The German Liaison Office for Industry and Commerce in Iraq (AHK) – Your Bridge to a Challenging Growth Market
The German Liaison Office for Industry and Commerce in Iraq is part of the global AHK network, with permanent offices in Baghdad and Erbil. It provides direct on-site support to German companies and serves as a central point of contact for market entry into Iraq. In addition to business matchmaking and market analyses, the office offers a wide range of services to facilitate access to the Iraqi market. Regular events promote exchange and strengthen the visibility of German businesses in a dynamic yet challenging environment.
Iraq – A Country with Future Potential
Iraq is undergoing a fundamental economic transformation. The government aims to reduce its dependence on the oil sector and promote new, future-oriented industries. This creates significant opportunities for international companies, especially in technology- and infrastructure-driven sectors.
With a population of around 46 million—more than 60% of whom are under the age of 25—the country offers a considerable labor force and a young, consumption-oriented society. Rapid urbanization, along with a high demand for modern infrastructure, education, and healthcare services, is shaping the country’s economic development.
Economy and Key Economic Indicators
In 2023, Iraq's Gross Domestic Product (GDP) stood at USD 232.1 billion. For 2025, a growth rate of approximately 4.1% is expected. Inflation remained moderate in 2023, at around 3.5%. The oil sector continues to dominate the economy, accounting for over 90% of export revenues. More than 4.3 million barrels of crude oil are exported daily. Nevertheless, the government is actively promoting the development of non-oil sectors such as logistics, industry, agriculture, and environmental technology.
- Population (2024): approx. 46 million
- GDP per Capita: approx. USD 5,150
- Unemployment Rate: approx. 15.5%
- Exports (2024): approx. USD 110.9 billion
- Imports (2024): approx. USD 58 billion
- Exchange Rate: 1 USD ≈ 1,300 Iraqi Dinar (IQD)
(Source: GTAI – Wirtschaftsdaten kompakt Irak, Dezember 2024)
Bilateral Economic Relations between Germany and Iraq
Germany is considered one of Iraq’s reliable European partners. The bilateral trade relationship is built on a long-standing partnership and ongoing exchange between businesses and institutions. At the core of this relationship are exports of German-made machinery, automotive technology, chemical products, and medical equipment—all highly valued in Iraq for their quality, efficiency, and durability.
Business Opportunities for German Companies in Iraq
International companies benefit from a wide range of strategic investment opportunities in Iraq:
Energy & Oil Processing
Iraq possesses some of the largest oil reserves in the world. In addition to investments in refineries and extraction technologies, the expansion of renewable energy is gaining momentum. German providers can stand out with innovative technologies in wind, solar, and energy storage solutions. There is also a high demand for stable power grids and grid modernization technologies.
Infrastructure & Urban Development
Major projects in transportation and housing are among the top priorities of the Iraqi government. The construction of roads, bridges, railways, and airports, as well as the development of residential areas—especially in urban centers such as Baghdad, Basra, and Erbil—create opportunities for smart city initiatives and modern urban planning.
Healthcare & Medical Technology
Improving healthcare services is a central objective. The construction and modernization of hospitals, implementation of digital health systems, and supply of medical equipment open up market potential for companies specializing in healthcare solutions.
Education & Vocational Training
With a young population, education is at the core of development plans. Alongside the expansion of schools and universities, there is significant interest in dual vocational training based on the German model. Qualification and skills development projects offer attractive business opportunities.
Digitalization & IT
The demand for digital infrastructure is growing rapidly. Key areas include e-governance, IT security, cloud solutions, and the digitalization of public administration. In addition, sectors such as fintech, e-commerce, and digital education are evolving dynamically.
Agriculture & Logistics
Modernization efforts in agriculture focus on mechanized farming, efficient irrigation, and automated processing. Expanding cold chain systems and transport logistics is essential to ensure food supply in urban areas and to boost exports.
Tourism Development
In addition to religious and cultural tourism, medical tourism is gaining importance. Developing tourism infrastructure—especially in historically significant regions—offers investment opportunities in hospitality, transportation, and related services.
Trends and Future Outlook
Iraq’s economic course is clearly geared toward long-term stability, sustainable growth, and structural diversification. The government is pursuing ambitious plans to modernize key sectors of the economy and to create an attractive investment environment. This includes targeted support programs for the private sector, the development of special economic zones, and the active engagement of international partners.
Cooperation with organizations such as the World Bank, the European Bank for Reconstruction and Development (EBRD), and Germany’s KfW Development Bank supports this transformation through strategic investments in key areas such as transportation, digitalization, and energy infrastructure. Core focus areas include the digitalization of government services, the development of sustainable power grids, environmental technologies, and access to renewable energy.
This strategic reorientation offers German companies a wide range of entry opportunities—especially in sectors where technological expertise and long-standing experience are in high demand.
Important Information Sheets for Download
Our Address
Office in Erbil
World Trade Centre, Gulan Street
7th Floor, Office No. 3
Erbil, Iraq
Office in Baghdad
Al-Mansour Melya Hotel, Floor 1
Hay Al-Salheya, Haifa Street
Baghdad, Iraq