Iraq non-oil revenue hits record 16%

Shafaq News- Baghdad

Iraq’s non-oil revenues reached a record 16% of total government income during May and June, marking the highest contribution from sources outside the oil sector in years, the Echo Iraq Observatory reported on Saturday.

Non-oil revenues had previously accounted for less than 5% of state income before rising to around 10% during the government of former Prime Minister Mustafa al-Kadhimi (2020-2022), a level that remained largely unchanged under former Prime Minister Mohammed Shia al-Sudani (2022-2025).

‘’Revenues transferred by Iraq’s Kurdistan Region accounted for around 5.5% of total non-oil revenues,’’ the Observatory noted, attributing non-oil revenues to several sources, including taxes on goods, production fees, general service charges, taxes on income and wealth, transfer revenues and other state income streams.

Despite the increase in non-oil income, Iraq, OPEC’s second-largest oil producer, remains heavily dependent on crude exports. This reliance has come under growing pressure following disruptions to shipping through the Strait of Hormuz, which carries roughly 20% of global oil supplies. In late March, economic expert Nabil Al-Marsoumi estimated that Iraq had cut production by about 2.9 million barrels per day, the largest reduction among OPEC members.

Read more: No exit but Hormuz: Iraq's economic vulnerability exposed