AHK World Business Outlook, Spring 2025 - Iraq
The Spring 2025 edition of the AHK World Business Outlook reveals strong confidence among German-affiliated companies...
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Dr. Martin Henkelmann, Delegate
AHK Iraq / Mariam Mohammed
Dear Readers,
It is a pleasure to welcome you to our 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 a dynamic and 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 also offering practical guidance for companies looking to engage with the Iraqi market.
We invite you to stay connected, explore new opportunities, and to join our network. Your feedback and engagement are always welcome.
We look forward to meeting you!
Dr. Martin Henkelmann
Delegate
I. Economic Developments and Industry Insights
1. Trade between Germany and Iraq in Q1, 2025
In the first quarter of 2025, trade relations between Germany and Iraq continued to strengthen. Germany’s key exports to Iraq included machinery, motor vehicles, chemical products, and electrical equipment. In return, Iraq primarily supplied Germany with crude oil and petroleum-based products.
According to the German Federal Statistical Office (Statistisches Bundesamt), German exports to Iraq reached:
- €112 million in January
- €124 million in February
- €129 million in March
This represents a 10.9% increase compared to the same period in 2024.
On the import side, Germany imported goods from Iraq worth:
- €41 million in January
- €89 million in February
- €108 million in March
This marks an 11.9% year-on-year growth for the first quarter.
These figures highlight the positive trajectory of bilateral trade and the deepening economic ties between the two countries.
Explore how German companies assess Iraq’s current business environment in our latest AHK World Business Outlook.
2. Economic Key Data
Germany Trade & Invest (GTAI) provides up-to-date economic key data and insights on Iraq, offering a reliable foundation for evaluating market opportunities and investment potential in Iraq. Economic Data at a Glance (German)
3. Sector Focus – Logistics and Transport
Iraq’s logistics and transport sector is undergoing a step-by-step transformation, driven by infrastructure and regulatory reforms. The increasing demand for efficient supply chains offers growing business potential for provider of digital driven logistic and transport port systems.
Sector-Relevant Impulses and Developments
- In April 2025, Iraq’s Council of Ministers approved a draft Public–Private Partnership (PPP) law, marking a significant step toward attracting foreign investment in the nation’s transport infrastructure, including ports and railways.
This legislative move aims to modernize critical sectors and enhance Iraq’s connectivity and economic competitiveness. - Iraq’s Development Road is rapidly gaining momentum with fresh support from the World Bank and the newly established Iraq Development Fund. With over $7 billion in foreign investment and international partnerships including the UK, and Japan the project is transforming Iraq into a vital trade and logistics hub.
- In the past three months, Iraq has fully implemented the ASYCUDAWorld digital clearance system, with 15 customs centers now operational. It is a unified customs tariff system across all border points, including the Kurdistan Region, standardizing valuation and boosting transparency.
- In May 2025, Phase 4 of the Umm Qasr Port expansion in Iraq was completed, increasing the container handling capacity by about 20%. The upgrade allows the port to accommodate larger container ships and handle more cargo efficiently. New berths were added, and existing ones were modernized to support simultaneous vessel operations. Enhanced terminal facilities and equipment have reduced vessel turnaround times and improved overall productivity.
- Between April and June 2025, Iraq advanced key rail projects like the Basra-Rabiya railway rehabilitation and the Basra-Shalamcheh passenger line to improve regional connectivity and support the upcoming operations at Al-Faw Port. The Al-Faw Grand Port’s five new berths became fully operational, with major construction progress on the port’s infrastructure, including roads and navigation channels.
Sector Relevant Challenges
In Iraq, major infrastructure projects often face significant bureaucratic and regulatory challenges that can cause delays. For German companies, it’s crucial to understand local laws and maintain strong relationships with authorities or hire local experts to navigate these hurdles effectively. Careful consideration is needed when deciding whether to enter the market directly or collaborate with local partners, weighing the benefits and risks of each approach. A structured market entry strategy combined with thorough risk analysis and flexible project management increases the chances of success. Building reliable local networks and having clear legal and financial frameworks are key factors for thriving in this complex environment.
For more information please see our AHK Iraq Market Brief - Logistics and Transportation.
AHK Iraq Market Brief - Logistics and Transportation
This report provides an overview of the logistics and transportation sector in Iraq. The information in this market brief...
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4. Business Outlook
Germany Trade & Invest (GTAI) offers a concise overview of Iraq’s current economic landscape, highlighting key indicators such as GDP growth, inflation, trade volumes, and sectoral developments. As the country continues to rebuild infrastructure and diversify its economy beyond oil, Iraq presents both challenges and opportunities for international investors. This business outlook provides insights into the evolving market environment, regulatory trends, and strategic sectors poised for growth. Economic activity - project boom and risks (German)
II. 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:
III. Press Release
Development Road – Phase I Completed:
The General Company for Ports of Iraq (GCPI) has completed the first 62 km of the Development Road, linking Al-Faw Grand Port with Umm Qasr.
- Includes three dedicated lanes for heavy trucks
- Features a high-standard safety wall
- The section stretches 51 km from Al-Faw to the underwater tunnel, with 11 km extending toward the Safwan border.
This marks a critical step toward transforming Iraq into a major regional logistics corridor.
Source: IraqiNews
Major Oil Investment:
Iraq has signed a landmark agreement with China's Geo-Jade Petroleum and Basra Crescent to boost production at the Tuba oilfield from 20,000 to 100,000 barrels per day. The deal includes plans to build a new refinery, petrochemical, and fertilizer plants, with $848 million in investment committed by Geo-Jade.
Source: Reuters
Baghdad International Airport PPP Project Moves Forward:
As of April 25, 2025, Iraq’s Ministry of Transport has shortlisted ten international bidders for the next phase of the Baghdad International Airport (BIAP) Public-Private Partnership (PPP) project. Backed by the International Finance Corporation (IFC) of the World Bank Group, this project aims to modernize, expand, and operate BIAP under a long-term PPP model.
The shortlisted firms will advance to the Request for Proposals (RFP) stage, expected later this year.
This strategic infrastructure project is central to Iraq’s vision for revitalizing its civil aviation sector, improving passenger and cargo services, and positioning Baghdad as a regional aviation hub.
Source: Ministry of Transport (Arabic)
Germany Supporting Iraq’s SME Lending Strategy:
Germany is backing a new initiative led by the Central Bank of Iraq to expand lending for small and medium-sized enterprises (SMEs). A GIZ-facilitated workshop underlines continued commitment to strengthening the private sector’s role in economic growth.
Source: IraqBusinessNew
Iraq and Germany Deepen Development Cooperation:
Iraq’s Ministry of Planning met with representatives from GIZ to advance bilateral cooperation and development transformation. Key topics included establishing offices for GIZ and the German Development Bank (KfW) in Iraq, as well as outlining a joint international cooperation agreement. According to Dr. Saher Abdul-Kadhim, the discussions reflect both sides’ commitment to expanding long-term development partnerships.
Source: IraqBusinessNew
Siemens Energy & Iraq Sign 14 GW Power Expansion MoU:
In May 2025, Siemens Energy and Iraq’s Ministry of Electricity signed key agreements to enhance the national power grid. The deals include a long-term service contract for the Dibis Gas Power Plant (340 MW across two units) and a five-year maintenance program for the Al-Musayyib Thermal Power Plant (phases totaling 900 MW). The agreements, signed under the supervision of Prime Minister Al‑Sudani and attended by the German Ambassador, aim to add 14 GW of generation capacity, significantly improving energy reliability nationwide.
Source: IraqBusinessNew
Renewable Energy Mandate for Iraqi Public Buildings:
Starting Q3 2025, Iraq has mandated that 10% of all new public buildings must integrate solar energy systems. The decision is part of a broader push to expand renewable energy use and reduce dependency on fossil fuels, particularly within government infrastructure.
Source: Iraq Business News
IV. AHK Iraq Events Review
Business Delegation to Hillah, Babylon | April 2025:
The delegation took part in the "Rebuilding Babylon" conference and the International Day of Babylonian Civilization, engaging with national authorities and showcasing German expertise in cultural heritage, tourism development, and infrastructure planning.
Business Delegation to Bauma Trade Fair in Munich | April 2025:
AHK Iraq led a delegation of Iraqi companies to Bauma, the world’s largest trade fair for construction equipment. Delegates connected with top German technology providers and explored innovations in heavy machinery and infrastructure solutions.
Business Delegation to Najaf and Karbala | May 2025:
AHK Iraq led a 4 days business delegation to Najaf and Karbala, with 11 representatives from leading German companies exploring cooperation in sectors including healthcare, infrastructure, industry, and energy.
In Najaf, the delegation met H.E. Governor Yousif Al Hamadani, toured the Sustainable Industrial City, and held B2B sessions with the Najaf Chamber of Commerce.
In Karbala, discussions with Governor Nassif Al-Khattabi and entities like Khayrat Al-Sebtain and Attaba Al-Abbasiyah focused on industrial collaboration, construction, and advanced engineering.
AHK Iraq Business Breakfast in Baghdad on the Topic Workforce in Iraq | May 2025:
In partnership with GIZ, AHK Iraq hosted a Business Breakfast addressing workforce challenges and opportunities for German companies in Iraq. The event brought together industry leaders to discuss skills gaps, HR strategies, and capacity-building solutions for sustainable growth.
Presentation at FICC in Baghdad for the Business Delegation to Anuga in Cologne | May 2025:
AHK Iraq presented its upcoming delegation to Anuga, the world’s leading food and beverage trade fair, at the Federation of Iraqi Chambers of Commerce. The session highlighted opportunities for Iraqi companies to expand globally through B2B meetings, innovation exposure, and direct access to the German market.
Business Delegation to The Smarter E Europe in Munich | May 2025:
During AHK Iraq’s delegation to The Smarter E Europe in Munich, a local renewable energy startup from Kurdistan connected with two German providers to launch a solar storage pilot in the region.
The delegation facilitated multiple B2B meetings, while participants also engaged in cultural visits across Munich, strengthening business ties and mutual understanding through both commerce and culture.
VI. 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, we are supporting Iraqi exhibitors who wish to showcase their products at trade fairs in Germany. Please find an overview about about all trade fairs and events organized by Deutsche Messe, here.
If you are an Iraqi exhibitor looking for more information, feel free to reach out to us for assistance and guidance.
VII. DEinternational Services
Navigating new markets can be challenging - but you don’t have to do it alone. Under the umbrella of our service entity DEinternational GmbH, we offer the following tailored consultancy services:
- Initial consultation with one of our consultants
- Contact search
- Business partner matching
- Market studies
- Trade fair representation in Iraq
- Project management
- Individual tailored services
Interested? Contact us for more details.
