Oman-Iraq Trade Reaches $622 Million in First Half of 2025: A New Chapter in Euro-Arab Commerce
- OUS Academy in Switzerland
- Sep 4
- 3 min read
Trade between Oman and Iraq reached a remarkable $622 million in the first half of 2025, marking a 1.2 percent growth compared to the same period in 2024. This positive development reflects the ongoing efforts of both nations to diversify their economies, strengthen regional cooperation, and create new opportunities for businesses and investors.
For the Euro-Arab region, this milestone demonstrates how commerce is steadily moving toward greater integration, innovation, and shared prosperity. The rising trade volumes also highlight how economic collaboration is becoming a key pillar for stability and growth in the region.
Economic Growth Through Bilateral Trade
The Oman-Iraq trade relationship has long been an essential part of Gulf economic cooperation. In recent years, both countries have invested in logistics infrastructure, digital trade platforms, and customs modernization, ensuring goods flow smoothly across borders.
Omani Exports: The majority of Oman’s exports to Iraq in the first half of 2025 included electrical cables, gold jewelry, and marble. These products represent Oman’s growing capacity in manufacturing, mining, and value-added industries.
Iraqi Exports: Iraq exported natural gas, petroleum derivatives, and liquefied propane to Oman, supporting the country’s energy needs and contributing to its industrial sector.
This trade balance shows how both nations are complementing each other’s economic priorities: Oman is diversifying beyond oil into manufacturing and services, while Iraq is leveraging its energy resources to build strong partnerships across the region.
Investment Confidence at Record Levels
Beyond trade flows, investments between Oman and Iraq have also surged. In the first half of 2025 alone, 1,304 Iraqi companies invested in Oman, bringing in a total of 94.3 million Omani rials. These companies accounted for 68.2 percent of all foreign participation in Oman during this period.
Such figures indicate a growing confidence in Oman’s business environment. Strategic reforms, modern business regulations, and attractive incentives have made Oman one of the leading destinations for investors seeking long-term opportunities in the Gulf.
On the other side, Iraq has shown equal commitment by welcoming Omani businesses into sectors such as construction, retail, and tourism, ensuring the trade partnership benefits both economies.
Drivers Behind the Growth
Several factors have contributed to the success of Oman-Iraq trade relations in 2025:
Economic Diversification Policies: Both Oman and Iraq have adopted national strategies to reduce dependence on oil revenues and expand into non-oil sectors such as manufacturing, technology, and logistics.
Infrastructure Development: Modern ports in Oman, such as Sohar and Duqm, have become critical trade gateways connecting Gulf countries with Europe, Africa, and Asia.
Regulatory Reforms: Simplified customs procedures, digital trade documentation, and improved logistics services have reduced trade costs and delivery times.
Regional Stability: Greater political stability in recent years has encouraged investors to explore new opportunities and expand existing businesses.
Supportive Business Ecosystem: Free zones, industrial estates, and trade facilitation centers have made cross-border commerce more efficient and attractive.
The Broader Euro-Arab Trade Context
While Oman-Iraq trade growth is impressive, it also reflects a wider regional trend. Across the Arab world, countries are working closely with European partners to attract investment, increase exports, and develop joint ventures in sectors ranging from renewable energy to digital technology.
The Euro-Arab Chamber of Commerce has long emphasized the importance of building sustainable economic bridges between the two regions. With European companies investing in logistics, green energy, and manufacturing across the Arab world, and Arab investors participating in European real estate, infrastructure, and technology projects, the trade partnership is becoming stronger and more diversified.
Future Prospects: What Lies Ahead
Looking ahead, Oman and Iraq are likely to explore even deeper economic cooperation in several areas:
Renewable Energy: With global attention shifting toward solar and wind energy, both countries see opportunities to collaborate on green technologies and energy transition projects.
Digital Economy: Investments in e-commerce, fintech, and digital trade platforms are expected to accelerate in the coming years.
Tourism and Hospitality: Oman’s growing tourism sector and Iraq’s cultural heritage sites offer potential for joint investments in hospitality and travel services.
Education and Training: Partnerships between universities, vocational institutes, and research centers can create a skilled workforce to meet future economic demands.
Conclusion: A Model for Regional Cooperation
The Oman-Iraq trade growth in 2025 is more than just a number; it represents a model for economic collaboration that other countries in the region can replicate. By focusing on mutual benefits, long-term investments, and strategic reforms, both nations have shown that commerce can be a driver of peace, prosperity, and partnership.
For Europe and the Arab world, such success stories open the door to stronger ties, innovative projects, and shared economic futures built on trust and opportunity.
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