How to Export to Iraq ?
Export to Iraq : Iraq is one of the most tense countries in the Middle East. Iraq has been a riot and a state of civil war. But Iraq is the 43rd country in the world economy. Iraq’s exports total more than $ 63 billion, and oil sales with more than 5 million barrels make up a large portion of its revenues. Iraq has a population of 43 million, which needs many goods and services. Due to the absence of industrial and industrial enterprises, imports in Iraq play a major role in supplying goods. More than $ 30 billion worth of goods and services have been exported to Iraq in 2017. And this figure is on the rise. The presence in the Iraqi market, however, has a high risk but also has many advantages.
Biggest countries exporter to Iraq
|1||United Arab Emirates||12 B|
|5||United States of America||1.3 B|
Biggest countries importer from Iraq
|3||United States of America||12 B|
|4||Korea, Republic of||10 B|
Iraq's Top 5 Exports
|27||Mineral fuels||95 B|
|71||Natural or cultured pearls||1.2 B|
|08||Edible fruit and nuts||78 M|
Iraq's Top 5 Imports
|85||Electrical machinery||2.5 B|
|73||Articles of iron or steel||1.2 B|
Marketing in Iraq
The language of Iraq is Arabic and all products should be labeled and packaged in Arabic. The presence in the Iraqi market requires the presence of local agents and the establishment of close business relations. Participating in border markets can make Iraqi businessmen more likely to see goods. It sometimes takes a few weeks or months for relationships to take shape. Marketing in Iraq needs the patience of exporters. Advanced products and technology require the presence of active Arabic support in Iraq. Providing brochures and catalogs in Arabic with cultural elements can have a positive impact on your sales.
Market Challenges Iraq
The main challenge in the Iraqi market is to compete for the lowest price. However, income per capita in Iraq is close to $ 17,000. But poverty is very high in this country. Major shareholders in the Iraqi market include Iran, China, and the UAE. Iraq is divided into three parts of Shiite and Sunni Kurds. Trade with the autonomous region of Kurdistan is more profitable due to less restrictions. Free zones in Iraqi Kurdistan make investment even more logical.
Market Opportunities Iraq
Iraq is under construction, and a large budget for this is planned by the government. Many Iraqi infrastructures have disappeared and require investment. Also, in the Iraqi goods and services sector, many industries, including food, pharmaceuticals, agriculture, petrochemicals, electronic equipment, telecommunications, etc., need to import goods and investments.
Pricing in the Iraq market
The presence in the Iraqi market requires special attention to pricing. Because of the high poverty and low incomes in Iraq, you need to consider pricing at low levels. The presence of powerful rivals, such as Turkey and China, will make competition in the country more complicated. You must pay special shipping fees and custom tariffs at a final price. Exporters should consider margin pricing well for their local agents.
Trade restrictions in the Iraq market
Iraq’s state-owned government is new. Tariff regulation in Iraq is taking place in a complex and fast way. This puts exporters in an unpredictable challenge and raises business risks with Iraq. Iraq imports and contracts oil and weapons under state-owned companies. Individual relationships are vital for the presence of the Iraqi market. Iraq has many cultures, but many are Muslim. The entry of non-Islamic products such as pork, alcoholic beverages, etc. is prohibited.
Iraq agreements and international agreements
The text of the EU-Iraq Partnership and Cooperation Agreement was signed on 11 May 2012. Its trade provisions entered into force provisionally on 1 August 2012, until ratification procedures for the whole agreement are completed. Iraq is an observer member of the World Trade Organization. Iraq has many bilateral agreements with the countries of Turkey Malaysia America China Egypt France Italy Japan Jordan Russia Tunisia India and England.
The strategy for entering the Iraq market
The presence in each of the three areas of Iraq requires a different strategy. In the Kurdistan Market you can use digital and traditional tools, and in other parts of Iraq you will have direct presence and representation of your first choice. The final sale of the goods to the user is recommended as a fob. Because many Iraqi companies and businessmen make a payment for the problem. The use of specialist in the Iraqi market is strongly recommended.