Welcome to the Q3 2026 edition of the AHK Iraq Business Newsletter, your quarterly briefing for German and international companies operating in or exploring the Iraqi market.
Economic relations between Germany and Iraq gained noticeable momentum this quarter. During Prime Minister Ali al-Zaidi's visit to Berlin in September, both governments agreed an action plan for closer economic cooperation, and new agreements were signed in the power sector. At the German-Iraqi Business Roundtable, held at the DIHK, German companies and government representatives discussed cooperation prospects with the Prime Minister and his delegation.
At the same time, interruptions to shipping through the Strait of Hormuz continue to weigh on Iraq’s economy — making it all the more important to turn political commitments into concrete projects. This edition outlines where opportunities are emerging and which next steps companies should watch.
I warmly invite you to engage with our network, share your feedback, and get in touch with the AHK Iraq team. We look forward to supporting your business in Iraq.
With best regards,
Dr. Martin Henkelmann
Delegate, AHK Iraq
Table of Contents
I. Q3 at a Glance: German-Iraqi Economic Cooperation
Developments in the third quarter point to a broadening of German-Iraqi economic cooperation. The most prominent themes include energy-system reform, climate-resilient urban planning, financial-sector capacity building, industrial finance, local production, and circular-economy infrastructure. Several initiatives remain at the proposal or project-preparation stage; the table below indicates the status of each.
Sources: Iraqi Ministry of Planning (GIZ energy-transition and CITIES+ discussions); Iraqi Private Banks League (MoU with GIZ); Iraqi News Agency (German-Iraqi industrial fund); Iraqi Ministry of Industry and Minerals (Mosul workshop); AHK Iraq (Sutco agreement); Iraqi Ministry of Electricity and German Federal Government (Siemens Energy agreement, action plan); IraqiNews; Iraq Business News; Federal Government of Germany (press conference, 15 September 2026).
II. Iraq’s Push for Industrial Financing and Localisation — Implications for German Companies
1. Financing ambition is ahead of implementation
On 22 July 2026, Prime Minister Ali al-Zaidi and Chancellor Friedrich Merz discussed efforts to establish a joint German-Iraqi fund to finance industrial projects. The talks signalled political intent; details such as capitalisation, governance, eligibility rules, and the application process have not yet been announced. Companies should therefore treat the fund as a policy signal rather than an available financing instrument.
2. Banking capacity is part of the industrial equation
On 16 July 2026, the Iraqi Private Banks League and GIZ signed a memorandum of understanding establishing a framework for financial- and banking-sector development. The stated priorities include capacity building, knowledge exchange, improved banking services, and an enabling environment for SME growth. The MoU focuses on institutional cooperation; it does not in itself create a credit line or guarantee scheme.
3. Localisation is visible in selected production and industrial-service projects
A clothing workshop within Mosul’s Ready-Made Garments Factory returned to production following rehabilitation funded by KfW and implemented by UNDP, according to a 12 August 2026 report citing Iraq’s Ministry of Industry and Minerals. This is a concrete, completed example of German-supported investment restoring local production capacity.
4. What the Q3 signals mean for German companies
5. What to watch next
- Whether the German-Iraqi action plan announced during the Prime Minister's visit is published and translated into specific projects.
- Whether the proposed industrial fund receives a legal instrument, committed capital, governance structure, eligibility criteria, and an application channel.
- Whether participating banks, guarantees, foreign-exchange arrangements, or risk-sharing mechanisms are identified.
- Whether procurement rules, local-value requirements, tender packages, and implementation partners are formally announced.
- Whether completed industrial rehabilitation projects report sustained production, employment, supplier, or export outcomes.
III. Tenders
Iraq continues to tender public projects in infrastructure, energy, and industry. Federal ministries and the National Investment Commission (NIC) regularly publish open tenders across multiple sectors, offering entry points for international companies with relevant capabilities.
The two main official sources for tender announcements are the Ministry of Planning (MoP) and the NIC. For broader coverage, the third-party aggregator IQ Tenders consolidates listings from various sources and is a useful starting point for initial screening.
Official Government Portals
- Project Tenders Iraq – Ministry of Planning (MoP)
- Announcements & Tenders – National Investment Commission (NIC)
Third-Party Aggregator
- IQ Tenders
For support in identifying, evaluating, or responding to specific tenders, please contact the AHK Iraq team directly.
V. AHK Iraq Q3 Activity Review
German-Iraqi Business Roundtable at the DIHK in Berlin – 15 September 2026
On the occasion of Prime Minister al-Zaidi's visit, leading German companies and senior representatives of the German government came together on 15 September 2026 at the German Chamber of Commerce and Industry (DIHK) in Berlin for a German-Iraqi Business Roundtable. Discussions focused on concrete potential for cooperation in the development and modernisation of Iraq's economy — spanning energy and power-plant technology, infrastructure and logistics, mechanical and plant engineering, healthcare, medical technology and pharmaceuticals, and trade and export finance. The exchange underlined the strong mutual interest in expanding this cooperation over the long term and in a spirit of partnership.
Dr. Martin Henkelmann, Delegate of AHK Iraq, moderated the roundtable, and Volker Treier, Head of Foreign Trade at the DIHK, gave the welcoming address. The event was organised in cooperation with the Ghorfa Arab-German Chamber of Commerce and Industry and the North Africa Middle East Initiative of German Business (NMI). Representatives of the Federal Foreign Office, the Federal Chancellery, the Federal Ministry for Economic Affairs and Energy, the Federal Ministry of Finance, and the Federal Ministry for Economic Cooperation and Development took part alongside Prime Minister al-Zaidi and the Iraqi delegation.
AHK Iraq plans to build on the exchange with follow-up activities.
AHK Iraq Delegate Interview on German-Iraqi Economic Relations – 15 September 2026
During the Prime Minister’s visit, AHK Iraq Delegate Dr. Martin Henkelmann spoke with Al Iraqiya News, Iraq’s state broadcaster, about bilateral economic relations.
He highlighted that German-Iraqi trade had reached approximately €2.8 billion in 2025 and pointed to the potential for expanding business and investment cooperation between the two countries.
The interview also covered AHK Iraq’s role in connecting German and Iraqi companies and supporting bilateral business engagement.
Prime Minister al-Zaidi's Official Visit to Berlin – 15 September 2026
Iraqi Prime Minister Ali al-Zaidi visited Berlin on 15 September 2026 as part of his first European tour as premier. He held talks with Federal Chancellor Friedrich Merz and met Federal President Frank-Walter Steinmeier. Both governments agreed on an action plan for the further development of their economic cooperation. During the visit, the Prime Minister also presented Iraq's investment map, covering energy, oil and petrochemicals, phosphates, clean energy, pharmaceuticals, and automation, and outlined planned financial, tax, and banking reforms.
Business Breakfast in Erbil - September 27, 2026
AHK Iraq, together with Mercedes-Benz Iraq and BrightCastle Motors, hosted a business breakfast in Erbil bringing together more than 50 representatives from the Iraqi business community and relevant institutions.
The event provided a platform for direct exchange between Iraqi businesses and a leading German brand, with discussions focused on market developments, potential B2B cooperation, and access to German technology, expertise, and standards.
Among the distinguished guests were Dr. Christian Oelfke, Consul General of the Federal Republic of Germany in Erbil, and Dr. Mohammed Shukri, Chairman of the Kurdistan Investment Board.
The event formed part of AHK Iraq’s ongoing efforts to strengthen German–Iraqi business relations and create practical opportunities for dialogue, partnerships, and market engagement.
ZVE Visit to Erbil: Exploring Future Cooperation – 1–3 September 2026
AHK Iraq hosted representatives of ZVE – Zuchtvieh-Export GmbH in Erbil for a three-day programme to assess potential business cooperation in the Kurdistan Region and the wider Iraqi market.
The programme included company visits, B2B meetings with local businesses, and an institutional meeting at the office of Dr. Christian Oelfke, Consul General of the Federal Republic of Germany in Erbil.
Discussions also covered a joint participation by AHK Iraq and ZVE at AgroPack in November 2026, as well as a business delegation to EuroTier 2026 in Hanover. Both have since been confirmed; the delegation will take place from 10 to 13 November 2026.
AHK Iraq and FICC Discuss Institutional Cooperation – 11 August 2026
AHK Iraq’s Delegate, Dr. Martin Henkelmann, and Country Director Iraq, Suntke Heeren, met with representatives of the Federation of Iraqi Chambers of Commerce (FICC), led by its President, Amer Al Fahdawi.
The meeting addressed opportunities to strengthen institutional coordination, expand contacts between German and Iraqi companies, and further develop bilateral economic relations.
Business Delegation to Hamburg – 26–30 July 2026
AHK Iraq and EMEA Trade GmbH organised a business delegation to Hamburg for company representatives from the Kurdistan Region.
The programme focused on the food and beverage sector and the duty-free sector. It included eight visits to companies and operational facilities covering logistics, warehousing, and manufacturing.
The delegation provided participating companies with direct exposure to German business practices and opportunities to establish contacts with potential commercial partners.
Agribusiness Business Breakfast in Erbil – July 7, 2026
AHK Iraq organised a Business Breakfast in Erbil in cooperation with ZVE – Zuchtvieh-Export GmbH and GGI-SPERMEX GmbH.
The event brought together agribusiness companies, industry representatives, and public-sector stakeholders to discuss opportunities in the Kurdistan Region’s agricultural sector.
Presentations and discussions focused on German livestock genetics, breeding expertise, and dairy technologies, as well as their potential application in the Iraqi market. The event supported direct exchange between German suppliers and Iraqi stakeholders active in agriculture and livestock development.
VI. Policy & Regulatory Updates
Oil exports — Strait of Hormuz and northern route:
Shipping through the Strait of Hormuz remains severely restricted, and Iraq's southern oil exports continue to run well below pre-crisis levels. According to Iraq's State Organization for Marketing of Oil (SOMO), export capacity stood at around 4.2 million barrels per day in September 2026, while actual exports averaged around 2.5 million barrels per day, compared with roughly 3.5 million barrels per day before the crisis. To secure the northern route, Türkiye's BOTAŞ and Iraq's SOMO and North Oil Company signed a one-year interim agreement for the Iraq–Türkiye crude-oil pipeline on 1 August 2026, after the previous treaty expired on 27 July. The agreement covers a capacity of up to 750,000 barrels per day; actual flows were around 170,000 barrels per day at the time of signing, according to Turkish data. On 6 September 2026, seven OPEC+ countries, including Iraq, agreed to keep their required production for October unchanged. Companies should continue to factor possible delays on Gulf shipping routes into their delivery and project planning.
Sources: SOMO; Turkish Ministry of Energy and Natural Resources; OPEC
Customs — advance payment of duties from 1 October 2026:
Under a decision of Iraq's Council of Ministers, importers must pay estimated customs duties and tax deposits in advance from 1 October 2026. Funds for import-related foreign transfers are to be deposited with authorised banks and will only be released once the duties have been settled through the ASYCUDA electronic customs system. The amounts are calculated on the basis of preliminary data provided by the importer, including the commercial invoice, shipping documents, customs classification, and the type, origin and value of the goods. German exporters should ensure that their Iraqi partners receive complete and accurate shipping documentation at an early stage, as incomplete information may delay payments.
Sources: Iraqi Prime Minister's Office; Iraqi Ministry of Finance
Banking — cash withdrawals from foreign-currency accounts:
Since 15 July 2026, banks in Iraq may, under specified conditions, pay out customers' US-dollar deposits and incoming remittances in cash US dollars, in line with a Central Bank of Iraq circular. The Central Bank also meets banks' requests for cash dollars in two cases: government contracts funded by grants or foreign loans, and 40% of exporters' incoming remittances from exports abroad.
Source: Iraqi News Agency
VII. Trade Fair Finder
AHK Iraq is the official representative of Deutsche Messe and Koelnmesse in Iraq. We support Iraqi companies that wish to exhibit at or visit trade fairs in Germany and provide guidance throughout the process. Please contact us for further information.
For a comprehensive and regularly updated overview of international trade fairs, including events relevant to the Iraqi market, please consult the AUMA FairFinder, which lists fairs by country, sector, and date.
VIII. DEinternational Services
AHK Iraq provides German and international companies with tailored consultancy services for market entry and business development in Iraq:
- Initial Consultation – a first orientation on opportunities, risks, and entry strategies for the Iraqi market.
- Contact Finder – identification and qualification of potential business partners, suppliers, or customers.
- Market Insight Reports – tailored research and analysis on sectors, competitors, and regulatory conditions.
- Trade Fair Representation in Iraq – on-the-ground representation of your company at trade fairs when you cannot attend in person.
Additional customised services are available on request. Please contact us to discuss how we can support your business in Iraq.
Disclaimer: The information provided in this newsletter is for general informational purposes only and does not constitute legal, tax, financial, or investment advice. While AHK Iraq endeavours to ensure that the content is accurate and up to date, it makes no guarantee as to its correctness, completeness, or timeliness, and accepts no liability for any actions taken on the basis of this information. This newsletter may contain links to external websites; AHK Iraq has no control over their content and accepts no responsibility for it. For advice tailored to your specific situation, please consult a qualified professional.
