Iraq Strengthens Digital Transformation Efforts with Nokia Partnership and Central Bank Digital Currency Plans

Iraqi Prime Minister Mohammed Shia Al-Sudani affirmed Iraq’s eagerness to collaborate with Finland-based Nokia to develop critical infrastructure supporting the government’s digital transformation across public agencies and various industries. The remarks were made during a meeting with Finnish Ambassador Anu Saarela and Nokia officials, according to a statement from the Prime Minister’s Office (PMO).

Al-Sudani highlighted that Iraq has laid the groundwork by creating legislative frameworks, establishing dedicated institutions, and deploying necessary technology to drive digital innovation. At the 34th Arab Summit, Iraq showcased key initiatives focused on digital transformation and artificial intelligence (AI), underlining these efforts as integral to the country’s strategy for advancing digital business.

In November, during discussions with Deemah AlYahya, Secretary-General of the Digital Cooperation Organization (DCO), Al-Sudani emphasized the inclusion of digital transformation in Iraq’s economic reforms, administrative modernization, and electronic payment systems. The government expressed readiness to collaborate with the DCO to design regional projects fostering digital and AI development.

In March, Central Bank of Iraq (CBI) Governor Ali Al-Alaq revealed plans for a comprehensive digital transformation strategy aiming to transition Iraq towards a digital government. Key ministries are spearheading these reforms, supported by initiatives and the establishment of a data center. Paper-based transactions at the CBI have already decreased by 50% over the past year, with elimination targeted soon.

Al-Alaq also announced that the CBI is developing a national digital currency to eventually replace paper notes in interbank transactions. This effort involves cooperation with Arab and international organizations, including the Arab Monetary Fund, positioning Iraq at the forefront of financial digitalization in the region.

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