Abstract Commercial banks play an important role in supporting economic development by mobilizing savings, providing credit, and financing investment and productive activities. This role is particularly important in Iraq because of the high dependence on oil revenues and the need to diversify the economy and strengthen domestic production. This article highlights the main contributions of commercial banks to economic development, with a focus on financing, investment, and financial inclusion. Keywords: Commercial Banks, Economic Development, Bank Credit, Investment, Iraq. Introduction Economic development is a major objective because it contributes to higher production and income, job creation, and improved living standards. Commercial banks are among the main financial institutions capable of transferring savings toward investment and productive activities. In Iraq, banks can play a greater role in supporting non-oil sectors, financing the private sector, and supporting small and medium-sized enterprises. The Role of Commercial Banks in Economic Development Commercial banks first contribute to mobilizing savings through deposits and banking accounts and then directing part of these resources toward investment. This helps bring financial resources into the economic cycle instead of leaving them outside the banking system. Bank credit is also an important instrument for financing productive and service activities. Financing agriculture, industry, and small and medium-sized enterprises can increase domestic production, create employment opportunities, and support economic diversification away from oil dependence. Banks also contribute to financial inclusion and digital transformation through electronic banking and payment services. These services can facilitate transactions, reduce their costs, and increase the use of the formal banking system. In addition, commercial banks can support the private sector by developing suitable credit products and facilitating access to finance, while applying effective credit-risk assessment methods. Main Challenges Iraqi banks face several challenges that limit their developmental role, including limited financial literacy, relatively low use of banking services, credit risks, and the need to improve digital infrastructure. Directing finance toward productive activities also requires a stable investment and legal environment. Conclusions and Recommendations Commercial banks can become an important instrument for supporting economic development in Iraq by increasing savings mobilization, directing credit toward productive sectors, supporting the private sector, and expanding digital banking services. It is recommended to increase financing for agriculture, industry, and small and medium-sized enterprises, improve risk management, promote financial literacy, and strengthen public confidence in the banking system.