In spite of continuing violence, Iraq has seen its GDP double since 2003 and recorded growth rates of 8% in the past two years.
Britain has appointed a new trade envoy to Iraq as it continues to try to cash in on the country's booming economy.
Baroness Nicholson of Winterbourne is currently the executive chairman of the Iraq Britain Business Council (IBBC).
She was personally appointed by Prime Minister David Cameron to act on behalf of the Government to increase trade and economic co-operation between the two countries.
Iraq's economy has expanded dramatically in spite of its bloody civil war following the overthrow of Saddam Hussein.
Its gross domestic product has doubled since 2003, and the World Bank says its economy grew by more than 8% in each of the past two years. Iraq's own Central Bank predicts even higher growth.
Baroness Nicholson, who is also founder and executive chairman of the AMAR International Charitable Foundation, said she was delighted with her new job.
"It is an honour and a privilege for me to accept this appointment from the prime minister," she said.
"Iraq has a vibrant and booming economy, and is a huge supporter of British industry and commerce. We must ensure that the UK understands this and makes the best of the enormous opportunities Iraq offers us."
Speaking in Baghdad, the British ambassador to Iraq, Simon Collis, welcomed the appointment.
"The United Kingdom is committed to expanding its trade and economic relations with Iraq,"he said.
"Baroness Nicholson already has a wealth of experience working here through her role as the executive chairman of the Iraq Britain Business Council.
"Her appointment as trade envoy represents a further strengthening of the commercial relationship between our two countries."