The European Bank for Reconstruction and Development, known as the EBRD, has made its very first investment in Iraq. It is putting $100 million into the country through a trade finance deal with the National Bank of Iraq, the largest private bank in the country.
This money will help Iraq buy and sell goods more easily. Through the deal, the National Bank of Iraq will be able to issue guarantees to foreign banks and offer short-term cash support for imports, exports, and the movement of goods inside the country. The facility is part of the EBRD’s long-running Trade Facilitation Programme, which supports trade in developing markets.
For many observers, this move is a big vote of confidence. Christophe Michels, head of the Iraq Britain Business Council, said his organization has been encouraging the EBRD to enter Iraq for some time. He called this deal clear proof that international institutions now see real opportunity in Iraq’s economy, banking system, and investment climate.
The EBRD says the facility will help reduce risks tied to international trade, making it easier for Iraqi banks to work with foreign partners. It is also expected to improve access to finance for small and medium-sized businesses, which are critical for job creation and economic growth.
Catarina Bjorlin Hansen, the EBRD’s head in Iraq, described the agreement as a major milestone. She said the bank is proud to launch its first project in Iraq and sees this partnership as a way to strengthen local businesses, connect Iraq to global markets, and build a stronger and more resilient financial system.
The National Bank of Iraq also welcomed the move. CEO Ayman Abu Dhaim said the partnership is an important step for both the bank and the country. He explained that the facility will support Iraqi businesses, especially smaller companies, and help Iraq trade with the world in a more stable and confident way.
The deal was signed in Baghdad in the presence of senior officials, including the deputy governor of the Central Bank of Iraq. Representatives from the Iraq Britain Business Council and leading figures from the Iraqi banking sector also attended the ceremony.
The National Bank of Iraq was founded in 1995 and works across retail, business, and corporate banking. It is majority-owned by Jordan’s Capital Bank. For the EBRD, which officially began operating in Iraq in September 2025, this investment marks the start of a broader effort to support the private sector, improve access to finance, and help drive long-term economic growth.
In short, this agreement sends a strong message: international confidence in Iraq’s financial future is growing, and global institutions are starting to put real money behind that belief.
