Saudi Trade Body Fixes Technical Hurdle Blocking Exports to Iraq

03/10/2025 01:49 AST

Saudi Arabia's General Authority for Foreign Trade (GAFT) said it has resolved a technical and logistical challenge that had disrupted exports through the "Jadidat Arar" border crossing with Iraq, the only land route linking the two countries.

The intervention came after Iraqi officials at the crossing refused to recognize electronic authentication of commercial documents issued by Saudi chambers of commerce, insisting instead on paper verification through Baghdad's embassy in Riyadh.

According to officials familiar with the matter, the problem stemmed from Iraqi staff being unable to open QR codes used to verify the documents online.

The GAFT said it worked with chambers of commerce to fix the issue and successfully tested the new system in the field, restoring smooth clearance of goods.

The crossing, opened in 2020, has become an economic lifeline for trade between Riyadh and Baghdad, cutting export costs by 15% and reducing shipping times to under 48 hours.

Truck movements through Jadidat Arar surged 81.3% in the first half of 2024 compared with the same period in 2023, the Arar Chamber of Commerce reported. A total of 33,300 trucks crossed in and out of Iraq during the period, up from 18,729 in the first half of 2023 and just 4,084 in 2021.

The rising traffic underscores the crossing's growing role in Saudi-Iraqi trade, which both governments hope will underpin broader economic ties. Iraq's agriculture minister has offered Saudi investors one million hectares of farmland, while the crossing includes a logistics zone on the Saudi side and the Iraqi side, covering a total area of more than 1.6 million square meters.

The trade authority said it would continue to work with Iraqi counterparts to remove obstacles facing exporters and facilitate private-sector access to Baghdad.

Asharq Al Awsat