After a series of political crises, including a protracted delay in forming a new government, Iraq remains in a period of relative political stability at a time when internal and regional security concerns are heightened. Prime Minister Sudani recently marked two years in office. His ascension to the role came after a year of deep political tensions, no annual government budget, and episodes of violence. Despite the security challenges, Sudani has played a significant role in promoting stability. Iraq passed a three-year budget and Sudani has navigated a difficult tightrope between appeasing Iran and maintaining the Coalition mandate. Sudani’s “National Priorities” closely align with UK objectives and to date, the existing TAFFI has supported these priorities through several interventions.

Nevertheless, Iraq suffers from long-standing internal political, religious, ethnic and tribal divisions – interwoven with regional divisions. This includes within the Shia base, resulting in violent protests in 2022. These divisions can create opportunities for extremist groups, such as Daesh. Although territorially defeated, Daesh is still a threat. Iranian Aligned Militia Groups (IAMGs) active in Iraq also pose a security threat to Western interests. Regional tensions, particularly between the US and Iran exacerbate the tensions. Despite being a middle-income country, Iraq is vulnerable to economic crisis and suffers from the ‘oil curse’. Rampant corruption is a significant driver of instability and confidence in government institutions across Iraq is low. Climate change, energy crises, the inequitable distribution of resources and a lack of economic opportunity all present longer-term threats to Iraqi stability.

The Technical Assistance Facility for Iraq 2.0 aims to strengthen the capacity and capability of the Government of Iraq and Kurdistan Regional Government institutions to implement priority reforms and tackle security threats.