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In 2032, Baghdad underwent a major rebuilding process from previous conflicts. Iraq's vast energy reserves in oil wealth as well as investments made from Persian Gulf states enabled this reconstruction. Many new towers and infrastructure were built, including a nearby solar field and hydroelectric dam to power Baghdad. Unfortunately, the city remained volatile and, by the 2050s, the region had again descended into chaos.
Some time around 2054, Atlas Corporation came into a contract with the Republic of Iraq. Atlas began a massive campaign to rebuild the nation and clear it out of dangerous elements. The Atlas CEO, Jonathan Irons, took a particular interest in the project as he hoped to turn Baghdad into a model of the success for the private military industry. He was also inspired by the history of the city and others like it. Atlas proved to be far more effective and efficient than the Iraqi Government and foreign peacekeepers in restoring Baghdad. They managed to crack down on the militant factions throughout the city, placing their defeated members in a large prison facility on the outskirts that was possibly once part of the infamous Abu Ghraib complex. By 2057, there had been significant improvement to the city and the citizens could now walk outside without fear of violence.
Under the cover of this progress, Irons was secretly implementing measures to prepare the city to be the headquarters for his war effort against the United States. He installed structural defenses such as anti-air guns and weapons depots. Public relations campaigns also inspired local citizens to enlist in security forces or apply for the administrative positions in Atlas. Irons also inoculated all of his troops, employees and the general population of Baghdad against a biological weapon called Manticore.
In 2059, New Baghdad was thriving. Business, particularly the financial sector, had returned to the city and Atlas had greatly modernized the infrastructure. The city continued to expand in a rapid manner similar to Dubai in the early 21st Century. The citizens of New Baghdad were settling into a more peaceful, prosperous existence when on November 9th, Jack Mitchell and Ilona escaped Atlas forces in what became a very loud operation. After hearing the presentation of evidence collected by Sentinel at the United Nations, Iraq was further shocked when Irons revealed his plans to remove the world's superpowers. However, due to Atlas controlling large swaths of their area, infrastructure, resources, and population centers, the Iraqi Government was likely forced to concede the city to Atlas control. Access and communications into and out of Baghdad were cut off due to the tension between Sentinel Task Force and Atlas Corporation.
On the morning of January 8th, 2061, Sentinel launched a massive assault against Atlas out of a U.S. military base in Kuwait. They managed to reach New Baghdad via canyon which was guarded by Atlas forces. After pushing into the city and closing in on the Atlas command center, Sentinel was abruptly halted by the release of the Manticore. Most of Sentinel's troops were wiped out by the WMD and the rest were forced to evacuate. Hours later, Jack Mitchell, Ilona, and Gideon managed to escape from the Atlas prison facility and returned to the near-completely destroyed Sentinel base. That evening, they launched a final attack against Atlas to prevent Irons from launching Manticore strikes on allied military bases around the world.
Backed by the remnants of Sentinel, U.S. military forces initiated a complete invasion of New Baghdad. Due to earlier attacks and the structural/strategic isolation of the city, Atlas forces began to collapse after a few hour invasion. New Baghdad was once again reduced to a city in conflict as it had been six decades earlier. Unfortunately for the citizens of Baghdad, the progress they had made over the past few years had been undone. Baghdad's future is now in question as its infrastructure and institutions were heavily damaged upon the removal of Atlas.