Iraq to launch 350M IQD guarantor-free loans for young entrepreneurs
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Yasmin Alta
- . June 11, 2025
- . Update: June 11, 2025 8:48 pm
The Iraqi Ministry of Labour and Social Affairs has implemented a national loan program for 2025 with a budget of 35 million IQD (about US $24,000) that will benefit more than 11,000 beneficiaries. The loans were initiated through the Small-Income-Generating Projects Fund and will help entrepreneurs, especially in the vulnerable youth and social protection groups.
The government expects to issue 11,428 approved applicants for interest-free loans to encourage self-employment and grow small businesses in all governates. The Ministry has been eager to undertake new initiatives to support and strengthen the government’s employment strategy and promote local businesses by reducing unemployment. Among the beneficiaries, 2,862 loans were given to individuals who were already receiving social welfare. The Ministry announced plans to continue the loan program into 2024, 2025. Each year, debtors would be able to loan the loan of 11,428 applicants.
Through this form of funding, the Iraqi government is aiming to develop unemployed, low-income citizens so that they are successful in their businesses and are no longer reliant on the State for support but are able to enable their means of livelihood. The Ministry will administer how the funds will be distributed across the country and anticipate positive impacts on the participating economy and citizens.
This is a significant step toward Iraq’s development strategy concerning further local development of communities to increase Iraqis’ capacity for employment.
