Cover
Volume 7, Special Issue 5 (2026)

Published: September 30, 2026

Pages: 365-380

Research Article

Foreign direct investment and its role in reducing unemployment and stimulating economic growth: The Iraqi Economy as a Case Study – 2004-2023

Mustafa A. Al-Maamouri 1 kadhim S. Al-Araji 2
1The Holy Imam Hussein Shrine, Karbala, Iraq
2Department of Economics, College of Administration and Economics, University of Babylon, Hilla, Iraq
History
  • Received: July 26, 2026
  • Accepted: August 28, 2026
  • Available Online: September 30, 2026
DOI

https://doi.org/10.56967/ejfb2026975

Abstract

The economy faces accumulated challenges, including high unemployment rates, particularly among young people, and the weak contribution of non-oil sectors to GDP, in addition to economic fluctuations related to oil prices. The research problem lies in the structural challenges that the Iraqi economy suffers from, most notably high unemployment rates, weak economic diversification, and excessive dependence on the oil sector, which has negatively affected the sustainability of economic growth. The research aims to demonstrate the role of foreign direct investment in stimulating unemployment and economic growth. The descriptive analytical method was used to reach the research results, which led to a number of conclusions, the most important of which is that foreign direct investment is one of the important tools for supporting economic growth in Iraq, as it provides capital flows that contribute to increasing productive capacity and improving GDP rates, especially in non-oil productive sectors. It also contributes to creating direct and indirect job opportunities through the establishment of new projects and the expansion of existing activities. The researchers recommend working to improve the investment environment by strengthening political and security stability, simplifying administrative procedures, combating corruption, and developing the legal framework regulating investment in a way that ensures the protection of investors and at the same time achieves the national interest.

Keywords

References

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