Iqbalia was circumscribed in 2022 by Iram Fayyaz, Najam Ul Sehar Afshan, and Sergey Kondratyuk.

On the phylogenetic tree of the family Teloschistaceae, it appears on a monophyletic branch between the genera Stellarangia and Kaernefia.

However, Iqbalia can be distinguished by its distinct areoles (small, isolated patches of thallus), which are separate and not clustered together, unlike those in Nevilleiella.

[2] Chemically, Iqbalia is unique for containing variolaric acid, a secondary metabolite (lichen product) not found in Nevilleiella.

Iqbalia typically grows on calcareous rocks, which are rich in calcium carbonate, while Nevilleiella is more commonly found on soil in desert conditions.