2025, Vol. 8, Issue 2

author(s)
Wasan Mashal Sarhan and Mustafa Ibrahim Abdullah

abstract
The world is witnessing a radical transformation in its economic structure with the increasing reliance on the digital economy, which has become a fundamental pillar of growth and development in various countries. However, Iraq still faces significant challenges in keeping pace with this transformation due to several factors, including weak digital infrastructure, a lack of specialized legislation, limited digital skills, and weak institutional coordination. This study aims to analyze the reality of the digital economy in Iraq, identify the most prominent challenges hindering its progress, and compare it with the experiences of neighboring countries such as the UAE, Saudi Arabia, and Jordan. The study adopted a comparative analytical approach supported by quantitative and qualitative data, and relied on official sources and international reports. The results revealed a deep digital divide between Iraq and its neighbors, along with untapped opportunities that can be capitalized on. The study concluded with a three-phase strategic plan aimed at advancing the digital economy in Iraq and achieving digital integration and sustainable development.