Iraq laid the foundation stone for the construction of a new residential city project on the borders of Baghdad, with a budget of $2 billion. Two Chinese companies began construction of 30,000 housing units.

The project comes within a plan to build five cities throughout Iraq. Contracts for four more cities are expected to be awarded soon, with 10 more to be announced over the next year.

East China Engineering Science and Technology and China National Chemical Engineering, along with the Iraqi Shams Construction Company, were awarded the project contracts. Other new cities are scheduled to be established in the governorates of Karbala, Anbar, Nineveh and Babil.

According to the statement of the Iraqi Prime Minister, Muhammad Shiaa Al-Sudani, the targeted plan is to build between 250,000 and 300,000 housing units for poor and middle-class families and address the housing crisis. The city is expected to include universities, commercial centers, schools and health centres.