Current Trade Dynamics: Germany and the Kurdistan Region
Approximately 85 German companies are operating in the Kurdistan Region, collaborating with local enterprises to enhance trade relations. According to a representative from the Erbil Chamber of Commerce and Industry, the trade volume between the Kurdistan Region, Iraq, and Germany reached $3 billion in the previous year.
This statement was made by Shirin Yahya Khalil, a council member of the Erbil Chamber of Commerce and Industry, during an interview on February 23, 2025. She emphasized that the substantial trade figure reflects a growing interaction, with a notable portion stemming from activities in the Kurdistan Region itself.
Germany has emerged as a key commercial partner for the Kurdistan Region, importing a diverse range of products including technological equipment, electrical appliances, medical devices, pharmaceuticals, and vehicles.
Highlighting the automotive sector, Khalil noted that renowned German car manufacturers, such as BMW and Mercedes, have established offices in the Kurdistan Region. Furthermore, various German companies are investing in construction materials, thereby playing a significant role in advancing the region’s construction industry.
On the same day of the interview, Germany conducted its federal parliamentary elections, the outcomes of which are anticipated to influence the country’s economic policies. Khalil expressed hope that the election results would not adversely affect the economic relations between Germany and the Kurdistan Region.
In light of recent economic data from the German Statistical Office, it was reported that domestic production has declined by 0.5 percent over the past two years, marking the first downturn in a quarter-century.
