The Iranian and Iraqi governments are exploring the establishment of joint industrial zones along their shared border to deepen bilateral economic ties and boost trade volumes.
During a meeting in Tehran on Tuesday between Naseer Abdul Mohsen, Iraq’s ambassador to Iran, and Samad Hassanzadeh, President of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA), both sides emphasized the need for strategic cooperation in industrial development and cross-border investment.
Hassanzadeh said Iran has significant capacity in industrial production, technology, and engineering services, which could serve as a strong foundation for expanded cooperation with Iraq.
“We believe the current $12 billion in trade between our two countries is not satisfactory,” Hassanzadeh told the ambassador. “With proper planning, this figure can be raised to $20 billion.”
He highlighted Iranian firms’ growing familiarity with the Iraqi market and their strong interest in collaborative ventures, especially in sectors like construction, healthcare, mining, and agriculture. “Iran is ready to engage in joint investment projects such as building airports, roads, and pharmaceutical factories,” he added.
Hassanzadeh proposed the creation of joint industrial parks in border regions to facilitate production aimed at third-country exports.
Ambassador Abdul Mohsen described Iran-Iraq ties as “strong and exemplary” for the region and acknowledged that current trade—including energy-related exchanges—totals about $18 billion.
“Iraqis are the top group of foreign tourists visiting Iran, especially for medical treatment,” he noted, pointing to the growing popularity of health tourism.
The ambassador added that Iraq’s exports to Iran currently stand at around $500 million, indicating a significant trade imbalance. “We must work toward balancing trade and enabling more Iraqi exports to Iran,” he said.
Abdul Mohsen also welcomed the idea of joint industrial zones, saying they could give Iran a competitive edge in Iraq’s large and highly contested market.