Reza Tajrishi, president of the House of Industry, Mine and Trade of Iranian Youth in Iran, conceded April 17 that his country is losing its appeal in Iraq’s markets to Saudi Arabia. Tajrishi’s declarations reflect a bitter competition between Iran and Saudi Arabia to take over the Iraqi market, a major consumer of foreign exports in light of an absent local industry sector.

Tajrishi placed the blame on Iraq, saying, “The government of Iraq bars many Iranian companies from operating, while the doors are wide open for the Saudis — thanks to reduced customs fees on Saudi goods per an understanding between the two sides.”

While touring the Iraqi markets, the intense competition between Iranian and Saudi goods became quite clear to Al-Monitor; stores are offering both Iranian and Saudi goods.

“There is an intense competition between Saudi and Iranian goods,” Salem al-Azzawi, a retailer in Babil, told Al-Monitor. “The same vendors who were known for dealing in Iranian goods are now selling Saudi goods. Whoever can offer the best quality and the best prices usually wins.”