Iran Iraq trade surged as Iran exported non-oil goods worth $6.719 billion to Iraq. This covered the first eight months of the year, from March 21 to November 21. As a result, economic ties between the neighboring countries have strengthened significantly. According to the Islamic Republic of Iran Customs Administration (IRICA), Iraq ranked as Iran’s second-largest destination for non-oil exports. Therefore, Iran Iraq trade continues to gain importance in regional commerce.
In the previous year, Iran exported $11.9 billion in non-oil goods to Iraq. Moreover, Abolfazl Akbarpour, IRICA’s deputy head for planning and international affairs, confirmed Iraq’s consistent role as a major export market. Both countries aim to raise annual trade to $20 billion. Consequently, authorities and businesses are actively working to meet this target.
The Trade Promotion Organization of Iran (TPO) issued a preliminary license on November 1 for a commercial and marketing center in Baghdad. The Organization of Specialists and Managers will manage the center under TPO supervision. In addition, the license is valid for one year, from October 19, 2025, to October 18, 2026. However, violating the rules could lead to suspension or revocation.
Officials have also focused on expanding transport and infrastructure cooperation. In late May, Iranian Transport Minister Farzaneh Sadeq met Iraqi Prime Minister Mohammed Shia Al Sudani in Baghdad. They emphasized completing the Shalamcheh-Basra railway, which is crucial for passengers and goods. This is especially important during the Arbaeen pilgrimage. Furthermore, Sadeq met Iraqi Transport Minister Razzaq Muhaybis al-Saadawi and Interior Minister Abdul Amir Al-Shammari to discuss joint projects.
Iran and Iraq trade extends beyond goods. Iran supplies natural gas and electricity to Iraq. It also invests in construction, tourism, and banking. These exchanges therefore strengthen the bilateral economy. However, U.S. sanctions on Iran complicate some financial transactions, and sometimes trade moves into informal channels.
Despite challenges, Iran Iraq trade remains mutually beneficial. Iran gains a major market for its goods, while Iraq secures essential imports and energy. Similarly, experts predict both countries will continue expanding cooperation. Future projects will focus on transportation, infrastructure, and diversified trade. In conclusion, the growth in Iran Iraq trade reflects resilience in regional commerce. Furthermore, it shows both countries’ commitment to deepening economic ties despite external pressures.