The relationship between Syria and Iraq has been unstable for the past twenty years due to various political and security issues, resulting in fluctuations in diplomatic ties between the two countries. Bilateral trade and investments have been negatively impacted by economic destruction in Syria and loss of control of border crossings, as well as the issue of refugees in both countries. Despite efforts to strengthen ties, trade, and investment since 2019, the success of this renewal is uncertain, particularly with the collapse of the Syrian economy. While Iraq could potentially benefit from improved trade relations with Syria, there are limited economic opportunities for Iraqi investors in Syria.
This report covers the economic relations between Syria and Iraq over the past two decades. It includes information on political and diplomatic relations, bilateral trade and investments, the economic impact of Iraqi and Syrian refugees, recent efforts to renew bilateral relations, and economic ties between Iraq and the Autonomous Administration in North and East Syria.