Abu Dhabi-based venture capital fund EQIQ is making significant strides in Iraq’s technology sector, planning to double its fund size from $15 million to $30 million by the end of the year. This ambitious move comes as the country experiences a surge in entrepreneurial activity, particularly in areas like FinTech, e-commerce, and logistics.

Mohamed Al Hakim, co-founder of EQIQ, recalls the challenges he faced when he decided to return to Iraq in 2014, amid chaos and uncertainty. He left a stable real estate career in London to start his own business in Iraq, a decision he had contemplated for two years. Al Hakim emphasizes the potential of Iraq as “a promising market and fertile ground that needs many services and projects.”

According to the global start-up research platform StartupBlink, Iraq’s entrepreneurship landscape is improving, moving up one spot to rank 118th globally for 2025, with Baghdad recognized as one of the top 1 000 cities in the Global Startup Ecosystem Index, experiencing annual growth of 64.3 percent. Although specific data on the sector’s contribution to the economy is scarce, the momentum is evident.

Al Hakim’s journey includes launching multiple ventures at a young age and a background in investment banking with Goldman Sachs. In Iraq, he has co-founded several initiatives, including Ideal Financial Services, which developed a digital wallet, and Zain Iraq Islamic Bank, promoting financial inclusion. He also led Careem’s operations in Iraq before founding EQIQ.

In January 2023, EQIQ raised $15 million from local and regional investors, deploying $8.5 million into five tech-focused ventures, including a digital bank that is yet to become operational. The fund aims to capitalize on Iraq’s digital economy, with Al Hakim stating, “The first $15 million was a market test. We saw very positive results, so we are expanding the fund’s size.”

The current environment in Iraq is characterized by a significant improvement in security and political stability, which Al Hakim notes has positively impacted entrepreneurship. He aims to increase financial returns for investors by tenfold in the next five years, despite challenges such as high unemployment and a heavy reliance on oil revenue, which constitutes over 90 percent of the government’s budget.

While the country is launching infrastructure projects and reforms to enhance the business climate, issues like bureaucratic obstacles, corruption, and outdated laws remain prevalent. Al Hakim points out the lack of a legal framework for establishing ventures in Iraq as a critical barrier, which is why EQIQ is registered in Abu Dhabi’s Abu Dhabi Global Market. He remains optimistic about the opportunities that lie ahead, stating, “We can adopt the latest technologies and updates, and begin at an advanced stage.”