Iraq is set to remain a major security concern because of the threat from terrorists.

Defence and security experts warned on Wednesday that the threat from forces still loyal to Saddam Hussein and "jihadists" meant the country will stay at the top of the international security agenda.

Concern was also raised about what had happened to Iraq's weapons in the final days of the regime's reign.

The issues were raised by the International Institute for Strategic Studies as part of its annual military balance assessment of the military capabilities of 169 countries.

The issue of weapons of mass destruction, which has been the central focus of the international community, does not just involve Iraq.

"Alongside the conflict in Iraq and the campaign against terrorism, the proliferation challenges posed by North Korea and Iran will continue to dominate the international security agenda," predicted director Dr John Chipman.

The institute warned that the lack of a territorial base for most international networked terrorism could actually make the task of fighting groups such as al Qaeda more difficult.

With fears that the Middle East roadmap is now finished, there was also concern at the implication for the region.

"As we approach a US election year, there will be the added uncertainty surrounding growing instability across the Israeli-Palestinian divide combined with diminishing commitment to an intensive peace process," warned Chipman.