Baghdad is undergoing an amazing transformation, as Prime Minister Mohammed Shia al-Sudani leads a renewed drive to restore the city’s historic centre while courting both domestic and foreign investment.

The government’s launch of a dedicated centre for heritage show quite how big an effort is being made to revive Baghdad’s architectural identity and stimulate economic activity.

During a site inspection on Rashid Street—once the social and cultural heart of Baghdad—the Prime Minister reviewed progress on the third phase of the Downtown Baghdad Rehabilitation Project.

Stretching from Al-Midan Square to Al-Rusafi Square, this phase focuses on restoring historic buildings that suffered decades of neglect and damage from conflict and mismanagement. Engineers and technicians have continued work through the Eid holiday, painstakingly restoring facades and reinforcing structures along the iconic stretch, which includes culturally significant sites such as the Hassan Ajami Café and Hajj Zabala Juice Heritage Shops.

The rehabilitation of Rashid Street is more than a cosmetic upgrade, it is part of a strategy to transform Baghdad into a cultural and investment hub. A newly established municipal centre will oversee the preservation and operation of the area, promoting sustainable tourism and ensuring local businesses and property owners align with the vision for a historically coherent yet commercially active urban space.

This push is receiving institutional backing from the Central Bank, the Association of Banks, and several service departments, reflecting a coordinated approach that blends heritage restoration with financial sector engagement. The coming fourth phase of the project will further extend the transformation, signalling long-term political will and operational support for Baghdad’s redevelopment.

For investors, the timing is critical. Iraq is positioning itself as a frontier market with untapped potential. Its young population, large oil reserves, and improving regulatory framework make it an increasingly viable destination for investment. Heritage-led urban development such as the Rashid Street project offers a rare opportunity to combine economic returns with cultural preservation—particularly attractive in a region eager to redefine its image post-conflict.

While security concerns and bureaucratic hurdles remain, Iraq's leadership is pushing for reform and modernisation. For those willing to navigate the risks, projects like these offer early-mover advantage in a market with significant upside.

The revival of Baghdad’s historical core could prove a compelling symbol of national recovery—and a valuable opportunity for those with an eye on long-term growth, as always, Al Zaeem are ready to assist those looking to invest in Iraq.