Iraq–Saudi trade jumps 35% in 2024, deficit widens

Shafaq News- Baghdad/ Riyadh

Trade between Iraq and Saudi Arabia rose by about 35% in 2024 to nearly $1.8 billion, driven mostly by Iraqi imports, Iraq’s Trade Ministry said on Monday.

In a statement, the ministry said that the Iraqi imports from Saudi Arabia climbed to roughly $1.73 billion in 2024, up from about $1.30 billion a year earlier, marking a growth rate of 33.4%. Construction materials, electrical and electronic goods topped the import list at more than $838 million, fueled by reconstruction and urban expansion, followed by food products at $416 million.

Imports of machinery, equipment, and industrial devices recorded the fastest annual growth, exceeding 136%, pointing to expanding investment projects and rising demand for capital goods. Pharmaceutical imports also rose by 32%, reflecting increased pressure on Iraq’s health sector.

Iraqi exports to Saudi Arabia increased by nearly 145% in 2024 to about $49.5 million, accounting for only a small fraction of total bilateral trade, which is conducted mainly through the Arar land border crossing in Al-Anbar. Iraq’s trade deficit with Saudi Arabia widened to approximately $1.69 billion.