Iraq Development Road

The Iraq Development Road (طريق التنمية) is a major infrastructure initiative designed to enhance connectivity between Asia and Europe. The project involves constructing an integrated network of railways, highways, ports, and urban centers, linking Iraq’s Grand Faw Port in the south to the Turkish border, with extensions into Europe.

By reducing transit time between Asia and Europe, the project aims to position Iraq as a key transportation hub, potentially competing with Egypt’s Suez Canal. It is also expected to bolster Iraq’s geopolitical influence while contributing to regional security and economic stability.

Project Overview

In May 2023, Baghdad hosted a summit that gathered transport ministers and officials from the European Union, World Bank, Gulf Cooperation Council (GCC), Iran, Turkey, Syria, and Jordan to discuss the Development Road initiative. Iraqi representatives emphasized that the country had regained its central political role in the region and was now poised to reclaim its economic significance.

During Turkish President Recep Tayyip Erdogan’s visit to Baghdad in April 2024, Iraq, Turkey, Qatar, and the UAE formalized their cooperation by signing a quadrilateral memorandum of understanding. Transportation ministers from each country agreed to collaborate on the 1,200-kilometer transportation corridor, which will feature both rail and highway networks. The Great Faw Port, intended to become the largest in the Middle East, serves as the project’s southern anchor. The initiative, with an estimated budget of $17 billion, aims to reach the Turkish border by 2025.

The project is planned in three phases, with expected completion milestones in 2028, 2033, and 2050. Once operational, it is projected to generate $4 billion annually and create at least 100,000 jobs, significantly contributing to Iraq’s economy.

In July 2024, Iraq’s Ministry of Transport engaged consulting firm Oliver Wyman to develop an economic model for the project. The firm will play a key role in investment promotion, project oversight, and economic strategy development to ensure the initiative’s long-term success.

Conclusion

The U.S.-Iraq Economic Relations Project (USIERP) can facilitate the involvement of U.S.-based companies in the Iraq Development Road by leveraging its strong relationships with the Iraqi government. By streamlining the vetting and approval processes, USIERP can help businesses navigate bureaucratic hurdles and gain a foothold in this transformative project. U.S. participation in the Development Road and other initiatives through USIERP will not only foster economic growth in Iraq but also improve the lives of millions in the region. Additionally, these partnerships will offer American businesses valuable opportunities with the potential for substantial returns on investment while contributing to regional stability and prosperity.