The 23-year-old, who came through Manchester United’s academy, has signed a two-year contract with an option for another 12 months.
"We feel he adds something different and can occupy different positions within our midfield ranks," Goodwin told his club website.
"My conversations with the manager have been positive and I'm excited to meet my new teammates and the rest of the staff.
"Me and my family have seen the stadium and training ground today and that gives you that extra feel to the place and where I'm going to be playing every week."
Iqbal made one senior appearance for United, debuting against Young Boys in the Champions League in 2021, before joining Utrecht in 2023.
He has 28 international caps and made history as the first player of Pakistani heritage to feature at a World Cup finals.
However, limited opportunities in the Netherlands prompted his move to Scotland.