This is the Kurdish flag:
I would say either Iraq or Syria.
Iraq (as of 2008):
Syria (Assad Regime):
The newest version of the Iraqi flag was distributed in large volumes, in various sizes and media, beginning in mid-2008, using your tax dollars. This was done in order to facilitate a "National Pride" campaign that was synchronized with the standing up of pro-U.S. militia organizations (funded, including their salaries, by your tax dollars) known as the "Sons of Iraq," in many rural areas(especially border areas where IP and IA forces were lacking) in order to prevent the influence and infiltration of Iranian JAM agents and deny AQI a safehaven.
Anywho, these large quantities of hats, shirts, flags, etc were overstocked. I still have a few, including a hat that looks just like that one.