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Exports to Iraq from UAE, China, and Four Key Partners Fall 29%

Exports to Iraq from six major trading partners fell 29% year-on-year to $23.7 billion in the first half of 2026, according to customs data cited by economist Manar Al-Obaidi. Shipments from the UAE fell 25% to $10.6 billion, while Chinese exports dropped 42% to $5.2 billion. The sharpest contractions occurred in capital and investment goods, while consumer and food items proved more resilient.

Illustration: A busy commercial container port terminal at twilight with rows of stacked cargo containers, heavy industrial gantry cranes, and a moore
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Exports to Iraq from six of its primary trading partners declined by $9.6 billion to $23.7 billion in the first half of 2026, marking a 29% decrease from $33.4 billion in H1 2025, Shafaq News reported, citing an analysis of official customs data by economist Manar Al-Obaidi. The six partners analyzed in the report are the UAE, China, Turkey, the European Union, India, and the United States.

The UAE remained the largest supplier among the group despite shipments falling 25% from $14.1 billion to $10.6 billion. Chinese exports fell 42% from $8.9 billion to $5.2 billion. Shipments from Turkey decreased 17% to $4.1 billion, European Union shipments dropped 15% to $2.5 billion, Indian exports contracted 51% to $900 million, and US exports fell 37% to $476 million.

According to Al-Obaidi, the steepest declines were concentrated in capital goods and raw materials. Mineral fuels and oils dropped 59%, iron and steel products fell 50%, raw iron and steel dropped 48%, and machinery and mechanical equipment decreased 42%. Vehicles and electrical equipment each fell 33%. Conversely, food and consumer goods saw gains, including fruits (up 49%), tobacco (up 24%), clothing (up 4%), and cereal preparations (up 1%), while pharmaceutical exports fell 7%.

The report highlighted that the UAE accounted for 94% of Iraq's imports of gold and precious metals, 69% of vehicles, and 63% of electrical equipment, largely via re-exports. China maintained its position as Iraq's top source of machinery and mechanical equipment with a 38% market share. Iraq's General Authority for Statistics and Geographic Information Systems previously reported that total imports had surged 72.6% in 2025 to $72.3 billion, up from $41.9 billion in 2024.

Sources

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