This article deals with prospects of cooperation between Russia and Iraq in different spheres of economics. The focus is made on the investment and construction sphere. The article shows main criteria of building socially- oriented economic in Iraq. Also, it presents an analysis of current social and economic conditions and assesses significance of implementation of social projects on integrated territory development in Baghdad. The conclusion is made that attracting foreign investments, including those from Russia, may become an important factor facilitating successful implementation of major infrastructural projects.