In recent years, the economic and political relations of the Iraqi Kurdistan Region with neighboring and regional countries, particularly Turkey and Iran, have become complex and multifaceted. This article employs a descriptive-analytical approach to examine the reasons for Iran’s failure to achieve economic influence in the Iraqi Kurdistan Region in comparison to Turkey’s success. The analysis shows that Turkey, by adopting an economy-oriented approach, making direct investments in infrastructure and energy, concluding trade and oil agreements, and engaging in active diplomacy with local Kurdish authorities, has been able to establish a stable and influential economic and political presence in the region. In contrast, Iran, by focusing primarily on security policies, limiting direct engagement with the Kurdish authorities, and experiencing weaknesses in its private sector’s ability to seize economic opportunities, has failed to play a significant role in the region. The findings indicate that differences in strategic approaches, an emphasis on economic objectives, and proactive diplomacy are decisive factors in determining the extent of a country’s influence in autonomous regions. This study suggests that for Iran to strengthen its economic and political influence in northern Iraq, it needs to adopt a combined strategy of economic engagement and active diplomacy.