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Iraq's only outlet to the sea is a short stretch of coast on the northwestern end of the Persian Gulf, including the Shatt al Arab waterway. Basra and Umm Qasr are the main ports. Iraq is approximately coextensive with ancient Mesopotamia. The southwest, part of the Syrian Desert, supports a small population of nomadic shepherds. In the rest of the country, life centers on the great southeast-flowing rivers, the Tigris and the Euphrates, which come together in the Shatt al Arab at the head of the Persian Gulf. The marshy delta was largely drained in the early 1990s as part of a government program to control the Marsh Arabs, who had participated in the Shiite uprising against Saddam Hussein; marsh restoration efforts began in 2003, and by 2006 roughly half the area had been restored. Between the two rivers are numerous wadis and water basins.

Very little rainfall occurs in Iraq except in the northeast, and agriculture mainly depends upon river water. The sandy soil and steady heat of the southeast enable a large date crop and much cotton to be produced. The rivers cause destructive floods, though they occur less often as a result of flood-control projects undertaken since the 1950s. Farther upstream, as the elevation increases, rainfall becomes sufficient to grow diversified crops, including grains and vegetables. In the mountainous north the economy shifts from agriculture to oil production, notably in the great fields near Mosul and Kirkuk.

Nearly 80% of the population of Iraq is Arabic-speaking, while over 95% is Muslim (Sunni and Shiite) in religion. There are about twice as many Shiites as Sunnis, the latter sect being more numerous throughout the majority of Arab countries. The hilly uplands of NE Iraq are primarily inhabited by Kurds, who are Sunni Muslims; other large minorities of Iraq include Turkomans (Turks), Armenians, and Assyrians (Nestorian Christians). Most of the country's once large Jewish population emigrated to Israel in the early 1950s. As a result of the insurgent and sectarian fighting that occurred following the U.S. occupation of Iraq in 2003, an estimated 1.6 to 2 million Iraqis had left Iraq by the end of 2006, mainly to neighboring Jordan or Syria; a similar number had relocated within Iraq. Among those who have left are an estimated two thirds of Iraq's Christians.

The oil industry dominates Iraq's economy, traditionally accounting for nearly 95% of the country's revenues. Oil is produced mainly by the Iraq Petroleum Company, which was owned by an international group of investors until it was nationalized in 1972. The oil is piped to Turkey, Tripoli (Lebanon), Baniyas (Syria), and the Persian Gulf. Oil exports, which had suffered during the Iran-Iraq War, improved during the late 1980s, only to be severely decreased by embargoes related to the Persian Gulf War. In 1996, a UN agreement allowed Iraq to export oil for the first time since 1990; by the 2002, oil production was about 70% of what it was in the 1970s. Following the U.S. invasion in 2003, oil production slowly returned to about 80% to 95% of what it had been in 2002.

Aside from petroleum production and refining, Iraq has a small, diversified industrial sector, including the production of chemicals, textiles, cement, food products, construction materials, leather goods, and machinery. New industries have been started in electronics products, fertilizers, and refined sugar. Agricultural production, which employs about a third of the workforce, is not sufficient to meet the country's food requirements. Iraq's chief crops include wheat, barley, rice, vegetables, dates (Iraq is one of the world's largest producers), and cotton. Cattle and sheep are also raised.

Iraq has been highly dependent on foreign economic aid in recent years, from both Western and Arab countries. The country also has a severe labor shortage. The Baghdad Railway, long an important means of communication, is declining in importance in favor of travel by road and air. There are international airports at Baghdad and Basra, and a state-owned airline operates within Iraq and abroad.

Iraq is a veritable treasure house of antiquities, and recent archaeological excavations have greatly expanded the knowledge of ancient history. Prior to the Arab conquest in the 7th cent. AD, Iraq had been the site of a number of flourishing civilizations, including the Sumer, which developed one of the earliest known writing systems, Akkad, Babylonia, and Assyria. The capital of the Abbasid caliphate was established at Baghdad in the 8th cent. and the city became a famous center for learning and the arts.

Despite fierce resistance, Mesopotamia fell to the Ottoman Turks in the 16th cent. and passed under direct Ottoman administration in the 19th cent. (see Ottoman Empire, when it came to constitute the three Turkish provinces of Basra, Baghdad, and Mosul. At this time the area became of great interest to the European powers, especially the Germans, who wanted to extend the Berlin-Baghdad railroad all the way to the port of Kuwait.

In World War I the British invaded Iraq in their war against the Ottoman Empire; Britain declared then that it intended to return to Iraq some control of its own affairs. Nationalist elements, impatient over delay in gaining independence, revolted in 1920 but were suppressed by the British. Late that year the Treaty of Svres established Iraq as a mandate of the League of Nations under British administration, and in 1921 the country was made a kingdom headed by Faisal I. With strong reluctance an elected Iraqi assembly agreed in 1924 to a treaty with Great Britain providing for the maintenance of British military bases and for a British right of veto over legislation. By 1926 an Iraqi parliament and administration were governing the country. The treaty of 1930 provided for a 25-year alliance with Britain. The British mandate was terminated in 1932, and Iraq was admitted to the League of Nations.

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