Samer Choucair: Saudi-Iraqi Trade Is Reshaping Regional Capital Flows
Entrepreneur Samer Choucair said the growth of trade between Saudi Arabia and the Republic of Iraq represents a strategic indicator of the restructuring of regional supply chains.
He explained that trade flows between the two countries no longer reflect only an increase in exports and imports, but also point to promising investment opportunities across manufacturing, logistics, and infrastructure, in line with the objectives of Saudi Vision 2030 and efforts to strengthen regional economic integration.
Samer Choucair noted that bilateral trade between Saudi Arabia and Iraq approached $1.7 billion during 2025, driven by Saudi exports exceeding $1.6 billion, compared with relatively limited Iraqi exports.
He said this reflects the continuing trade surplus in the Kingdom’s favour, alongside growing Iraqi demand for Saudi industrial and consumer products.
Choucair explained that these indicators are increasing interest among sovereign wealth funds and regional and international asset managers in investment opportunities connected to bilateral trade, particularly as logistics infrastructure improves and non-oil trade between the two countries expands.
“Current trade flows provide an early indication that regional supply chains are being reorganized,” Samer Choucair said. “Institutional capital is moving toward opportunities connected to Vision 2030 and the diversification of the Saudi economy, while continuing to monitor geopolitical and logistics risks.”
He added that trade growth comes as the Kingdom continues to strengthen its non-oil exports under the objectives of Vision 2030, while Iraq is experiencing rising demand for food products, construction materials, and industrial goods amid continuing reconstruction and infrastructure-development projects.
Choucair explained that Saudi Arabia’s principal exports to Iraq included preparations made from cereals and flour, dairy products, aluminium and aluminium products, alongside a range of industrial and consumer goods.
Iraqi exports remained concentrated within a limited group of mineral products and derivatives.
Samer Choucair emphasized that this pattern reflects economic integration based on the comparative advantages of each country.
“What we are witnessing is a classic form of relative specialization,” he said. “Saudi Arabia benefits from its manufacturing and logistics capabilities, while Iraq depends on imports to meet domestic-market requirements. Institutional investors view these flows as an indication of stable demand in neighbouring regional markets, particularly as Iraqi infrastructure projects continue.”
Choucair noted that most trade between the two countries passes through the Arar border crossing in Saudi Arabia’s Northern Borders Region, which serves as the principal land gateway for trucks and goods.
Saudi ports are also playing a growing role in supporting trade across the Red Sea and the Arabian Gulf, while logistics corridors connecting northern Saudi Arabia with Iraqi markets continue to be developed.
Samer Choucair explained that the concentration of trade along these routes creates important investment opportunities in transportation, logistics services, warehousing, and trade finance.
The expansion of these activities could improve supply-chain efficiency and reduce transportation costs between the two countries.
“Capital allocation toward transportation and logistics companies connected to Saudi-Iraqi trade corridors could generate returns above the market average during the next phase,” Choucair said. “This will depend on the continued modernization of customs procedures, improved border-crossing efficiency, and reduced security volatility.”
He emphasized that current growth aligns with institutional investment trends across the Gulf, where sovereign wealth funds and investment banks are increasingly directing capital toward assets connected to regional trade and economic diversification.
Food manufacturing, metals, construction materials, and logistics remain among the most attractive sectors because of their direct exposure to consumer demand and reconstruction projects in Iraq.
Samer Choucair noted that investment opportunities are not limited to major industrial companies.
They also extend to packaging businesses, supply-chain operators, logistics providers, and trade-finance companies, as well as potential joint ventures between private-sector companies in both countries that could deepen economic integration and improve the efficiency of trade flows.
Choucair warned that investors must also consider several risks, including heavy reliance on a single principal land crossing and the possibility that political or security developments could disrupt trade.
“Any disruption at border crossings could directly affect the margins of exporting companies,” he said. “Investors should therefore diversify their exposure through trade-finance instruments and logistics companies operating across multiple routes, thereby reducing operating risk.”
He added that 2026 could bring faster economic integration between the two countries if economic reforms and the development of infrastructure and trade corridors continue, potentially supporting stronger private and institutional investment flows.
Concluding his remarks, Samer Choucair said: “The commercial relationship between Saudi Arabia and Iraq provides a model for transforming bilateral trade into a driver of long-term capital allocation. Genuine success should not be measured solely by higher trade volumes, but by both countries’ ability to develop multiple trade corridors and deepen industrial integration in ways that support sustainable growth, advance the objectives of Saudi Vision 2030, and reinforce the region’s position as a centre for trade and investment.”