by Irina Tsukerman
For most Americans, Iraq still evokes war, terrorism, militias, oil, and the long political argument over whether Washington should remain involved in the country at all. That familiar picture obscures a far more consequential debate now taking place inside Iraq, where officials are trying to determine whether the country can use telecommunications, data transit, cloud infrastructure, cybersecurity, and artificial intelligence to diversify an economy that remains dangerously dependent on oil revenues and public employment. Prime Minister al-Zaidi’s recent visit to the White House created an opportunity to expand Iraq–U.S. relations beyond military cooperation and recurring regional crises by giving investment, technology, infrastructure, and professional training a larger role in the partnership.
Iraq has genuine advantages in this field, including a large and youthful population, substantial unmet demand for modern digital services, and a geographic position connecting the Gulf with Türkiye and Europe. Those advantages have existed for years, although unreliable electricity, inconsistent regulation, cybersecurity concerns, bureaucratic delays, and political uncertainty have prevented Iraq from developing them fully. International companies may see considerable commercial potential in the Iraqi market, yet they also need confidence that contracts will be enforced, licenses will not become hostage to institutional rivalry, sensitive data will receive adequate protection, and expensive equipment can operate without prolonged interruptions.
I recently conducted an email interview with H.E. Minister of Communications Mustafa Sanad about how his ministry intends to address these problems and where American companies could contribute. His answers covered the expansion of fiber-optic infrastructure, international data transit, cloud computing, artificial intelligence, cybersecurity, data sovereignty, university partnerships, technical training, investor protection, and the regulatory reforms required to attract major technology companies. Sanad described telecommunications as a national economic project whose success will affect education, healthcare, banking, public administration, commerce, employment, and Iraq’s ability to compete with neighboring countries that have already invested heavily in digital infrastructure.
Sanad assumed the communications portfolio after representing Basra in parliament and serving on the parliamentary Finance Committee, where his work involved budgets, public expenditure, investment, and oversight of large government programs. His academic and professional background includes petrochemical engineering technology, oil and gas economics, public administration, and previous work connected to Iraq’s energy sector. He also gained experience following government projects and public services in the office of former Prime Minister Adel Abdul Mahdi, which gave him direct exposure to the bureaucratic failures that frequently delay Iraqi infrastructure projects even after officials have secured funding and political approval.
His earlier work included efforts to strengthen cooperation between universities and international companies, particularly in engineering, oil, gas, maritime technology, and professional training for students in Basra. That interest now appears throughout his communications agenda, since Iraq will need far more than imported equipment and foreign contractors to build a serious digital economy. The country requires Iraqi engineers capable of maintaining advanced optical networks, cybersecurity specialists able to detect and contain sophisticated intrusions, regulators who understand rapidly changing technologies, lawyers familiar with data and intellectual-property rules, and entrepreneurs capable of turning improved connectivity into viable commercial services.
The Ministry of Communications oversees national telecommunications policy, fixed infrastructure, international connectivity, fiber networks, state-owned communications and information services, postal development, and cooperation with the institutions responsible for regulation and licensing. The Communications and Media Commission exercises significant regulatory authority, while the State Company for Telecommunications and Informatics implements infrastructure programs directly or through
partnerships with private and international companies. Investors will judge this arrangement according to whether it produces clear decisions and predictable procedures, particularly when large projects also require approvals from customs authorities, provincial governments, security agencies, electricity providers, tax bodies, and other ministries.
Since taking office, Sanad has pressed fiber-to-the-home providers and local tower operators to improve coordination and service quality, while calling for faster internet packages without corresponding price increases. His ministry has worked to expand connectivity around border crossings, religious sites, and heavily traveled pilgrimage routes, where communications networks face sharp surges in demand and where service failures can create public-safety problems. He has also supported stronger cybersecurity capabilities within the ministry and linked the expansion of Iraq’s domestic fiber network to the larger objective of carrying international traffic between the Gulf, Türkiye, Europe, and Asia.
I began by asking which telecommunications project could produce the greatest economic effect during the next five years, particularly as Iraq continues searching for credible sources of growth beyond oil and government employment.
“I believe the modernization of Iraq’s national digital infrastructure, particularly the expansion of fiber-optic networks and their integration with regional connectivity corridors, will have the greatest impact,” Sanad told me. “This project extends far beyond the telecommunications sector; it provides the foundation for education, healthcare, banking, e-commerce, and virtually every aspect of the digital economy. Once Iraq has reliable, high-speed digital infrastructure, it will be able to attract new investment, create knowledge-based jobs, and accelerate sustainable economic growth, which remains one of our highest national priorities.”
The minister’s emphasis on fiber reflects the uneven development of Iraq’s communications market, which grew under sanctions, dictatorship, war, insurgency, terrorism, damaged infrastructure, weak institutions, and rapid population growth. Mobile services expanded quickly after 2003 because operators could deploy them faster than a comprehensive fixed network, while neighborhood towers and local providers filled gaps through arrangements that often produced wide variations in speed, price, and reliability. Fiber can improve household service while also providing the capacity required by banks, hospitals, universities, industrial facilities, logistics companies, government platforms, media organizations, and technology firms.
The economic effects will depend on how widely the network reaches and whether ordinary Iraqis can afford to use it. A fiber program concentrated in affluent districts of Baghdad, Basra, Erbil, and other major cities would reproduce existing inequalities in a more technologically advanced form, leaving rural communities, smaller towns, poorer neighborhoods, schools, clinics, and local businesses with limited access. Iraq will need credible buildout obligations, transparent pricing, enforceable service standards, and incentives for providers to reach areas where the immediate commercial return remains modest.
American experience with rural broadband, municipal networks, public-private partnerships, and universal-service programs could help Iraqi officials design more equitable forms of expansion, although those models would need to reflect Iraq’s geography, income levels, administrative capacity, and security conditions. U.S. companies could also contribute network-management systems that identify outages quickly, improve maintenance, and allow regulators to measure whether providers are meeting their obligations rather than relying on self-reported performance.
Sanad also emphasized Iraq’s potential role in carrying international data between the Gulf, Türkiye, Europe, and Asia, describing the country’s territory as a comparatively direct land route that could provide faster connections and additional resilience when maritime cables are damaged or congested.
“Iraq possesses a unique geographical advantage: it represents the shortest land route for data traffic between the Gulf and Türkiye, and onward to Europe, offering a strategic alternative to traditional submarine cable routes,” he explained. “Our vision is to transform this geographic advantage into an operational reality by completing the connection of Iraq’s national fiber-optic network to all border crossings and establishing transit agreements with international operators that make Iraq a competitive option in terms of cost, reliability, and latency.”
“Moving from a consumer to a regional digital hub means that regional data will transit through Iraqi territory while value-added services, including data centers and Internet Exchange Points, are developed inside Iraq rather than imported from abroad,” Sanad continued.
The minister’s formulation recognizes that transit fees alone will not create the employment, investment, or technical expertise associated with a mature digital economy. Iraq will gain far more if companies use the country as a location for data centers, cloud services, cybersecurity operations, content distribution, regional backup systems, digital payments, gaming, and artificial-intelligence applications. Internet Exchange Points would allow Iraqi networks to exchange traffic domestically, reducing the cost and delay associated with routing Iraqi data through foreign locations, while local cloud infrastructure would make advanced computing and storage more accessible to Iraqi businesses.
A successful international corridor will require more than a cable connecting two borders. Global operators will examine latency, network availability, repair times, physical security, contractual enforcement, and the existence of alternative routes capable of carrying traffic when one line is damaged. Construction accidents, sabotage, theft, technical failure, political unrest, or poor maintenance can interrupt fiber service, which means Iraq will need redundant paths and clearly assigned responsibility for repairs. Companies purchasing transit capacity will also expect accurate information during outages and service agreements that impose consequences when performance falls below contractual standards.
Sanad described how the Ministry, the Communications and Media Commission, and the State Company for Telecommunications and Informatics divide responsibility for policy, regulation, licensing, and implementation.
“The Ministry develops national policy, the Communications and Media Commission works alongside the Ministry to facilitate licensing and regulatory procedures, and the State Company for Telecommunications and Informatics implements projects directly or through strategic partnerships with international companies,” he said.
That institutional division can support effective oversight when responsibilities are clearly defined and decisions remain consistent, although it can also discourage investment when companies receive conflicting instructions from regulators, ministries, provincial authorities, security bodies, customs officials, and state enterprises. Iraq could reduce these difficulties by creating a unified administrative office for major telecommunications and technology investments, with published timelines, standardized documentation, designated decision-makers, and a formal process for resolving disputes among government institutions before those disagreements delay construction or increase costs.
American technical assistance could help Iraq develop such a system while preserving Iraqi authority over licensing and regulation. A joint working group could review recurring obstacles involving land allocation, customs clearance, taxation, electricity connections, security approvals, foreign-currency transfers, and data requirements, giving both governments a way to measure progress and identify which institutions are responsible when projects stall.
When I asked what remained before major technology companies would view Iraq as a preferred destination for cloud infrastructure and digital investment, Sanad identified legal certainty, electricity, telecommunications capacity, and specialized human capital as the principal requirements.
“Three essential elements remain,” he said. “First, we need a clear legal and regulatory environment that provides confidence to investors. Second, we require telecommunications and power infrastructure capable of supporting hyperscale data centers. Third, we must continue developing highly skilled human capital.”
“We are currently accelerating regulatory reforms and simplifying licensing procedures for international technology companies, in coordination with the Communications and Media Commission, to ensure that investing in cloud infrastructure and data centers in Iraq becomes a practical business decision rather than simply a long-term aspiration.”
A hyperscale data center requires uninterrupted power, redundant fiber connections, secure land, predictable taxation, efficient customs procedures, highly trained technicians, advanced cooling systems, physical protection, and enforceable rules governing data, ownership, and access. Iraq’s electricity sector therefore has a direct bearing on the success of the communications agenda, since large facilities cannot rely indefinitely on an unstable public supply supplemented by generators that raise costs, consume fuel, and require constant maintenance.
American companies already interested in Iraqi electricity and energy projects could work with data-center developers on dedicated power arrangements, microgrids, battery storage, gas-based generation, and more efficient cooling systems. Iraq could also designate technology zones near reliable power sources and major fiber routes, provided that these areas receive transparent rules, adequate security, and legal protections capable of surviving changes in government.
Sanad’s emphasis on human capital addresses another weakness that infrastructure contracts alone cannot resolve. Iraq will need specialists able to design optical networks, operate data centers, protect industrial systems, regulate cloud providers, investigate cybercrime, draft digital legislation, and manage complex procurement. Universities will need curricula developed in consultation with employers, laboratories equipped with current technology, internships linked to real jobs, and sustained relationships with foreign research institutions.
American universities, professional associations, and technology companies could establish joint certification programs, visiting faculty exchanges, remote laboratories, and training academies in Iraq. Programs could focus on optical engineering, network architecture, cybersecurity, data-center operations, artificial intelligence, software development, digital law, and technology management. Scholarships and professional exchanges should include women, students outside Baghdad, and applicants from provinces that have received less private investment, allowing the benefits of digital development to extend beyond a narrow professional circle.
When I asked which reforms would do the most to strengthen investor confidence, Sanad placed legal modernization, cybersecurity, data protection, and contractual certainty at the center of the government’s work.
“Our efforts focus on three primary areas,” he told me. “First, modernizing the legal framework governing telecommunications and information technology in line with international best practices. Second, strengthening national cybersecurity capabilities through clear data protection standards and institutional capacity building. Third, providing stronger legal protections for foreign investors regarding ownership rights, financial transfers, and contractual certainty.”
“These reforms are not simply policy statements; they represent an ongoing process that we are implementing in close coordination with the relevant government institutions.”
International technology companies will examine the entire legal environment surrounding an investment, including ownership rights, contract enforcement, transfer of profits, taxation, intellectual-property protection, dispute resolution, government access to data, cybersecurity reporting, encryption, content regulation, and cross-border transfers. Ambiguous or contradictory rules create additional costs because companies have to price political and legal uncertainty into every decision, while prolonged disputes can make Iraq less attractive than neighboring markets offering faster approvals and more predictable enforcement.
American legal and regulatory experts could assist Iraqi institutions with legislation that clearly defines the authority of the Ministry and the Communications and Media Commission, protects competition, regulates access to essential infrastructure, and creates a credible appeals process. U.S. assistance could also support training for judges, regulators, prosecutors, and government lawyers who will have to interpret disputes involving data, cloud services, cyber incidents, intellectual property, and complex technology contracts.
The successful visit by PM Zaidi to DC, his meeting with President Trump, and the series of understandings which are advancing and elevating the US-Iraq relations has created an opportunity to place these issues within a larger economic framework. His government has expressed interest in expanding the role of reputable American companies in energy, electricity, infrastructure, communications, and technology, which could allow both countries to build a commercial relationship less vulnerable to the political crises that have repeatedly dominated bilateral ties. A formal digital-cooperation agreement could connect private investment with government assistance in regulation, cybersecurity, university partnerships, workforce development, cloud policy, infrastructure finance, and intellectual-property protection.
Sanad told me that cooperation with American technology companies has already begun, particularly in optical networking and cybersecurity, while the government hopes to attract larger cloud providers as Iraq improves its investment environment.
“Iraq currently has infrastructure expansion contracts with Ciena, the leading U.S. optical networking company that became one of the world’s largest providers following its acquisition of Nortel’s optical networking business in 2010 in a transaction valued at more than $770 million,” he said.
“In cybersecurity, we are cooperating with ALSCO, an American company specializing in Secure Gateway solutions that utilize patented U.S. technologies incorporating artificial intelligence to analyze network traffic and defend against cyber threats.”
“Looking ahead, we hope to attract major American technology companies such as Amazon Web Services to invest in Iraq’s cloud computing and data center sectors,” Sanad continued. “Iraq represents an underserved market with enormous growth potential, and we view partnerships with leading U.S. technology companies as a strategic opportunity that combines direct investment, technology transfer, and the development of Iraqi talent.”
Ciena’s optical-networking expertise relates directly to Iraq’s ability to provide reliable international transit, since operators will expect high capacity, automated management, rapid fault detection, and consistent performance across long distances.
Cybersecurity partnerships can protect the gateways through which domestic and international traffic passes, while the eventual entry of a major cloud provider would indicate that Iraq had achieved a substantially higher level of electrical, legal, operational, and institutional readiness.
Washington and Baghdad could accelerate this process through data-center feasibility studies, technical reviews of proposed sites, training programs for Iraqi engineers, and assistance with secure government cloud services. American development-finance institutions could consider supporting qualified projects that meet transparent procurement and security standards, while Iraqi authorities could offer investors clearer timelines for licenses, land, electricity, customs clearance, and dispute resolution.
Artificial intelligence occupies an increasingly prominent place in Sanad’s agenda, although Iraq remains at an early stage in developing the computing capacity, data systems, research institutions, and regulatory rules required for large-scale adoption.
“Our ambition is for Iraq to become an active contributor rather than merely a consumer of artificial intelligence technologies,” Sanad said. “Achieving that goal requires investment in local talent, the development of a clear national AI policy, and strong partnerships with universities and research institutions.”
“Our Ministry is working to establish both the regulatory framework and the digital infrastructure necessary to support Iraq’s gradual integration into the regional AI ecosystem.”
Iraq would use AI in electricity management, water monitoring, agriculture, oil production, healthcare, traffic control, banking security, customs operations, public records, and the maintenance of critical infrastructure. Iraqi universities could also contribute to Arabic-language tools adapted to Iraqi dialects, legal terminology, administrative records, historical archives, and the specialized language used in medicine, agriculture, energy, and public administration.
A joint Iraqi-American AI initiative can begin with defined projects whose performance can be measured, including predictive maintenance for power and telecommunications networks, fraud detection in public payments, medical support tools, digital archiving, and systems that identify service failures before they become major disruptions. Iraqi specialists should participate in designing, testing, auditing, and maintaining these systems so that the country develops its own expertise rather than becoming dependent on foreign vendors for every update or repair.
Sanad also addressed the growing importance of data sovereignty, particularly as governments and businesses move sensitive information into cloud systems operated by international companies.
“Data sovereignty should not be viewed as an obstacle to investment; rather, it is a prerequisite for building long-term trust,” he said. “We are working on comprehensive data protection legislation that clearly defines where sensitive data may be stored and how it must be protected, while simultaneously enabling international cloud providers to operate within Iraq under transparent regulatory frameworks that safeguard both national interests and citizens’ rights.”
Iraq could classify information according to sensitivity and apply different rules to government records, defense information, banking data, health records, commercial information, and ordinary consumer data. Highly sensitive material may require storage within Iraq under strict access controls, while less sensitive information could move across borders under approved safeguards.
Citizens will also need enforceable rights concerning the collection, correction, retention, sale, and misuse of personal information, since public confidence in digital services will weaken quickly if users believe that government agencies or companies can exploit their data without consequence.
American and Iraqi experts could cooperate on legislation, judicial training, compliance standards, independent audits, and procedures governing lawful access to data. International cloud providers will need clear rules for responding to official requests, challenging demands that exceed legal authority, reporting breaches, and notifying customers when personal or commercial information has been compromised.
Cybersecurity represents one of the most urgent parts of the minister’s agenda because telecommunications, electricity, banking, energy, transportation, healthcare, and government services now depend on connected systems. Iraq faces criminal ransomware, political espionage, foreign intelligence operations, attacks on industrial control systems, and threats from actors who may use cyber operations alongside military, political, or economic pressure.
“Our greatest concern is the targeting of critical infrastructure, particularly telecommunications networks, energy systems, and the financial sector,” Sanad told me. “Any successful attack against these systems quickly extends beyond technology and directly affects citizens’ daily lives and the continuity of essential services.”
“We are also closely monitoring the growing sophistication of ransomware attacks and AI-enabled cyber threats, which have become faster, more adaptive, and increasingly difficult to counter.”
“International cooperation is therefore not optional; it is essential,” he continued. “We are expanding information-sharing with international partners, establishing national security operations centers capable of rapid monitoring and response, and training highly specialized Iraqi cybersecurity professionals through joint international programs.”
A more developed U.S.–Iraq cybersecurity partnership could include common procedures for incident reporting, continuous threat exchange, penetration testing, secure procurement, protection of industrial control systems, and regular exercises involving officials from communications, electricity, oil, banking, transportation, healthcare, and national security institutions. Iraq will also need a clearly empowered national incident-response structure capable of coordinating ministries, regulators, intelligence services, state companies, and private operators during a major attack.
American support should include technology transfer and long-term professional training rather than creating another system that Iraq cannot operate independently. Iraqi specialists need the authority and expertise to evaluate foreign equipment, investigate intrusions, manage security operations centers, and determine whether products meet transparent security standards. Joint exercises could expose gaps in communication and decision-making before a real attack forces officials to improvise under pressure.
Sanad repeatedly returned to cooperation among government, universities, investors, startups, and established technology companies, reflecting his earlier interest in connecting students with industry and professional training.
“We are working closely with universities and the private sector to establish training programs and business incubators focused on digital technologies and telecommunications,” he emphasized. “We also encourage partnerships among students, startups, investors, and established companies.”
“Our objective is to build a comprehensive innovation ecosystem capable of transforming promising ideas into commercially viable projects that contribute directly to Iraq’s digital economy.”
Business incubators will need access to financing, legal advice, accounting support, intellectual-property expertise, experienced mentors, and customers prepared to purchase Iraqi products. Office space and occasional training events will not produce sustainable companies without investment and market access. Iraq’s diaspora may contribute through remote instruction, mentorship, venture networks, and partnerships with American universities and technology firms, while public procurement programs could give qualified Iraqi startups an opportunity to demonstrate their products through limited government contracts.
Video gaming, e-sports, animation, and interactive media offer additional opportunities because Iraq has a young population, a large audience for mobile entertainment, and considerable potential for Arabic-language game development and digital publishing. American companies and universities could support game-design programs, coding academies, digital art, intellectual-property protection, payment systems, publishing partnerships, and mentorship for small studios. These industries require less initial capital than oil, electricity, or large infrastructure projects and can allow comparatively small Iraqi teams to create products for regional and international markets.
I concluded by asking what achievements Sanad hoped would alter international perceptions of Iraq’s communications sector over the next decade and what legacy he wanted to leave after his tenure.
“I hope that within the next decade Iraq will be recognized as a trusted regional hub for international data transit and digital investment, with telecommunications serving as a genuine driver of economic diversification beyond oil,” he replied.
“The legacy I hope to leave is the establishment of strong, transparent, and sustainable institutional and regulatory foundations that will ensure Iraq’s digital transformation continues regardless of future changes in government or leadership.”
The durability of those foundations will determine whether the current plans produce lasting results, since Iraq has announced many ambitious infrastructure programs that later slowed, changed direction, or became trapped in political and administrative disputes. Sanad’s record will ultimately be judged by whether fiber reaches ordinary households, service improves at a reasonable price, international operators continue using Iraqi routes, cybersecurity institutions function during a serious attack, and investors encounter a professional regulatory environment capable of honoring commitments.
The latest opening in the new stage of the US-Iraq relations gives Baghdad and Washington an opportunity to build a relationship that includes energy and security while also developing telecommunications, cloud services, data centers, cybersecurity, artificial intelligence, university partnerships, gaming, and digital entrepreneurship. American companies can provide technology and investment, Iraqi institutions can provide access to a large and underserved market, and both governments can develop professional partnerships capable of surviving the next political dispute or regional crisis.
Sanad’s agenda is ambitious because Iraq’s problems are substantial, although his responses show a detailed understanding of the connection among infrastructure, regulation, security, education, and investment. The coming years will reveal whether Baghdad can translate that understanding into reliable service, enforceable law, capable institutions, and a digital economy that gives young Iraqis opportunities their parents never had. But the potential is certainly there.
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