Regional and International Partnerships and Iraq’s Long-Term Stability

Iraq’s long-term stability will depend not only on its domestic political and economic choices but also on the quality of its relationships with regional and international partners.

After decades of conflict, displacement and institutional disruption, Iraq has entered a different phase in which security must increasingly be connected to economic development, effective governance and social resilience.

The role of external partners should therefore evolve from crisis management toward sustained cooperation that strengthens Iraq’s own institutions and capacity.

Security remains an important component of this partnership. Iraq has made significant progress since the territorial defeat of ISIS, but regional conflicts, terrorism, border insecurity and political tensions can still threaten its stability.

Regional partners should support Iraq’s sovereignty and territorial integrity while encouraging dialogue rather than allowing the country to become an arena for competing regional interests.

The United Nations has previously emphasized regional cooperation involving border security, trade, energy, water and displacement. Economic diversification should be another central priority.

Iraq remains heavily dependent on oil revenues, leaving public finances and economic growth exposed to fluctuations in global energy markets.

The World Bank notes that this oil-dependent model creates economic volatility and that climate change, water scarcity and the global energy transition create additional risks.

International partners can help Iraq develop sectors such as agriculture, manufacturing, logistics, tourism, digital services and renewable energy. Investment should be accompanied by technology transfer, workforce development and support for Iraqi businesses rather than simply financing individual infrastructure projects.

Infrastructure is equally important. Reliable electricity, water systems, transportation networks, healthcare facilities and telecommunications are foundations for economic opportunity and public confidence.

International financial institutions can provide long-term financing and technical expertise, while regional countries can contribute through cross-border infrastructure, energy connections and trade corridors.

The World Bank currently supports Iraq across areas including transport, energy, water, social protection and institutional reform. Governance should remain at the heart of external assistance.

Financial support has limited long-term value if institutions cannot manage resources transparently or deliver services effectively. International partners can assist with public-sector capacity, judicial institutions, anti-corruption mechanisms, regulatory reform and data systems while respecting Iraqi ownership of these reforms.

The United Nations’ 2025–2029 cooperation framework places good governance and the rule of law alongside inclusive social development, sustainable economic growth and climate resilience.  Human development also deserves sustained attention.

Young Iraqis need access to education, vocational training, healthcare and productive employment. Women, displaced communities and other vulnerable groups should be included in development programmes. International partners can provide expertise and financing.

But programmes should increasingly be designed and implemented through Iraqi institutions and communities. The UN’s current framework explicitly prioritizes these groups and emphasizes strengthening national systems.

Climate and water cooperation will become increasingly strategic. Iraq faces rising temperatures, water scarcity and environmental pressures that can affect agriculture, migration and social stability.

Regional cooperation over shared water resources, alongside international financing for climate adaptation, could therefore become an important pillar of national security and economic planning.

External partners should help Iraq build the capacity to solve its own problems. The transition from the UN’s former political mission, UNAMI, to a development-focused partnership illustrates this changing relationship. The current UN framework is explicitly designed around Iraq’s national development priorities and Vision 2030.

The most durable international partnership is therefore one that combines security cooperation, investment, institutional development, human capital and regional diplomacy while preserving Iraqi ownership.

Stability cannot be imported indefinitely. It becomes sustainable when Iraq’s institutions, economy and communities possess the capacity to maintain it themselves.

Exploring How Baghdad Can Navigate Rising Regional Tensions, Balance Relations with Iran, the United States, Turkey and Gulf States

Baghdad is confronting one of the most complicated foreign-policy challenges in its modern history. Iraq’s geographic position places it between Iran, Turkey, the Gulf states and the wider strategic interests of the United States.

As regional tensions intensify, Baghdad must protect its sovereignty without severing relationships that are important to its security, economy and diplomatic influence. The challenge has become particularly acute amid heightened U.S.-Iran tensions.

Iraq has historically maintained deep economic, political and social connections with Iran while simultaneously developing extensive security and economic cooperation with Washington.

Analysts have described this relationship as a persistent balancing act, complicated by Iran-linked armed groups operating inside Iraq and by American pressure for greater state control over armed forces.

For Baghdad, the central principle should be sovereignty. Maintaining productive relations with Tehran does not require permitting Iraqi territory to become a platform for attacks against neighboring states or foreign forces.

Similarly, cooperation with Washington should not mean allowing Iraq to become an extension of American regional military strategy. Establishing clear rules governing foreign military activity and armed groups would strengthen Baghdad’s diplomatic credibility.

The relationship with Iran will remain particularly sensitive. Iran is an important trading partner and has longstanding connections across Iraqi society and politics.

At the same time, Iran-aligned armed factions have created complications for Baghdad’s relations with Washington and Gulf countries. Recent tensions involving attacks launched from Iraqi territory have placed additional pressure on Baghdad’s efforts to strengthen ties with Arab neighbors.

Iraq therefore needs a state-centered security framework in which all armed formations ultimately operate under national command. Such a process would be politically difficult, particularly because some Iran-aligned groups possess significant political and social influence.

Stronger institutional control over security policy would give Baghdad greater freedom to conduct independent diplomacy. Turkey represents another important dimension of this strategy.

Ankara and Baghdad have expanding interests in trade, energy, water management and regional connectivity, including the proposed Development Road. Security disputes involving Kurdish armed groups and Turkish military operations in northern Iraq remain sensitive sovereignty issues.

Baghdad can therefore pursue economic cooperation with Turkey while maintaining clear diplomatic mechanisms for addressing security disagreements. Economic interdependence could provide incentives for continued dialogue rather than confrontation.

Relations with Gulf states are equally important. Iraq’s Arab neighbors can provide investment, infrastructure partnerships and broader economic integration. Baghdad has already sought to repair Gulf relations following tensions associated with the regional conflict.

Strengthening these ties would diversify Iraq’s external partnerships without necessarily requiring Baghdad to abandon its relationship with Tehran. The United States should remain part of Iraq’s international strategy, particularly through economic investment, energy cooperation, counterterrorism and institutional support.

Washington’s relationship with Baghdad will remain complicated by disagreements over Iran-aligned militias and the future role of U.S. forces in Iraq. Baghdad’s strongest strategy is not choosing one external power over another.

It is building enough domestic institutional strength to engage all of them from a position of greater autonomy. A balanced foreign policy, supported by stronger security institutions, diversified economic partnerships and sustained regional diplomacy, could help Iraq reduce the risks created by geopolitical competition.

Iraq cannot change its geography, nor can it eliminate the rivalries surrounding it. But Baghdad can determine how those rivalries interact with Iraqi interests. By placing sovereignty, economic resilience and national institutions at the center of its diplomacy.

Iraq can pursue relationships with Iran, the United States, Turkey and the Gulf states without allowing any single relationship to define its future.