
Iraq is advancing its military capabilities through a pivotal deal with France, acquiring 12 Dassault Rafale fighter jets in exchange for $3.2 billion worth of oil. This constitutes an important milestone in Iraq’s military modernisation, as it strives to diversify its air force. The payment structure is noteworthy, with Iraq opting to deliver oil rather than make a direct cash payment.
The first instalment, valued at $240 million, has already been completed. This unique arrangement reflects Iraq’s effort to leverage its abundant oil reserves to strengthen its military without straining its finances.
Expanding Iraq’s Air Fleet
The key element of this deal—France trades 12 Dassault Rafales for $3.2 billion in oil—underscores Iraq’s broader goal of upgrading its air defence. The Rafale jets will be added to the Iraqi Air Force’s current fleet, which primarily consists of American-made F-16s.
These multi-role aircraft are highly valued for their versatility in both air superiority and ground attack missions. By integrating Rafale, Iraq is reducing its dependence on U.S. military support and sending a clear message of independence in regional defence strategies.
Additionally, the deal includes the acquisition of the Ground Master radar system, which will significantly enhance Iraq’s air surveillance capabilities. The radar, combined with the Rafale jets, will provide Iraq with a more comprehensive and robust air defence system, better equipped to respond to regional threats.
The Strategic Importance of Rafale
France trades 12 Dassault Rafales for $3.2 billion in oil, highlighting the importance of the Rafale in Iraq’s military expansion. The Dassault Rafale is known for its cutting-edge design and advanced avionics.
Powered by twin Snecma M88 engines, the aircraft can reach speeds of Mach 1.8 and altitudes of 50,000 feet. Its operational range of approximately 1,000 nautical miles can be extended with external fuel tanks, making it ideal for a wide variety of missions.
The jet’s advanced avionics, particularly the RBE2-AA radar system that employs active electronically scanned array (AESA) technology, allow it to track multiple targets simultaneously.
This is further supported by the Spectra electronic warfare system, which offers comprehensive protection against radar-guided and infrared threats. In terms of armament, the Rafale can carry a wide range of weapons, including the Mica and Meteor air-to-air missiles, as well as precision-guided bombs and cruise missiles.
Iraq’s Shift from JF-17 to Rafale: Will BVR Capabilities Be Included?
Iraq initially favoured Pakistan’s JF-17 Thunder, nearly finalising a cash-based deal. However, they now consider France’s Rafale offer more attractive due to the oil-based barter arrangement. A key question remains: will France include BVR (Beyond Visual Range) missiles with the Rafales?
Previously, France withheld Meteor BVR missiles from Egypt to maintain Israel’s regional advantage. The JF-17 package offered BVR missiles and advanced electronics. While Iraq could benefit from a mix of high- and low-end fighters, their existing non-BVR F-16s make a JF-17 purchase unlikely. Iraq may again invest in an expensive platform without BVR capabilities, a potentially vague strategic decision.

Strengthening Iraq’s Defence Infrastructure
With France trading 12 Dassault Rafales for $3.2 billion in oil, Iraq is setting itself up for long-term benefits beyond the acquisition of the jets. Integrating such an advanced aircraft into its fleet will require extensive training for pilots and technical personnel. This need for skilled resources means Iraq will also invest in infrastructure upgrades, including maintenance facilities and ground support, to ensure the Rafales are fully operational.
Recent reports highlight Iraq’s difficulties in maintaining its current fleet of F-16s, largely due to shortages of spare parts and trained personnel. The introduction of Rafale jets will exacerbate these logistical challenges, but if properly managed, it could significantly enhance Iraq’s overall air combat capabilities. Ensuring that technical support and maintenance protocols are in place will be essential to the long-term success of this deal.
Iraq’s Shift Towards French Military Systems
One key aspect of France trading 12 Rafales for $3.2 billion in oil is Iraq’s shift from U.S. dependence. This move shows Iraq’s intent to seek new partnerships and diversify its military support network. Alongside the Rafales, Iraq has ordered 12 Airbus H225M Caracal helicopters from France.
This strengthens military ties and creates opportunities for future collaborations between the two nations. Iraq may also explore other French systems to further boost its defensive capabilities. The Rafale deal carries significant geopolitical weight in the Middle East.
By diversifying suppliers, Iraq positions itself as a more autonomous regional power. France also strengthens its military footprint in the Middle East through this deal. Access to advanced jets like the Rafale could give Iraq a crucial edge in future conflicts.
Economic Implications: Oil-for-Arms Deal
France trades 12 Dassault Rafales for $3.2 billion in oil, which stands out not only for its military implications but also for its economic significance. The decision to settle the payment through oil deliveries reflects Iraq’s effort to manage its financial obligations without depleting cash reserves.
This innovative payment structure could pave the way for similar agreements in the future, especially for oil-rich nations seeking to bolster their military without overextending their budgets.
This deal also underscores Iraq’s commitment to safeguarding its economic interests in a volatile global environment. With inflation concerns and ongoing conflicts, like the Ukraine war, impacting global markets, Iraq’s decision to use its vast oil reserves as currency helps it retain economic stability while achieving its defence goals.

Conclusion: A Strategic Military and Economic Move
France trades 12 Dassault Rafales for $3.2 billion in oil, marking a major shift for Iraq’s military capability. The addition of advanced jets, radars, and transport helicopters shows Iraq’s push to modernise its defence. This deal strengthens Iraq’s air force and boosts its role as an independent Middle Eastern power. Paying with oil highlights Iraq’s smart use of resources to achieve defence goals. Iraq’s growing ties with France could signal a new era of military cooperation and regional stability.
References
- La Tribune is a French financial newspaper.
- Arabic media reports on Iraq’s military modernisation.
- Dassault Aviation releases publications about the Rafale aircraft.
- The French Ministry of the Armed Forces has released a report.