Iran’s Private Sector Ready to Invest in Iraq

TEHRAN (Iran News) Speaking at a high-level meeting with Iraq’s ambassador to Iran, ICCIMA President Samad Hassanzadeh emphasized that enhanced exchange of commercial information, access to investment incentives, and easier issuance of banking guarantees for Iranian investors will foster stronger private-sector cooperation between the two countries.

“One of our main priorities is the development of joint production and investment opportunities between the Iranian and Iraqi private sectors,” Hassanzadeh stated. He highlighted that this goal aligns with both governmental strategies and ICCIMA’s central agenda.

Hassanzadeh pointed to a recent investment opportunities conference in Iraq, which showcased over 140 viable investment prospects. He expressed hope that detailed information on these opportunities would be shared with the Iranian Chamber to better prepare Iranian economic actors for engagement.

He also proposed organizing training workshops to guide Iranian investors on how to enter the Iraqi market and leverage available incentives. A critical component of this process, he said, is facilitating the issuance of banking guarantees and ensuring legal clarity on ownership and long-term rights for Iranian investors in Iraq.

In addition, Hassanzadeh urged both governments to prioritize the improvement of logistics and transportation infrastructure, an essential aspect for enhancing trade and economic exchange.

Hossein Pirmoazen, Vice President of ICCIMA, reinforced the importance of Iraq as one of Iran’s key economic partners, noting a current trade balance of $12.7 billion. However, he stressed that the true potential of bilateral trade exceeds this figure.

To capitalize on these opportunities, Pirmoazen announced the formal launch of the Iran-Iraq Trade Policy Council. Composed of economic actors from Iranian provinces bordering Iraq and other major trade regions, the council is tasked with executing a roadmap to bolster trade volumes.

One of the council’s top goals is to improve Iran’s export ranking to Iraq—from fourth to second place—which hinges on enhancing transport infrastructure. “We need Iraq to approve transit operations under the TIR Convention to ease cross-border logistics,” Pirmoazen noted.

He further highlighted delays in customs clearance between the two countries, which he said have halved transportation activity. Installing X-ray scanners at border checkpoints in both Iran and Iraq could significantly address these delays.

Another strategic objective of the council is to dedicate 10% of Iran’s imports to goods coming from Basra and adjacent Iraqi provinces, in an effort to narrow the trade imbalance. Pirmoazen stated, “This is part of a broader effort to correct the 50% trade deficit Iran faces in its trade relationship with Iraq.”

Yahya Al-e Eshaq, head of the Iran-Iraq Joint Chamber of Commerce, reiterated the urgency of addressing the financial and banking issues that have hampered economic relations. “The biggest barrier to sustainable long-term investment is the lack of stable monetary channels and banking coordination,” he said.

He stressed that removing obstacles to money transfers, banking guarantees, and insurance coverage is essential to unlock the full potential of bilateral cooperation. Al-e Eshaq also pointed to the untapped potential of Iraqi goods transiting to Iran, suggesting that this could be a game-changer in addressing the trade imbalance.

“Iraq can supply nearly $5 billion worth of goods to meet Iranian market demand, and Iranian businesses are fully prepared to engage,” he added.

Nasir Abdulmohsen Abdullah, Iraq’s ambassador to Iran, underscored his country’s readiness to welcome Iranian investors. “We value Iran’s role in our development projects, and there is strong potential for cooperation,” he said.

He presented a comprehensive list of investment opportunities in Iraq, including: 27 renewable energy projects across 14 provinces, 2 major oil and gas investment opportunities, 22 projects in heavy and medium industries, 9 opportunities in industrial towns and free zones, 10 agricultural projects—many in provinces bordering Iran, 10 healthcare-related projects, and 25 housing developments.

According to the ambassador, the total value of investment opportunities in Iraqi industrial zones and free trade areas alone amounts to $70 billion. He expressed confidence that expanding Iranian participation in these projects would help establish a more balanced trade relationship between the two nations.

As both sides push forward with ambitious plans to deepen economic ties, the creation of the Iran-Iraq Trade Policy Council and the open invitation from Iraq for Iranian investments signal a new chapter in bilateral economic cooperation. If logistical, financial, and regulatory challenges are addressed promptly, the two countries could move significantly closer to realizing their shared economic potential.