icetana AI wins Baghdad Safe City contract, expanding Middle East presence

icetana AI, an Australian-based leader in AI-powered video analytics, has secured a A$1.7 million contract to deploy its advanced surveillance technology for the Baghdad Safe City project. The deal, facilitated through a new partnership with High Tech, a Dubai-based subsidiary of Al-Technologia Al-Alia Co., marks icetana AI’s first major entry into the Iraqi market and could pave the way for wider national deployments in the country.

The Baghdad Safe City initiative is part of a broader effort to modernize security infrastructure in Iraq, integrating AI-driven real-time threat detection to improve public safety. This contract follows extensive proof-of-concept testing, where icetana AI software successfully demonstrated its facial recognition, vehicle tracking, fire detection, and abnormal movement monitoring capabilities. By leveraging machine learning algorithms, icetana AI’s system autonomously detects security threats, reducing the need for manual monitoring across large-scale surveillance networks.

What Role Does AI Play in the Baghdad Safe City Initiative?

The Baghdad Safe City project represents a strategic push towards AI-powered security in Iraq, a country that has long faced security challenges. With increasing urbanization and a growing demand for smart city solutions, authorities are turning to AI-enhanced surveillance systems to bolster law enforcement and emergency response capabilities.

icetana AI’s technology is designed to learn the normal behavioral patterns of a given environment, flagging unusual activities such as unauthorized access, trespassing, loitering, and left luggage detection. These features are critical in high-risk urban areas, where identifying threats before escalation can help prevent security incidents.

This contract is particularly significant given the security landscape in Iraq, where surveillance systems must adapt to unpredictable environments. The implementation of icetana AI software within the Baghdad Safe City framework could serve as a model for future AI-driven security solutions across the Middle East.

Why Is This Deal a Milestone for icetana AI?

The partnership with High Tech is a strategic move that underscores icetana AI’s expansion into new markets, particularly in the Middle East. While the company has an established presence across 15 countries, this is its first deal in Iraq, a market with significant growth potential for AI security solutions.

Structurally, the contract includes a perpetual software license valued at $874,815, alongside a one-year maintenance agreement worth $218,660, which could generate ongoing annual revenue if renewed. CEO Kevin Brown described the deal as a landmark contract, reinforcing the company’s long-term vision of driving AI adoption in security operations.

The implementation phase is expected to begin in May 2025, with a structured payment schedule that includes an initial 20% deposit, followed by performance-based milestones. While this deal strengthens icetana AI’s revenue stream, the company has acknowledged that there is some credit risk, as it has no prior trading history with High Tech.

How Is icetana AI’s Stock Performing Amid This Expansion?

icetana AI’s stock performance has experienced significant volatility over the past year. As of March 18, 2025, shares of icetana AI (ASX:ICE) were trading at A$0.018, reflecting a 54.84% decline from its 52-week peak of A$0.039. The stock hit its lowest point at A$0.013 on March 14, 2025, underscoring the company’s recent financial challenges.

In its latest half-year financial report, icetana AI reported a 63% decline in revenue, bringing in A$910,395, while post-tax losses increased by 8% to A$1,192,106. Despite these numbers, analysts suggest that the Baghdad Safe City contract could revitalize investor confidence, as it represents the company’s largest deal to date for its next-generation AI platform.

Market sentiment remains cautiously optimistic, with investors looking to see whether this contract translates into sustained growth and additional market expansion. The key factor for stock performance moving forward will be icetana AI’s ability to execute this project successfully while securing follow-up contracts in Iraq and other Middle Eastern markets.

What’s Next for icetana AI and AI-Driven Security?

The AI surveillance market is experiencing rapid expansion, with governments and private enterprises seeking automated security solutions to manage growing urban safety challenges. icetana AI’s Baghdad Safe City contract aligns with a broader industry trend where AI-powered analytics are becoming the standard for modern surveillance networks.

By using unsupervised machine learning, icetana AI’s technology eliminates the need for manual configuration of camera systems, instead focusing on anomaly detection. This approach is particularly valuable in high-density security environments, such as airports, transportation hubs, and public spaces, where real-time threat identification is crucial.

With this contract now in place, industry analysts speculate that icetana AI could expand into other Gulf markets, where governments are making significant investments in AI-driven public safety initiatives. The Middle East has already emerged as a key growth region for security technology, with cities such as Dubai, Riyadh, and Doha deploying smart surveillance solutions at a rapid pace.

While the Baghdad Safe City project is currently a single-city initiative, there is potential for it to become a nationwide deployment, creating multi-million-dollar opportunities for icetana AI and its partners.

As the company moves forward, investors and industry experts will be watching closely to see whether this deal serves as a springboard for broader regional expansion. If executed successfully, icetana AI’s foothold in Iraq could unlock a series of high-value contracts, positioning the company as a major player in AI-powered urban security solutions across the Middle East.