Iceland - Two Icelandic ponies are seen in Iceland, March 2016. The Icelandic horse is a breed of horse developed in Iceland. Although the horses are small, at times pony-sized, most registries for the Icelandic refer to it as a horse. Icelandic horses are long-lived and hardy. In their native country they have few diseases; Icelandic law prevents horses from being imported into the country and exported animals are not allowed to return. The Icelandic displays two gaits in addition to the typical walk, trot, and canter/gallop commonly displayed by other breeds. The only breed of horse in Iceland, they are also popular internationally, and sizable populations exist in Europe and North America. The breed is still used for traditional sheepherding work in its native country, as well as for leisure, showing, and racing.