discounting bonds and financing current spending is the most dangerous path because it leads to unproductive monetary expansion that raises inflation and puts pressure on the exchange rate, and it also weakens the balance sheet of the central bank after it has come to own a large part of the internal debt, which is a worrying situation in any economy.”
He explained that the danger lies in the rentier nature of the economy, with inflated operating spending, stagnant non-oil revenues, and the inability of productive sectors to generate added value. This makes domestic borrowing for consumption, rather than investment, a future burden, because the state will pay off the debt burden by putting pressure on the limited tax capacity of the national taxpaying power, while the risks move from banks to public finances and then directly to the currency.
Al-Hathal explained that the accumulation of non-tradable bonds limits the ability of the monetary policymaker to manage liquidity and increases the fragility of the financial position, while inflationary financing leads to greater pressure on foreign reserves and depletes stabilization tools, making the currency vulnerable to decline with any oil shock.
He pointed out that talking about diversifying revenues and increasing investment remains logical in principle, but it does not address the real problem of continuing to finance the deficit in a way that generates inflation, increases monetary expansion, and weakens the ability to stabilize the currency, at a time when obligations are rising year after year without real structural reform.
Al-Nasik Islamic Bank: Expanding customer service channels is a priority
Al-Nasik Islamic Bank confirmed that its management is working to expand its services to citizens by developing banking products that meet the needs of various segments.
A responsible source at the bank stated that the bank seeks to provide practical solutions that facilitate customer transactions and keep pace with the rapid changes in the financial sector.
The source mentioned that the bank's management has developed a plan to introduce new services based on modern technologies and adhering to the Sharia standards that the bank adopts in all its dealings. He pointed out that the goal is to provide a more flexible and faster banking experience, especially with the increasing demand for digital services.
He added that the bank is focusing on promoting a culture of modern banking transactions in line with the trends of the national market, noting that management closely monitors customer feedback and strives to improve procedures to ensure better service.
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Savaya: Iraq is at a crossroads... either controlling weapons or returning to a "spiral of complexity".
The US President's envoy to Iraq, Mark Savaya, confirmed on Saturday that Iraq stands at a crossroads, between restricting weapons or returning to a "spiral of complexity".
Savaya said in a post on the X website that "the world views Iraq as a country capable of playing a larger and more influential role in the region, provided that the issue of weapons outside the control of the state is fully resolved, and the prestige of official institutions is protected ."
He added, "No economy can grow, nor can any international partnership succeed, in an environment where politics is intertwined with informal power. Iraq now has a historic opportunity to close this chapter and strengthen its image as a state based on the rule of law, not the power of weapons ."
He continued, "It is equally important to establish the principle of separation of powers, respect constitutional frameworks, and prevent interventions that may hinder the political decision-making process or weaken the independence of the state," explaining, "Strong states are built when the executive, legislative, and judicial authorities operate within their defined limits and are held accountable through clear legal mechanisms, not through centers of pressure or influence ."
He asserts, "Iraq stands at a crucial crossroads. It can either move towards independent institutions capable of enforcing the law and attracting investments, or it can return to the cycle of complexity that has burdened everyone ."
He continued, "What we need today is to support the country's progress, respect the constitution, strengthen the separation of powers, and make a firm commitment, coupled with concrete action to keep weapons out of politics. This is the way to build a strong Iraq that commands the world's respect."
Trump's envoy: Iraq is capable of playing a larger role in the region, provided the issue of weapons outside the state is resolved.
US President's envoy to Baghdad, Mark Savaya, affirmed on Saturday that Iraq is capable of playing a larger and more influential role in the region, provided that the issue of weapons outside the control of the state is resolved.
“Today the world views Iraq as a country capable of playing a larger and more influential role in the region, provided that the issue of weapons outside the control of the state is fully resolved, and the prestige of official institutions is protected,” Savaya said in a post on the X-link.
He added, “No economy can grow, nor can any international partnership succeed, in an environment where politics is intertwined with informal power. Iraq now has a historic opportunity to close this chapter and strengthen its image as a state based on the rule of law, not the power of weapons.”
Savaya added, “It is equally important to establish the principle of separation of powers, respect constitutional frameworks, and prevent interventions that may hinder the political decision-making process or weaken the independence of the state. Strong states are built when the executive, legislative, and judicial authorities operate within their defined limits and are held accountable through clear legal mechanisms, not through centers of pressure or influence.”
He stressed that “Iraq stands at a crucial crossroads. It can either move towards independent institutions capable of enforcing the law and attracting investments, or it can return to the cycle of complexity that has burdened everyone.”
The US envoy concluded by saying: “What we need today is to support the country’s progress, respect the constitution, strengthen the separation of powers, and make a firm commitment, coupled with concrete action, to keep weapons out of politics. This is the way to build a strong Iraq that commands the world’s respect.”
Savaya: Big changes are coming to Iraq
US President Donald Trump’s envoy, Mark Savaya, announced on Sunday that he will arrive in Iraq within the next two weeks, confirming that he carries “a special message from President Trump to the leadership in Iraq and the Kurdistan Region.”
“Big changes are coming in Iraq, and from now on everyone will see actions instead of words,” Savaya said in a press statement, indicating Washington’s seriousness in taking concrete steps toward the outstanding issues.
Earlier today, Savaya confirmed via the “X” platform that the world views Iraq “as a country capable of playing a larger and more influential role in the region, provided that the issue of weapons outside the framework of the state is completely resolved, and the prestige of official institutions is preserved.”
Savaya: I will arrive in Iraq within the next two weeks.
Mark Savaya, the special envoy of US President Donald Trump, announced that he will arrive in Iraq within the next two weeks, revealing that he is carrying “a special message from President Trump to the leadership in Iraq and the Kurdistan Region.”
In a statement to Rudaw Media Network, which was followed by “Dijlah News”, Savaya pointed to changes taking place in Iraq, saying that “big changes are coming in Iraq, and from now on everyone will see actions instead of words.”
Earlier today, Savaya said on the X platform that the world will now view Iraq “as a country capable of playing a larger and more influential role in the region, provided that the issue of weapons outside the framework of the state is fully resolved, and that the prestige of official institutions is preserved.”
He argued that Iraq now has “a historic opportunity to close this chapter and enhance its image as a state based on the rule of law, not on the power of weapons.”
Trump’s envoy warned that Iraq today stands “at a crucial crossroads; either it moves towards independent institutions capable of enforcing the law and attracting investment, or it returns to the cycle of complexity that has burdened everyone.”
On October 19, 2025, US President Donald Trump announced the appointment of Mark Savaya, who was a key figure in his election campaign, as special envoy to Iraq.
Savaya: I will arrive in Iraq in two weeks... Big changes are coming and the proliferation of weapons outside the country must end.
Mark Savaya, the envoy of US President Donald Trump, announced on Sunday (November 30, 2025) that he will arrive in Iraq within the next two weeks, confirming that he carries "a special message from President Trump to the leadership in Iraq and the Kurdistan Region."
In press statements followed by “Baghdad Today”, Savaya said, “Major changes are coming in Iraq, and from now on everyone will see actions instead of words,” in reference to Washington’s readiness to take concrete steps towards the outstanding issues.
Earlier today, Savaya confirmed via the “X” platform that the world views Iraq “as a country capable of playing a larger and more influential role in the region, provided that the issue of weapons outside the framework of the state is completely resolved, and the prestige of official institutions is preserved.”
He added that Iraq currently has "a historic opportunity to close this chapter and enhance its image as a state based on the rule of law, not on the power of weapons."
The US envoy warned that Iraq today stands "at a crucial crossroads; either it moves towards independent institutions capable of enforcing the law and attracting investment, or it returns to the cycle of complexity that has burdened everyone."
International experts: Iraq represents a promising destination for business and investment.
John Wilkes, the former British ambassador to Baghdad and a member of the advisory board of the Iraqi-British Business Council, praised the flourishing infrastructure in Iraq, predicting that the new government would continue its approach of supporting investment and developing the economy.
This came during a seminar organized by the Iraqi British Business Council (IBBC) and the British Chamber of Commerce in Turkey (BCCT) entitled “Doing Business in Iraq”, which reviewed investment opportunities and mechanisms for entering the Iraqi market.
The participants affirmed that Iraq represents a promising destination for business, noting that international cooperation contributes to promoting sustainable economic development.
For his part, Robin Steelick of the Pilgrims organization discussed the security situation in Iraq, stressing the importance of local knowledge to avoid any limited disturbances, noting that the overall economic situation is stable and calm.
Jamil Shukair, CEO of SC Middle East, also presented an overview of the overall financial situation, emphasizing that the fundamentals of the Iraqi economy are developing positively, with a growing population and demand for services, along with increased oil production and large-scale construction projects driving economic growth.
Industry and Minerals: Iraq's silica reserves exceed 350 million tons
The Ministry of Industry and Minerals announced that the proven reserves of silica in Iraq amount to more than three hundred and fifty million tons.
Ministry spokeswoman Duha al-Jubouri said that silica is a vital raw material used in many important industries.
She explained that the most prominent strategic industrial sectors in which silica is used are glass industries, solar cells, and thermal industries.
In addition to insulators and electronics, noting that the ministry is currently working on utilizing them mainly in the glass and refractories industries.
A government stripped of factions: The American condition clashes with the will of the IMF in Baghdad.
All eyes in Baghdad are on the crucial behind-the-scenes maneuvering to form the next Iraqi government, amid unprecedented American pressure.
For the first time, Washington is so explicitly demanding a "non-factional government" as a prerequisite for international recognition of the legitimacy of the entire political process, linking this condition to future economic and security support for Iraq.
The winning political forces, foremost among them the Coordination Framework, the Sadrist Movement, and the Sunni and Kurdish alliances, are continuing intensive negotiations at the presidential and parliamentary headquarters, but they are encountering a solid American obstacle.
According to sources, the US administration, through direct and indirect diplomatic channels, informed a number of political leaders of its categorical rejection of any figure openly associated with armed factions assuming sovereign positions, security ministries, or even some sensitive service ministries.
Washington believes that Baghdad’s commitment to this red line will definitively determine Iraq’s position in the upcoming regional equation, especially in light of escalating tensions with Iran and Israeli concerns about any strengthening of the “axis of resistance’s” influence within state institutions.
According to the information circulating, the United States seeks to establish a new political environment completely free of the dominance of armed factions over executive decision-making, even if they remain represented in parliament.
This American demand clashes with an electoral reality that cannot be ignored: the political blocs affiliated with the factions have won dozens of seats in the new parliament, reflecting the will of a broad electorate in the central and southern regions.
This duality creates a deep tension between the will of the IMF on one hand, and the will of the major international power on the other, and puts Iraqi political forces before a difficult choice: either to accept Washington’s conditions and risk the anger of their popular base, or to proceed with forming a government that respects the election results and exposes Iraq to possible diplomatic and economic isolation.
The advertising economy: Is it turning into a threat to public health and market confidence?
The advertising economy in Iraq is growing as a chaotic, uncontrolled mass, driven by the sale of unknown products and the absence of any governmental or health oversight, while digital platforms are turning into a shadow market that competes with regular markets and exposes consumers to untested goods and dangerous drugs.
Iraq is witnessing a rapid rise in the digital advertising economy, but this rise is based on near-total chaos, where unlicensed products are sold and unknown goods are promoted, while platforms transform into a massive shadow market outside state control. Between weak oversight and the unchecked power of influencers, society is facing a new economy with no clear rules.
Advertising chaos: an economy growing outside state oversight
The spread of digital advertising in Iraq was not just a natural development with the rise of social media, but in just five years it has turned into a parallel economy that is growing every day without controls, as some experts estimate that it earns tens of billions of dinars per month without going through the banking system or being subject to clear tax control.
In a country suffering from a crisis of confidence between consumers and markets, this type of trade has created an ideal opportunity for entities that exploit the gray areas not covered by laws, taking advantage of the state's hesitation and weak technical expertise in dealing with global platforms.
The story begins with paid advertising on Facebook, Instagram, and TikTok, where anyone can create a page and purchase targeted ads for a small fee, reaching hundreds of thousands of users within hours. This ease has created something akin to a "free market" where no one knows who runs it, who regulates it, or who is held accountable for its outcomes.
Some pages promote perfumes and cosmetics, others sell nutritional supplements of unknown origin, and still others display recycled electronic devices as new. There are also pages that sell "diets" and weight loss drugs without company names or licenses.
No material inspection
Thus, without a single legal declaration, a massive digital advertising-driven economy has emerged, but one that operates entirely outside the state. There are no taxes, no company registration, no product testing, no consumer protection, and no guarantees.
What is more dangerous is that this economy has begun to compete with official markets, which contain reputable companies that import licensed goods and pay customs duties in full.
Economic experts point out that the advertising economy in Iraq has become “distributed” among four main parties: page owners who reap profits, influencers who use their fame to market anything, advertisers who benefit from weak oversight, and users who find themselves facing a vast market without rules.
Over time, the platforms began to transform into an alternative source of trade, far from any official controls, and the Iraqi consumer began to move in a space where he could not verify the authenticity of any commodity or the background of any page.
This chaos is not merely an economic phenomenon; it reflects deeper flaws in the state's structure, flaws that have allowed parallel markets to emerge and grow faster than institutions can manage them. In the absence of clear regulations, advertising becomes an open field for anyone with a phone, time, and a modest budget.
Influencers without responsibility...
And a society that falls into the trap of digital trust
One of the most dangerous aspects of the advertising economy in Iraq is the “influencers” sector, whose pages have become a huge marketing platform in recent years, displaying products without inspection and giving them an air of trust because the page owner is famous or has a wide audience.
This shift has made many people trust advertising content in a way that surpasses their trust in traditional markets, because the influencer appears directly, speaks in a tone close to the audience, and makes the product seem like the magic solution that everyone needs.
The problem is that a large number of influencers don't verify the product before promoting it, don't request licenses, and don't inquire about its source. Many of them advertise unknown "cosmetics," "herbal mixtures" packaged without labels, unlicensed "weight loss pills," or counterfeit electronic devices.
The reason is simple: advertising has become the primary source of income for influencers, to the point that some of them admit that 70% of their income comes from these advertisements, and that they are unable to stop, regardless of the type of product.
This situation has created a new social phenomenon characterized by widespread, unchecked confidence, and it meets with an audience looking for quick solutions for illness, cosmetic procedures, or to improve their lives.
Increase in security reports
Conversely, security reports and health data are increasing regarding cases of harm suffered by users who purchased products advertised by influencers. Some of these products caused severe allergic reactions, others damaged the liver, while some hospitals have recorded cases of poisoning due to "herbal medicines" that were later found to contain prohibited substances.
Social psychology experts indicate that the influence of social media influencers in Iraq has increased due to three factors:
1. Decline in trust in traditional markets: People have lost trust in sellers and shops due to widespread fraud, and have emotionally shifted towards influencers.
2. The absence of a culture of organized online shopping: In other countries there are official websites, reviews and ratings, while in Iraq the user relies only on promotional videos.
3. Social and aesthetic pressure: especially among women and young people, who have come to see advertising as a way to improve their appearance or health, without being aware of the effects of unknown products.
Between influencers seeking profit and consumers looking for quick solutions, a huge market is created, and no one knows how it moves or who is responsible for regulating it.
Unidentified products and unregulated trade: The state pursues the shadow of an invisible market.
The health aspect of this issue is the most dangerous aspect of all. Digital advertisements have become an outlet for products that have not entered through official channels, have not been registered with the Ministry of Health, and have not been subjected to any laboratory testing. Some of them come from unknown factories abroad, and others are mixed locally in unsanitary places and sold in decorative packaging.
Sources from regulatory bodies speak of a “new wave of commercial fraud” that relies on advertising, rather than the traditional market. Chemicals are being sold under the guise of “herbal products,” counterfeit perfumes are being sold as French, weight-loss drugs contain internationally banned substances, and recycled electronic devices are being sold as new.
Information circulating within health circles indicates that some of these products enter through unofficial channels, or under the guise of other goods, and are then marketed through electronic advertising networks in exchange for commissions.
But the dangers of this issue extend beyond public health, reaching into the security and economic spheres. The advertising industry has also become a conduit for money laundering, with large sums being funneled through advertising on unknown pages or via external financial channels. And with the lack of oversight on small transfers, it is difficult to trace the flow of funds used to finance this market.
unfair competition
Economically, this chaos has harmed respectable Iraqi companies that import genuine goods and pay fees and inspections, but find themselves in unfair competition with cheap, unlicensed goods marketed through influencers at low prices, which hits the local industry and weakens consumer confidence in good products.
Although the state has tried in recent months to take measures, such as the National Security Agency’s campaigns against fake pages, the Ministry of Commerce’s announcements about seizing unlicensed products, and the Media Authority’s proposals on regulating advertisements, the problem is too big for one entity to solve.
The digital economy is fast, innovative, and cross-border, while state institutions still operate in a paper-based manner and with a traditional administrative structure, making the confrontation unequal.
What Iraq needs in this matter is not just limited campaigns, but a clear legislative framework that addresses the regulation of digital advertising, the registration of advertising companies, consumer protection, product inspection before marketing, imposing a tax on advertisements, regulating the work of influencers transparently, and establishing a media code of conduct.
Without this framework, the advertising economy will continue to expand as a shadow economy, increasing commercial chaos and weakening public trust in everything published on platforms.
When the market grows larger than the state, advertising becomes a borderless economy.
The advertising economy in Iraq today is not just a cultural phenomenon, but a new generation of commerce growing outside the authority of the state. However, it is a dangerous economy because it affects three essential elements in the life of society: people’s health, market stability, and the citizen’s confidence that the commercial system protects him from fraud.
The chaos in advertising reveals a fundamental weakness: the state has yet to establish a genuine framework for the digital economy. As a result, parallel markets are growing around it and far ahead.
Unless this issue is addressed with comprehensive policies, Iraq will face a digital market larger than it can control in the coming years, the spread of unknown products will increase, legitimate companies will be harmed, commercial fraud will deepen, and platforms will remain an open space for those who have money, not for those who have responsibility.
Regulating the advertising economy is not a luxury, but a necessity to protect society, establish rules of trade, rebuild trust, and ensure that the future of the digital economy in Iraq does not turn into permanent chaos in which the state stands on the sidelines, unable to intervene
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