Iraq is reportedly keen on joining the expanding BRICS block of nations. According to a report by Amwaj Media, Iraq is looking to bolster its economy.
In 2023 the emerging economic and geopolitical alliance comprising Brazil, Russia, India, China, and South Africa, invited six other nations to join its ranks.
These are Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates, which are set to join in January 2024.
This development has sparked interest from several other nations, including Iraq.
However, Iraq may face significant hurdles on its way to membership. They include Iraq’s heavy reliance on oil exports and limited trade with certain founding BRICS members, making its accession unlikely in the near future.
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Why BRICS membership matters to Iraq
Iraq’s close partnerships with three invitees—Abu Dhabi, Riyadh, and Tehran—have fueled calls within its political circles to explore BRICS membership.
While support for this move primarily comes from the Shiite Coordination Framework, a coalition of Iran-backed parties in the current government, other political actors are increasingly considering the idea.
MP Zeinab Al-Mousawi, a parliamentary Oil and Energy Committee member, has emphasised the potential economic benefits of joining BRICS.
She highlights that BRICS members possess abundant natural resources, including oil, metals, minerals for technology industries, and grains.
Iraq, although rich in specific resources like petroleum, lacks the investment and planning capabilities to harness its wealth fully. Joining BRICS could facilitate knowledge exchange and resource management improvement.
Moreover, joining the bloc could enhance Iraq’s economic independence, hampered by Tehran-Washington tensions affecting its financial stability.
By establishing new economic relationships, Iraq aims to reduce the dominance of the U.S. dollar and alleviate financial and trade restrictions imposed by Washington.
As exemplified by the Development Road or “Dry Canal” corridor initiative, Iraq’s strategic location positions it as a potential gateway to West Asia.
This $17 billion project aims to connect Asia to Europe through highway and railway routes, further aligning with the initiatives of BRICS members, such as China’s Belt and Road Initiative.
Iraq’s status as a consumer goods market also presents export opportunities for BRICS nations, particularly China and India. Simultaneously, Iraq’s infrastructure development needs offer prospects for BRICS-based companies.
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Potential challenges
Despite the allure of BRICS membership, skepticism persists in Iraq regarding the feasibility of joining anytime soon. Critics cite Iraq’s financial situation as a significant impediment, as it does not meet the prerequisites for membership.
BRICS expects new members to have rapidly growing economies, implement economic reforms, boost trade with existing members, and maintain a diverse economy.
Iraq’s overwhelming dependence on oil for revenue—accounting for up to 96% of state revenues—poses a considerable challenge. This dependence is unlikely to change in the near future, given the absence of significant alternative revenue streams.
Furthermore, limited trade with some BRICS countries, such as Brazil, Russia, and South Africa, hinders Iraq’s ability to fulfill membership conditions. Iraq’s weak agricultural and industrial sectors also prevent it from accessing loans and services from the BRICS-affiliated New Development Bank.
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Charting the path forward
Should Iraq pursue BRICS membership, it would need to undergo substantial economic reforms to align its economy with those of existing BRICS members.
These reforms must positively impact Iraq’s economy and enable it to engage effectively with BRICS states.
Reforming Iraq’s economy presents challenges, as BRICS nations vary in economic structure. Iraq must carefully consider its approach to aligning with BRICS members while addressing these diversities.
Economist Abdul Samad Saadoun stressed the importance of increasing trade exchanges with BRICS members to enhance Iraq’s appeal.
However, he also warned of the need for stable economic growth, sustainable development, and internal political stability.
The volatile political landscape in Iraq has also contributed to BRICS’ hesitancy to engage with the country.
Until Iraq addresses its reliance on oil exports, limited trade with certain BRICS members, and industrial weaknesses, its prospects of joining the organisation will likely remain slim.
