International Payments for Iraqi Businesses

In recent years, Iraqi companies have significantly expanded their trade activities with suppliers from Turkey, China, the UAE, and other global economic hubs. With this expansion, international money transfers have become an essential part of daily business operations. They ensure the continuity of supply chains, timely invoice payments, and the preservation of trust with commercial partners.

However, the reality is that sending money from Iraq abroad is not always straightforward. Businesses face complex challenges, including regulatory restrictions, traditional banking hurdles, as well as issues related to speed, cost, and transparency.

This article serves as a practical guide for Iraqi businesses. It outlines the best practices and modern digital solutions for paying international suppliers with ease and security, focusing on strategies that help reduce costs and speed up processes—without compromising reliability or regulatory compliance.

Key Challenges Facing Iraqi Businesses in International Transfers

Before diving into the solutions, it’s important to understand the main obstacles that make money transfers more complicated:

• High fees: Iraqi banks often impose high fixed charges on every transfer, in addition to non-transparent exchange rate margins.

• Slow procedures: Traditional bank transfers can take 3–7 business days, which may delay shipments or disrupt supply chains.

• Lack of transparency: Businesses often struggle to know the exact amount a supplier will receive after deductions and exchange rate differences.

• Regulatory risks: Due to strict compliance requirements (KYC/AML), transfers may be delayed or even rejected if documents are incomplete or inaccurate.

• Currency fluctuations: In a volatile market like Iraq, delays can result in additional losses due to exchange rate changes.

Traditional Methods of Money Transfers

When thinking about sending money from Iraq to the UAE or elsewhere, businesses often rely on two main options: local banks or international transfer companies. Each option has its pros and cons:

1. Local Banks

Pros:

• Secure and strictly regulated by financial authorities.

• Considered the traditional choice for large and formal transactions.

Cons:

• Slow: Transfers may take 3–5 business days.

• Expensive: High fees combined with non-competitive exchange rates.

• Complex procedures: Require extensive documentation, causing delays.

2. International Transfer Companies

Pros:

• Relatively faster than banks (1–2 days).

• Widely accessible through thousands of branches and agents.

Cons:

• Hidden fees: Extra charges often not disclosed upfront.

• Unclear exchange rates: Recipients may receive far less than expected.

• Cumbersome process: Often requires visiting a physical branch and isn’t fully digital.

Compared to these traditional methods, Rakiiz offers a modern experience: instant or same-day transfers, transparent fees, fair exchange rates, and flexible payout options—making it the most suitable solution for Iraq–UAE business payments.
 

Digital Solutions: The Future of International Transfers

With the rise of financial technology (FinTech), platforms like Rakiiz provide faster, more transparent, and cost-effective alternatives to traditional methods.

Advantages of digital transfers with Rakiiz:

• Speed: Funds arrive within hours—or even instantly.

• Lower costs: Clearly stated fees with no hidden charges.

• Transparency: Real exchange rates are displayed upfront before confirmation.

• Security: Full compliance with international KYC and AML standards.

• Ease of use: Accessible through an app or website, ideal for SMEs.

Transfer Options with Rakiiz

1. Direct Bank Deposit

Funds are sent directly to the supplier’s bank account, ensuring secure and officially documented transactions.

• Best for: Large or recurring payments such as rent, supplier invoices, or service contracts.

• Advantages: High security, easy tracking, suitable for companies handling large amounts.

2. Cash Pickup

Suppliers collect money in cash through Rakiiz’s partner centers in the UAE.

• Best for: Suppliers without bank accounts.

• Advantages: Quick access to funds, no need for a bank account, flexible for local recipients.

3. Digital Wallet

Funds are transferred directly to the supplier’s e-wallet for immediate use.

• Best for: Small payments, daily expenses, or fast online transactions.

• Advantages: Instant transfers, user-friendly, perfect for digital-first businesses.
   

Step-by-Step: How to Manage Supplier Payments

1. Choose the right transfer method

   • If the supplier has a formal bank account → direct bank deposit is best.

   • If not → cash pickup or e-wallet may be more suitable.

2. Set the amount and payment method

   • Payments can be made in USD or IQD.

   • Options include local bank transfers or debit/credit cards.
     💡 Tip: Local bank transfers are usually cheaper than cards.

3. Review fees and exchange rates
   Always check the live rate before confirming.

   • Example: Sending $10,000 through a traditional bank may result in a $200–$400 loss for the supplier.

   • Through Rakiiz, nearly the full amount arrives thanks to transparent pricing.

4. Enter supplier details accurately

   • Full legal name (as per the bank account).

   • Account or wallet number.

   • Receiving bank and address if required.

5. Confirm and track the transfer

   • Verify the final amount.

   • Monitor the transaction in real-time via Rakiiz’s dashboard until it reaches the supplier.

Practical Tips to Save Time and Money

• Always compare prices before sending.

• Send larger amounts instead of frequent small transfers to reduce fixed fees.

• Monitor the FX market and wait for better rates if payment isn’t urgent.

• Take advantage of promotions, such as Rakiiz discounts for new users.

• Keep all documents ready to avoid compliance-related delays.

Comparison Table: Rakiiz vs. Other Methods

Real-World Examples of Iraqi Businesses

• Food Import Company: Pays $20,000 monthly to a supplier in Turkey. With Rakiiz, funds arrive within hours at 70% lower cost compared to banks.

• Small Factory in Baghdad: Sends $5,000 monthly to a supplier in Dubai via e-wallet. Funds arrive instantly without delay.

• Construction Firm: Settles large payments with a supplier in China. Rakiiz ensures full transparency by showing live exchange rates before each transfer.

Conclusion

For Iraqi companies, choosing the right money transfer method is now a critical factor in maintaining smooth international operations. While banks remain the traditional choice, digital platforms like Rakiiz provide faster, more transparent, and more secure alternatives.

In short, international transfers are no longer the headache they once were. With the right tools, Iraqi businesses can:

• Cut down on costs.

• Avoid unnecessary delays.

• Build stronger trust with suppliers.

If your business relies on international suppliers, the next step is clear:
Try Rakiiz today and make your payments faster, cheaper, and smarter.