Shafaq News – Baghdad

Exports from the United Arab Emirates (UAE) to Iraq increased by nearly $10 billion in 2024 compared to the previous year, the Iraq Future Foundation for Economic Studies and Consultancy announced on Friday.

Based on data from the UAE Statistics Authority, the foundation said that exports to Iraq reached $33 billion in 2024. Precious metals, mostly gold, accounted for $12.8 billion, followed by $6.3 billion in electronics, largely mobile phones, $5.1 billion in vehicles, and $2.3 billion in electrical and mechanical equipment.

By comparison, UAE exports to Iraq in 2023 stood at $23 billion, of which only $3.2 billion was gold. The foundation noted that the surge in gold imports in 2024 raises “legitimate questions,” pointing out that gold has increasingly been used as an alternative tool for financial settlements in trade with certain countries, given its liquidity and role in financial transactions.

Foundation president and economist Manar al-Obaidi questioned how such large imports were financed. “Was this covered entirely through transfers by the Central Bank of Iraq, despite the strict oversight measures imposed since 2023? Or was gold purchased with funds outside Iraq’s banking system? If so, what is the source of those funds and why were they used to buy gold?” he asked.

Data from the first quarter of 2025 already shows a 52 percent drop in UAE gold exports to Iraq compared with the same period of 2024. However, the reasons for the dramatic increase in 2024 and the subsequent decline in 2025 remain unclear. The foundation emphasized that more than 12 percent of Iraq’s total imports last year were allocated to gold, calling for close monitoring of funding sources, transportation routes, entry points, importers, and end uses.