Türkiye and Iraq aim to boost bilateral trade to $30B by 2025

Türkiye and Iraq are aiming to deepen economic ties by increasing their bilateral trade volume from $20 billion to $30 billion by 2025, according to Halit Acar, chairman of the Türkiye-Iraq Business Council of the Foreign Economic Relations Board (DEIK).

Last year, Iraq ranked as Türkiye’s fifth-largest export market, with trade between the two nations reaching $20 billion.

Acar emphasized the mutual commitment to further strengthening cooperation, particularly through strategic initiatives like the Development Road project.

Development Road project to enhance regional connectivity

The Development Road project, designed to establish a land and rail corridor from Iraq’s Basra to Türkiye, is seen as a critical milestone in regional connectivity.

“The Development Road Project stands out as the shortest route linking the Persian Gulf to Europe via Türkiye. This project not only offers immense economic opportunities for Iraq and Türkiye but also for the entire region,” Acar said.

When completed, the project is expected to shorten transportation time between the Gulf and Europe by 12 to 15 days, significantly reducing costs. Strategic elements of the project include high-speed rail lines and port investments, which are expected to bolster economic integration among Iraq, Türkiye, and neighboring countries.

Iraq: A key market for Turkish exports

Türkiye’s exports to Iraq grew by 9.8% in 2023, totaling $10.7 billion, with Iraq accounting for 4.73% of Türkiye’s total exports. The main export sectors included cereals, pulses, oilseeds, construction materials, and automotive components.

Acar highlighted Iraq’s growing infrastructure needs, stating, “Iraq’s reconstruction efforts have created significant opportunities for Turkish firms, particularly in construction, energy, and logistics. Türkiye continues to contribute to Iraq’s development while solidifying its commercial partnerships.”

Expanding sectoral collaboration

Energy, agriculture, logistics, health, and technology are key sectors driving economic collaboration between the two nations. Acar noted, “There is increasing demand in areas such as renewable energy, infrastructure projects, and food production. These sectors offer significant potential for further collaboration.”