Does the .xn--mgbtx2b domain exist?

Yes. .xn--mgbtx2b is a live top-level domain in the IANA root zone.

Does .عراق (.xn--mgbtx2b) exist?

Yes. .عراق (.xn--mgbtx2b) is a real top-level domain, live in the IANA root zone right now.

See the .عراق (.xn--mgbtx2b) page for what kind of TLD it is. Note that existing in the root doesn’t always mean anyone can register one — some TLDs are brand-restricted.

Try to register a .عراق (.xn--mgbtx2b) domain

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This answer is generated from the live IANA root zone list, not from vibes. If the DNS changes, this page changes.