This research aims to study and understand investment spending and its impact on the trade balance, as investment spending is considered an effective fiscal policy that plays a significant role in boosting economic activity, expanding and establishing infrastructure projects for the economy, and increasing productivity. It also plays a role in improving the export side of the trade balance and reducing imports, thus significantly contributing to achieving balance in the trade balance. The study starts from the hypothesis of whether there is a positive relationship between the study variables, represented by investment spending and the trade balance in Iraq for the period (2010-2022). It also aims to shed light on the reality of investment spending in Iraq and its impact on the trade balance. The research concludes with the most important recommendation to use various and diverse regulatory policies on investment spending, in order to ensure that it reaches its investment goals and to eliminate the degree of deviation that may occur.