Iraq seeks German investment, hints of oil exports to Germany

Iraqi Prime Minister Ali al-Saidi invites German companies to participate in country's reconstruction and hints at exporting crude oil to Germany.

Iraq aims to diversify its oil exports to Europe, with plans to double production to 9-10 million barrels a day, half of which will go to Europe and the West.

German Chancellor Friedrich Merz emphasizes the need to combat corruption in Iraq and highlights existing partnerships between German companies and the Iraqi government.

Iraqi Prime Minister Ali al-Saidi, in Berlin for an official visit on Tuesday, invited German companies to take part in the reconstruction of his country.

He also floated the idea of exporting crude oil to Germany and building a pipeline to do so.

"German companies are welcome," al-Saidi said after a meeting with Chancellor Friedrich Merz. "German firms, and other firms too, can operate stably in Iraq."

Iraq has abundant raw materials and a large workforce. "But it needs the technology and German expertise," al-Saidi said.

The partnership will not be one-sided, said al-Saidi, offering agreements on oil exports.

Due to its proximity, Iraq traditionally exports its oil to East Asia. But the current prime minister wants to diversify. There is a pipeline to Turkey and one to Syria. His country also would like to export oil via the Mediterranean to France.

"Our vision is to double what we can produce. We want to reach nine to 10 million barrels a day." Half of this should go to Europe and the West, the Iraqi prime minister said.

Both governments agreed on an action plan for the further development of their cooperation. "Germany has an interest in a strong and prosperous Iraq," said Merz.

This includes "good relations" between Baghdad and the Kurds in the north of the country. Many German companies are already active in Iraq. "They are developing new solutions, for example for energy supply; they are doing pioneering work in waste management; and they are boosting our trade."

A good example, said Merz, is an agreement between the Iraqi government and the German company Siemens Energy on the electricity supply. This was signed after the press conference.

The chancellor emphasized that Western companies rely on favourable framework conditions in Iraq for investment. "We want to make progress in the fight against corruption. And we would like to see an even more transparent and efficient administration within a system based on the rule of law." On this, Iraq can count on Germany's support, Merz said.