BAGHDAD -- Iraq on Monday signed two deals worth $5 billion to buy 40 planes from Boeing and 10 planes from Canada's Bombardier to upgrade Iraqi Airways' aging fleet, the finance minister said.

The deals were signed by Finance Minister Bayan Jabr in a ceremony attended by Iraq's Prime Minister Nouri al-Maliki as well as U.S., British and Canadian diplomats.

The first Boeing plane will be delivered in 2013, Jabr said, while the Canadian company will start delivering their aircraft later this year.

"Today, the process of developing economy has started," al-Maliki said in a speech during the ceremony also attended by Boeing Commercial Airplanes President and Chief Executive Officer Scott Carson.

Boeing said in a statement Monday that it would deliver 30 Boeing 737-800 commercial airplanes and that Iraq has taken options for 10 additional 737s.

Separately, Iraq and Boeing are finalizing an agreement for 10 Boeing 787s, which will enable Iraq's national airliner to provide longer-range commercial service, Boeing said. The 787s will be added to Boeing's order book when the contract is completed.

Iraq also might take options on five additional 787s, Boeing said. If Iraq decides to place all orders, including optional ones, that would raise the total number of orders from Boeing to 55 planes.

Boeing said the company will help Iraq develop airport infrastructure throughout the country, including training personnel.

"Today is truly a milestone event for Boeing and for Iraq," Carson said. "As we work together in support of Iraq's plan to build a national carrier, we envision the day when a modern and efficient fleet of airplanes will directly support Iraq's economic development and growth."

There were no further details immediately available on the orders or types of planes that will be purchased from the Canadian company.