Yesterday's move followed a meeting of ministers led by Chancellor Angela Merkel in Berlin to discuss what Defence Minister Ursula von der Leyen described as an "extremely critical" situation in Iraq.
Islamic State (IS) militants are acting with "merciless brutality", she told a joint press conference with Foreign Minister Frank-Walter Steinmeier, adding the international community had to support the persecuted.
The equipment, which will be delivered in three stages, will include 30 anti-tank missiles, 16,000 assault rifles, 8,000 pistols as well as portable anti-tank rocket launchers, the defence ministry said.
The first deliveries of German weapons will be able to equip about 4,000 soldiers by the end of September, von der Leyen said.
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The equipment, which has been taken out of German army reserves, is valued at USD 92 million, the defence ministry said on its website.
"The terror group, Islamic State, is a deadly threat for hundreds of thousands," Steinmeier told reporters.
Germany said on August 20 that it was ready to send weapons to support the Iraqi Kurds.
Sending military hardware is unusual for Germany which, burdened by its past aggression in two world wars, often shies away from foreign military engagements and as a rule does not export weapons into live conflict zones.
Critics oppose the idea of sending weapons to a warzone where fighters and arms can quickly change sides.
Germany's decision follows similar moves by several other countries, including the US, Italy, France and Britain.
The government shift has been politically difficult in Germany, where recent opinion polls have shown broad opposition to arms shipments to Iraq.