UAE exports and re-exports to Iraq fell by 25% in the first half of 2026, declining by approximately $3.5 billion from a year earlier, Iraqi economist Manar al-Obaidi said on Saturday, citing official Emirati statistics.
Al-Obaidi, head of the Iraq Future Foundation, said the combined value of non-oil exports and re-exports dropped to $10.6 billion from $14.1 billion in the same period of 2025.
Re-exports, which include goods shipped through UAE ports from other countries, fell 32%, compared with a 10% decline in UAE-produced exports.
According to al-Obaidi, electrical and electronic goods shipments dropped 27%, while vehicles and machinery each recorded declines of 32%.
He said the UAE, particularly Dubai’s Jebel Ali Port, remains a major gateway for Iraq’s supply chains, making the country vulnerable to disruptions in Gulf shipping routes that affect prices, product availability and delivery times.
Al-Obaidi suggested that part of the decline could reflect a shift toward alternative import routes through Turkiye and Jordan, alongside direct purchases from producing countries rather than through UAE re-export hubs.
He also cited higher Iraqi customs tariffs on certain goods, exceeding 30%, and Central Bank of Iraq restrictions on financial transfers involving indirect suppliers as factors contributing to weaker import demand and reduced trade through the UAE.
