UAE Exports to Iraq Fall 25% in 2026
UAE shipments to Iraq dropped sharply in the first half of 2026 as regional conflict disrupted trade routes.
Updated on Nov. 2, 2026 in International Trade
Live Poll
Have prices or delivery times on imported goods gotten worse for you recently?
UAE exports to Iraq stood at around $10.5 billion in the first half of 2026, down 25 percent year on year. Re-exports fell by a third, driven by sharp declines in vehicles, electronics and machinery.
Why it matters
The decline reflects how the Iran war disrupted regional shipping and trade, with Dubai, a major re-export hub, hit by repeated Iranian drone and missile attacks. Iraq has historically relied heavily on Turkey as a major importer, shaping where its replacement supply may come from.
UAE exports to Iraq were roughly $10.5 billion in the first half of 2026, a 25 percent drop from the prior year, with re-exports falling by a third. The full recovery timeline and any offsetting gains in other markets remain unreported.
The players
Iraq
Iraq is a major Middle Eastern importer that has long depended on Turkey and the UAE for a large share of its imported goods.
Turkey
Turkey is one of the main exporters to Iraq and a leading regional trading partner whose goods compete with UAE shipments.
The details
Re-exports fell by a third due to a sharp fall in the value of exports of vehicles, electronics and machinery. The Iran war disrupted regional shipping and trade, and a large share of UAE re-exports to Iraq originate in Dubai, which has suffered repeated attacks by Iranian drones and missiles during Tehran's conflict with the United States.
Timeline
First half of 2026: UAE exports to Iraq fell 25 percent year on year.
Market Landscape
The drop extends the Iran war's disruption of Gulf trade routes into UAE re-exports, a segment that has long made Dubai a regional distribution hub. Iraq's continued reliance on Turkish imports suggests buyers may shift supply chains rather than halt purchases entirely.
Buyers of vehicles, electronics and machinery in Iraq may face reduced availability of UAE-sourced goods and shifting prices as suppliers adjust. Businesses that depend on Dubai re-export routes should plan for supply disruptions while the regional conflict continues.
The takeaway
Trade flows through the Gulf are sensitive to regional security, and businesses relying on single re-export hubs face concentrated risk. Diversifying supply routes can reduce exposure to sudden disruptions like these.
Further reading
For broader context on cross-border commerce, explore International Trade coverage.
Source note: This article includes information reported by AGBI.
Live Poll
Have prices or delivery times on imported goods gotten worse for you recently?
