Iraq goalkeeper Mohammed Hameed stopped a 51st minute Corey Gameiro penalty and the Australians were made to pay for failing to take the opportunity when striker Mohanad Abdulraheem put the West Asian one up eight minutes later before substitute Jawad Khadim struck with five minutes remaining to seal the win and set up a title decider with 11-time champions Korea Republic, who advanced to the final with a 3-1 win over Uzbekistan in the earlier semi.

Iraq dominated the first-half although struggled to break down a disciplined Australia defence, with the West Asians resorting to shots from distance although long-range efforts from Ahmed Abbas, Hunam Tareq and Ammar Abdullhussien failing to trouble goalkeeper Paul Izzo.

Izzo's counterpart Mohammed Hameed was a virtual spectator for the first-half but the Iraqi keeper was called into action six minutes into the second-half when referee Liu Kwok Man pointed at the spot when defender Ali Adnan appeared to handle the ball inside his own penalty area.

Corey Gameiro had chance to join Uzbekistan's Igor Sergeev as the tournament's joint-leading scorer but Hameed had other ideas, with the imposing keeper diving to the right to get enough of a hand on the ball to push the Aussie attacker's penalty onto the post.

The penalty save lifted the Iraqis who took the lead eight minutes later when Adnan, making amends for his earlier transgression, delivered a pinpoint cross which found Abdulraheem who control the ball on his chest before guiding it expertly past Izzo.

The Aussies struggled to create the chances needed to get back into the match and with five minutes remaining Abdulraheem went from scorer to provider with a lobbed ball that released Kadhim and after beating his marker the substitute rounded Izzo to score Iraq's second and send their sizeable contingent in the Emirates Stadium crowd into rapture.