Sultan Abad, Iraq, is the old name of the city of Arak, which was built in the period of Fathali Shah Qajar in (1231 AH) by his commander Yusuf Khan Gurji. The early philosophy of the city was the creation of a military center and the construction of a garrison for the security of the region, which over time, the field of trade and economic activity were growing. This research is based on a descriptive-analytical approach relying on various documents related to that period, following the examination of the economic and commercial conditions of this region from the constitutional to the end of the first period of the Pahlavi. The purpose of this research is to explain how exports and complaints from foreign merchants and foreign companies in Sultan Abad to the relevant ministries, the National Assembly and the factors affected the foreign trade of this province, such as carpets. The findings of this research show that the attention of the central government and foreign companies along with the Armenian participation of Arak has become one of the main centers of carpet production in the mentioned period. On the other hand, during the First World War, followed by political, economic and logistical destabilization, slowed the development of Iraq. But with the establishment of the Pahlavi government, some of the organizational and administrative centers, such as financial institutions, the Chamber of Commerce, and joint stock companies, were established there and the prosperity of commerce in the aforementioned period increased.