IFC Backs Major Expansion of Iraq’s Umm Qasr Port

The International Finance Corporation (IFC) is investing in Aloreen Company for Investments Limited to expand container handling capacity at Iraq's Umm Qasr port, strengthening the country's trade infrastructure as it seeks to position itself as a regional logistics hub.

Umm Qasr is Iraq's only deep-water port and a critical gateway for imports and exports. The new financing will fund modern equipment and significantly increase the terminal's throughput capacity, responding to rising demand for port services and growing regional trade flows.

Capacity to Rise by Over 50 Percent

Under the financing package, Aloreen will procure:

• Four ship-to-shore cranes

• Ten rubber-tyred gantry cranes

The investment will boost annual container handling capacity by more than 50 percent — from 550,000 twenty-foot equivalent units (TEUs) to 830,000 TEUs.

The upgrade is expected to improve operational efficiency, reduce congestion, and support faster cargo processing at one of Iraq's most strategic infrastructure assets.

The new funding builds on IFC's 2021 financing package, which supported development of a modern terminal aimed at reducing vessel turnaround times and improving service reliability.

Supporting Iraq's Development Road Vision

The expansion aligns with Iraq's flagship Development Road Project — a national initiative to transform the country into a key transport corridor linking the Gulf region through Iraq to the Turkish border and onward to Europe.

By modernizing Umm Qasr's capacity, the project strengthens Iraq's ambition to become a pivotal transit and trade hub, enhancing connectivity with neighboring countries and facilitating regional integration.

"IFC is spearheading the World Bank Group's efforts to support Iraq's private sector as the country enters a new chapter of development," said Emin Bulent Ikiisik, IFC's Acting Regional Industry Manager for Infrastructure in the Middle East, Pakistan and Afghanistan.

The investment supports three strategic goals, he added:

• Positioning Iraq as a regional trade hub

• Reducing reliance on oil revenues

• Creating sustainable employment opportunities

Driving Diversification and Job Creation

Iraq's economy remains heavily dependent on hydrocarbons. Upgrading trade infrastructure is seen as essential to diversifying economic activity and attracting private investment into logistics, manufacturing, and related industries.

Improved port efficiency can:

• Lower trade costs

• Shorten supply chains

• Increase competitiveness for Iraqi exporters

• Stimulate job creation in transport and logistics

The project also aligns with the World Bank Group's Country Partnership Framework for Iraq, which prioritizes infrastructure modernization to catalyze economic diversification and private sector development.

IFC's Long-Term Engagement in Iraq

Since 2005, IFC investments in Iraq have helped create more than 28,000 jobs — including approximately 5,000 for women — while supporting infrastructure, financial access, manufacturing growth, and food security.

The Umm Qasr expansion represents a continuation of IFC's strategy to mobilize private capital into essential infrastructure projects that underpin long-term economic transformation.

As Iraq advances its Development Road agenda, the modernization of its only deep-water port is expected to play a central role in connecting regional trade corridors and strengthening the country's integration into global supply chains.