Iraqi: Our relations are good with the countries on the other side of the Gulf and they have no problems with us.

Iraqi: Our relations are good with the countries on the other side of the Gulf and they have no problems with us.

Iraqi–Gulf Relations Strengthen Amid Economic Cooperation and Diplomatic Efforts

Iraq has emphasized improved ties with Gulf Cooperation Council (GCC) states, asserting that bilateral relations are stable and free of major disputes. Recent developments highlight a shift toward economic collaboration and diplomatic engagement, reflecting a broader regional strategy to normalize relations post-2003.

Economic partnerships have become a cornerstone of Iraq's Gulf diplomacy. In 2024, Iraq and Saudi Arabia established a $3 billion joint fund to boost cooperation in energy, renewables, and infrastructure. This follows Saudi Arabia's 2019 opening of a consulate in Baghdad and $500 million in financial support for Iraqi exports. Similarly, Kuwait has supported Iraq's reconstruction, hosting a 2018 donor conference and resolving historical compensation claims related to the 1990 invasion. The UAE has focused on energy investments, while Qatar has leveraged sports and media to strengthen cultural ties.

Despite these advancements, a recent maritime boundary dispute between Iraq and Kuwait has drawn GCC attention. In February 2026, the GCC urged Iraq to withdraw coordinates submitted to the UN that Kuwait claims infringe on its sovereignty. While tensions arose, Gulf states emphasized adherence to international law and bilateral agreements, underscoring a commitment to resolving issues through dialogue. Iraq's 2023 Federal Supreme Court ruling challenging the validity of its maritime agreement with Kuwait further complicated the matter.

Iraq's political leadership has also prioritized regional stability. The 2021 Baghdad Conference, attended by GCC states and regional powers, highlighted Iraq's role as a mediator in Gulf-Iranian tensions. Prime Minister Mohammed Shia Al Sudani's 2024 meeting with Saudi Crown Prince Mohammed Bin Salman reinforced shared goals in economic integration and security cooperation.

While challenges persist, including Iran's influence and post-ISIS reconstruction needs, Iraq's Gulf partners remain focused on economic incentives over political rivalry. Analysts suggest that sustained investment in infrastructure, energy, and trade could further solidify ties, aligning with Iraq's strategic pivot toward regional cooperation.