LocationsInterview with the Prime Minister Advisor Hasan Al-Khatib on the Future of Digital Transformation in Iraq
January 4, 2026
“Digital Iraq Is Full of Potential, Once It Opens, It Will Be the Ultimate Prize”
Interview with the Prime Minister Advisor Hasan Al-Khatib on the Future of Digital Transformation in Iraq
Over the past several years, Iraq has been experiencing something it has not enjoyed in decades, sustained stability. Streets are cleaner, sidewalks are organized, cafés and malls are opening across major cities, and there is a sense of momentum. Historic center of Baghdad is being restored and high rise buildings signal the economic development that is waited for long. According to Hasan Al-Khatib, this stability has laid the groundwork for something even bigger: the digital transformation of Iraq.
We sat down with Al-Khatib to talk about the progress the country has made, the work that still lies ahead, and why he believes Iraq is poised to become one of the most attractive digital markets in the region.
A New Foundation for Progress
“Iraq today feels different,” Al-Khatib begins. “Stability has created the conditions for real progress, progress that you can see and feel. And digital transformation is benefitting directly from that.”
He explains that a strategic delay has held Iraq back: “If we had been more focused earlier, we would be much further along today. What we lacked was strategic collective planning and a centralized authority. That structure now exists and is in formation, finally giving Iraq the coordination it needs."
The Four Pillars of Digital Public Infrastructure
Al-Khatib highlights four pillars that every country needs to build digital public infrastructure. Iraq, he says, is advancing on each of them:
- Digital Identity – “Over 90% of Iraqis already have the unified digital ID. The next step is giving services secure API access to verify identity.”
- Electronic Payments – “In place since 2008, e-payments stopped fraud in pension distribution and are critical for automation.”
- Electronic Signature – “Recently introduced and now fully operational. Without digital signature, automation cannot be completed.”
- Data Access and Sharing – “This it the most delayed area. We need to start producing and sharing data through digital systems to make services fast, accurate, and transparent.”
He points out that these four pillars serve one purpose: productivity, transparency, and accuracy, which directly translate into GDP growth.
The Human Capital Challenge
For Al-Khatib, the real bottleneck is not technology, it's people. “We graduate students who have never used a laptop. That is 50 years behind the world. Most Iraqi students have smartphones, but smartphones are used for entertainment, not productivity. Only 10–15% of university students own laptops, limiting their ability to learn modern skills.”
To close this gap, he is championing a national program to provide a laptop for every university student, financed through a combination of discounted vendor pricing, long-term loans supported by the Islamic Development Bank, insurance to cover non-payment, grants for the poorest students. He continues, “With support of UNDP and GIZ we would like to realize this project as quickly as possible. It is a crime to have university students graduated without touching a laptop. We want to support graduate a workforce truly ready for the digital economy.”
AI — Not Before the Basics
While AI is a trending topic in Iraq as elsewhere, Al-Khatib urges realism. “ Don’t talk to me about AI if a student doesn't know how to send an email. We must build brick by brick. We talk about AI without knowing what we talk about. My team here has launched an AI prompt-engineering training club, where we discuss AI. However it should come after foundational digital skills and infrastructure, not before.”
Digitalization, Transparency, and Corruption
Does digitalization eliminate corruption? “No,” Al-Khatib says bluntly. “Digitalization is a tool. Eliminating corruption requires leadership and willpower. Digital systems allow visibility, monitoring and traceability, but only if decision makers choose to use them. Similarly, digital trust depends on proper data governance, which should be shaped by experts, not rushed regulation. Many countries have done it already. We need to learn from them, not reinvent.”
Barriers to Adoption: The mindset
Cash remains dominant in Iraq, despite electronic payment systems being available for years.
“The challenge is not infrastructure, it’s mindset. Some merchants refuse electronic payments because they don’t want transparency.” Al-Khatib says. “Therefore I propose offering temporary tax amnesty to encourage merchants to adopt digital payment tools and experience the increased sales that electronic transactions enable.”
When asked to rate Iraq’s progress on digital transformation, Al-Khatib is unusually candid: “Less than 1%. But that is good news. Iraq is a green field. The potential is enormous. The global technology companies view Iraq as the biggest future digital market in the region: Not Saudi Arabia, not UAE, not Qatar, Iraq. When Iraq opens up, the market will open.”
Al-Khatib believes Iraq stands on the edge of a transformation that could define the next decade: “The technical pillars I mentioned are forming and we see a rise in the private sector energy. This country is young and young Iraqıs are eager to learn. Investors are watching us closely. All the ingredients are there, what we need now is focus, persistence, and a commitment to build, brick by brick, until Iraq becomes a fully digital state.”