"They will also shape up their future together," Davutoglu told a joint press conference with Iraqi Minister of Trade Safaa al-Deen al-Safi and Governor Abboud Cltag Mayah of the Iraqi city of Basra.
Turkey's State Minister Zafer Caglayan is accompanying Davutoglu during the visit. Davutoglu and Caglayan are the first foreign minister and state minister for foreign trade from a foreign country visiting this Iraqi city.
Davutoglu said Turkey considered Iraq's welfare and peace as its own.
The foreign minister said Turkey and Iraq signed 48 agreements in the Iraqi capital of Baghdad two weeks ago, and Caglayan and he were visiting several Iraqi cities including Basra, Irbil and Mosul together with businessmen and journalists to see how the signed agreements could be implemented.
Davutoglu said he would open Turkey's Consulate General in Basra later in the day.
The foreign minister saw Iraq's future bright, and said hard days would pass.
"Turkish-Iraqi cooperation will change the fate of the entire region in a positive way," Davutoglu also said.
Also, Iraqi Minister of Trade al-Safi said Turkish-Iraqi relations would further improve with this historic visit.
Governor Mayah said Iraq, particularly Basra, was a center of attraction for foreign investors, and Iraqis and Turks should give hand-in-hand and eradicate terrorism.