Real Estate China’s Shandong wins contract to build Baghdad housing By Nadim Kawach May 8, 2025, 10:12 AM Ameer Al-Mohammedawi/DPA via Reuters Children play on a swing in Baghdad's Sadr district. Shandong Construction Company will initially build 11,000 homes in the area First phase of 60,000-home project District to house 400,000 people Chinese projects paid for in oil China’s Shandong Construction Company has won a contract to build the first phase of a 60,000-home project in the Iraqi capital Baghdad. The development will be in an area formerly known as Saddam City after late leader Saddam Hussein, the state Iraq news agency reported, but which was renamed Al-Sadr City. Shandong will build 11,000 homes, the agency reported, citing Prime Minister Mohammed Al-Sudani. “Al-Sudani gave directives to the Chinese contractor to begin work on the project after designs were completed and four investors were picked,” the agency said. It did not identify the investors nor make clear who is paying for the project. The district, which will house more than 400,000 people, adjoins the existing Sadr area. Sadr has a population of around one million. Officials have said that the deal with Shandong is in line with a landmark oil-for-project agreement signed by Iraq and China in 2019. The agreement, prompted by Iraq’s shortages of funds, stipulates that Chinese companies undertake projects in Iraq in exchange for oil supplies. Iraq has awarded several contracts to international firms over the past two years for the construction of new urban districts as part of a post-conflict programme to tackle a housing supply gap caused by damage to thousands of homes and population growth. Iraq plans to build one million houses in two years Masdar’s Iraq solar power projects gain traction after long delays Iraq revives war-devastated fertiliser plant The deals have been offered to investors, who will build the houses and sell them to the public while reserving 10 percent of the units for the government. Iraq opted for such investment contracts after it was locked in a financial dispute with South Korea’s Hanwha Company over its contract to build the country’s largest urban district. Hanwha halted work on “Bismaya City” near Baghdad in 2022, citing the government’s failure to pay outstanding dues. The dispute was resolved two years later following an agreement by Baghdad to pay all delayed dues. With an estimated cost of around $7 billion, Bismaya comprises 100,000 houses and will accommodate nearly 600,000 people. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
