Iraq Saudi trade continued to grow in 2025, with total trade exchange reaching approximately $1.7 billion. The latest figures highlight stronger economic cooperation between the two neighboring countries and reflect expanding commercial activity across several sectors. Increased non-oil trade and improved logistics have supported this growth. Officials expect bilateral trade to continue rising as both countries strengthen their economic partnership.
According to data released by Saudi Arabia’s General Authority for Statistics, Saudi exports to Iraq reached nearly $1.66 billion during 2025. Food products made from cereals and flour ranked among the largest export categories, generating around $237 million. Electrical appliances and equipment followed with exports valued at approximately $221 million. Aluminum and related products contributed another $160 million to total exports.
Iraq exported goods worth around $18 million to Saudi Arabia during the same period. Aluminum products represented Iraq’s largest export category. Antiquities and historical artifacts ranked second, followed by gums and herbal extracts. Although Iraqi exports remained relatively limited, trade between the two countries continued expanding through broader commercial cooperation.
Officials reported that total trade exchange increased by 35 percent, driven mainly by higher non-oil exports and improved logistics services. The expansion reflects ongoing efforts to diversify trade beyond the energy sector. Better transportation networks have also supported faster movement of goods between both markets. These improvements continue strengthening economic integration.
Saudi Arabia maintained a significant trade surplus during the year. Its exports to Iraq included building materials, food products, dairy items, packaging materials, and manufactured goods. These products continue meeting growing demand within Iraqi markets. Commercial exchanges have become more diverse as bilateral trade expands.
The Arar border crossing has played an important role in facilitating this growth. The crossing has improved the movement of commercial trucks and supported trade exhibitions between the two countries. Better border infrastructure has reduced transportation barriers while encouraging greater business activity. Efficient logistics continue strengthening regional trade links.
Business cooperation has also expanded beyond merchandise trade. More than 30 Saudi companies currently operate in Iraq across various sectors. Meanwhile, approximately 46 Iraqi companies have established operations in Saudi Arabia. Growing private sector participation reflects increasing investor confidence and stronger economic cooperation.
Looking ahead, Iraq Saudi trade is expected to continue expanding as both governments encourage investment and regional economic integration. Ongoing infrastructure improvements and stronger commercial partnerships could create additional opportunities for businesses in both countries. Increased non-oil trade will remain an important objective for future growth. As economic ties deepen, Iraq Saudi trade will continue playing a key role in strengthening bilateral relations.