IRAQ. Iraq Duty Free has underlined its confidence in the country’s travel retail market as it presses ahead with expansion at Basrah International Airport following severe regional disruption and airport closures earlier this year amid the Middle East crisis.
The disruption temporarily halted travel and hit sales across all duty-free categories, prompting the retailer to recalibrate its 2026 targets. With passenger confidence and traffic progressively returning, Iraq Duty Free said the business has returned to growth mode.
Close cooperation with airport authorities and airline partners helped the retailer maintain operational stability through the challenging period.
Attention is now focused on Basrah International Airport, where Iraq Duty Free is adding departures and arrivals stores in the new terminal. A 100sq m departures shop opened on 20 August.
The investment builds on the retailer’s existing presence at Basrah, where it opened an 84sq m arrivals store in 2021.
The expansion marks another step in the development of Iraq Duty Free, which celebrated its 20th anniversary in 2024. Since beginning operations at Baghdad International Airport, the retailer has expanded and upgraded its airport and downtown footprint.
Downtown delivers
Away from the airports, Iraq Duty Free said its 500sq m downtown duty-free store in Baghdad continues to trade strongly, led by liquor, tobacco and fragrances.
Opened in May 2022 as Iraq Duty Free’s first move into downtown retail, the store recorded a +13% sales increase in its second year without cannibalising airport sales, highlighting its potential as an incremental revenue stream.
Eligible travellers can shop there for up to 30 days after entering Iraq, giving the retailer another opportunity to capture traveller spending. Iraq Duty Free has previously highlighted demand for authentic branded goods at duty-free prices as a key attraction for Iraqi consumers.
New growth phase
Iraq Duty Free believes an easing of international restrictions and strengthening cooperation between Iraq and international partners will support increased travel activity and create further opportunities at the country’s developing airports.
Mosul International Airport, in Iraq’s third-largest city by population, is among the locations in its sights.
The retailer has identified the airport as part of its prospective expansion pipeline as it seeks to extend its footprint alongside the modernisation of Iraq’s aviation infrastructure.
After the considerable effects of Middle East travel disruption in 2026, Iraq Duty Free said it anticipates a more positive trading environment for the remainder of the year and beyond, both for its business and Iraq’s wider travel sector. ✈
