Asharq Al-Awsat
·Jul 2026
Inside Iraq’s Shadow Economy of Parties, Militias and Oil
Iraq’s political parties and Iran-aligned armed groups are described as operating interconnected “economic offices” that control government contracts, state institutions, banks and oil revenues. The networks allegedly evolved from direct embezzlement and contract sales into sophisticated shell companies, intermediaries, bribery systems and fuel-smuggling operations, capturing an estimated $15 billion or more annually. A June 2026 crackdown, Operation Dawn Strike, detained officials including Adnan al-Jumaili and Ali Maarij and seized large amounts of cash, but arrests have largely targeted lower-level intermediaries rather than senior political leaders. The campaign may recover funds and reduce Iranian influence, yet dismantling the system would require judicial action, institutional reform and political courage that could destabilize Iraq’s existing power-sharing order.