Studying the relationship between the variable of credit granted to the private sector and the private investment index in the Iraqi economy from 2004 to 2021 using the statistical program (Eveiws 12), this paper seeks to study and explain the impact of this variable on private investment. The study's findings were derived from the research's use of both descriptive and quantitative methods. Both the short- and long-term relationships between were supported by the research findings. With its focus on the private sector loan-to-GDP ratio, the indicator aims to at the 5% level of significance, the private investment index the proportion of fixed capital formation by the private sector to GDP indicates that a rise in the index proportion results in a rise in the dependent indicator proportion. The importance of the private sector in helping to fund and encourage investment in Iraq's economy, as well as in creating rules and regulations that facilitate investment projects, was highlighted in the research, which concluded that the government should lend its support to the private sector.