The branch of multinational banking and financial services company Standard Chartered will be opened in the capital Baghdad at an official ceremony attended by Prime Minister Nouri Al-Maliki.
The ceremony, which will also be attended by British Ambassador to Iraq Simon Collis, marks the arrival of the first of three Standard Chartered branches in Iraq, with another in Erbil to follow by the end of this year, then one in Basra next year.
The bank, which has its headquarters in London, has over 1,700 branches in more than 70 countries and is the first UK-based bank to open a branch in Iraq.
The move is a bid to meet increasing demands from global clients in the country from areas including oil, telecoms and infrastructure.
It is being billed as a milestone in the development of Iraq following years of conflict, but comes amid a growing surge of terror attacks that have swept across the country since April, including reports of a double suicide bombing at a military base north of Baghdad last night.
At today's opening ceremony, Mr Al-Maliki and Mr Collis will be at the Standard Chartered branch in Arrasat in Baghdad, along with the governor of Iraq's Central Bank Dr Abdulbasit Turki, and the chairman of its National Investment Commission, Dr Sami Al-Araji.
Standard Chartered has had a representative office in Erbil since 2006 but today's opening brings its first branch office, capable of full client banking, to Iraq.
The bank will help the Iraqi Government, its ministries, and the Iraqi Central Bank in a specialist advisory role, as well as helping Iraqi public sector banks, private banks, and local corporate companies.
A team of Iraqi staff have already joined the bank's team of experts and will continue to grow as the bank develops more services in Iraq.
The bank has said it hopes that its presence will make a difference to the country's economy and international reputation.