AHK World Business Outlook – Fall 2025 | Iraq
Explore AHK Iraq’s Fall 2025 survey results: 85% of German companies in Iraq report strong business performance, with...
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Dr. Martin Henkelmann, Delegate
AHK UAE / AHK Iraq
Dear Readers,
It is a pleasure to welcome you to the AHK Iraq Quarterly Iraq Business Newsletter. As the AHK Iraq – Deutsches Wirtschaftsbüro Irak, we are committed to providing you with sector-specific insights and updates about ongoing and future projects in an evolving market.
Iraq offers significant potential for German businesses across various industries, from energy and infrastructure to manufacturing and technology. With this newsletter, we aim to keep you informed about key economic developments, business trends, and upcoming events, while offering practical guidance for companies looking to engage with the Iraqi market.
We invite you to stay connected, explore new opportunities, and join the AHK Iraq network. Your feedback and engagement are always welcome.
We wish you all the best for the year 2026 and look forward to meeting you at AHK's many upcoming events.
Dr. Martin Henkelmann
Delegate
I. Iraq: A Market Full of Untapped Potential for German Companies
This gap represents a significant opportunity for German industry. Iraq imports vast quantities of machinery, electrical equipment, and vehicles, and also purchases refined fuels and natural gas from international suppliers.
German manufacturers, renowned for high‑quality engineering and technology, are well placed to supply these goods. Nonetheless, companies frequently cite market intransparency, bureaucratic complexity, and logistical challenges as obstacles to entering the Iraqi market. Recent reforms and major public‑sector projects, summarised below, create strategic entry points for firms willing to engage early.
On 11 November 2025, Iraq held parliamentary elections for its 329‑seat Council of Representatives. These newly elected lawmakers are responsible for choosing the president, who in turn appoints the prime minister, and their negotiations will determine the composition of the next government. Political stability and a clear reform agenda following the elections will heavily influence investor confidence and the pace of economic reforms.
Iraq's Top 10 Projects
The following projects illustrate the scale of Iraq’s investment program. Budgets are indicative and sourced from government plans and public announcements. Each project is at a different stage of development, but all require international expertise and equipment.
These projects highlight Iraq’s multibillion‑dollar pipeline of power, petrochemical, infrastructure, and housing investments.
Source:
- AHK Iraq compilation based on the MEED Projects database (accessed June 2025)
- Iraqi government plans and project announcements
- Ministry of Electricity (MoE)
- Ministry of Industry & Minerals (MoIM)
- National Investment Commission (NIC)
- Ministry of Oil
- Ministry of Transport (MoT)
- Ministry of Construction, Housing & Municipalities (MoCH)
Budgets are indicative, and project status may change.
II. AHK World Business Outlook (Fall 2025 – Iraq) – Executive Summary
The fall 2025 edition of the AHK World Business Outlook surveyed German companies active in Iraq. The results indicate that German businesses remain optimistic about Iraq. Companies continue to expand investments and staff, although they are increasingly mindful of policy uncertainty and currency risks. A detailed PDF of the report is available upon request.
III. Sector Focus:
1. Double Taxation
AHK Iraq, in cooperation with Salt & Associates, has produced and published a white paper on double taxation. The paper, prepared by Salt & Associates and reviewed by AHK Iraq, compares Iraq's income tax framework (Law No. 113 of 1982) with the tax systems of the European Union, Germany, and the United States.
Key findings include:
- Exposure to double taxation
- Comparative best practice
- Recommendations for Iraq
The complete, detailed comparative analysis and policy proposals are available through AHK Iraq.
Double Taxation in Iraq – A Comparative White Paper
Explore how Iraq's tax framework compares to Western systems and what reforms could align it with global standards. AHK...
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2. AHK Iraq Report: Agriculture in Kurdistan 2025/2026
Agriculture and livestock remain pillars of economic and food security in the Kurdistan Region. With fertile lands, a favorable climate, and deep-rooted tradition, the sector is undergoing strategic modernization to reduce import dependency, boost local production, and attract investment.
AHK Iraq Report: Agriculture in Kurdistan 2025/2026
Explore Kurdistan's agriculture and livestock landscape in this AHK Iraq report. Learn about key investments, government...
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IV. Tenders
The Iraqi government is making large-scale investments in infrastructure, energy, and further industrial sectors to foster economic diversification. As part of this, public tenders and projects are frequently announced, presenting opportunities for international businesses to engage in Iraq’s growing market.
The Ministry of Planning in Baghdad (MoP) and the National Investment Commission (NIC) are regularly publishing tenders across various industries.
Please find below the official links to the latest tenders:
Other Links:
V. Press Release
Election results ratified; caretaker government remains until new cabinet is formed
Iraq’s Federal Supreme Court ratified the final parliamentary election results, moving the process into coalition negotiations and government formation. Until a new parliament convenes and a cabinet is approved, the outgoing government continues in a caretaker capacity, limited to day-to-day decisions, which may slow major approvals like:
- Large contracts
- New investment measures
- Reforms
While the overall economic direction is expected to remain broadly stable/continuous in the short term.
GIZ & Ministry of Trade plan SME accelerator - 27 Nov 2025
The Ministry of Trade and Germany’s GIZ agreed to develop a business accelerator programme to support high‑growth SMEs. The programme will evaluate ventures, provide specialised training and technical support, and help companies scale up
EU backs Iraq’s diversification with €300 m annually - 23 Nov 2025
EU ambassador Klemens Semtner said the European Union supports Iraq’s efforts to diversify its economy and strengthen the private sector. He noted that the EU provides about €300 million per year to Iraqi institutions and is working with the Central Bank to combat money laundering.
European firms anchor Baghdad Metro project - 2 Nov 2025
Iraq reviewed a US$18 billion plan for the Baghdad Metro. The project will involve France’s Systra and SNCF, Spain’s Alstom, Talgo, and Sener, and Germany’s Deutsche Bank, building a 148 km network with 64 stations.
European Investment Bank to finance Iraqi projects - 21 Oct 2025
Foreign Minister Fuad Hussein met European Investment Bank vice‑president Gelsomina Vigliotti to discuss enhancing cooperation. The EIB expressed readiness to provide financing and technical advice for infrastructure projects and to empower the private sector, with a framework agreement under discussion.
Swiss & Swedish firms to modernise Iraq’s power sector- 15 Oct 2025
Prime Minister al‑Sudani met Swiss and Swedish ambassadors and executives from Sweden’s Linxon, urging them to develop a roadmap for energy projects. He emphasised Iraq's need for modern technology and welcomed greater participation by Swiss and Swedish companies in upgrading power generation.
Euler Hermes offers risk‑mitigation tools for German investors - 15 Oct 2025
Iraq’s Administrative Deputy Minister of Trade met representatives of Euler Hermes, Germany’s export credit agency, to explore mechanisms for mitigating investment risks and providing sovereign guarantees. The meeting aimed to encourage German companies to invest in Iraq’s infrastructure, energy, and industrial sector.
Sanofi & AstraZeneca plan pharmaceutical facilities in Iraq - 12 Oct 2025
The Iraqi government signed preliminary agreements with global pharmaceutical firms. French Sanofi is partnering to strengthen local pharmaceutical production, while British‑Swedish AstraZeneca is considering establishing a manufacturing facility as part of a planned pharmaceutical city.
VII. AHK Iraq Events Review
Festive Dinner in Erbil| December 18, 2025
An Evening to Celebrate Partnerships and Progress
The AHK Iraq Festive Dinner brought together partners and member companies for an evening of meaningful exchange and strong connections, reflecting the momentum of the AHK Iraq business community.
Opening remarks by H.E. Mr. Albrecht von Wittke, Consul General of the Federal Republic of Germany in the Kurdistan Region, and H.E. Mr. Safeen Dizayee, Minister and Head of the Department of Foreign Relations of the Kurdistan Regional Government, highlighted the importance of German–Kurdish cooperation.
Sincere thanks to Al-Konda, BMW Iraq, and Handdown, and to all partners and guests who contributed to the evening's success.
Festive Dinner in Baghdad | December 11, 2025
To celebrate a year of collaboration and achievement, AHK Iraq hosted its annual Festive Dinner on December 11, 2025, in Baghdad. The event brought together 121 guests, including partners, friends, and distinguished leaders from Iraq and Germany.
Among the honored guests were:
- Mr. Yousif Kenawi, Governor of Najaf
- Mr. Satar Al Jabiri, Deputy Minister of Trade
- as well as many valued partners and sponsors.
In his opening remarks, AHK Iraq Director Suntke Heeren emphasized the importance of networking and joint efforts in driving economic success.
Over the past year, AHK Iraq organized more than 30 business events, including 8 business trips between Germany and Iraq. These activities facilitated structured exchange between German and Iraqi stakeholders and supported ongoing business dialogue across sectors.
AHK Iraq extends its sincere appreciation to the sponsors who made this evening possible:
ALITKAN Co., ALRIYAD GROUP COMPANY, BMW Iraq, Wilo Group, Salt & Associates, and Martrade Group.
Business Breakfast in Baghdad | December 1, 2025
Theme: Water scarcity in Iraq – With national water reserves at their lowest levels in decades and nearly 60 % of children lacking access to safely managed water, AHK Iraq convened stakeholders to discuss solutions. Bassam Al Bayati (UNICEF) outlined humanitarian and developmental dimensions, while Mohammed Al Nuaimi (Wilo Group) shared private‑sector perspectives and presented Wilo’s ongoing projects in Iraq’s water sector. The discussion fostered cross‑sector dialogue on technology, policy, and investment to address the water crisis.
Agro Pack & Food in Erbil on November 23–26, 2025
AHK Iraq partnered with Zuchtvieh‑Export GmbH, GGI‑SPERMEX GmbH and Himel Maschinen GmbH & Co. KG to represent German Farming Solutions at Agro Pack & Food Iraq 2025. Site visits with business partners showcased advanced technologies for Iraq’s agriculture and livestock sectors. Distinguished visitors included Matthias Wehler (Deputy Consul General of Germany in Erbil), H.E. Safeen Dizayee (KRG Foreign Minister) and Omed Khoshnaw (Governor of Erbil). The event underscored Germany’s role in modernising Iraq’s agri‑food industry and building partnerships.
Kurdistan Delegation to Hamburg on October 18-22, 2025
AHK Iraq led a business delegation from the Kurdistan Region to Hamburg. Representatives of KONDA and Handdown for General Trading & Duty Free met Gebr. Heinemann SE & Co. KG, reaching an agreement on product supply, brand expansion, staff training and operational know‑how for duty‑free operations. Delegates also engaged with Vico GmbH – Luvia Cosmetics, Body Attack Sports Nutrition, BriConti GmbH and imcopex GmbH–KG to explore opportunities in cosmetics, nutrition and technology. The mission strengthened German–Kurdish economic cooperation and opened new channels for trade.
Iraq at Anuga 2025 in Cologne in October, 2025
More than 20 Kurdish companies visited Anuga 2025 to explore market opportunities, with one company exhibiting its products at the trade fair. Participants wore traditional Kurdish attire to showcase the region’s rich cultural heritage alongside its business potential. With over 8,000 exhibitors from 110 countries and more than 145,000 visitors from 190 nations, Anuga provided unrivalled exposure to global buyers, trends, and networks.
AHK Iraq at Baghdad Job Fair - October, 2025
GIZ Iraq and the Iraqi Ministry of Youth and Sports organized the Baghdad Job Fair 2025. AHK Iraq supported the event and helped invite German companies (Wilo, Al Masaood Power, Salt& Associates, Dorsch, Amereller, Mercedes- Benz, Siemens Energy, Pure Land).
The fair brought together employers and skilled young people. AHK Iraq held interactive workshops on job interview preparation, applications to German companies, and soft skills. At the end of the fair, Minister Ahmed Al‑Mubarqa awarded AHK Iraq a Certificate of Appreciation for its contribution.
VIII. Trade Fair Finder
In this section, all key trade fairs taking place in Iraq can be found. For a comprehensive list of upcoming trade fairs, please access the Auma FairFinder.
Regarding trade fairs in Germany, as the official partner of Deutsche Messe, AHK Iraq is supporting Iraqi exhibitors who wish to showcase their products at trade fairs in Germany.
If you are an Iraqi exhibitor looking for more information, feel free to reach out to us for assistance and guidance.
IX. DEinternational Services
Navigating new markets can be challenging – but you don’t have to do it alone. Under the umbrella of AHK Iraq’s service entity, DEinternational GmbH, AHK Iraq offers the following tailored consultancy services:
- Initial Consultation
- Contact Finder
- Market Insight Reports
- Trade Fair Representation in Iraq
- Customized services available upon request.
X. AHK Iraq Partner Network
Disclaimer: The information provided in this newsletter is for general informational purposes only and does not constitute legal advice or legal consultation. While AHK Iraq strives to ensure the accuracy and timeliness of the content, it makes no guarantees regarding its correctness, completeness, or current relevance. AHK Iraq accepts no liability for any actions taken based on this information. For legal advice tailored to your specific situation, please consult a qualified legal professional.