Maj Gen Andy Salmon, head of coalition forces in Basra, received the jewel-encrusted trophy as our troops prepare to withdraw from the region.
The ceremony was organised by the Iraqis to thank the British for their involvement in the South East region of the country over the past six years.
The event, opened by the Royal Marines Band, was held at Basra Operations Command.
Maj Gen Salmon said Iraq could be the “envy of the world”.
He added: “We look to the future with, I’ve got to say, a huge amount of optimism.”